the question is how long before the rest of the world's economic woes slow down China & India?

When they slow down some more, or stall, we are looking at going from mining boom to mining bust.

That's ok SNAG, it will reduce our carbon footprint. All those employed in the mining industry can get jobs running wind farms the next day. No need to worry, the greens have it all worked out.

Did you notice that the wind farm on 4 corners a few weeks ago was supplied by a Spanish owned company? So much for their Green eCONomy.

Sour grapes will get you no where.

James I think you have a somewhat myopic view of economics in its current form.

We don't just have a problem in the U.S. and Europe, we have a much bigger global problem. Debt is bubbling up everywhere and given our fractional reserve banking system we need continual growth so that money can be created (lent) into the system at interest.

Without growth, interest and the principal cannot be repaid (thus the current printing QE1,2,?3 and the whole Ponzi scheme grows until it bursts.

We also have a huge energy problem that is not being discussed, at least not publicly. Without cheap energy, economies cannot grow and we are now at the forefront of a terminal decline in the supply of cheap energy (particularly oil which is a key component of any functioning society).

France is going to be the next big European problem given their banking exposure to Italy, Greece, Portugal and Ireland in terms of cross bank lending. This is slowly spreading further to the U.S.

Given the current lack of leadership at the Democrat level, and the offerings being put forward for the future from the Republicans it is obvious the U.S. has no solutions and is looking to kick the can further down the road.

There is no value at the political level trying to sell bad news so it is swept under the carpet and society will be the one to suffer in the longer term.

People need to get used to the recession/depression cycle it will continue and worsen from here on in. Relocalise, learn to grow your own food and get to know your neighbours. You may need them sooner than you think!

Like Globalisation, the EU and thus the UN are doomed, you don't have to be a genius to work this out, exponential growth on a finite planet is simple maths.

I’m not sure I can agree that Europe is the apotheosis of Western civilisation. Much changed after WWII, a good deal of it behind the Iron Curtain. Since the fall of the Soviet Union, they’ve done wonders ... without the bother of paying for them. If it’s not clear now that EU nations can’t afford their expansive social programs, it never will be. In contrast, the US is finally doing what European nations should’ve done a decade ago: making the painful adjustments necessary to live within their means. It’s not a given they’ll manage it, but deficit spending has been recognised as a serious problem since the Reagan years, and the issue resonates with cash-strapped voters. Unlike Australia and Europe, the Yanks are free to restructure in both the public and private spheres. The deals GM made with government and their unions to lift productivity after GFC Mk I would be impossible in Australia, probably illegal in Europe. But GFC Mk II looms, and this time we’re not going to get off lightly by writing $1000 cheques to voters and building $500,000 school dunnies in the regions. We need robust budget discipline, and serious productivity gains. Australia is not competing with the US and the EU -- our rivals are in South America, and China is backing new contenders for our resource businesses in Africa. We need to prepare for heavy economic weather. The Precautionary Principle asserts that we don’t indulge ourselves with massive new undertakings -- carbon and MMRT taxes, disability insurance, new IR safety nets, etc -- unless and until we’re satisfied beyond reasonable doubt that the timing of these major new initiatives won’t lead us into harm’s way when/if EU bankruptcies trash the global economy. Again.