Latin America is also heading downwards. Argentina is struggling to meet its commitments to the IMF without being forced to devalue its currency. Mexico is beginning to lose out because its major export market, the US, is slowing down. And Brazil will face problems if the other Latin American economies head into recession. In Europe, Turkey is already a busted flush and going into slump and Poland is also failing fast.
European leaders seem to be maintaining their complacency.
But it won't last if the rest of the world collapses. This year, Italy and Britain go to the polls. Next year, Germany and France do. Just as President Bush and PM Mori are finding it difficult to keep capitalism on track now, so will Messrs Blair, Berlusconi, Schroeder and Jospin find it increasingly tough over the next year.