BB,

I think the economic effects are already spreading to America. The manufacturing jobs that built America's middle class are mostly gone, and won't be coming back. Although college education levels increased post WWII, the vast majority of those jobs were held by high school graduates. With even more college-educated young people, it does appear that we might be heading toward a highly educated service sector class of Americans - college degrees and making lattes at Starbucks, etc.

More and more I've talked with other Baby Boomer generation people who think that their kids may never own their own homes unless their parents can help them swing it. That's been the case with peers of my 31-34 year old kids. A young couple in New York City generally cannot afford a $700,000 apartment, even if they work on Wall Street. Similar situations in D.C. and San Francisco area with "starter" homes going for $400,000 to $600,000. I don't have that much into my own new home, so it isn't likely I'll be making a down payment on one of those for my kids.

I don't know what the future holds, but I think the days of the American Empire are rapidly fading.

Sg