America and its obsession with money has led to governments which are only interested in one thing "dollars". There is no future for the planet earth if we continue with the existing thinking patterns which do not take environmental needs into account for each decision made.

Jim Wills, Brisbane, Australia

I am afraid to disappoint Irwin, but America is in decline like the Roman Empire once, and this time, it's not temporary. Asia is the future superpower.
And this decline is in every dimension: military, economic, finance, culture. Only some major players are left (Apple, Google) but for how long?

Ahmad, Tunbridge Wells, UK

America is finished. The multinationals know it and the mega rich know it, and even the ordinary rich are beginning to see the corpse in the bedroom. The best thing you can do if your an American with any wealth is convert it into anything but dollars and get on a fast plane out of there.

kevin, Lincoln, UK

With the idea of OPEC's trading of oil being switched from dollars to euros, or even multiple currencies, at least on the table for discussion, and with OPEC's complaint of US economic mismanagement and refusal to increase production, a falling dollar becomes a very real reason for oil-producers to switch and leave a large hole in the US balance-sheet.

Kevin Sweeney, Edinburgh, UK

Never asked yourself what this type of tax-rebate really is? It is helicopter-Bernanke fighting the credit-card-hangover!

But America has a big "advantage": Real-wage-adaption to world standards will be swift and profound.

Peter Vernunft, Berlin, Germany

Calling Irwin Stelzer, this is planet earth.

Your relentless optimism about the US economy seems to indicate you have become detached from reality. I can recommend a good psychiatrist.

Keith, Ashford,

BUT - You cannot be a superpower if you are broke....

peter Andersson, Palma, Spain

Unfortunately, wishful thinking is only that... Bernanke has consistantly been behind the curve on the developing financial crisis. And the tax rebates, etc. will not be sufficient to counter the recessionary mentality that has already set in. Fed tinkering will only prolong the downturn, and will not be the quick-fix the politicos are desiring before elections.

Rick Friedl, Edwards, USA/California

The levels of US debt, federal, company and personal, are unsustainable. They're denominated in dollars. Halve the value of the dollar - or cut it to a tenth or a hundredth - and you reduce the debt burden similarly.

America needs, and oh-so-quietly wants, serious inflation. Duck!

Noel Falconer MEcon, COUIZA, France

I think the .U.S. has decided now is a good time to have a controlled recession . As Irwin points out Chinese prices are starting to move closer to american costs . America seems to be treading water , allowing its oppnenents to catch up and have to deal with the social problem`s this will entail . Wages , union`s , health , etc . Thing`s that they ignore at the moment .
. But the U.S. is a huge economy and when it restarts on a more level playing field it will be a force to reckon with . While we in Europe with our ever increasing cost base , will be the one`s in trouble .

jerry hurley, Cork, Ireland

The levels of US debt, federal and commercial and personal, cannot be sustained. They're denominated in dollarst. Halve the value of the dollar and you halve the value of the debt - and the same applies if you cut to a tenth or a hundredth.

America needs and, quietly, wants serious inflation. Duck!

Noel Falconer, COUIZA, France

Perhaps what academics on both sides of the spectrum have been saying for decades is true - the old nation state is transforming. The key to every successful revolution is not battlefield victory - but a matter of when the old order simply cannot locate and control the source of the revolution. In this case as Warren Buffet said yesterday, multinational capital is going to do everything possible to keep hidden from MrTaxman who is hardly above suspicion himself as to motives.
Ironically we find the urge to deregulate serves to weaken the nation state -by allowing hitherto bogus financial activities to flourish.
. It's as if history, or nature adopt whatever masks they need to get their way - and they always get their way. The assumption that everything is cyclical and must return to a previous identical state is known anthropologically as "The myth of the eternal return." It's a "feel good" concept but I would not bet on it.

glenn schaefer, holbrook, USA

It was always fairly obvious that the US would choose to inflate its way out of its foreign debt obligations. The mugs are the countries that stocked up on US debt. We're at the beginning of a once in a century shift of global economic power. Learn from history the various ways these things work out.

John Small, Faversham,

six months ago the fed was saying that the economy was strong and the subprime was contained

i would not put too much faith in their forecasting ability

the economy is so bad that some guy who is three years removed from the state legislature
can promise all things to all people and lead the
race for president

thats how desperate people are

wall street guy, new york, usa

"Even the Fed is predicting that the economy will grow more rapidly in the second half of this year..."

Irwin, you say this as if the Fed is traditionally the most pessimistic commentator. It's the Fed's job to be optimistic rather than realistic - just like our Chancellor.

My question of the Fed would be what has it gotten right recently. Not so long ago the subprime crisis would be "contained". I would be more inclined to listen to the Fed and then assume the exact opposite.

Andrew , Dundee, UK

Mr Stelzer, denial is a river in Egypt. I figure that recession is an unspeakable word for you. That's all right. I will say it for you. The US is in a recession or is about to go into one and it is the consequence of the unwinding of a credit binge, just like a bad hangover after a wild drinking session. Sorry, someone just has to say it.

anthony, london , england

The average American consumer completely spent, the US government printing money like a Zimbabwean government, the US dollar falling, and inflation about to run rampant. Of course not forgetting a Government technically broke, and still going for broke. Oh my god, Irwin the empire has fallen, but the Emperor still has his clothes. You are an optimist, American needs them.

Des, Perth , Australia

The fiscal stimulus and the lower interest rates will keep recession back until the US presidential election in November. But once the inauguration is complete in Jan 2009, I think we'll see full blown recession in the first two or three quarters of next year. That is when the REBALANCING, which must happen, will occur with a vengeance. However, the issues of unemployment, foreclosure and economic devastation will be removed, to some extent, from the election campaign, which is what Bernanke is really trying to do.

The appalling economic consequences for the middle and working class in the US are going to be delayed but from 2009 onwards there is going to be economic carnage. And the Democrats will be left, as they always are, having to sort out the mess. It will take two terms from Obama to do this. By which time Jeb Bush will be ready to start all over again!

Neil, Walton, UK

My view to this comment 'hold off on the Prozac, at least until this summer, when we might just find that lower interest rates and the stimulus package provide that bridge over troubled economic waters'.

DREAM ON IRWIN!!!!

D Rumsfeld, London, UK

You have left out a rather large gorilla in the room: American government borrowing and spending. This administration, not the soundest fiscal mind on the planet at the moment, has dug a hole in the sands of Iraq and has poured a trillion dollars into it, almost all of it borrowed. More will be poured into it as well over the next "hundred years." Crikey! That money, invested in infrastructure, health care, poverty programs, CCC, WPA type employment programs, education stimulus, would have cured many an ill and done the economy wonders to bridge any recession. I can hardly wait to see what the new 10,000 dollar bill will look like. I suppose it will have Bush's simpering face on it. Sigh.

Stephen Miles, Fayetteville, NC, USA

No problem with the economy, our main concern is "Should we get rid of our pennies"? That's what the boys in Washington are spending their time on.

Larry Trochtenberg, St. Louis, Missouri