Although disturbingly corrupt and gratingly commercialised, at least it remains a vital, proud and determined country, unafraid to deploy its superb military forces for good causes. It will respond to leadership and has historically had one when it had to have it, though there is no ground for optimism that it will be forthcoming from the present administration.

The revived trend to saving will free up money for investment and reduce consumption of foreign-made luxury goods. The savings rate has risen from zero to five per cent and the current account deficit has fallen by approximately half in 18 months, with no help from Washington. "Green" energy will cut America's fuel imports and create a relative oil-buyers' market. As about 95 per cent of US transport is fuel-based, it is now on both sides of the struggle with radical Islam. Saudi Arabia is a joint venture of the House of Saud and the Wahhabists, and US strategic thinking will have to catch up with these ambiguities. 

We should end the immediate recourse in inflationary times to automatic interest rate increases. Every one per cent rise in the prime rate raises the rate of inflation by half of one per cent until a bone-cracking recession starts the cycle over again. Governments should arm themselves with the right to impose stand-by tax increases and reductions that would incentivise saving and discourage inflationary spending and price and income increases. This is a more subtle instrument than raising interest rates that force the eviction of families from their homes and of workers from vulnerable businesses. 

These changes would rally all the markets, if presented with some conviction and panache. They would reduce deficits while promoting sensible spending and saving.

The challenge is to harness the aggressive spirit of capitalism to produce socially desirable results, without blunting or warping the powerful motivation of self-enrichment. Just taking money from people who have earned it and giving it to people who haven't in exchange for their votes while selling a fable about social justice hasn't worked well. And awaiting the ingenuity of avarice to combine with the complacency and financial illiteracy of government to lead us from crisis to crisis won't do either.