Data released this week show that China is still flying in the face the global economic slowdown. Retail sales there soared 21.6% year on year in May, despite a devastating earthquake and stock market slump. Exports for the same month surged 28.1%, even as demand in major western markets faltered.

The ballooning US trade deficit is good news for the world’s sovereign wealth funds (SWFs). Current assets controlled by Sovereign Wealth Funds are estimated to be $3 trillion. They are expected to reach at least three times this amount over the next five years.

U.S. consumers barely had time to get used to the idea of $4 a gallon gasoline before prognosticators started talking about $5 a gallon fuel. And unfortunately for the U.S. economy, the worst is yet to come.