It’s always fun to get out the crystal ball and venture a look. Hidden among the swirling clouds are some half-revealed truths that can usually be interpreted in a number of ways. But the following is an attempt to condense some of the more important developments with a focus on what they will mean for the world and North American economies and government policies.

China has starring role in the pageant

China plays a huge role in the future pageant. With a 10.7% growth rate in the final quarter of last year, that nation is precariously near “boom times.” That has implications for asset price bubbles and strong price inflation. A $600 billion stimulus package and monetary expansion have been effective. Construction has been strong as has domestic demand for cars and homes.

China will continue to be the world’s largest market for metals, minerals and other commodities. Efforts by …