It had to happen. It's no great shock that Switzerland has overtaken the United States as the world's most competitive economy. The World Economic Forum also ranked Britain at number 13, well behind Sweden, Denmark, Finland, Germany and the Netherlands.

Also, the record plunge in borrowing by US consumers is hardly surprising in light of unemployment creeping up to 10% and beyond, plunging home and stock prices and stagnant wage levels. But the extent of the plunge in consumer credit tells us that the recovery is a long way off. It was much bigger than economists expected. Consumer credit fell by 10%, more than five times what economists had predicted.

As Kevin hall at McClatchy newspapers argues, the consumer economy is dead, all starting in September 2008 when the US government seized Fannie Mae and Freddie Mac and Lehman Brothers filed for bankruptcy.

Hall writes: "One year later, the easy-money system that financed the boom era from the 1980s until a year ago is smashed. Once-ravenous U.S. consumers are saving money and paying down debt. Banks are building reserves and hoarding cash. And governments are fashioning a new global financial order."

That means recovery will be anemic, economic growth will be around 2% and it would be five years until the economy generates enough jobs to make up for those that have been destroyed.

It will be some time before the US economy becomes competitive again.