The Economist has issued its predictions for the world in 2008, and here's what they're banking on: The Democrats, and particularly Hillary Clinton, narrowly win the upcoming presidential election. Meanwhile the United States, which has never met a bubble it doesn't like, will get mired down with housing and credit problems. And looking for a new economic engine, the world will turn to China and India. Even better for China, it will host the Olympics in Beijing, win many medals, and feel like it has arrived (or rather re-arrived) as a nation. But perhaps feeling a bit too proud, it might ratchet up tensions with Taiwan, while the U.S. surprises everyone, even itself, by possibly striking a "grand bargain" with Iran. Other than that, George Bush will accomplish little during the last year of his administration, and politicians will talk lots about climate change. But whether they actually do anything is anyone's guess.
For more predictions, check out The Economist's full write-up, and keep an eye on The Economist podcast (iTunes - Feed - Web Site) where I'm sure these issues will get fuller coverage in the coming days.