And now, the good news

Fifth, China and India, with one third of the world's population, continue to have scorching economic growth -- 11 percent in China, 8 percent in India. And they're growing increasingly interconnected with the thriving economies of the core. Hundreds of millions of people are rising out of poverty, and despite high oil prices, we have solid economic growth in North America and Latin America and even some growth in sclerotic Europe. The world economy has never been in better shape.

The cloud. Do we still face problems?

Sure. Iran, to name one -- though its ally Hezbollah seems to have overreached. North Korea, to name another. Baghdad is a mess with sectarian violence. Islamist terrorists continue to plan mayhem against us, and in Europe, Muslim immigrants threaten to impose their values on free and liberal societies. But as we ponder these problems, we need to take a deep breath and reflect on the larger picture, as Thomas Barnett does in his blog (www.thomaspmbarnett.com/weblog):

"Plenty of people look at the world today and see only decline and violence and chaos since 9/11. I am amazed at how little the Functioning Core of globalization has suffered since that date: no real violence or threats of same amidst our ranks, slow but steady political integration that's still not keeping up with the economic bonds that are booming, spotty but emerging sense of shared security values, and the usual pinpricks of harm inflicted by terror and God, but all in all, nothing really bad despite all this 'tumult' centered in the Middle East and the rising price of oil."

Even so, most Americans continue to moan and groan about our situation, and to yearn for the holiday from history we seemed to be enjoying in the 1990s. As Barnett argues, "Time is on our side, as are all the major dynamics that count -- energy, investments, demographics, sheer firepower, enduring ingenuity, strength of our societies, our enduring resilience." With fits and starts, the core is expanding, connectivity is increasing, and the gap is closing.