I think USA will be OK. Sure China will grow fast. But USA problem is tempo. Some systematic changes are needed to prevent future Murdock and too big to fail from happening. IMO Obama is going in the right direction. But USA is still the greatest nation on earth although not perfect. It will find its own strenth before long and will lead the world again. Just watch.
A huge component of your assessment is due to the obvious manipulation of the U.S. equity markets, which clearly indicates the markets are not free. They are still much better than most, but (as you said) the credibility is gone and the growth is no longer in U.S. markets (only hopes for a recovery). It really doesn't make any sense for wealthy foreignors to invest in the U.S.. It's a good think we (the U.S.) have a strong and technologically advanced military.
spending more n more money.....
I love it, i know 2 ppl, that each live in 500k + homes that do not pay morgages, taxes etc, just pay the electric bill, and they live free. Banks are not even taking the homes back.
Free Society has been created, and to top it off, they are saving their money each month and on i know is saving some 4000 a month.
First thing cribbing Americans should do is force SEC to reinstate Uptick rule. Since, it was taken out, market tanked from 14k to less than 7 k. It is not conicindence that this happened. The uptick rule was there since the Great depression.