i don't think the situation is nearly as bad as people think it is, and i don't think it's going to get as bad as people keep saying it will. one thing for sure, india and china are challenging the US in its position as the dominant superpower of the world and it's entirely as a result of the US pumping money into their economies instead of its own. what's next, africa?
Vietnam. You can already see that India and China are getting too expensive somewhat. Vietnam is ready to take their place, at least for the extremely cheap labor. India is developing more towards the knowledge/information side (if you call a computer helpdesk there's a good chance you're rerouted to India already). Besides, India and China together are around 40% of the world market; they have a good place to sell their goods.
After Vietnam it will be South America, probably in 40-50 years time (earlier if they're smart over there). Africa still has too many internal problems.