Greece, Spain, Italy, Ireland and Portugal are crushed by debt, and their economies will likely keep contracting, Jarczyk said. The possibility of default in Greece is 100 percent, over 60 percent in Portugal, and over 30 percent in Ireland, Italy and Spain.

In the United States, he continued, recovery is hindered by unemployment, the anemic housing market and uncertainty over government policies.

The result is that Western companies will invest far less in Asia, and Western consumers will cut back on consumption, leading to decreased demand for Asias products.

In general, Asian governments are in good shape, but several Asian countries are much more vulnerable than their neighbors to the eurozone crisis and threats of double-dip recession in the West. Jarczyk puts Taiwan, Malaysia, Singapore and the Philippines at the top of the list of countries with the highest exposure to Western trade impacts. While these nations will be hit hardest, others, including Indonesia, Thailand and Hong Kong, may also be hurt.

China, despite its exposure to Western trade, will continue to grow rapidly, Jarczyk said, and India is shielded from the West, but has significant domestic problems.

With this issue were pleased to highlight innovation in our industry – and some of the challenges to innovation. Dick Beercheck writes about the novel use of ionic fluids as additives, Tim Sullivan explores hurdles to innovation faced by grease producers, and Boris Kamchev tackles the idea of a national lube testing center in Russia.

– Nancy J. DeMarco

nancy@LNGpublishing.com