Gideon Rachman had a dream… more, a nightmare, but presumably it happened while sleeping, so “dream” will be a fine name for it.

Now, it will keep me awake all night, preventing me from sleeping, and this will be the nature of my waking nightmare. The closing lines are … plausible, and I truly hope it never comes to be.

RTFA: http://www.ft.com/cms/s/0/d585da1a-fc3d-11dd-aed8-…

It is November 7 2012. At three in the morning, an exhausted-looking President Barack Obama appears before weeping supporters in the ballroom of the Chicago Hilton and concedes defeat. The euphoria of his victory-night speech in Grant Park four years earlier is a distant memory. The Obama administration has been overwhelmed by America’s economic problems. Sarah Palin is the new president of the US.

Elected on a ticket of populism at home and nationalism overseas, President-elect Palin starts to take congratulatory phone calls from foreign leaders. First on the line is Avigdor Lieberman, the prime minister of Israel; then comes President Vladimir Putin of Russia. Five different leaders claiming to speak in the name of the European Union try to place calls – but they are all put on hold. As for the Chinese leadership, the new president is not speaking to them. How could she, after she has campaigned against the “communist currency manipulators of Beijing”?

The Chinese have resisted the temptation to call Mrs Palin a “capitalist running dog”. But Maoist language is creeping back into Chinese official discourse, as the country struggles to adjust to the collapse and closure of its export markets. Alarmed by the large number of unemployed in the cities, the Communist party has abandoned plans to privatise rural land and invested heavily in public works in the countryside and new collective farms. This policy is swiftly dubbed “the Great Leap backwards”.

The world event that had most damaged Mr Obama was Iran’s successful test of a nuclear weapon in 2011. The Republicans had hammered home their message that Mr Obama was “a second Jimmy Carter”, who had been duped by hopes of striking a grand bargain with Iran.

The Iranian nuclear test had also driven Israeli politics even further to the right and set the stage for the rise of Mr Lieberman. His campaign slogan in the 2011 election – “bomb them while they are on the toilet” – was borrowed from Mr Putin and chanted gleefully by Mr Lieberman’s Russian-speaking supporters.