"In 2005, the world's current account balances - exceptionally - did actually balance. Since then, the surpluses have gained the upper hand. According to the IMF's latest estimates, the world will show an overall combined surplus of $265 billion this year.

Large surpluses in China ($385 billion), Japan ($193 billion), Germany ($191 billion), Saudi Arabia ($145 billion) Russia ($99 billion), Kuwait and the United Arab Emirates (each $66 billion) more than compensate for the red ink in the deficit countries, led by the US ($614 billion), Spain ($171 billion), UK ($137 billion), France ($67 billion), and Italy ($56 billion).

The world has never seen such a profusion of imbalances - a potent source of international liquidity as well as of potential financial instability. No one is sure how, when or why, but sooner or later these figures will have to come into better balance. If we are lucky, the correction will take place without too much damage to the global economy". (David Marsh of MarketWatch)