The US current account deficit approaches one trillion dollars, absorbing 75 percent of world surpluses. A fire sale of US debt could cause a global recession through disorderly devaluation
of the dollar, raising interest rates and crashing stock markets. The G7 doctrine of shared responsibility intends to coordinate regional efforts. There is meagre political capital in most
regions for these reforms. The devaluation of the dollar could be faster than G7 policy coordination. This book analyzes the main issues and individual regions, including China, Japan, the
EU and the USA.
