The growing external deficits of the world’s “sole superpower” have put the global economy on a path that is not merely unsustainable but also dangerously so. This has been the theme of my last two columns (www.ft.com/wolf). US and Asian policymakers seem determined to take no decisive action in response. This is understandable, but a big mistake.ll

This year, according to last September’s forecasts from the International Monetary Fund, the US deficit should reach $631bn (see chart). It will absorb close to a sixth of the rest of the world’s gross savings. The biggest suppliers of funds are Japan ($159bn), “old Europe” (the eurozone, plus Denmark, Norway and Sweden) ($138bn), the Middle East ($104bn) and non-Japan Asia ($154bn).