What would be the implications for world economy due to global Imbalance?

Until recently the discussion was on global imbalances focused on the current account deficit of the US and the current account surplus of China, making this a bilateral rather than a multilateral problem. As a result, the process of rebalancing was seen as involving adjustments in either or both of these countries, and not so much elsewhere in the world.

In the case of China, policy recommendations include an appreciation of its currency or an expansion of domestic consumption to reduce the excess of savings over investment. In the case of the US, the commonly heard suggestions include a limited but gradual devaluation of the dollar and curtailment of government spending after the crisis is over.

sovereign debt crisis in Greece, economic imperfections in US & European markets, will have a chain effect on the world economy and the world economy will be badly affected further that too silently for 2 to 5 years.