Bank of England Governor Mervyn King has called for a "grand bargain" of the world's major players to ensure that the burden of rectifying global imbalances does not fall on debtors alone, which feeds a vicious circle. "The need to act in the collective interest has yet to be recognised. Unless it is, it will be only a matter of time before one or more countries resort to protectionsism. That could, as in the 1930s, lead to a disastrous collapse in activity around the world," he said.