For its part, the United States finds congenial a world in which a dollar sent to China for cheap goods comes back overnight in the form of a near-zero interest loan, which can then be recycled through the U.S. financial system to create yet more cheap credit.Neither partner in this monetary marriage is, therefore, likely to file for divorce any time soon.
This is from the highly influential political think tank the Council of Foreign Relations CFR via Benn Steil and Dinah Walker.
I say “deficit without tears” because the above resonates with the unsustainable free lunch system from the de facto world monetary standard, the US dollar system, aptly described by Jacques Rueff.
"Deficit without tears" has widespread global economic and financial repercussions (e.g. financialization and global boom bust cycles), as well as, geopolitical ones (think Scarborough-Spratlys dispute).