China closed economic relationship

We explain why China has had a close enough economic relationship
with the U.S. economy and its monetary policy to almost
justify calling it the 51st state. We think this relationship is a bulwark
against a messy resolution of the problem with the current
account deficit. But an orderly reduction in the current account
deficit and the avoidance of a sudden break with China still will
not mean that American investors will escape any pain from the
rebalancing of the nation’s current account credit deficit. A reduction in
this deficit still will mean a weaker dollar, higher interest rates,
and higher consumer prices