What is causing the US deficit and how can we fix it. Will it weaken the value of the US dollar?
454284
Congress is in charge of taxing and spending, not the President.  He can veto, but has yet to do so on any spending bill.  I found a great article that puts the deficit in a new light by Walter Williams.  Visit his website as well, he is very good about explaining economic theory in very simple and understandable ways.
324099
When we import products from other countries we spend US currency to purchase them. This money then goes to fuel the economy of whichever country the product came from. (We pay applicable taxes on these products that go to our local city,state and federal government.) If other countries do not buy our products and we keep buying there products this affects jobs and the value of our money. A devalued dollar can work both ways. It will affect US citizens in a negative way and affect foreigners in a positive way. Hopefully the people we trust to keep this balance can manage to keep it in check. I hope this answer puts some light on the topic.
570488
The Iraq War. It has bankrupted the country and the only reason the dollar has not dropped a lot faster is because China and Japan are supporting it so they can peddle their junk to the U S.
757922
A high inflation rate lowers the value of the dollar.  More foreigners by U.S. goods and less Americans buy foreign goods.  \n\nAmericans making a fixed wage can not purchase as many goods with inflation as they could previously.
1056033
The Project for a New American Century is about to fall apart.  The world is headed back to a multi-polar world, not very stable and it will be compounded by the loss of the dollar as the reserve currency of the world and the peaking of oil.  We're in for a bumpy ride. :(
434243
When a government prints more money and puts it into the system, it causes HYPO inflation, and then instead of needing 3 dollars for a gallon of gas, you will need 30,000 dollars.  It causes way too much problem.  You do not want that to happen, no jobs, not work and not trillion of dollars to buy it with.  \n\nNo other country would trade with such a country and eventually that country would fall into depression and total collapse.
334439
Becuase of the way that Americas econmoy is right now its not that the pound is worth so much its that the american dollar is declining at this point in time.  For some basic infomation on currency exchange go here http://economics.about.com/cs/money/l/aa022703a.htm and to learn why the american dollar is declining go here http://today.reuters.com/business/newsarticle.aspx?type=tnBusinessNews&storyID=nN21270692
1002836
We have been doing this since we de-coupled the dollar from gold in 1971.  Actually, to be accurate, the private bank called the Federal Reserve has been doing this.  When they set interest rates low, more dollars are borrowed, meaning more dollars are needed to be put in the system, so they order it up from the Treasury and print away.\n\nIf you compare the price of precious metals and real estate, two items that have fixed "value" unless something big and artificial happens to them, then you will notice that they have increased in value almost 1.5x since Bush took office.  We have had inflation of nearly 50% in the last 4-5 years.  The Fed stopped making public knowledge the M3 indicator two months ago, which is the number of dollars in circulation in the world.  This was another trick to curb inflation...if nobody knows how many dollars there are, they can't adjust the rate of exchange based on any hard number anymore.
974283
It won't. What it does is make Chinese made goods artificially cheap in the US, so China can sell more here. Some people would like to see China lift exchange rate restrictions, because it would make Chinese goods more expensive and make US goods more attractive.\n At present, the US is at a competitive disadvantage and some politicians think that removing the dollar peg and letting the Chinese renminbi become more expensive will solve the problem.\nAs far as causing chaos....No.
607862
Not in the near future.  It will continue to decrease for the forseeable future.  A decreasing US dollar will help our exports and support the US economy.
1059385
well, there are two kinds of debt. Domestic and international. So yeah, come to think of it who does the US owe money to? Maybe they haven't been paying contractors or national lending organizations, or maybe they owe the IMF or World Bank some money.
528282
Yup...everyone is right.  The dollar seems to be weakening. The trade deficit is growing, especially with China, and therefore, they have been hoarding dollars, which means that, to some extent, they do "control" our currency.  And basically, all of this is particularly hard to predict, so "who knows?"\n\nBut really, one of the bigger issues is that we've been spending like crazy with our recent budgets, and that money doesn't come from thin air (well, perhaps it does, but it does affect the currency market).  In the end, the U.S. is due for inflation, and since other nations have been more responsible in their fiscal and monetary policy, our currency will probably continue to fall over the long run.  The fact that the Chinese have been holding on to dollars lately has had the most positive effect on the dollar, but that can't last.  Eventually, all those dollars will come back here, and that will weaken our currency against theirs.
1172810
You are reffering to the Brentwoods agreement that allows currencies to float freely and have the markets evaluate rates based on fundementals and other factors, if you are reffering to a recent rate fluctuation in the INR its because of dollar weakness, the dollar has significantly weakend against the majors and other currencies like the INR \n\nheres a helpful link if you would like more details.\nhttp://en.wikipedia.org/wiki/Forex
61438
No more resulted. How can bringing less money in result in more revenue? The war effort is what raised the deficit the most. We had a budget surplus before Bush took office. The White House has now revised the 2005 deficit upwards to $427 billion. The proposal to extend the tax cuts could exceed 2.3 trillion. The accumulated trade deficit from 1971 through 2003 in dollars not adjusted for inflation is $4 trillion, 45% of which has come in the last three years.
952053
My guess is weaken, because the US economy is slowing, and oil prices are mired under $60 a barrel. Also, with the possibility of a spring election, interest rates unlikely to rise.
1020524
i agree 100%.  the creation of the fed and the subsequent dumping of the gold stantard has led to a loss of purchasing power of the dollar on the order of 98%.  the income tax is illegal so he wont find anything in the constitution about it.  and if you think there wont be any exchange controls anytime soon in the US, you better remember roosevelt's confiscation of the people's gold in the early 30's.  it'll happen again.  we have been heading in the wrong direction for too many years......
321020
its the unstable US dollar, its the world currency, if the US economy stumbles then other countries need something to bank upon thats why gold prices are increasing, and oil prices please ask Mr Bush!!!!