Berkeley CSUA MOTD:Entry 10899
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2026/05/17 [General] UID:1000 Activity:popular
5/17    

2003/11/1-2 [Politics/Domestic] UID:10899 Activity:nil
11/1    I understand how a US trade deficit translates to a downward
        pressure on the US dollar, but does a big US budget defict
        also put downward pressure on the dollar?  How?
        \_ budget deficit solution is usually issuing bonds.  A strong
                supply of US-currency based-bonds means we would have to
                work extra hard later to pay that debts.  Pretty much
                like what happens to companies which sells bonds to
                stay alive - their stocks tank.  The Federal government
                has an obligation to pay interest first before spending
                on the citizens.
2026/05/17 [General] UID:1000 Activity:popular
5/17    

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