President Bush is seeking another 600 Million dollars for tsunami relief. Thoughts? Total will be $950 Million now. I am a fiscal conservative so this is a little bit distressing. I like President Bush, however with the war in Iraq and this relief aid I feel that we are definately living beyound our means. I know that deficit spending can be a great thing, but only to a degree and I believe that we have passed that point where our debt could quickly ballon out of control. Thoughts?

Id rather it go to tsunami victims then to the unjustified war in Iraq

i'd like to see us cut of aid to most of the world because they are bitches

agreed moo

We passed that point a long time ago. Were up to seven trillon or so dollars of debt...

The American dollar means nothing more than the American promise to pay. Once the world demonstrates one time that we can't pay, we're off to Hyperinflation City.

$600 million is not much in comparison to our over-spending in misguided military efforts, especially when compared to serious disaster relief. In general, a lot of money is spent, that is true. It is also true we have a serious debt. A lot of countries have debt and I think that, as it stands in reality, we're a world-wide sort of power regardless of that. It's funny how the public seems so eager to fund an expensive war effort but when a humanitarian effort presents itself then it is scoffed at. Whatever power or perceived power should be used in setting the right example. Sort of an actions meeting words thing.

If that happens any time soon, which I don't think will, I'm calling for impeaching bush.

That's not gonna fix anything. The problem's been around since the mid 1800s. The simple fact is America relies on its strong economic past to insure the dollar's value. In about its first hundred years, America had in its national treasury enough gold coin to back up every paper dollar it printed. For the last 100+ years, that hasn't been the case at all.

Because we are such an industrial and commercial giant, this hasn't been a problem. But if anything ever happens to necessitate the exchange of a VERY large amount of American currency (for instance, as a result of a thermonuclear strike on an urban US target), then I see the American dollar devaluing very very quickly.

But the dollar will, likely, never devalue. Or at least not suddenly or for a long time. Many countries count on our currency to keep theirs economy stable. If our currency ever truly falters, then the rest of the world will be there to pick it up because it means a shitload of trouble for them as well.

we should send the one thing we have in excess that no one will miss...some hard-working illegal immigrants, especially mexicans. Instead of deporting them home, we should send them to india to help the victims of the tsunami.

complete sarcasm, dont get your underwear in a bunch

I personally believe the big political figures should take the resources out of playing world police and put them into our own stunted economy. If we weren’t taxed so much to fund their infatuation over seas, there could possibly be less companies moving out of the country seeking tax relief, and making it more likely for Americans not to have their jobs out-sourced.

Actually it devalues every year because of Inflation. And more and more countries are investing in the euro instead of the dollar.

as i said, it won't have a sudden drop in value. yes, it is devaluing slowly, but in some ways that is good. It increases our exports and, eventually, will raise the value again.

How does a devaluing dollar increase our exports?

Inflation means that the American dollar is in smaller demand on the global money market. The global money market exists because when importing and exporting goods, you can only buy goods in the seller's local currency. For instance, we can't buy PS2s from Sony Japan in American dollars; we have to pay in yen. So in order to buy a case of PS2s, we have to exchange American dollars for Japanese yen. Every time you do this, you create a supply of dollars and a demand for yen. Remember your econ course, law of supply and demand? Demand drives the market price up, in this case, it drives up the exchange rate. In the same way, excess supply drives the market price down. Congratulations, by importing your case of PS2s, you just inflated the dollar and deflated the yen.

If we export goods, it means that the importing nations have to exchange their currency for the dollar, which DEFLATES the dollar and makes it MORE valuable. So moo, you're wrong. A devaluing dollar is a result of DECREASED exports and increased imports.