2NC/1NR Internal Link Flashcards
They say: “Spending Helps the Dollar”
Mounting debt will destroy investor confidence, leading to a dollar crisis. Bull 10.
Large deficits and more borrowing are unavoidable. Mounting debt could sap investor confidence pushing up interest rates and causing a fall in the value of the dollar as creditors seek safer returns elsewhere.
They say: “Spending Helps the Dollar”
Perception of rising deficits destroys the dollar - signals of fiscal discipline are uniquely important. Bergsten 4
If that deficit is viewed as likely to rise confidence in America’s financial instruments and currency could crack. Market interest rates would rise and the Federal Reserve would probably have to push them still higher to limit the acceleration of inflation
They say: “Spending Helps the Dollar”
Big budget deficits crowd out investment and risk financial volatility - threatens a dollar crisis. Economist 3
Uncle Sam’s demand for dollars is likely to crowd out private investment and reduce long-term economic growth.
They say: “Dollar Collapsing Now”
The dollar has dipped but it’s not in dangerous territory yet. BBC 17
The US dollar has fallen about 10% since January.
They say: “Dollar Collapsing Now”
Dollar strength is comparatively high now. Chisholm 17.
Major currencies are mostly weaker against the US dollar. the dollar index is up 0.1% to 97.28.
They say: “Plan Doesn’t Cost Much”
Every dollar increase in federal spending makes the imposition of fiscal responsibility more difficult. Houston Chronicle 6
For every dollar borrowed, the imposition of fiscal responsibility becomes more difficult for future presidents and Congresses.
They say: “New Spending Good for Economy”
new spending hurts the economy - the greatest risk is fiscal overheating. Reuters 17.
The fiscal policy would be upside risks, in terms of growth and pushing unemployment even further down, which you can overdo.
They say: “Deficits Don’t Hurt the Dollar”
Deficit spending undermines the dollar - investor are concerned about our ability to pay off the debt. Gilroy 14
As debt keeps on accumulating, the value of its currency will decrease because of fears within the international community.
