We are not responsible for the budget defecit, foreigners are. If they don't want to buy US goods and services that are exported, they have 3 choices: sell the dollars on the currency exchange market, buy dollar-denominated assets (stocks, bonds, real estate), use dollars to buy others' goods like oil.
The exchange rate reflects the world demand for paper dollars and for dollar-denominated assets.
A devaluation of a currency for a country like Argentina or Brazil is disasterious, but not for the US economy. The difference is that the dollar is the reserve currency and the peso is not.
When the Argentine government needs/wants to run a defecit, it has to go on the world market and get a loan denominated in dollars or some other currency. The only way it can pay off debt is by exporting goods and getting hard currency. It can't print money and pay its debt.
We could pay off the national debt tommorrow by simply printing money.
when I said budget defecit, I meant trade defecit.
>>We could pay off the national debt tommorrow by simply printing money. <<
Isn't that what creates inflation? So the way we would be hurt in this is through massive inflation.
Well, that is going to be fixed in short order. And since most of the world is anti-American, they will be only too glad to reject the dollar. Dream on. :)