Argument: $700b bailout would increase US deficit and interest rates
Dorene Isenberg, an economist and chair of the Economics Department at University of Redlands, in California, said it's possible that the added 700-billion-dollar debt will drag down the U.S. dollar, depending on how much confidence foreign investors maintain in the U.S. economy. "It might lead to a further decline, that's truly possible."
"Bail-out debate: For and against". BBC. 25 Sept. 2008 - Ballooning state debt: The plan would swell the budget deficit, which could fuel inflation, economists warn (Mr Paulson has asked to raise state borrowing to $11.3 trillion, from $10.6 trillion).