I am taking two courses this summer session, one of which is “International Monetary Economics”. While I was excited on the first day of class, this course, like other economics courses is a huge *yawn*.

The course is actually quite interesting. Topics include, how foreign exchange rates are determined, and the factors that influence it such as the money supply and demand. I’ve learned fun facts such as: the U.S.A became a debtor nation in 1987 (think Reagan), and that the deficit is 6.5% of the nation’s GDP . Argentina’s was 3.5% before investors pulled out. So scary, scary, scary. Its also fascinating to see how much the dollar is used in exchanges throughout the world as a vehicle currency (to transfer dinar to rupee, you would exchange dinar for dollars and then rupees for dollar as transaction fees are a lot lower than if you had to transfer dinars for rupees). I also like the equations: Deficit = Taxes - Expenses where Taxes are lower than Expenses.

Then there are also the other random things I’ve heard at various places that makes me wonder if (and how) they tie into the U.S Budget. Such as, is it really true that the US tax revenue only manages to pay the interest on the deficit? Who sets the deficit interest rate? Does the U.S. get a lowered rate, if they make timely, 36 consecutive payments? Does the U.S. have an emergency fund? What will happen if the oil is not traded on the dollar anymore. Does the budget number I got from the White house include the deficit (haven’t had time to read the document). Does thebudgetgraph.com include the deficit - doesn’t look like it…

I only wish the Econ textbook didn’t put me to sleep. If texts were designed like Personal Finance books, I think I would spend more time reading them and less time falling asleep on them.