The dollar slips to it's lowest level since 1973. What this means for you and me.

[Independent thinker]

The U.S. dollar has fallen at the fastest clip since 1973. Here's what that means.

Some global investors no longer expect the U.S. economy to outperform the rest of the world.

www.nbcnews.com

President Donald Trump wants the U.S. to increase its exports and lower its imports. Thanks to a historic decline in the value of the U.S. dollar, he may get his wish — but at a cost he may not have anticipated.

Over the past six months, the dollar has declined more than 10% compared with a basket of currencies from the U.S.’ major trading partners — something it has not done since 1973. Today, it sits at a three-year low.

The simplest explanation for the decline is that global investors now expect the U.S. economy to no longer outperform the rest of the world as a result of Trump’s tariffs and worsening fiscal issues. Even with U.S. stocks returning to record highs, the return on other countries’ equities has been even stronger. Meanwhile the return on lending to the U.S. is expected to decline as growth here slows.

It wasn’t supposed to be this way. Many, including members of Trump’s own Cabinet, assumed his tariffs strategy would strengthen the value of the dollar relative to foreign currencies. The thinking behind it was that as American consumers began to purchase fewer foreign goods, those other countries’ currencies would weaken relative to the dollar.

Welcome to trump's economy. The wheels are coming off, perhaps slower than many predicted. I guess we are beginning to understand why the United States Constitution gives Congress, and not the president, power to levy tariffs. trump is using tariffs as a weapon, even a foreign policy weapon. That is not, and has never been, the purpose of tariffs. We are beginning to see the first signs of the damage his tariffs are doing to our economy. And it will NOT be an easy fix.

Under Trump I have spent a whole lot less money in several different areas than last year under Biden. That's what it has already meant for me.

 

[Hollie]

That's only because he chickened out on his first reckless effort.

None the less, the 10% overall that remained is already affecting inflation, as was predicted.

Now that he's back to bellowing about tarrifs again, it may get worse.

He would absolutely sacrifice the country's economic prosperity to slake his childish ego.

“But…..but…..but…..but millions will die.”

 

[Man With A Plan]

I guess the magats shoulda considered all his bankruptcies, huh?

Yeah, we actually DID, Jim! When you start over 500 companies and you have 6 that file for bankruptcy that's a success to failure ratio that is off the charts good! Duh? Perhaps you should have considered that Joe Biden had been the dumbest member of the Senate for decades before you stuck the country with him for 4 long years? That's not even taking into account his dementia!

 

[Man With A Plan]

You have nothing to say. So why advertise it?

You know, Tim...after reading your posts for several weeks? I've begun to suspect that your dog is probably smarter than you are on a HOST of issues!

 

[Frankenstein]

That's only because he chickened out on his first reckless effort.

None the less, the 10% overall that remained is already affecting inflation, as was predicted.

Now that he's back to bellowing about tarrifs again, it may get worse.

He would absolutely sacrifice the country's economic prosperity to slake his childish ego.

Reports indicate that the United States government experienced a budget surplus of $27 billion in June 2025, according to the Treasury Department
.

 

[OhPleaseJustQuit]

Yeah, we actually DID, Jim! When you start over 500 companies and you have 6 that file for bankruptcy that's a success to failure ratio that is off the charts good! Duh? Perhaps you should have considered that Joe Biden had been the dumbest member of the Senate for decades before you stuck the country with him for 4 long years? That's not even taking into account his dementia!

.

It's quite entertaining to see how they refuse to understand that.




.

 

[Man With A Plan]

.

It's quite entertaining to see how they refuse to understand that.




.

They take a statistic that's totally misleading when it's not put in context and spam it over and over again until it's "fact" in their minds! If I'd started over 500 companies and only had to put 6 into bankruptcy there would be a line of people out the door wanting to do business with me. That's the guy we've got running the country now. Someone who not only majored in Economics but has been totally immersed in the business world since he was in college. Compare Trump to Joe Biden. Which one would YOU want managing your money?

 

[Nobody911]

It's likely America will not be great again. Amen!

The U.S. dollar has slipped to its lowest level since 1973, marking its steepest decline in the first half of a year in over five decades, with a drop exceeding 10% against major global currencies127. This significant depreciation reflects growing global investor concerns about the U.S. economic outlook, fiscal challenges, and policy uncertainty under President Donald Trump’s administration.

For America, this dollar weakness has several key implications:

Higher Costs for Consumers: A weaker dollar means imports become more expensive, leading to inflationary pressures on everyday goods. This reduces Americans' purchasing power domestically and makes foreign travel costlier, as the dollar buys less abroad147.

Potential Export Boost: The decline may help U.S. exporters by making American goods cheaper and more competitive internationally. Trump’s policies aimed at increasing exports through tariffs ostensibly benefit from a weaker dollar, although the overall economic impact remains uncertain13.

Rising Borrowing Costs and Debt Concerns: The large and growing U.S. federal debt, exacerbated by recent spending bills and tax cuts, undermines investor confidence. This can lead to less demand for U.S. Treasury securities, potentially raising borrowing costs2349.

Economic Growth Uncertainty: Tariffs and trade policy fluctuations have introduced economic uncertainty, causing some investors to worry about slower U.S. growth prospects and reduced returns on investments denominated in dollars137.

For the global economy, the dollar’s decline signals:

Shift in Global Financial Dynamics: The dollar’s status as the world’s primary reserve currency and safe-haven asset is being questioned, as investor confidence erodes amid U.S. policy unpredictability and increasing debt239.

Investment Reallocation: Global investors may diversify away from dollar assets into alternatives like gold or other currencies (yen, euro). This shift could alter capital flows and exchange rate dynamics worldwide49.

Impacts on Trade Partners: Countries trading heavily with the U.S. see a relative strengthening of their currencies, which can influence their export competitiveness and economic conditions17.

In summary, the dollar’s historic fall is a barometer of broader challenges facing the U.S., including fiscal imbalances, inflation fears, and policy volatility. While a weaker dollar can support U.S. exports, it raises costs for consumers and clouds the outlook for economic stability. Globally, it may mark a gradual shift in financial influence away from the U.S., driving international investors to reconsider the dollar’s dominance in the global economy1239.

sources:

1. The U.S. dollar has fallen at the fastest clip since 1973. Here's what that means.
2. Why some see the dollar's drop as a sign America is losing its financial might
3. The dollar is sinking: here's why
4. US dollar is off to its worst start in 50 years. Here's why that matters for you.
5.
6. The U.S. Dollar Is Having a Bad Year
7. https://www.nytimes.com/2025/06/30/business/dollar-decline-trump.html
8. Where is the U.S. dollar headed in 2025?
9. Why is the US dollar falling by record levels in 2025?
10. The value of the dollar is dropping. What does that mean for Americans and the world?
11. https://www.morningstar.com/markets/how-low-can-dollar-go

 

[Delldude]

The U.S. dollar has slipped to its lowest level since 1973, marking its steepest decline in the first half of a year in over five decades, with a drop exceeding 10% against major global currencies.

A weaker dollar saves money paying down debt.

Now that he's back to bellowing about tarrifs again, it may get worse.

No wonder He wanted to do something about them:

 

[justoffal]

A lower dollar is better for exporters and local manufacturers, bad for importers or citizens who want to be tourists and/or investors in other countries.

Yep .... The unit is slightly less valuable but that is quickly overcome by the abundance of units coming back home. Jim is nothing but a left-wing robot hack. He doesn't even understand half the stuff he's typing.

 

[sartre play]

Now that Hate greed& lies, With no unity in view,
from any one who depends any one party, as a fix for everything.
Nothing is ever fixed with hate as a solution.

 

[justoffal]

Now that Hate greed& lies, With no unity in view,
from any one who depends any one party, as a fix for everything.
Nothing is ever fixed with hate as a solution.

Very well said

 

[JimH52]

Now that Hate greed& lies, With no unity in view,
from any one who depends any one party, as a fix for everything.
Nothing is ever fixed with hate as a solution.

Tell Trump. He spews Hate daily.

 

[Moonglow]

Reports indicate that the United States government experienced a budget surplus of $27 billion in June 2025, according to the Treasury Department
.

They pissed that away.

 

[initforme]

To increase exports raise wages.

 

[RoshawnMarkwees]

The previous admin printed money to the tune of $1400 weekly checks and some numbskull starts a thread as though the dollar just now lost value? How did I miss this stupid thread? Oh, that’s right. I have the OP on ignore.

 

[Moonglow]

The previous admin printed money to the tune of $1400 weekly checks and some numbskull starts a thread as though the dollar just now lost value? How did I miss this stupid thread? Oh, that’s right. I have the OP on ignore.

How much did Der TACO print and hand out during his presidency of the first term?

 

[OhPleaseJustQuit]

The previous admin printed money to the tune of $1400 weekly checks and some numbskull starts a thread as though the dollar just now lost value? How did I miss this stupid thread? Oh, that’s right. I have the OP on ignore.

.

Wise move.

.

 

[Natural Citizen]

They're not gonna be able to give another Plaza Accord a go. I guess they're rebranding that as a Mar-A-Lago Accord now.

I only mention this because some of the humorous justification invoked by some of the usership in this thread seem to be implying that.

Anyway. Devaluation of a nation's currency is pretty much the de facto path toward the insolvency of a nation.

 

[Paradoxical#1]

Tariffs are a tax on Americans and anyone purchasing goods. They were never supposed to be used as weapons, but the man/child named trump is using them as that. And it is going to blow up in repub's faces. But he won't care, cause he will be gone and tax payers will be paying for him after office. The tariffs are going to cause long term damage to our economy. It is slow to start but long to stay.

I haven't bought anything except food and gas. Tell me how I am "taxed".