In case nobody noticed, the US Dollar is CRASHING....

[getagrip_already]

https://www.investing.com/currencies/us-dollar-index

Click on the 3 month view.

Destroy the US Economy: Check.

What is a Weak Dollar?

A weak dollar refers to a downward price trend in the value of the U.S. dollar relative to other foreign currencies. The most commonly compared currency is the Euro, so if the Euro is rising in price compared to the dollar, the dollar is said to be weakening at that time. Essentially, a weak dollar means that a U.S. dollar can be exchanged for smaller amounts of foreign currency. The effect of this is that goods priced in U.S. dollars, as well as goods produced in non-US countries, become more expensive to U.S. consumers.

For an in depth dive:

?feature=shared

[hlthe2b]

1. The subtitle for every GD post: (we are f..ked)

[getagrip_already]

3. true, unless you are in the middle of a trade war.....

Exports are also crashing.

[yardwork]

4. But nobody wants to buy from us.

Trump has alienated all our allies and trading partners. Canadians are boycotting US goods. China is buying beef from Australia.

Basically, any democracy that has other options will choose to trade with other countries and snub the U.S. Citizens of other democracies will shun U.S. goods.

Russia, North Korea and Iran aren't great markets.

[yardwork]

9. Sure. Apple will be fine.

I'm happy for Apple. The weak dollar and special rules for Apple re Chinese tariffs make this a terrific time to be Apple or own Apple stock.

But there are a lot more companies that will be hurt by all this.

[EYESORE 9001]

8. U.S. International Trade in Goods and Services Deficit

February 2025: $122.7B deficit.
https://www.bea.gov/news/2025/us-international-trade-goods-and-services-february-2025

[getagrip_already]

11. this data is only through february, before the trade war impacts are felt....

Companies are reporting net drops in exports. Some may be up, but many more are down.

[dutch777]

13. Lowering the dollar's value by itself would have been okay. Coupled with all the turmoil and bad actions......

...of the tariffs and counter reaction by other countries and their people to them, it is lunacy in economic terms. Navarro, Lutnick and company assumed that they could institute tariffs with little to no push back. They were stupid to think that and all seemingly missed that even if Trump succeeds in brow beating other governments to lower their trade barriers, that only has value if the businesses and consumers in those countries still want to buy American. The likely outcome is some barriers will be lowered but due to the bad faith way the US is going about this whole thing, a US label will be the last thing anyone wants on their goods or services purchases going forward. Trump seems to think we have lots of stuff no one else can make or make as good as us. Nothing could be further from the truth and it is whimsical thinking at best.

[Dreamer Tatum]

5. That makes American goods relatively cheaper, and will help the trade imbalance.

And should help US employment, to boot.

[WarGamer]

6. Exactly...

[Quixote1818]

19. Probably not in this current climate

1. Global Supply Chains Are Sticky
Many products are made with global parts and long-term contracts, so buying habits don’t change quickly.

U.S. manufacturers often rely on imported materials, so higher costs can blunt any export advantage.

2. Inelastic Demand for Key Imports
The U.S. imports lots of energy, electronics, and pharmaceuticals—many of which people keep buying regardless of price increases.

3. Foreign Producers May Eat the Cost
Foreign companies might lower their own prices to stay competitive, absorbing the currency shift rather than losing market share.

4. Currency Wars & Rebalancing
Other countries may weaken their currencies in response to maintain their own export competitiveness, negating the dollar’s decline.

5. The U.S. Consumer Appetite
U.S. consumers and businesses have a strong demand for foreign goods. Even if they get more expensive, that demand might not shrink fast enough to narrow the trade gap.

In the early 2000s, the dollar fell for several years but the trade deficit still widened for quite a while. It took years before any improvement was noticeable.

[Blue Full Moon]

10. They want to make crypto currency our country's currency

[gab13by13]

16. Exactly, Crypto is up.

[Blue Full Moon]

23. It's been the plan since they started this

They kept saying it was going to protect their wealth while destroying the rest of US financially. El Salvador was their test. No records of what is being purchased.

[IrishBubbaLiberal]

12. Well, it's not crashing at all...Look at 5-yr EU-USD chart

It’s just not that big of a deal.

Look at the 5-year chart
Look at the 10-year chart

https://www.xe.com/currencycharts/

[getagrip_already]

14. It actually is a very big deal in context with other events...

Foreign investment in anything based on the US dollar is in shambles. It is affecting far more than the cost of our exports.

In context with the trade war, the fed chair attacks, a recession rapidly setting in, and this precipitous drop in the dollar, all point to a crisis of confidence in the us economy.

This drop is sudden, and it may not have a bottom as foreign investors look to cut their losses. It can be a cascading runaway.

Let's say you are a european investor and you put 1.15M Euro's into US markets in January. Your 1.15 M Euro's would be worth ~$1.15M. Even if the investment held steady, right now that investment would only be worth 1M Euro's.

Poof. And there doesn't appear to be a bottom.

Fluctuations do happen over time - slowly, and there are compensating controls which apparently don't exist at the moment.

This can really hurt our economy overall, even if a few exports do better.

[Dreamer Tatum]

15. Can you explain why the dollar "crashed" in 2022/2023, then? nt

[Quixote1818]

21. Actually, the U.S. dollar didn't crash in 2022 or 2023. In fact, quite the opposite for much of that period.

The U.S. Dollar surged in 2022 and peaked around 114 in September 2022, the highest level in 20+ years.

The dollar began to weaken in late 2022 / 2023. While there was no "crash", the dollar pulled back from its peak

[Dreamer Tatum]

22. I got the time period wrong, but the point is the same. nt

[Initech]

17. Literally anyone doing this much damage to the United States would have been given the heave ho by now.

It's absolutely infuriating that Fuck Face and Fox News continue to get away with it. We have to pry Fox News' iron grip on our country now.

[GreatGazoo]

18. USD is pegged to oil

To oversimplify: Oil is down so the USD is down.

The EUR will likely fall as Ukraine collapses and the EU announces new taxes and bonds to pay for war toys. Meanwhile if the Iran conflict goes hot the USD will rise with oil. It's all a nasty game. A good time to be in gold.

[kentuck]

20. We can always use Bitcoin as the currency of record.

Just think of all the money. $$$$$$$$$$$$$$$$$$$