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U.S. Dollar Continues To Fall In Value

May 11, 2021 8:48 AM ETUUP, UDN, USDU19 Comments
John M. Mason profile picture
John M. Mason


  • The recent news out of the U.K. seems to have resulted in a further decline in the value of the U.S. dollar, a decline now in its 14th month.
  • The fall in the dollar's value seems to be pretty much "across-the-board" and will apparently continue at least throughout this year.
  • Investors seem to be very wary of the economic policies coming out of Washington, D.C. these days, as the Biden administration, supported by the Fed, might be too aggressive.
  • Forecasts for the future have the value of the U.S. dollar declining even more.

British currency atop US
Photo by MMassel/iStock Unreleased via Getty Images

The U.S. Dollar has taken another hit, as the British Pound jumps up after the recent elections held in the United Kingdom.

On Monday morning, it was taking $1.4140 to purchase one pound. One week ago, the

This article was written by

John M. Mason profile picture
John M. Mason writes on current monetary and financial events. He is the founder and CEO of New Finance, LLC. Dr. Mason has been President and CEO of two publicly traded financial institutions and the executive vice president and CFO of a third. He has also served as a special assistant to the secretary of the Department of Housing and Urban Development in Washington, D. C. and as a senior economist within the Federal Reserve System. He formerly was on the faculty of the Finance Department, Wharton School, the University of Pennsylvania and was a professor at Penn State University and taught in both the Management Division and the Engineering Division. Dr. Mason has served on the boards of venture capital funds and other private equity funds. He has worked with young entrepreneurs, especially within the urban environment, starting or running companies primarily connected with Information Technology.

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Comments (19)

There will be a reckoning someday, just not now. Fed can keep buying bonds and stocks with their magic money machine till the cows come home.
@nopilikia , The reckoning could be starting now.
The dollar index tried to rally but failed, not surprising with the easy FED and all the stimulus/relief, though needed to fight COVID and shutdown effects. Although a weak dollar will help exports, imports are still at out of sight record levels, and a weaker and weaker dollar means you will be able to buy less and less stuff. I don't want to need a wheelbarrow full of dollars to go shopping at Costco.
@fujilomi , You don't have to haul it in a wheelbarrow...just drive your truck into Costco through the front door.
@kimbillro Nah, I am too old to go to prison. Anyway I only use my VISA card and not cash anymore, but I do want to have enough to pay the balance off every month.
@fujilomi , I remember you now. You used to have a picture of yourself looking down next to your SA username. Is there any reason you removed it?
The dollar is 20% overvalued in purchasing power so a decline is as inevitable as the tide going out. Commanding the tide to halt won’t fool many investors.
@dougkitchen , I commanded the tide to halt and it didn't.
@kimbillro I like using the tide as an analogy to the ebb and flow of foreign capital. King Canute and Warren Buffett have some famous lines about the inevitable. Only a central bank would be so foolish to try.
@dougkitchen , Yes, Buffett talked bout tides!
The Bank of England is reportedly in a tapering mode.
Ben Gee profile picture
Good news for US exporters.
@Ben Gee , Yes, but we are not Japan yet...dependent on exports. We just print the money we need.
It will be good to see a decline in the dollar. This will
Increase export.
@sheepleinvesting , We used to export wheat and corn. Did that stop too?
Ben Gee profile picture
@sheepleinvesting China want US high tech products, but US is not selling.
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