U.S. Dollar Decline- November 4, 2013 Update- EconomicGreenfield.com

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The chart shown above is a long-term look at how the dollar has changed in value over the past thirty years.  As the trends show, the dollar has been very inconsistent, but has trended down in value.  The red line shows the best fit for the overall trend of the value, and shows how the value of the dollar has greatly declined since the eighties.  Overall, the dollar is facing a major issue, and there is a lot of work that needs to be done to improve its condition.

What this graph shows is that as time has went on, the value of the dollar has fallen, while very little proactive action has been taken to improve its condition.  While it is not reasonable to think that the dollar could get back to its value that was present around 1985 or so, the downward trend is what really needs to be changed.  If the financial and economic world can begin to put some effort into place and make decisions that could benefit the overall fate of the dollar, it could begin to stabilize and even trend back upwards again.  Otherwise, the dollar may very likely continue to slide and fall in value.  This would consequently have an even more significant international impact, and could alter the success of the international financial and economic fields.

Why the dollar has to decline in the long term- theHinduBusinessLine.com

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Throughout the last few decades, the value of the dollar has slowly decreased as the national debt has increased.  In recent years, the value decrease has become more rapid, and the national debt has skyrocketed to very alarming levels.  This has affected international markets as much as it has affected the national economy.  For example, the Indian rupee has had a very significant decline in value in the last few years as well, which has been greatly theorized to be due to the decline of the dollar in some way.  The reasons for the decline of the dollar are abundant, but one of the biggest began around 2008.  During the financial crisis of that year, investors, domestic and abroad, became apprehensive and less likely to trade with the dollar.  However, because the dollar is the international standard for trading, its financial woes have negatively impacted international markets as well.

The issues that the dollar has faced in the recent years are very worrisome, but the issue has taken on a new factor.  Because the decline of the dollar is now becoming more and more negative in other international trading markets, it shows that the United States is not the only country facing issues with currency.  This is an issue with international implications.  If the trends of the economic and financial worlds allow for the decline to continue, there are many countries around the world that will feel the consequences.  The problem cannot be taken care of quickly, but if there is no effort put forward towards a gradual increase in the viability and overall value of the dollar, the world as a whole could be in a large amount of trouble.