The value of the US dollar (USD) has plummeted as economic degradation in the US continues to wreak havoc. The ballooning US debt metrics are only adding more pressure to the US economy, triggering the greenback to touch new lows. Per recently available data, the US dollar has noted a further decline of 23% in the last five years, impacting the currency on a deeper level.
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The US Economy Struggles With Rising Inflation
The US economy is encountering buildable pressure that is now impacting the lives of its citizens. Per the Kobeissi Letter, rising inflation is now gnawing at the commercial market of the economy, degrading the quality of life for Americans. Per KL, from the year 2021 on, inflation has skyrocketed prices of certain core economic items, rendering US citizens helpless in this wake.
The prices of mundane everyday items such as gasoline, airfare, electricity, and chicken have skyrocketed to new highs, making them inaccessible to the masses to a certain level. Below is the list of items that have suffered the most in a rising inflation narrative.
At the same time, the X handle was quick to point out a stark economic development. The portal shared how US citizens are now increasing their debt by buying groceries on credit. The phenomenon has primarily been spurred by the sky-high prices of mundane items that an average household is unable to purchase, as the affordability of such items has taken a toll due to inflation.
“19% of adults in the US used savings not intended for routine living expenses, and 3.5% exploited the Buy Now, Pay Later option. 20% of adults who used credit cards did not pay the full balance but met the required payment. However, 25% of those with very low food security did not even pay the minimum required payment on their credit cards. Record levels of credit card debt can barely cover living expenses for many Americans.”
The USD Continues To Fall In Terms of Purchasing Value
The US debt metrics are now inching towards breaching the $34 trillion mark. The said phenomenon, coupled with the stark economic conditions, has rendered the US dollar (USD) helpless in the process. The currency has lost nearly 23% of its purchasing value in the last 5 years as economic tensions continue to hamper its future progress.
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“Over the last 3 years, the purchasing power of a US dollar has declined by 16%. Furthermore, over the last 5 years, the purchasing power of the US dollar has declined by 23%. This effectively means uninvested money from 2019 is now worth almost one-fourth less today.”
Moreover, the US currency is now also being challenged by the multipolar currency concept. The narrative entails promoting regional currencies, which could compel nations to move away from the US dollar in the long haul. If this phenomenon continues, it could project serious harm to the US dollar’s prestige, jeopardizing its status as a “global reserve currency” in the near future.