US Dollar Devaluation

Extracted Attributes

• Link to Gold

  Eliminated in 1971

• Currency Type

  Federal Reserve Notes

• Current Status

  World's primary reserve currency

• Historical Standard (1900)

  Gold standard

• Recent Cause of Devaluation

  Passage of the 'Big Beautiful Bill', increased national debt, tariffs

• Historical Standard (Initial)

  Bimetallic standard (silver or gold)

• Trade Balance Deficit (September 2024)

  4.2% of GDP

• Historical Value Change (1800 to Today)

  $1 in 1800 is worth $25.51 today (due to inflation)

• Economic Goal (Countermeasure to Debt Crisis)

  3-3-3 Economic Goal

Timeline

• The Coinage Act established the United States dollar as the country's standard unit of money and created the United States Mint. (Source: wikipedia)

  1792-XX-XX

• The US Dollar formally adopted the gold standard. (Source: wikipedia)

  1900-XX-XX

• The Federal Reserve System was founded, and Federal Reserve Notes became the primary form of US currency. (Source: wikipedia)

  1913-XX-XX

• The US Dollar eliminated all links to gold. (Source: wikipedia)

  1971-XX-XX

• The U.S.'s persistent trade balance deficit reached 4.2% of GDP, posing a long-term constraint on the dollar. (Source: web_search_results)

  2024-09-XX

• The value of the dollar bill was pictured as depreciated, reflecting ongoing devaluation. (Source: web_search_results)

  2025-05-23

• An article was published discussing the dropping value of the US dollar, attributing it partly to the 'Big Beautiful Bill' and its impact on the federal deficit. (Source: web_search_results)

  2025-05-30

History of the United States dollar

The history of the United States dollar began with moves by the Founding Fathers of the United States to establish a national currency based on the Spanish silver dollar, which had been in use in the North American colonies of the Kingdom of Great Britain for over 100 years prior to the United States Declaration of Independence. The new Congress's Coinage Act of 1792 established the United States dollar 1000 as the country's standard unit of money, creating the United States Mint tasked with producing and circulating coinage. Initially defined under a bimetallic standard in terms of a fixed quantity of silver or gold, it formally adopted the gold standard in 1900, and finally eliminated all links to gold in 1971. Since the founding of the Federal Reserve System in 1913 as the central bank of the United States, the dollar has been primarily issued in the form of Federal Reserve Notes. The United States dollar is now the world's primary reserve currency held by governments worldwide for use in international trade.

Web Search Results

• De-dollarization: The end of dollar dominance? | J.P. Morgan

  “The narrative that the U.S. dollar’s reserve currency status is being eroded has gained momentum as the world is dividing into trading blocs in the aftermath of Russia’s invasion of Ukraine and heightened U.S.–China strategic competition,” said Joyce Chang, chair of Global Research at J.P. Morgan. “Further complicating the discussion, the strong dollar is in the headlines, with talk of devaluation to restore U.S. competitiveness now part of the daily U.S. election campaign vernacular.” [...] The U.S. dollar is the world’s primary reserve currency, and it is also the most widely used currency for trade and other international transactions. However, its hegemony has come into question in recent times due to geopolitical and geostrategic shifts. [...] This communication is provided for information purposes only. Please read J.P. Morgan research reports related to its contents for more information, including important disclosures. JPMorgan Chase & Co. or its affiliates and/or subsidiaries (collectively, J.P. Morgan) normally make a market and trade as principal in securities, other financial products and other asset classes that may be discussed in this communication.This communication has been prepared based upon information, including

• United States Dollar - Quote - Chart - Historical Data - News

  | USDRUB | 78.7500 | 0.3250 | -0.41% | | USDKRW | 1362.54 | 0.9500 | -0.07% | | DXY | 96.991 | 0.1890 | -0.19% | | USDTRY | 39.8446 | 0.0475 | 0.12% | | More | Add to your site;) | [...] | | Actual | Chg | %Chg | | --- | --- | --- | --- | | United States | 4.3510 | 0.067 | 0.07% | | United Kingdom | 4.5625 | 0.018 | 0.02% | | Japan | 1.4352 | 0.008 | -0.01% | | Australia | 4.1930 | 0.008 | 0.01% | | Germany | 2.5660 | 0.014 | -0.01% | | Brazil | 13.6020 | 0.095 | 0.10% | | Russia | 14.6600 | 0.000 | 0.00% | | India | 6.3570 | 0.007 | 0.01% | | Canada | 3.3515 | 0.032 | -0.03% | | Italy | 3.4720 | 0.001 | 0.00% | | France | 3.2790 | 0.005 | 0.01% | [...] | South Africa | 9.7250 | 0.000 | 0.00% | | China | 1.6400 | 0.000 | 0.00% | | Switzerland | 0.3965 | 0.011 | -0.01% | | Chile | 5.6300 | 0.000 | 0.00% | | More | Add to your site;) |

• $1 in 1800 is worth $25.51 today - Inflation Calculator

  | 1854 | $0.67 | 9.09% | | 1855 | $0.69 | 3.57% | | 1856 | $0.67 | -2.30% | | 1857 | $0.69 | 2.35% | | 1858 | $0.65 | -5.75% | | 1859 | $0.66 | 1.22% | | 1860 | $0.66 | 0.00% | | 1861 | $0.70 | 6.02% | | 1862 | $0.80 | 14.77% | | 1863 | $1.00 | 24.75% | | 1864 | $1.25 | 24.60% | | 1865 | $1.29 | 3.82% | | 1866 | $1.26 | -2.45% | | 1867 | $1.17 | -6.92% | | 1868 | $1.13 | -4.05% | | 1869 | $1.08 | -4.23% | | 1870 | $1.04 | -3.68% | | 1871 | $0.97 | -6.87% | | 1872 | $0.97 | 0.00% | [...] | 1835 | $0.70 | 2.33% | | 1836 | $0.74 | 5.68% | | 1837 | $0.76 | 3.23% | | 1838 | $0.74 | -3.12% | | 1839 | $0.74 | 0.00% | | 1840 | $0.69 | -6.45% | | 1841 | $0.69 | 0.00% | | 1842 | $0.65 | -5.75% | | 1843 | $0.59 | -9.76% | | 1844 | $0.60 | 1.35% | | 1845 | $0.60 | 1.33% | | 1846 | $0.61 | 1.32% | | 1847 | $0.65 | 6.49% | | 1848 | $0.63 | -3.66% | | 1849 | $0.61 | -2.53% | | 1850 | $0.62 | 1.30% | | 1851 | $0.61 | -1.28% | | 1852 | $0.61 | 0.00% | | 1853 | $0.61 | 0.00% | [...] Conversion: 1800 dollars today| Initial value | Equivalent value | | --- | --- | | $1 dollar in 1800 | $25.38 dollars today | | $5 dollars in 1800 | $126.90 dollars today | | $10 dollars in 1800 | $253.81 dollars today | | $50 dollars in 1800 | $1,269.04 dollars today | | $100 dollars in 1800 | $2,538.09 dollars today | | $500 dollars in 1800 | $12,690.44 dollars today | | $1,000 dollars in 1800 | $25,380.87 dollars today | | $5,000 dollars in 1800 | $126,904.37 dollars today |

• The US Dollar is Dropping in Value. What Impact Will That Have?

  Image 4: A financial concept image shows a hand pulling U.S. dollar bills out of an envelope overlaid with a declining stock market chart. The image has a purple/blue tinted overlay effect. 05/23/25 – BOSTON, MA. – The value of the dollar bill, pictured on Friday, May 23, 2025, is depreciated. Photo by Alyssa Stone/Northeastern University Americans hoping to vacation abroad this summer could be in for a rude surprise. [...] The value of a currency oscillates consistently largely based on confidence in a country’s economic growth, fears around economic factors like inflation and policies implemented by governments and banks. But Erten attributes the current value of the dollar to fallout from the Trump administration’s tariffs, trade wars and tax cuts proposed in the so-called “Big Beautiful Bill” that could increase the federal deficit by trillions of dollars. [...] For decades, the U.S. dollar has been the de facto currency for international markets. As investors eye the U.S. market with unease, an economist says that could change, with major impacts in the U.S. and abroad. Image 3 byCody Mello-KleinMay 30, 2025 Share this story Copy Link Link Copied! Email Facebook LinkedIn X (Twitter) WhatsApp Reddit

• Where is the U.S. dollar headed in 2025?

  Even with the factors supporting the dollar, its ascent is unlikely to continue indefinitely. Currently, the dollar is two standard deviations above its 50-year average, suggesting limited room for further appreciation. Historically, the dollar has alternated between periods of strength and weakness, making a downturn likely at some point, though the timing is uncertain. Additionally, the U.S.'s persistent trade balance deficit, at 4.2% of GDP as of September 2024, poses a long-term constraint, [...] Even with the factors supporting the dollar, its ascent is unlikely to continue indefinitely. Currently, the dollar is two standard deviations above its 50-year average, suggesting limited room for further appreciation. Historically, the dollar has alternated between periods of strength and weakness, making a downturn likely at some point, though the timing is uncertain. Additionally, the U.S.'s persistent trade balance deficit, at 4.2% of GDP as of September 2024, poses a long-term constraint, [...] Even with the factors supporting the dollar, its ascent is unlikely to continue indefinitely. Currently, the dollar is two standard deviations above its 50-year average, suggesting limited room for further appreciation. Historically, the dollar has alternated between periods of strength and weakness, making a downturn likely at some point, though the timing is uncertain. Additionally, the U.S.'s persistent trade balance deficit, at 4.2% of GDP as of September 2024, poses a long-term constraint,