Kahler: The U.S. Dollar's drop is more than trading floor dynamics. There is deeper damage done by a declining dollar.
On-again, off-again tariffs. Rising prices. Dramatic market swings. The anxiety-producing headlines come so fast it’s hard to know what to worry about first. Meanwhile, one serious consequence of all this chaos is going almost unnoticed. That is the decline of the dollar.
Since the start of this year, the value of the U.S. dollar has slipped more than 10% against other major currencies. That drop is not just an economic statistic. It affects all Americans’ daily lives.
People are feeling the pinch of rising prices at checkout lines, gas stations, and shipping counters. But there isn’t a full understanding of why. Tariffs are only half the story. The weakening dollar amplifies those price increases even further.
For years, the dollar remained strong even as the national debt ballooned. It benefited from its reputation as a safe haven, from global demand, and from U.S. interest rates. But much of that strength, as we now see, was fragile—propped up more by perception than fundamentals. In April, sweeping tariffs triggered a sharp market correction, and the dollar suddenly fell to its lowest point in over three years. Market confidence vanished overnight.
This was more than a market reaction. It signaled a collapse in trust—not just in policy, but in principle. It is no longer a given that the U.S. will act with consistency, reason, and long-term responsibility. What’s unraveling is both our country’s financial credibility and the moral foundation that underpinned it.
When a currency represents a nation, its value reflects more than economics. It reflects governance, accountability, stability, and integrity. When the dollar stumbles, it speaks to who we are, and whether we can still be counted on.
Yet, most people aren’t talking about the decline of the dollar. This may come from being overwhelmed, choosing to ignore even more bad news, or actually believing that this is a necessary step in making things better. It is not.
We all respond differently to financial uncertainty. Some lean into hyper-vigilance—tightening budgets, tracking every headline. Others shut down, turning toward distraction. Still others press on as if nothing has changed. These are all natural human reactions.
They are not the same as leadership. And leadership—internal and external—is what’s needed now. Not panic. Not blame. Just the courage to face where we are and the willingness to start again from there.
But leadership is in short supply in Washington, where many in both parties remain silent. Some fear political retribution from the administration, others fear backlash from increasingly extreme and vocal constituencies. That silence costs us all.
A respected government official recently told me that, while some of the domestic damage to our economy could be repaired within a few years, rebuilding global confidence in the United States may take a generation. That is a reflection of the rapid erosion of trust that has already happened in the last three months. Trust that took decades to build has been unwound in a matter of weeks. Even if we reversed every policy decision tomorrow, the damage is done.
We cannot change what’s already happened. We can still choose to show up. To pay attention. To have the hard conversations. To lead our own financial lives with more clarity, integrity, and intention than before. That kind of personal leadership may not fix the dollar. But it can help rebuild what underlies its value: trust, steadiness, and the moral grounding we’ve begun to lose.
Rick Kahler, CFP, is a fee-only financial planner and financial therapist with a nationwide practice, Kahler Financial Group, based in Rapid City. His co-authored books include Coupleship Inc. and The Financial Wisdom of Ebenezer Scrooge.
Graphic: public domain, wikimedia commons
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