No, that's paying for the same ground twice to think that way. Inflation is *already* factored in from *all* sources, and corrected, when someone says "CPI adjusted."
Propping up the Dollar to absurd levels, by the way, is HOW foreign nations get away with stealth industrial subsidies.
The *reason* that the Chinese are hoarding far more than $600 Billion in U.S. Dollars, that India is hoarding more than $80 Billion, that Japan is hoarding hundreds of Billion$ more, the EU even more, yes the key reason for that hoarding is to prop up the Dollar so that the American consumer can buy more foreign goods at cheaper prices.
The higher the Dollar, the less foreign goods cost.
In 2004, China blew $180 Billion propping up the U.S. Dollar on foreign exchanges. They did this so that we'd buy so many Chinese products...to the tune of some $110 Billion.
Clearly they can't keep up this game forever, but as long as they continue this charade, they get to build their industry.
In contrast, American manufacturers are hamstrung because the over-valued U.S. Dollar makes our exports more pricey than they would be in a free market.
Thus, we get cut in two ways (cheap imports, expensive exports) by the Asian and European hoarding of Dollars.
Interestingly, to invest those Dollars without impacting the currency markets, many nations are buying U.S. Treasury investments...driving down interest rates below what the free market would fairly set here.
Thus, the strategy being pursued by export nations (i.e. the tactic of propping up the U.S. Dollar via direct government intervention) has one enormous negative impact on us: our domestic industrial base is getting hammered...and three positive impacts: cheaper goods, currency trading profits, and lower interest rates.
NOTE: this is NOT to say that the Dollar has or hasn't fallen, or that interest rates are below some previous level. This *does* mean, however, that the Dollar is above its Free Market value and that our interest rates are lower than their natural Free Market level.
