Adjusted by internal CPI accounting fails to actually capture loss of living standards. Weighting instead against an exogenous major currency is more likely to do so.
As Tim Kane says above: "foreign exchange markets have been showing signs of what The Washington Post calls dollar jitters, especially in February when South Koreas central bank hinted that it might buy fewer dollar reserves in the future. The market was quick to dump and run. It is also true that the dollar has fallen from its heights of 2000, when a single dollar traded for 1.15 euros. Today, one dollar trades for 0.8 euros, a decline that one French official has called brutal even as many analysts suggest that the dollar still remains overvalued. For example, Warren Buffet and Bill Gates have declared that they are short the dollar.
Actually, Kane is understating how high the Euro got...where it was trading at something like $1.31-32 for quite a while. And then looking at previous history, pre-Euro, we see an even more concerning trend even for phony optimists like you:
What do you think snows, you agree with Paul's line of "reasoning"? The dollar went up 10% vs the Euro in the last 9 months. Does that mean our standard of living just increased 10%?