[expat_panama]

This results in many people wanting to sell dollars, hence the decline in its price relative to other currencies.  Hard to argue with that really.

Except it doesn't happen. 

Over the past few decades the balance of payments went back and forth from capital to current, inflation went up and down, and the dollar's exchange rate went up and down.   [poster's note to the internet-challenged: right click on each of the three links and open them in "New Window" --and compare]   There's no one trend that had any reliable predictable relationship with any of the other trends.  Buffet likes getting his name in the paper and getting Democrat politicians to hint about making him some kind of economic king pin or something.  He likes it so much that he'll make promises to gullible investors that if they bet on Bush being a miserable failure they'll make a fortune. 

Here's an actual proven case where some people actually believed Bush's trade policies were bad enough to put their money where their stupidity was.  They lost a billion dollars.

[Pessimist]

Without supporting clarification, your graphs are pretty much worthless to me.

For instance: the dollar's value went up and down in comparison to which currency?

[LM_Guy]

I am not so sure that your US$ exchange rate chart is very accurate

The left chart, shows the dramatic negative trends of the U.S dollar vs. currencies of several industrial trading partners - - a drop up to 74% in the dollar's international power - past 35 years.