Either the dollar decreases in value or it doesn't, Investing dollars does not increase the value of a dollar no matter how hard you try.
I've never said anything different.
We already agreed that the dollar in your example decreases in value by 1%. Our disagreement is with your claim that all assets priced in dollars will also decrease in value by 1%.
Try this example. I have one share, the only share, in a company whose only asset is one tank of gas, currently priced at $40. Next year, the tank (and my share) are now worth $40.40.
My asset did not drop in value even though it is priced in dollars.