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.
Yes, each and every dollar will decrease in value, I've never claimed otherwise.
"My asset did not drop in value even though it is priced in dollars."
Show me where I claimed otherwise...