The Dollar has declined 30% since 2002, yet the cost of living in the U.S. has only gone up 10% since then.
Thus, a declining Dollar doesn't have to erode savings or cost more to live here.
...But if you don't drop the Dollar a lot more, then we'll continue to import too much. Try going into Wal-Mart to find a few things not labeled "Made In China".
Oh boy. Honestly, I’ve been angry about this since Nixon went to China. The answer is just stop doing business with the ChiComs. But that is of course an entirely different issue.
As far devaluation, it certainly does depend on whose numbers your reading and whether you are looking at the dollar in comparison to a particular currency like Sterling, euro, or Canadian dollar for example or if you are choosing a different constellation of items by which to reckon “its horoscope”.