Don't think the dollar's decline affects you since you don't go to Europe? Think Again. Chris posted earlier today about OPEC and the price of oil, and buried in his post was a fascinating quote from the head of OPEC:
"[E]ach time the dollar falls one percent, the price of the barrel rises by $4, and of course vice versa"
The dollar has fallen 30% versus the Euroe since April 2003. That would mean a $120 rise in the per barrel price of oil. Now, oil is at $120/barrel, and oil was around $30/barrel in 2003, so the formula isn't perfect. But that means the real increase was $90 versus the predicted $120. That's pretty darn close. The overall point is that the head of OPEC just said that George Bush and the Republicans' economic policy vis-a-vis destroying the dollar (they don't care if the value plummets because "it's the market's doing") has led to the majority of the oil price increase. I.e., you're paying more at the pump because of George Bush and the Republicans.
