Nev - were all hurting from it mate, but your dilution analogy is pretty appropriate. Personally I think its the worlds biggest fake-out. Its not in the US's best interests for the USD to be strong. The reasons for its strength seem to be transcient - repatriation of money invested in foreign markets and the paying down of debt/CDS contracts written in USD.
These things will pass. Of course I, nor virtually anyone can give you a date. But I'm very confindent it will occur.
My take is that all currencies will devalue against gold, so don't expect a massive plunge in the dollar relative to other currencies necessarily, expect it to fall in value when measured against gold.
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