[executesorder66]

I see what you are saying, but just because the cost of living goes up in the US, does that really mean that the value of the USD as a commodity in it's own right must go up/down?

Many countries have their own reserves for the USD, which they use for their own purposes, and may exchange their reserves with each other, in a way where the US isn't even involved at all.

So in the forex markets the USD is just another commodity, and not a direct representation of the cost of living in the USA.

Going the other direction though, if the value of the USD goes up or down, I can see how that would affect the cost of living _within_ the USA since it is the local currency there. But outside the USA, why would it affect the cost of living in another country where they use some other currency?

This isn't really my field though, I'm just throwing out my thoughts. If anything I've written is wrong, I'm happy to read an explanation as to why.