Dwindling Dollar ... confused NRI life

Yesterday I watched a video titled Global Imbalance .. Imminent dollar crisis
although I did not agree with everything in the speech, I believed that the fall of the dollar is not a question of if, but a question of when. And also the speaker drives the point home that US economy is a net consumer, and with a continuous negative net flow for a few years, the economy is unsustainable until the dollar devalues and home production levels increase and consumption decreases.

So my thoughts veered to the possibility of the fall of dollar by 10 or may be up to 25% in the next two or three years and how it would impact the major economies of the world -- US, China and India, and more importantly how it would affect the lives of people of my ilk, NRIs, most of whom live in the US for the sole reason of superior earning power that comes with the dollar.
Impact on US: if we have to name two important aspects of street economy in the US, two things come to mind, the high use of oil and energy and the availability of cheap Chinese made goods. a 10-20% depreciation in dollar will likewise increase the cost of oil and chinese goods by the same amount. That by itself wouldn't really affect people in the middle and upper economic strata, but it would push people who are already on the edge into total poverty. This will ensue an economy that will be squeezed from the bottom and a fall in incomes coupled with higher inflation because of a weak dollar and oil prices.

The other bigger impact on US markets may be the withdrawal of chinese money in US securities because of depreciating dollar. A withdrawal of even 5% of chinese money would mean a huge credit squeeze in the markets aggravating the already grim credit situation. Where will all this lead in terms of global economy is beyond the scope of my expertise, but I know that if any of this comes true, which is likely, I can see my ability to save being reduced in the future and it also means that I would get fewer rupees for the dollar if and when I want to return to India. How do we target investments with our current savings is a scenario which needs serious thought and immediate action.

And how would a weaker dollar and stronger rupee affect India? we can't guess for the whole economy, but it will suffice to say that every export oriented industry, IT, BPO, textile and biotech will be affected leading to retrenchment and creating an unemployment crisis among the highly skilled population and also bring the salaries of employees of these industries down to a more even keel with other industries. But my gut instinct says that a stronger rupee will help not hurt the economy overall, and how is a question that awaits a detailed answer that needs further research.