The value of the dollar like every other currency is set by a number of factors not least of which are GDP and money supply. Since the advent of central banking and the beginnings of the global market fixing money to gold levels just became impossible.

The dollar is going to continue going down the toilet while the US keeps printing them at full speed. Bush can pretend all is well and the Treasury Secretary can claim that he's running a strong dollar policy but the foreign exchange markets don't lie.