I don't think the fact that we have the strongest military in the world is a factor in the future strength of the USD. If that were true, the Swiss Franc would be worthless.

In the end, a currency's value is a function of supply and demand for that currency. Demand is currently being skewed in many strange directions by panic, swaps to repay bad loans on US mortgage backed securities, and outright manipulation. So, we cannot fully predict what demand is going to do.

We do, however, know that supply of dollars is increasing exponentially at a 15-17% rate. There is no way demand is going to stay at a rate to offset that supply in the long run. Thus, unless we get a new Paul Volker who will cut supply, which will not happen because the banking system would then collapse, we will have a lower dollar.

Hysteria