1) We are lowering the value of the U.S. dollar to pay back our debts with cheaper money
Exactly. China does not adjust it's currency thus we get unfair trade, America is engaged in unfair trade across the world, where those labor forces are working for pennies.
American dollar falls that trade gap closes.
Foriegn countries want to play with there currency, America is more than capable of playing along and paying back what is owed with a low dollar
As an American citizen it does not effect me one shit.