The Tallest Pygmy

Why the tallest pygmy? The dollar isn't just buying more Euros or Pounds Sterling. It's buying more barrels of oil, more ounces of gold, more tons of coffee. It doesn't look like the dollar is merely the strongest in the Brotherhood of Weak Currencies. At the moment it seems to have some genuine oomph.

I've read recently that companies have been keeping extra cash on the books rather than spending it on equipment, hiring new hands, or investing it in development. That's a demand for dollars in preference to these other things. Companies aren't the only ones eschewing risk; individual investors have pulled money out for safekeeping. Many haven't figured out where to put that money yet. The value is sitting in an account somewhere, in dollars.

When there's a desire to spend these dollars, we'll see the power of the USD wane again. Until then, put on a gold watch, take a drive, and pick up some coffee from the local shop. Do it now while its a little less expensive.

My economic understanding is weak, but it seems to me that the world supply of dollars has dropped drstically because of the crash of the value of financial assets, and because the credit crunch and bad loans limit the multiplier effect of money held by banks.
Is it wrong that the dollars is going up because supply dropped?