"So the question is, how do China, Russia, Iran and other countries break free of this U.S. dollarization strategy? As now constituted, dollarization creates a circular flow that finances American military spending by forcing the costs onto foreign central banks holding dollars. The solution obviously is to avoid using dollars in order to break free of American control of your economy. To do this, you have to have a non-Dollar currency. This currency alternative has to be large enough to have a critical mass, so that it can be used internationally. That’s why China, Russia, Iran and their allies are trying to create their own currency area, incorporating largely the Shanghai Cooperation Organization."