Whether the huge military budget for protecting the dollar as the reserve currency of the world was a good strategy is still an open question. (But my guess is that given more historical perspective in 5 years, or so, it will look like a bad strategy.)
Kenneth Rogoff (http://www.economics.harvard.edu/faculty/rogoff/), a Harvard economics professor and former chief economist at the International Monetary Fund, says "A weak dollar isn’t necessarily a bad thing -- it can make the United States more competitive, bolster exports and help domestic companies that are vying against imported goods here in the United States" (http://www.washingtonpost.com/business/economy/the-dollar-le...).
The article goes on to say, "[Devaluing the dollar] effectively would be playing the China card against China in a battle for manufacturing jobs...Many fund managers say the only way out of that box is a weaker dollar, reducing the value of the massive amount of U.S. debt held by foreigners and increasing the value of American investments abroad, such as Buffett’s.
China artificially lowers its currency so its goods are relatively cheaper ("it's pegged to the dollar"), which keeps its foreign trade prices down and therefore boosts its exports. So how does the US "compete" with an artificially-lowered foreign currency to discount its debt and keep its exports up? Or, in other words, how does the US devalue its own currency in a "race to the bottom"...?
"'Countries like the United States do race to the bottom,' said Gross (http://en.wikipedia.org/wiki/William_H._Gross), though he added that Treasury Secretary Timothy F. Geithner would never say so. A weaker currency 'makes them more competitive and reduces the burden of debt,' Gross added. Americans own about half of the outstanding federal debt, but Gross said the rest is owed 'as Tennessee Williams would say, to strangers, outside the U.S. If the United States can devalue the value of those dollars that they owe, then all the better.'"
As far as relief of debt that theory has been shown wrong for a good number of years. Lowering the value of a currency may look good to someone who is in debt but it makes those hold the debt less likely to lend which freezes capital and we all go into recession.
Should the US currency not be tied to world gas/oil and other commodity markets we could be seeing what's happening in Japan (pre-quake) where they were a a neg interest rate and are the most highly in debt country. They tried lowering their debt by devaluing but it hasn't and won't work.
As a thought exercise: are all the countries that use currencies other than the USD facing massive economic problems? Nope. So I doubt this is so serious that we need to overthrow governments. We do that for other reasons.
"Most oil sales throughout the world are denominated in United States dollars (USD). According to proponents of the petrodollar warfare hypothesis, because most countries rely on oil imports, they are forced to maintain large stockpiles of dollars in order to continue imports. This creates a consistent demand for USDs and upwards pressure on the USD's value, regardless of economic conditions in the United States. This in turn allegedly allows the US government to gain revenues through seignorage and by issuing bonds at lower interest rates than they otherwise would be able to. As a result the U.S. government can run higher budget deficits at a more sustainable level than can most other countries. A stronger USD also means that goods imported into the United States are relatively cheap."
You're right, but the point is that after all is said and done, you have to purchase oil in USD, which creates the demand for the dollar; countries are forced to convert currency to USD. The fact that it's easy to do this is irrelevant.
"Oil Not Priced in Dollars by 2018?: Some oil producing countries and big buyers are hatching a plan to move away from pricing oil in dollars—a potential blow to the greenback's prestige"