A recent article in the Pakistan Observer recognizes not only the reality of economic warfare, but also demonstrates the reality of Phase 3 (a movement away from the Dollar as the world's reserve currency) but from the other side. While Americans continue in ignorance, the rest of the world is aware of the war already underway. Here's the conclusion of the article:
"The push away from the US currency as well as the euro could in the long run create problems for US and Europeans economies. Analyst views that it's a good sign that international system moves towards more balanced system where Dollar monopoly will end."
In other words, moving from the dollar would hurt the United States, but that's a good thing from their view. Here's the article:
Yen-Yuan Trade Plan
In contemporary world the real indicator of state power is economy rather than territory, population or army, days of physical warfare are long gone, now is the era of economic warfare. Economy determines the destiny and position of states in international politics. The phenomenon of interdependence in international economy has modified the concept of sovereignty, Terms such as sovereignty are irrelevant to countries with weak economies, and sovereignty cannot be protected unless a country is self-sufficient with no dependency on any other country. One can see that leading countries in contemporary world having a strong position in world affairs are countries with huge economies at their back. Economically powerful countries Such as the United states use organizations like World bank and International Monitory Fund (Which are described by many economists as modern tools of colonization) to further their agenda and influence the policies of strategically important but economically weak countries, there is a very well known phrase in economics that aid of any kind is never without strings attached to it. One of the preeminent things that have happened at December 26, 2011 was the Sino Japan currency deal. Sino Japan deal is the beginning of direct trading in their currencies. Currently yen Yuan are not convertible and for trade between two countries need to buy Dollars that adding up extra expenses. China is the biggest trading partner of Japan, according to static's of Japan external trade organization; trade volume between two countries was $339bn in 2010, which is expected to grow rapidly after Yen Yuan deal.