Dollarization: Endless endogenous supply?

["John Gelles" <johng@xxxxxxxxxx>]

So:
a.  Nations (beside the USA) opt to use dollars for money.
b.  Local banks lend dollars to producers, merchants and
     credit card consumers at high enough rates of interest to
     cover lending costs--including bad debts.
c.  Thus exogenous injections of dollars by actors other
     than borrowers (repaying loans) are not required??
            In particular, local fiat money is not required to
            create purchasing power to fill the gap created
            by the disparity between wages and aggregate
            prices of things they produce for sale??

d.  Or, is it that the gap will be the same after dollarization
     as it was before:  except that after dollarization, overall
     efficiency is improved, as sales and purchases are made
     simpler when only dollars are needed to play?

e.  If deficiencies in purchasing power are not cured by
     dollarization -- and from all of the above it seems they
     will remain uncured -- then the appeal of dollarization
     is not great.
            After all, non-neutral fiat money -- even if we
            are afraid to use it as medicine for deflationary
            spirals -- remains a happy thought while we
            suffer prolonged unemployment until war puts
            people to work

OR

    Have I still got everything (endogenous money and
    purchasing power, etc.,)  all wrong?

    John Gelles