If we are ever to compete with likes of Arsenal,Liverpool,Man. Utd, etc (Chelsea are a different kettle of fish). Then we need to be signing players they would also be interested in.
The slight flaw in your plan of world domination is that if the likes of Liverpool, Man Utd and Arsenal are interested in a player then they will be going to them. Not us.
The next step on the ladder is attempting to sign the level of player that the likes of Newcastle, Spurs and Bolton are after. As much as that might hurt, it's the state we find ourselves in. We need to be attracting players of the quality of Parker, Anelka and Malbranque to make the next step, as for the last five years or so, we've found ourselves on a tier below them regarding transfers.
At the moment we're not competing with the likes of "Arsenal,Liverpool,Man. Utd" and we're not going to be signing their targets. Not for a long while yet.