The Point of No Return - A Warning to All

Last week’s G8 meeting started out well for the US Dollar, after China’s president left the conference to deal with unrest at home. However, the conference did not spare the Dollar some shame and humiliation after all.

In the last day of the conference, which focused specifically on emissions and global warming, Russian President Dmitry Medvedev made a stunning presentation at a press conference. Medvedev produced a newly minted gold coin that symbolized the “united future world currency.”

What? You might ask yourself, is a united future world currency. The short answer is a system similar to the EU, but the kunst of the meaning lies in Russian hopes for a collapse of the Dollar as a dominant force in the investments of most industrialized nations.

In presenting this coin, Mr. Medvedev said, “We are discussing both the use of other national currencies, including the ruble, as a reserve currency, as well as supranational currencies”, which means – out with the Dollar, in with something new.

Many who thought that the Chinese, Russian, Indian and Brazilian calls for the International Monetary Fund to issue SDR’s or “special drawing rights” as bonds, were shocked to learn of how far Russia is willing to go. SDR’s are a hypothetical solution based on the charter of the IMF which allows them to issue bonds to nations.

However, they are not used for normal person consumption, meaning you and I cannot walk into a McDonald’s and buy a Big Mac with them. Medvedev made something abundantly clear, that the new currency “would be used for payment by citizens as a united future world currency”. Game over!

The cries are getting louder and now the plan is taking shape. IT will not happen overnight, and thus the Forex online traders can still profit from the popularity of the Dollar, but make no mistake, this is not going to end well for the Greenback.

The US president is watching as his plans are falling apart, his honeymoon is ending and reality is setting in. He has spent so much money that belongs to future generations; he has compromised the integrity of the strongest currency on earth.

There is no stopping this now, to do so would mean rolling back the clock – the money has been spent already – the debt has accrued. Forex online traders playing with the Dollar beware, it might not be today, it might not be next month or year – but it is coming, and a gradual decrease in value as the calls get louder and louder will happen. Don’t say you did not see it coming when it does.