Thread: U.S. Dollar Crashes Against Yen!

U.S. Dollar Crashes Against Yen! Time to Act!

Currencies / US Dollar
Sep 28, 2009 - 11:07 AM

By: Martin_D_Weiss

Just when the worldwide onslaught against the U.S. dollar seemed to be temporarily subsiding, a new round of attacks hit Friday — this time from Japan.



On August 30, in a landslide election victory that shook the world, the left-of-center Democratic Party of Japan derailed the ruling party and swept a new leader to power, Yukio Hatoyama. It was the most significant tipping point in that country’s politics since 1955.

Now, 30 days later, we are starting to see the repercussions for the U.S. dollar: For the first time in decades, the new Japanese regime is effectively giving up supporting the greenback in the currency markets!

The consequences are immediate: Just this past Thursday, the U.S. dollar could buy 91.27 Japanese yen. By the end of the day Friday, it could only buy 89.63 yen.

In just 24 hours, the dollar fell by 1.81 percent, more that it would typically fall in 24 DAYS!

But if you think the dollar decline is far removed from your daily life, think again.

The Dollar Decline Could Deliver A Major Blow to Your Wealth

Right now, American households own $67.2 trillion in assets, including stocks, bonds, and real estate.

Here’s the key: If measured in terms of Japanese yen, just between the close of business Thursday and close of business Friday …

Over one trillion dollars in American wealth was wiped off the map! All in just 24 hours!

Unfortunately, most people have no idea this is happening, and even if they did, no sense of how it could impact them. Their typical reaction:

“I don’t care how much the dollar is falling in Japan, Europe, or any other country. All that concerns me is what happens with my money right here in the United States.â€

Is this surprising? The Yen has been severely undervalued for twenty years.