Yen Hits Record High Vs. The U.S. Dollar

Despite Japan's staggering problems, its currency rose to an all-time high vs. the U.S. dollar at one point two days ago rising to 76.25. What does this tell us?

It tells us global investors have more confidence in the Japanese currency than they do in America's currency, as America's uncontrolled government and trade deficits skyrocket.

In an attempt to stop the yen spiraling upward against the dollar, which is the world's only reserve currency, the U.S., Japan, the U.K., Canada and the European Central Bank have agreed to "concerted intervention in exchange markets."

But even if this works short term, it doesn't solve the problem for in the months ahead, the U.S. deficits will continue to soar. It is a problem we Americans must confront by slashing government spending and by paying far higher taxes. And we must produce more U.S. made goods.

Few U.S. politicians will acknowledge a financial collapse is coming, yet if we don't end our spiraling deficits and turn them to surpluses, a collapse is inevitable. But America was built on hard work and determination and its people will bear the hardship and unite to build a strong financial foundation for its future.

Dick