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Sunday, December 21, 2008

Cool Personal Time Check

By Jason Worthhutz

Cool Checks to make sense of the times you are living in. If you live in a deflationary time or inflationary time the consequences are as dire as if you live in inflationary times. Often people are confused as to what financial condition they are living in.

Deflationary times means it costs less to buy goods and services. The purchasing power of the dollar increases and is able to buy more.

With deflation, almost everything goes down. Safety and protection is important and if you have all you money in antiques, real estate or hard assets or commodities the value of these goods decreases.

The value of the dollar goes up in a deflationary environment. Quite the opposite of an inflationary environment.

When the value of the U.S. dollar goes up in the United States inevitably it goes up against other currencies. When the dollar buys more, its guage of value is rising and acts like a magnet.

Everything is costing less. The level of value of a particular currency has nothing to do with how their economy is doing. The value of a currency is base on how it compares with other currencies. You can't evaluate a currency in isolation.

If you see your U.S. dollar buying more, it means the state of value of the United States Dollar is increasing. The United States Dollar increases against foreign currencies as a market basket of value and it also buys more goods and services as a whole abroad.

The European economy is collapsing and the least worst currency worldwide is the United States Dollar . Your cool personal checks: for a safe place to keep your money is in U.S Treasury Bills.

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