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Wednesday, December 31, 2008

Financial Times - Cool Personal Checks

By Hank Masefield

Cool checks into the economic situation is the barometer of inflationary vs. deflationary. People are often confused about the times they are living in and make poor economic choices.

If the pervasive economic condition is deflationary, goods and services become less expensive. The value of the dollar increases. Many cannot grasp that relationship.

In a deflationary environment, the state of value of almost everything decreases. Your home decreases in price; the value of gasoline, goods and services come under pressure. The value of stocks and hard good assess decreases.

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

When the price of the United States Dollar increases, it also increases against foreign currencies. The dollar buys more.

Review the cost of your personal purchases. Are you getting more for you money? Is gas costing less, can you buy more home than you used to, are you getting better deals in the stores? Dollar credit is drying up and the value of the dollar is going up across the world.

When goods and services cost less, you're living in a deflationary environment. The buck buys more and the worth of the U.S. dollar abroad increases also.

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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