Sunday, December 21, 2008

Economic Checks - Cool Personal Check

By Peggy Flemmer

Consumers are often confused about the economic conditions they find themselves. Everything has a cool check about label, and the extremes are that either we are living in inflationary times or a period of deflation.

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

In a deflationary environment, the worth 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 buck goes up in a deflationary environment. Quite the opposite of an inflationary environment.

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

Review the guage of value 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.

If most things seem to cost less that means you are living in deflationary times. If the price of goods and services are going up, you live in inflationary times.

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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