Thursday, January 8, 2009

Deflationary Times - Cool Personal Checks

By Peggy Painer

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 consumers are confused as to what economic times they are living in.

In a deflationary situation, when thevalue for goods and services goes down, the value of the dollar goes up. The logic goes seemingly against human intuition.

Opposite of inflation is deflation and with deflation, most assets decline in value. You see the level of value of your home decline in value as well as gasoline. Corporate equities, mutual fund shares, insurances and pension reserves and equity in non corporate business decline.

There is only one exception; the United States Dollar goes up by definition. The opposite is true. When the cost of goods and services goes up the guage of value of the dollar shrinks.

Along with deflation, the U.S. dollar value goes up. Its value goes up against foreign currencies. The buck buys more.

Check the level of value of the dollar in your personal purchases. Is the dollar's value is going up? It's buying more gas than it used to, buys more real estate than it used to, and gets better deals shopping for cars than before. Everything costs less.

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

The coolest, cool personal checks for the safest place to have you money in deflationary times in Treasury bills. The least ugly investment worldwide is U.S. currency. - 15224

About the Author: