One of the assertions we commonly read about is that one of the benefits in an inflationary scenario is paying off existing debt with cheap dollars. That's true, only if you hold those dollars in an asset or investment that will benefit from inflation. If you hold those dollars as dollars, or in assets or investments that will not benefit from inflation, then you could easily be wiped out.
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There are a number of actions being taken by state legislatures throughout the country that when looked at separately, appear to be symbolic statements of how individual states are expressing themselves against the growing mandates being thrust upon them by the federal government. When looked at collectively, these actions indicate a rapidly growing trend of how states are actively positioning themselves for what might very well turn out to be a true battle of survival between individual states and the federal government.
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Lily Tomlin, the actress and comedienne said: "No matter how cynical you become, it's never enough to keep up". She's also quoted as saying: "the best mind-altering drug is truth". The truth is a powerful drug that is all natural, and safe when used as directed. However, the "official, opinionated-truth" that comes from Washington and is sanctioned by the major media, often bears little or no resemblance to the real, fact-based truth, that emerges after the headlines have been written and forgotten. In other words, what we're told is true "in the moment" often turns out "not to be true" days, weeks or months later, when official reports are revised with little or no public fanfare.
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This past week I settled in to do something I rarely do: watch television. Namely, the state of the union address and then the hearings with both Tim Geithner and Hank Paulson. As I listened to these men speak, the lyrics from Don Henley's song "The End of the Innocence" kept surfacing in my head where he says: "the lawyers clean up all details, since Daddy had to lie". And this week, three daddy's all told their own version of the "whopper".
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