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By now you've probably heard the headlines about inflation being at the highest level in 17 years. While there's no doubt that inflation is the enemy of saving for the future, Clark wants you to look beyond the alarmist nature of the headlines. The inflation report is retrospective; it's not indicative of where Clark thinks we're headed.

Consider this: The price of commodities -- which were a big part of the run-up -- has moderated and many have dropped at wholesale. We've only been focused on the price of oil and gas, but they represent just one sliver of the cost crunch.

It will, however, be a while before that wholesale drop is reflected in the prices we pay for other commodities.

Meanwhile, housing and cars are steadily getting more affordable.

So Clark is not saying that everything's rosy, but he does believe we have bigger problems than inflation. In the penny-pincher's estimation, the real problem we have is remaining competitive in the world -- but that's another show note!

But just to touch on that topic, we need better education, training and an emphasis on career skills so we can compete with foreign capitalist economies. Plus, the federal government should not spend money it doesn't have. On the state level, we need to rein things in with a program similar to Colorado's TABOR (Taxpayers' Bill of Rights).

Have you been watching the Olympics? Clark's 9 year old was obsessed with the opening ceremonies and his 2 year old is enthralled with equestrian sports.

The penny-pincher himself finds communist China to be very confusing. For those who are wondering, Clark calls it communist China to differentiate from Taiwan (aka the Republic of China).

Clark first visited communist China 25 years ago when it was truly under the sway of Chairman Mao's legacy. At that time, he found it to be a totally rural country that looked positively feudal. He particularly recalls being at a border crossing where there were 3-story high fences and gunmen up in towers to keep the citizenry in the country.

11 years later, he visited communist China again and stopped at that same border crossing. The towers remained, but the guards were gone. The citizens of communist China now enjoyed a new level of freedom -- including freedom of movement and non-political expression.

Yet today, communist China still remains a paradox. In fact, a British reporter was just beaten while covering a Tibetan demonstration in Beijing.

Many Americans fear the economic power of communist China. The Financial Times of London reports they'll soon surpass us in manufacturing. But consider this: Clark would rather they lob a DVD player at him than a hand grenade or a nuclear weapon. They're no longer the fierce, violent opponent of ours that they were during the Korean War.

So don't be angry that they will soon out-manufacture us. Instead, let's look inward and see what we can do to improve our production.

RIP-OFF ALERT: There's a controversy brewing over supposedly ultra-safe cash investments that were sold by some of the biggest banks and brokerage houses in the country.

These so-called "auction rate securities" (aka "cash holdings") were touted as the equivalent of a money-market account. Banks and brokerage houses including Merrill Lynch, Citibank, UBS, Morgan Stanley, J.P. Morgan Chase and Wachovia sold $300 billion of these to non-profits, local governments and individuals.

These auction-rate securities were pushed as a substitute to savings or money-market accounts -- even though it was known they were garbage. When the music finally stopped, people had their life savings wiped out and non-profits went insolvent.

This raises 2 points in Clark's mind: First, where is the moral compass of the banking and brokerage business? Why would they go out of their way to rip off customers and destroy them financially? The answer is simple -- the commissions were humongous.

Second, where is the federal government? The SEC, the Federal Reserve and the OCC haven't done anything. The only actions are coming from the attorneys general of New York and Massachusetts.

There are just 2 lone wolves going after the bad guys! The banks and brokerages have been fined in the millions, but that's just a slap on the wrist for them. The attorneys general are trying to force full restitution to those who were ripped off. Clark applauds that effort and thinks jail time is in order for the culprits.

Always remember the core principle of investing: Know what you are buying. If you can't explain it to a fifth grader, don't buy it. That should help you stay out of harm.

The Washington Post reports that health "credit reports" have been compiled on 200 million Americans. Ingenix and Milliman are 2 companies that make billions of dollars developing profiles based on your prescriptions. A "pharmacy risk score" tells insurers the risk level you pose to them as a potential customer.

Pharmacy benefits managers (PBMs) actually sell your information regarding prescriptions. PBMs are a popular option at companies because they offer cheaper prices when you get your drugs online or through the mail -- instead of at a retail pharmacy.

The info in your health "credit report" can be used by an insurer to charge you more or decline you coverage altogether.

Another wrinkle in the story comes with "off-label" prescriptions. Off-label refers to using a prescription for an unintended use. For example, your doctor may be using a depression medication to treat your stomachache. But that off-label usage could redline you with insurers who don't want to see a history of depression medication -- even though you're not depressed.

Under new federal rules, you are allowed to see your health "credit report" from Ingenix and Milliman.

However, the real problem is not the lack of privacy, but rather the way that insurers are allowed to redline you. We need insurance coverage based on community-rating standards -- that is to say, age and sex.