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(Psa 14:3 KJV)  They are all gone aside, they are all together become filthy: there is none that doeth good, no, not one.

(Proverbs 12 also read)

This verse and others like it are often quoted by people who want to explain why it is not a big problem for them to live in sin.  They like to quote references to grace and then point out that the Bible says we cannot be righteous, thus they cannot be expected to go without sinning.  When you read this verse and the ones like it your argument seems to make sense.

Like many theological and “Biblical” positions it is hard to scoop water with a sieve.  It is not hard to see a conflict in this thinking.  In this case all you need to do is read two more verses.

(Psa 14:5 KJV)  There were they in great fear: for God is in the generation of the righteous.

If there is no one who does good then how can God be in a righteous generation?

So?  The real question in issues like this is the desire of your heart.  If you are looking for excuses to live with sin, you will find them.  At some stages of your spiritual walk it can be because of listening to the wrong people and not having enough Bible under your belt to know better.  If you are further down the road expect God to cock an eyebrow and look at you askance.  God is holy and does not play games.