The next line is a lie.
The previous line is true.
Going by the first line, the next line is a lie. Which means that this line isn't true either. But if this line isn't true, then the next line is true which contradicts what I just said, the first line is true. This would go on like a tussle, both saying the same thing, but both presenting a totally different realm of contradiction. That is what happens when there are only two states and the two decide to conspire.