If you want to create a "unlimited" varchar column, just use varchar with no length limit.
From the manual:
If a character variable is used without a length specifier, the type accepts strings of any size
So you can use:
create table foo ( unlimited varchar );
Another alternative is to use text :
create table foo ( unlimited text );
For more information on character data types, see the manual:
http://www.postgresql.org/docs/current/static/datatype-character.html
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