The rate at which the general level of prices for goods and services change.
As prices increase; the buying power of the dollar decreases. Vs. As prices decrease; the buying power of the dollar increase. Demand-pull inflation if the demand is higher than supply. Cost-push inflation is increased production costs push prices higher.
National Inflation Association
The United States now has over $76 trillion in total debt obligations. Our budget deficit in February of 2011 alone was a record $222.5 billion, more than the entire year of 2007. Although our 2010 cash budget deficit was $1.3 trillion, once you factor in changes in our unfunded liabilities for Social
Security, Medicare, and Medicaid, our real budget deficit for the year actually surpassed $5 trillion.
NIA believes that not only will it be impossible for the U.S. to ever pay off its national debt, but it will be impossible for the U.S. to ever balance its budget again. Even by the White House's own projections, the U.S. budget deficit in 2011 will be 43% of total government expenditures. This level of deficit as a percentage of total expenditures is about equal to what most countries have experienced right before reaching an outbreak of hyperinflation.