Inflation is very likely

President Obama’s 816B stimulus bill was passed by House on this Thursday, although no republicans supported this and there is possibility that this plan would be failed in Senate next week. With the strategy of bail out everyone, US has printed 10 trillion paper money within a year. Facing the deepening recession, President has asked Americans to prepare "trillion dollar deficits for years to come.” What does this mean? That means the inflation, hope not hyper inflation, is unavoidable.

Let’s look at the meaning of Inflation:

According to Webster's New Universal Unabridged Dictionary published in 1983 the second definition of "inflation" after "the act of inflating or the condition of being inflated" is:
"An increase in the amount of currency in circulation, resulting in a relatively sharp and sudden fall in its value and rise in prices: it may be caused by an increase in the volume of paper money issued or of gold mined, or a relative increase in expenditures as when the supply of goods fails to meet the demand.

This definition includes some of the basic economics of inflation and would seem to indicate that inflation is not defined as the increase in prices but as the increase in the supply of money that causes the increase in prices i.e. inflation is a cause rather than an effect.

It is time for everyone to spend less and save more. Government should do it first. Unfortunately, no politicians dare to ask Americans to face the reality, what they encourage is spending, like the President has mentioned during his inaugurate address including lower taxes, expanded corporate bailouts, and direct stimulus checks to consumers.