The subject of economics is generally avoided by a lot of people because it can seem so boring.  A lot depends on the presentation.  These lessons will be short so as not to bore those who happen to come here.

Everyone knows that inflation is a general rise in prices of the stuff we buy.
What is not so well known is the cause of inflation

Here is a dictionary definition of inflation: an increase in the volume of money and credit (relative to productivity) resulting in a continuing rise in the general price level. (Merriam-Webster ver 2.11)

First clue: An increase in the volume of money and credit.

What agency is responsible for the issuing of money and credit?

Most directly, the Federal Reserve Board. Not quite so directly, the federal government. Well actually, the department of Treasury prints the cash.

So, inflation is caused by the government.

Inflation has been (relatively)low in recent years because the FED (Federal Reserve Board) has so carefully kept the printing of money in line with the growth of the economy.

End of lesson I

Much is made of the 'trade deficit' by politicians, pundits, Ross Perot, and Pat Buchannon, but what exactly is the problem with having a trade deficit.  I'll make a note here to write something about the eternal conflict between the producer and the consumer, but the essential point here is that the producer has greater incentive to organize and lobby for some politically contrived advantage.

When there are complaints about a trade deficit, is is because there are more goods coming into our country than are going out.  Producers don't like this because, well because producers are rarely fond of having to compete for consumer dollars.

So let's look at it from the consumer's point of view.

When there is a so called negative trade deficit, there are more goods coming in and more dollars going out than vice versa.  That is, our dollars are piling up in other countries because they aren't buying as much of our goods as we are buying of theirs.

So what is really happening here?  We are giving them pieces of paper in exchange for the goods we want and need.
What a deal!  Paper for goods.  Of course, in order to get the value of those pieces of paper, they will eventually came back to us in exchange for something we have produced, but in the meantime, we are getting goods at a lower price than we would have otherwise and, the situation mitigates against any inflationary tendencies.

So why is there such a fuss made about trade deficits?

1 It distracts us from the real causes of problems. Classic scapegoating.
2 Arousing distress makes it easier to manipulate people.
3 Politicians and pundits need reasons for being what they are and where they are.