Inflation: "An increase in the amount of money and credit in relation to the supply of goods and services; An increase of the general price level; An excessive or persistent increase in wages and costs causing a decline in purchasing power."

Recession: "A temporary falling off of business activity during a period when such activity has been generally increasing."

(Source: Websters New World Dictionary, Third College Edition)

Rather than an opinion piece, which is what I generally write, this little snippet is meant more as a discussion generator than a statement of my own economic view. I earnestly invite our readers to weigh in on the matter. Inflation or recession, are we now experiencing either or both?

Here's an item that's so laced with irony it defies comment -- I can't come up with a metaphor that does it justice. It's sort of like rearranging deck chairs on the Titanic, but it's much, much, much more pathetic.

President Bush's 2009 budget is expected to lead to a deficit of more than $400 billion. But not to worry, our fearless leader has a plan to cut back on spending.

According (subscription required) to the Wall Street Journal, "In years past, the White House's Office of Management and Budget distributed about 3,000 copies of the budget free to media outlets, congressional offices and elsewhere in the capital. This year, those folks must buy a printed copy or access one free online."

Members of Congress can get a copy for $67.50. Ordinary taxpayers hoping to get the details on how their elected officials plan to waste their money and then some will have to pay $213 -- or read it online.

The plan will save taxpayers an estimated $1 million over 5 years.

So $400 billion divided by $200,000... The President has found a way to shave off 1/2,000,000th of the projected deficit for 2009 that will be passed on to future generations.

Keep up the good work!

American President George Bush announced his new budget spending plan today, and the package came out to a total of $3.1 trillion.

Today's federal budget proposal marks the first time in America's history that a budget plan has been in excess of $3 trillion. Bush claims that his budget is "good" and "solid" and that the passing of this budget will help keep the troubled American economy growing.

All in all, this budget looks to lift government spending by 6% during the fiscal year 2009, and it will probably come to no one's surprise that defense gets a nice little boost from today's budget. Bush is looking to allocate 8.2% of his spending on security, and the budget is looking to stake a $70 billion "placeholder" for war costs during 2009. The Pentagon should be pleased with its figures, as Bush is looking to allocate $515.4 billion its way... the highest allocation since WWII (and represents a 7.5% jump).

Sometimes an innovation that makes perfect sense economically will get blasted by consumers for emotional reasons that have more to do with perception than anything else. Take flying on airplanes for example, where consumers want low fares but also grumble about stuff like having to pay for the peanuts. Irish carrier Ryanair (NASDAQ: RYAAY) has ultra-low fares, but also little in the way of free amenities: Seat assignments, checked bags, early boarding, and food all cost extra.

SkyBus Airlines will be trying that approach here in the States, with fares starting at as little as $10. It's going to charge $5 per checked bag, and will even sell the right to have your company's logo on its planes (I nominate BloggingStocks).

SkyBus's Rules of Flying sound like they were written by the Soup Nazi from Seinfeld: Bring cash for food, bring a book, don't call us, and don't be late.

Here's what I like about this airline: You only pay for the services you want. People might like the idea of free peanuts and free baggage checking, but, Economics 101 folks: Nothing is really free. Instead of having every passenger absorb the cost of free peanuts, why not just charge the people who want them? It makes perfect sense to me.

We'll see how SkyBus does. It might take some getting used to, but I have to think this is the future of the airline industry.

My wife and I were at our local Wells Fargo (NYSE: WFC) branch today and we signed some important papers. The documents we put our names to probably represent the single best investment we have made in our time together. Utilizing a portion of a rather handsome income tax return and some carefully thought out timing, we as a couple today reduced our consumer debt load by approximately 25%.

Being in debt has always made my skin crawl, though I fully understand the reasons why we do it. If you want a nice house and a fine automobile or two, the chances are that the only way you can pull it off is by borrowing the funds to make it possible. That doesn't change the fact though that I hate being in debt, and whenever the opportunities present themselves I do what I reasonably can to reduce my debt level.

For busy families that have a lot of service providers to thank (house cleaners, babysitters, hairdressers, etc.), the tipping tally can easily total in the thousands of dollars. (Read SmartMoney's take on what is reasonable and expected for year-end gratuities or take AOL's tipping quiz to see if you know it all already.)

As much as you might fantasize, you can't skip the tips. If you want to keep your tipping budget to a reasonable level, you don't have to play scrooge this season. Here's some ideas for how to thank the folks who help you out year-round without busting your budget: