Inflated: How money and Debt built the American Dream

We have some complex problems to solve and directions to give to our elected officials, This is 

an interesting book that attempts to cover a broad complex subject.  I am particularly interested in his  thoughts concerning,the fact that  running a major war requires the need to raise debt.  Debt in turn contributes to deficit spending, driving the underlying rate of inflation that steadily saps the puchasing power of the dollar.

Am I wrong in thinking this is true?
Anytime there is a war with the United States, the defeated country, gets all kinds of rebuilding at our cost.  Look at the devastated cities in Europe and Japan, and how we rebuilt them after the war.  Look at what is happening in Iraq.  We are nation builders for all, but ourselves.  Why?  Why are our cities neglected?  Our Army can go and protect the citizens of the countries in the middle east, but only our National Guard can protect us on the borders?  I have lots of questions, and maybe not all the right answers, what about you?

It appears that we do not put our nation first.  Am I wrong in this thinking, is this push still necessary in the Middle East, at the cost of prosperity to our nation?