Says the Fed will not monetize the debt.
Ha ha! Now I know why Lacker is JDA's favorite Fedhead! His sense of humor! That's a good one! And the check is in the mail and I won't...
The only other time debt/GDP was this high was after WWII, and the Dirty Fed inflated away the debt that time -- there was as much inflation as real growth as nominal GDP grew. Now we are running structural deficits of 10% of GDP and have gigantic unfunded entitlements and you're going to tell me we're going to grow and tax our way out of this with no inflation?
You really think Timmy the Tax Cheat's best buddy Zimbabwe Ben would allow a failed Treasury auction? And if the Fed doesn't create inflation, that will nuke the housing market all over again. You think the Fed is going to let another housing drop take down the banks and the entire Federal government thanks to Timmy the Tax Cheat's unlimited Fannie/Freddie bailout guarantee?