... The president's budget proposal promises to generate a trillion-dollar annual deficit for years to come despite there no longer being a financial crisis or deep recession. This represents not just a change in mindset about the role of government, but also an unsustainable financial situation that can only end in inflation.
Government can only issue debt so long as there are willing buyers at reasonable interest rates.
This is so far being achieved by the Fed by keeping short-term rates artificially low so that banks and hedge funds can borrow at 25 basis points and use this money to buy treasuries yielding 3.5% to 4%.