David Lin hosted the debate on The David Lin Report and provided moderation for the event. While Peter and Hanke have their disagreements, both ultimately agree that the United States is in rough fiscal and monetary shape, and terrible monetary policy played a key role in getting it there.

The debate gets off to a fiery start when Peter and Hanke clash on inflation. First, Peter explains the crux of the problem:

"The Federal Reserve that ends up monetizing all that government debt— that is what's driving the problem. And I think ultimately, as our budget deficits are exploding, it's going to cause a big loss of confidence in the dollar, in U.S. treasuries. And so as the dollar starts to fall, that puts even more upward pressure on consumer prices because the dollar now has less value internationally."

The two argue about how to define inflation:

"But that [an increasing money supply] doesn't just cause inflation. That is inflation. What is being inflated is the money supply. You go back and get an old dictionary. Even in the 70s, you get a dictionary, Webster's Dictionary, look up inflation and it says 'an expansion of the money supply.' And it's also money and credit. Rising prices are a result, a consequence of inflation. They are not inflation, and they do not cause inflation. They are a byproduct of inflation."