And I thought the Sanford letters were going to be the funniest thing posted here this afternoon. Oops...
The San Fran Fed continues to voice a dissenting tone from the Ben Bernanke Inflation Party Line. Authors Weidner and Williams try to reconcile the lack of major deflationary pressure borne by significant unemployment. Their conclusion: the output gap is the likely variable, and could potentially be less then estimated by the CBO.
Or so the government says... even with minimal background knowledge, it's not too much of a reach to call BS.