It's well-past time someone at the Fed was forthcoming on this matter. Treasury officials including Geithner have been spewing lies for months. Bernanke and Kohn have flatly denied it. Yet we know it's been happening consistently since the Treasury debt parade began in earnest, in January. The Federal Reserve and B-52 have been steady buyers at the weekly, gargantuan offerings.
They are creating credit from Magic Land and using it monetize the national debt. New York Fed President William Dudley confirms it in this clip. They fear deflation more than inflation. They better be right or this is going to get ugly one day, Weimar style.
These (along with part 1 from yesterday) are a series of extraordinary clips. Though Steve Liesman is not known for being tough on the administration (pardon while I cough), he does a decent job here. He claims it's the first time a sitting NY Fed President has ever made himself available for a television interview, which seems dubious. There are 5 short clips inside.
Starting at the 2-minute mark, make sure you're paying attention as the truth is finally revealed.
William Dudley, president of the New York Federal Reserve Bank, tells CNBC's Steve Liesman what's on the table at the next FOMC meeting and whether the Fed's balance sheet might reach $2.5 trillion.
"It's worth considering shutting off banks' dividends if the stock price plummets."
Dudley on Bernanke and inflation versus deflation.
William Dudley, president of the Federal Reserve Bank of New York, told CNBC's Steve Liesman that many factors contributed to the current economic crisis, not just low interest rates.
It has been one year since the fallout of the financial crisis. William Dudley, president of the Federal Reserve Bank of New York, looks back on this past year with CNBC's Steve Liesman.