Congressional Testimony June 3, 2009
"Will the Federal Reserve monetize this debt?"
"The Federal Reserve will not monetize the debt..."
Same hearing, full question from Hensarling:
Start watching at the 30-second mark.
"The Federal Reserve will not monetize the debt."
But wait, there's more.
Ron Paul asks Bernanke about QE2, and monetizing the debt in April 2010.
Bernanke nods in agreement.
"I want talk about monetizing the debt. You mentioned in your statement that you bought MBS and agency debt. And that's over $1.3 trillion. Well, where did you get the money? You created the money. So you did monetize the debt."
Ron Paul Bernanke testimony added.