Surprisingly, the New York times, in a front page story about the financial crisis, states the Fed can print money.
Administration officials committed to flood the financial system with as much as $2.5 trillion — $350 billion of that coming from the bailout fund and the rest from private investors and the Federal Reserve, making use of its ability to print money.
The next step towards honesty would be for the writer to say the Fed is “creating” money and that this new money will devalue all other money. To be even more specific, the write should state the fed can create”dollars” since “money” could be whatever people use for money. In the prisons, inmates use cans of fish, and the Fed doesn’t print fish.