Leroy Cool Interrogates The Chairman Of The Fed


Excuse me, arenít you Benjamin Bernanke, the Chairman of the Federal Reserve Board?

 


Yes sonny, thatís right.

 


I wonder if you could answer a few questions for someone whoís a bit confused by economics.

 


Of course sonny, Iíd be happy to. Itís half an hour till my flight.

 


America is suffering from a recession at the moment, right?

 


Thatís right.

 


Because thereís a shortage of credit.

 


Yes.

 


What is credit made of?

 


I beg your pardon?

 


What is it made of, what substance?

 


Substance?

 


Yes, what metal?

 


Why, sonny, youíre confusing credit with coins. Credit isnít made of anything.

 


It isnít?

 


No, itís just figures in a book.

 


Figures in a book?

 


Or blips in cyber-space.

 


Right. So how come thereís a shortage of it?

 


I beg your pardon?

 


What I mean is, if the government can make credit by writing figures in a book, why doesnít it?

 


Well, sonny, the American Government or the Federal Reserve canít just create credit by writing figures in a book?

 


Why not, if thereís a shortage of it?

 


Because that would cause inflation?

 


Why?

 


Because if we create credit just like that, it will cause inflation.

 


But why?

 


Because creating too much credit causes inflation.

 


But you said there wasnít enough credit in the economy.

 


I did?

 


Yes, you said there was a shortage of credit.

 


Ah, what I said was that there was a shortage of credit; I didnít say there wasnít enough.

 


???

 


Good grief, thereís my flight. Have to run now. Bye.

 

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