Robert Reich's pie

Mr. Reich in his 17 Feb. post on his blog, sees the economy as some sort of a magic goose which lays a pie once a year and thinks that he and the rest of the goose guardians have the sacred duty to see that each citizen gets their fair share.Republicans would rather no one notice their campaign to shrink the pie even further with additional tax cuts for the rich.But just how does this money pie materialize? How does currency get its value? Unfortunately theories abound. At one extreme is the "nothing" theory which may be somewhat whimsically characterized as follows.The short answer is nothing. There are no real assets, public or private, that are specifically pledged to back Federal Reserve Notes. The notes are backed by the "full faith and credit," of the United States Government. Which means accept my IOU or go to court. It is like the Mafia issuing its own currency backed by the full faith and credit of Big Angie and Fat Tony. “If anybody don’t take this...(Read Full Post)

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