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View Diary: There is NO fiscal cliff. (69 comments)

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  •  Currency does have value (0+ / 0-)

    Currency is backed by the power of the government to collect taxes.  And even to seize property.  

    So ultimately, currency is backed by the entire output of the economy.  The trick here is, if people are unemployed, and not creating output, then it really costs the government nothing to pay them to then create output.  The new currency is backed by the new output.  

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