Economics: How (and where) is Money Created?

If you hear someone compare Uncle Sam’s budget to that of a family, you can be confident that he or she hasn’t a clue about budgets or the way that our monetary system works. Since I have every reason to believe that President Obama is an intelligent and informed person, I wonder how it is that he has, on more than one occasion, suggested that a family budget and Uncle Sam’s budget are alike. “Families across the country are tightening their belts and making tough decisions. The federal government should do the same.” — President Barack Obama, 2010 State of…