Originally Posted by
Keith Alan
I've thought about this too, but when you demand redemption in lawful money today, perhaps you are receiving an entirely different kind of currency. It still looks like an FRN, but you're liening the Treasury's seal and signatures, not the Fed's credit. I'm kind of thinking out loud here, but clearly you're not receiving a US note.
Now if that's the case, what is it? It's not hard money, because it's pegged to a reserve currency. It must be another form of credit, but one where the liability for it is with the US, and not the holder.
PS - It just occurred to me: lawful money not in the form of US notes or other lawful money must be the fruit of a constructive trust. You're creating it by operation of law.