I will take exception to this.Originally Posted by Carl
FRNs are notes. Notes are debt instruments. Notes transfer title, but the debt remains. FRNs discharge debt in equity.
Lawful tender extinguishes debt at law.
I will take exception to this.
FRNs are notes. Notes are debt instruments. Notes transfer title, but the debt remains. FRNs discharge debt in equity.
Lawful tender extinguishes debt at law.
This is similar to the concept of money of account vs. money of exchange.
I got this information from some French treatise.... if anyone is interested, I can see if I can dig it up.
If I follow, credit is money of account. FRNs are money of exchange.
Last edited by shikamaru; 05-07-11 at 12:10 PM.
Credit is not money at all, it is simply book keeping entries that banks have finagled into a currency or, medium of exchange.
FRNs are legal tender money, a unit of account and the basis of all credit/debt issued.
FRNs are born as debt but they can also be held independant of debt, credit can not.
Last edited by Carl; 05-07-11 at 04:34 PM.
This is exactly what money of account is: bookkeeping entries in a ledger.
The depositing of one's money into a bank transitions it from money of exchange (FRNs) to money of account (checkbook, ledger, or account entries).
Gold coin, silver coin, and copper coins are lawful money
Gold coin, silver coin, copper coins, US Treasury Notes, and US Treasury Bills are lawful tender.
An FRN is a note. It is based on dollars. A dollar is a specified weight and grain of silver and per the Coinage Act of 1792.
Last edited by shikamaru; 05-07-11 at 06:01 PM.
That inverted pyramid is wrong in that gold was made irrelevant to the equation in 1933.
It all rests on the FRN now.
Or does it rest on the estate held in trust where the FRN devalues it when we choose to use that form of currency?
Interesting question. Whose estate is being held in trust?
Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
This accounts for the FRN's limited supply and it also discounts any notions of hyperinflation.
It is peoples' assets which are being held in trust.
People create governments.
Does it have to be any "ones" estate, what if it were for the benefit of all?
Could it be possible it is a Lien upon the Bond in Treasury the FRB deposited so that those notes can be printed and then you are charged taxes and interest upon the use of them FRNs to secure the Bonds and the increase the banks would get? An easy search you will discover that the Burea of Engraving and Printing, a federal agency prints the notes and distributes to FRB branches.
Bonded performance obligation:
In the publication published by the FEDERAL RESERVE BANK titled, "THE FEDERAL RESERVE SYSTEM PURPOSES AND FUNCTIONS," on page 115, in Appendix B Glossary of Terms, the following paragraph defines, "FEDERAL RESERVE note," and said definition does not include the UNITED STATES.
Federal Reserve note
Paper currency issued by the Federal Reserve Banks. Nearly all the na-tion’s circulating currency is in the form of Federal Reserve notes, which are printed by the Bureau of Engraving and Printing, a bureau of the U.S. Department of the Treasury. Federal Reserve notes are obligations of the Federal Reserve Banks and legal tender for all debts.
You can find the file at the following link:
http://search.newyorkfed.org/board_p...x=0&Search.y=0
Hyperinflation, who caused that? Credit Card Use, Lines of Credit, Loans, Mortgages e.t.c., Business is good for banks why would they not want to control flow of currency? Is it always someone else's fault?
Last edited by motla68; 05-08-11 at 03:01 AM.
Like this?
I recall having $4K on a Line of Credit. I told the Credit Union to remove my SSN from the Account as I did not have one any longer. They closed the account. A couple months later they called my Dad and asked him for my SSN - he declined.
Last edited by David Merrill; 05-07-11 at 06:46 PM.
Posting Permissions
Reply With Quote