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Thread: Redeemed Lawful Money

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  1. #5
    Ok, but appears to me (as per below) lawful money is (used to be) issued by US Treasury in the form of US Notes (no longer issued). If this is the case what Jaro received, then, is not (strickly) lawful money in the "traditional sense" and stamping such does not make them lawful.
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    http://www.investopedia.com/terms/l/lawfulmoney.asp

    What Does Lawful Money Mean?
    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves. Fiat money includes legal tender such as paper money, checks, drafts and bank notes.

    Also known as "specie", which means "in actual form."

    Investopedia explains Lawful Money
    Oddly enough, the dollar bills that we carry around in our wallets are not considered lawful money. The notation on the bottom of a U.S. dollar bill reads "Legal Tender for All Debts, Public and Private", and is issued by the U.S. Federal Reserve, not the U.S. Treasury. Legal tender can be exchanged for an equivalent amount of lawful money, but effects such as inflation can change the value of fiat money. Lawful money is said to be the most direct form of ownership, but for purposes of practicality it has little use in direct transactions between parties anymore.
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    Appears US Notes (red seal) are lawful http://stormthunder.com/ but are no longer issued. Also see Fed Res Site: http://www.treasury.gov/resource-cen...al-tender.aspx

    "United States notes serve no function that is not already adequately served by Federal Reserve notes. As a result, the Treasury Department stopped issuing United States notes, and none have been placed into circulation since January 21, 1971. "

    So, how can we (a) be asked to use Red Seal US Notes(http://stormthunder.com/) and (b) if US Notes "..serve no function that is not already adequately served by Federal Reserve notes" and as such, appears FRN are already (somehow) lawful money, then what exacly are we redeeming. BUT, on the other hand, how do we explain 12.411?

    Well, I can only explain: "SIX OF ONE 1/2 DOZEN OF THE OTHER" in other words, redeeming Fed Res notes is merely an "Alice in Wonderland" exchange of one Fed Res note for another. Nonetheless, what they give you IS NOT issued by the Treasury, and, are, magically, somehow "lawful money" indistinguishable.

    Question remains, why stamp the exchanged notes at all when the significant TECHNICAL operation appears to be the demand stamped on a deposited check and NOT the notes themselves. ....don't know.
    Last edited by hvncb; 07-15-11 at 01:40 PM.

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