I've solved the Lawful Money Riddle

[Jaro]

Nonsense, those investopedia morons have no idea what money is. Bouvier's dict. defines them as:

MONEY. Gold, silver, and some other less precious metals, in the progress of civilization and commerce, have become the common standards of value; in order to avoid the delay and inconvenience of regulating their weight and quality whenever passed, the governments of the civilized world have caused them to be manufactured in certain portions, and marked with a Stamp which attests their value; this is called money. 1 Inst. 207; 1 Hale's Hist. 188; 1 Pardess. n. 22; Dom. Lois civ. liv. prel. t. 3, s. 2, n. 6.

The US government cannot "create" money which is gold and silver but is limited to coining money to make legal tender lawful money. The government cannot create gold or silver but can make legal tender lawful money from it. In other words, the US gov't CANNOT CREATE ANY MONEY. Money is something of value or redeemable in value and gov't can't create value.


And tresury notes and bonds aren't lawful money since they even AREN'T currency.
"Money: In usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81."
[Black's Law Dictionary, Sixth Edition, p. 1005]

So Federal Reserve Notes (FRN) are not "money", but they are "currency" from a legal perspective. And let's not forget that at least until 1963 FRns were redeemable in lawful money, so OBVIOUSLY they weren't lawful money.

Don't forget that treasury notes and bonds are lawful money as well.

Lawful money is any form of currency issued by the U.S. Treasury (according to Investopedia).
Lawful money can be just as fiat as legal tender depending on its form.

I've heard that money orders are lawful money, but have not sought to substantiate that.

Also keep in mind that the specie of today is clad coinage.

[shikamaru]

Money is something of value or redeemable in value and gov't can't create value.

Money has 4 functions i.e. 1) unit of exchange, 2) unit of measure, 3) store of value, and 4) standard of deferred payment.

Value is created and destroyed all the time.
My question is how do you define value?

And tresury notes and bonds aren't lawful money since they even AREN'T currency.
"Money[/B]: In usual and ordinary acceptation it means coins and paper currency used as circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W.2d 74, 79, 81."
[/U][Black's Law Dictionary, Sixth Edition, p. 1005]

Treasury notes and bonds circulate between banks and governments. Would this not be currency at least for those participants?
Further, treasury notes and bonds serve as "reserve currency" or assets for the US banking system.

So Federal Reserve Notes (FRN) are not "money", but they are "currency" from a legal perspective. And let's not forget that at least until 1963 FRns were redeemable in lawful money, so OBVIOUSLY they weren't lawful money.

Let's look at it from this perspective.
Law is will. Will of the political power holder.
Gold and silver coin became lawful money in England only by ruling of the English courts. Prior to this event silver coin was the defacto currency of the realm.

The English Courts could have just as easily said that seashells or salt is lawful money.