Shikamaru, can you please provide the citation/link to this? "The Congress has specified that Federal Reserve Banks must hold collateral equal in value to the Federal Reserve notes that the Federal Reserve Bank puts in to circulation. This collateral is chiefly held in the form of U.S. Treasury, federal agency, and government-sponsored enterprise securities" Thank you.
Originally Posted by Goldi
That comes from here, here , here and here.
Think of SDR's (paper gold) Special Drawing Rights as the measure of a society's conditioning to endorse private credit from the local central bank (here, the Fed). That measure has for quite some time replaced gold and has even become a currency in itself that can act as a reserve. But then, all the Fed needs to do is tell the Treasury to print more bills or even more "0"s toward the end of them. (Add two "0"s to a $1 bill and it is worth 100 times as much!)
Last edited by David Merrill; 09-12-12 at 11:20 PM.
This may be of some interest to some:
Net worth of the Federal Reserve Banking System and balance sheet
Not trying too hard, this is what I could come up with:
http://www.law.cornell.edu/uscode/te...subchapter-XIV
http://www.law.cornell.edu/uscode/te...subchapter-XII
Other than that, one could try combing through Title 12 of the USC.
Last edited by shikamaru; 07-06-13 at 11:53 AM.
This is the link directly to the .gov site with that quote:
http://www.federalreserve.gov/faqs/currency_12770.htm
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