Originally Posted by
martin earl
that is not correct in my opinion.
The TREASURY is the Book keeper.
The Federal Reserve is the creditor. Congress, via the "national budget", is the DEBTOR to the Federal Reserve. The CREDIT is extended to CONGRESS, via BONDS issued to the Federal Reserve on "full faith and credit" of the US.
The people ONLY come into play when they openly endorse negotiable instruments into Bank currency. The Face value, plus interest (a pre-existing obligation to pay) is then ASSUMED by the man or woman endorsing the debt.
The "goods and services" produced by all endorsers becomes (via voluntary surrender/open endorsement) pledged property to the Federal Reserve for the repayment of the debt issued. This is expressed as the GDP (gross domestic product).
The interest on said debt (not covered by the GDP) is then collected as "income tax" on endorsers "income".
IF everyone in the "US" where to stop openly endorsing their paychecks and bank deposits, getting loans and started demanding redemption per 12 USC 411, at the end of the year, Congress would still be holding the DEBT and they would be on the hook for the entire amount, plus interest. That is what "shall be obligations of the US" means.
Under the law the ONLY debt that can be re-venued via a signature on a blank paper is a "pre-existing obligation". That is why the backs of check and "bank signature cards" should have a RESTRICTION for redemption. Once restricted, the OBLIGATION to pay the existing debt remains with the original debtor (Congress).