How to use this Lesson Plan.

[lorne]

A FRN cannot be used to pay interest on the public debt. To what can we liken it? I will tell you. Let's say ...

Walmart issues an unbacked currency to pay its workers. Walmart Reserve Notes (WRN) are not money per-se but are useful for what they will purchase; anything at Walmart. And then Walmart loans these notes at interest to the government (public debt), but the issuer will not accept WRNs in payment of that interest. They won't accept their own notes! The company wants real money for that; gold or silver; something of value.

This is a sign of a scam, an indication that WRNs are $hit; potentially worth nothing. A currency designed to extract wealth. Furthermore, if Walmart goes bankrupt and out-of-business what good are WRNs?

Disclaimer: This is a hypothetical only to illustrate Federal Reserve notes and the author does not wish to paint Walmart in a negative light.

[marcel]

I'm curious. How exactly do you avoid income taxes with a "writeoff location?"

He didn't say. With a little imagination we can guess the type of activity. They could be adding extra to the expenses - I believe this is called padding the invoice. On the income side they could underreport cash sales. Seems they'd need 2 sets of books, cooked book for the accountant/IRS and a real one, or at least a way to easily know the real income. For ex. every invoice from your friend's cousin fruit & veg company shows double what was actually delivered, etc. Humans are very ingenious.

Not to make this a lesson plan on cooking the books. My point is - REDEEM LAWFUL MONEY and you're not liable for income tax. It's way easier and it's legal.

[David Merrill]

He didn't say. With a little imagination we can guess the type of activity. They could be adding extra to the expenses - I believe this is called padding the invoice. On the income side they could underreport cash sales. Seems they'd need 2 sets of books, cooked book for the accountant/IRS and a real one, or at least a way to easily know the real income. For ex. every invoice from your friend's cousin fruit & veg company shows double what was actually delivered, etc. Humans are very ingenious.

Not to make this a lesson plan on cooking the books. My point is - REDEEM LAWFUL MONEY and you're not liable for income tax. It's way easier and it's legal.

Bingo! And some characters to make the post go.