Banks and money

[shikamaru]

Link: https://voxeu.org/article/banks-do-n...y-out-thin-air

; they would quickly be insolvent otherwise. In addition to bank solvency representing a constraint on private money creation, banks require access to liquid reserves in order to be able to engage in money creation.

Most interesting and eye opening .....

[shikamaru]

Will need to look deeper into double entry bookkeeping and accounting.

[shikamaru]

The entire article is food for thought.

[marcel]

We know that money creation requires the borrower's signature, the promise to repay, but it's more powerful, or shocking to say out of thin air.

It's been empirically demonstrated ...

https://www.sciencedirect.com/scienc...57521914001070

[shikamaru]

We know that money creation requires the borrower's signature, the promise to repay, but it's more powerful, or shocking to say out of thin air.

It's been empirically demonstrated ...

https://www.sciencedirect.com/scienc...57521914001070

These articles have renewed my interest in "commercial redemption" as well as lawful money.

Would securities issued by the US Treasury be considered lawful money? Can such securities be used to discharge a debt agreement?

[EZrhythm]

I have always maintained an interest in commercial redemption since I first learned of it in the mid 2000's. There are those of us who have had success with methods and those who have had catastrophies. Having the proper knowledge and not attempting to abuse it is key.

No, US Treasury securities are not lawful money. Securities are an evidence of debt AKA a promise to pay. There is no lawful money in circulation hence the remedy of redeeming lawful money.

Yes a security could be used to discharge a debt agreement just as a dollar note does as it is a security too. It is about directing your discharge or forming an agreement. A particular direction or more formal agreement may be necessary if the other party is ignorant or uncooperative.

[marcel]

Happy Taxteenth. The day we commemorate the end of debt note slavery in America. Specifically, today marks the day the last wage slave in the furthest reaches of the nation learned they were free. They learned the income tax was optional - they didn't need to use Federal Reserve notes. They could redeem lawful money and avoid the bankers' tribute. It was later discovered many wage slaves continued to endorse private credit not realizing the war was over.

[David Merrill]

No, US Treasury securities are not lawful money. Securities are an evidence of debt AKA a promise to pay. There is no lawful money in circulation hence the remedy of redeeming lawful money.

Looking closely -


So you are correct. Obligations of the US are not all lawful money.

Having been there though, with a video camera in a treasury vault, I believe that the US notes that have not been destroyed are lawful money still in circulation.



Resorting to a Treasury FAQ page for support:

Both United States Notes and Federal Reserve Notes are parts of our national currency and both are legal tender. They circulate as money in the same way. However, the issuing authority for them comes from different statutes. United States Notes were redeemable in gold until 1933, when the United States abandoned the gold standard. Since then, both currencies have served essentially the same purpose, and have had the same value. Because United States Notes serve no function that is not already adequately served by Federal Reserve Notes, their issuance was discontinued, and none have been placed in to circulation since January 21, 1971.

The Federal Reserve Act of 1913 authorized the production and circulation of Federal Reserve notes. Although the Bureau of Engraving and Printing (BEP) prints these notes, they move into circulation through the Federal Reserve System. They are obligations of both the Federal Reserve System and the United States Government. On Federal Reserve notes, the seals and serial numbers appear in green.

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.

Happy Taxteenth. The day we commemorate the end of debt note slavery in America. Specifically, today marks the day the last wage slave in the furthest reaches of the nation learned they were free. They learned the income tax was optional - they didn't need to use Federal Reserve notes. They could redeem lawful money and avoid the bankers' tribute. It was later discovered many wage slaves continued to endorse private credit not realizing the war was over.

Ergo, Culling the stupid and gullible. The 8:20 Minute Mark nails it.

The spike protein cleaves from the express cells, and circulates throughout the body. PARAPHRASING

So the Inventor before my NAV and gene sequencing strategy gave mankind the renewed earth. No war, just a lot less people struggling for resources.