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  1. #38
    Join Date
    Apr 2015
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    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.
    Last edited by lorne; 06-25-19 at 07:05 PM.

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