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-- The U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. - - - Ben Bernanke, Chairman Federal Reserve, 2006-14
lol LOL L!O!L!
A dollar bill (paper) is an IOU, not a dollar (silver coin). See Coinage Act of 1792.
And since every dollar bill is DEBT, can you guess what authorizes MORE "dollar bills"?
Hint: Involves deficit spending.
That's right, boys and girls. CONgress has to have a deficit to authorize borrowing MORE, which allows them to issue MORE "notes".
What complicates things - in House Joint Resolution 192, in June 1933, CONgress repudiated redeeming their IOUs (notes). They're WORTHLESS.
". . .Federal Reserve notes are not redeemable in gold, silver or any other commodity, and receive no backing by anything. This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."
[] FRNs are not redeemable since 1933 (a violation of Title 12 USC Sec 411);
[] Government is therefore bankrupt;
[] FRNs are worthless;
[] FDR confiscated all lawful money (gold coin) in 1933;
[] FRNs are legal tender on obligated parties; (U.S. gubmint is an obligated party, according to 12 USC Sec. 411)
- and -
[] They are backed by YOUR goods and labor (FICA makes all participants into obligated parties [contributors] on said notes, so they become legal tender).
How did CONgress get the power to issue IOUs that obligate YOU to pay on them?
You wish.
Debt is not money. Never was. No money has circulated since 1933.
REAL MONEY - Money which has real metallic, intrinsic value as distinguished from paper currency, checks and drafts.
- - - Black's Law Dictionary, Sixth Ed. p. 1264
[see LAWFUL MONEY]
MONEY - In usual and ordinary acceptation it means coins and paper currency used as a circulating medium of exchange, and does not embrace notes, bonds, evidences of debt, or other personal or real estate. Lane v. Railey, 280 Ky. 319, 133 S.W. 2d 74, 79, 81.
- - - Black's Law Dictionary, Sixth Ed. p. 1005
[Paper currency such as a certificate is a receipt for money in the vault.]
NOTE - An instrument containing an express and absolute promise of signer (i.e. maker) to pay to a specified person or order, or bearer, a definite sum of money at a specified time. An instrument that is a promise to pay other than a certificate of deposit. U.C.C. 3-104(2)(d)
- - - Black's Law Dictionary, Sixth Ed. p. 1060
[A Federal Reserve NOTE (dollar bill) is NOT money, by law. It is debt. It is never ‘backed.’]
FIAT MONEY. Paper currency not backed by gold or silver.
- - - Black's Law Dictionary, Sixth Ed. P.623
[ Notes are never FIAT, since they’re debt, and not money]
TENDER - An offer of money ... Legal tender is that kind of coin, money, or circulating medium which the law compels a creditor to accept in payment of his debt, when tendered by the debtor in the right amount.
- - - Black's Law Dictionary, Sixth Ed. p. 1467
[Note: FRNs are legal tender on the obligated party of those notes - the Federal government. . . AND the 330 million enumerated socialists.]
"Federal reserve notes are legal tender in absence of objection thereto."
MacLeod v. Hoover (1925) 159 La 244, 105 So. 305
All duly enumerated American socialists cannot object to the tender of the notes that THEY are obligated parties to. (thanks to FICA)
TITLE 12, USC sec. 411. Issuance to reserve banks; nature of obligation; redemption
" Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in LAWFUL MONEY on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank."
LAWFUL MONEY - "The terms 'lawful money' and 'lawful money of the United States' shall be construed to mean gold or silver coin of the United States..."
- - - Title 12 United States Code, Sec. 152.
Since 1933, no lawful money has circulated in these united States.
AMERICA, YOU'VE BEEN PUNKED!
No, the Fed wishes and credits the bank account of those wishes.
For instance they wish to swap for debt. In doing so the Fed then has the worry about the value and future of that debt, not we the taxpayers.
And with the above they have now injected new money at the point of the Fed's wishes to help support that business, industry, local gov't or even individual. And that new money is quite real and useful to the beneficiary.
2008 saw the money merely replace what evaporated through the way our banking system works to just replace what evaporated ...this is why with trillions injected the best we could do was less then 2% inflation.
through a system called double entry accounting banks can take one transaction and turn it in to two .
so you take a loan for 100 bucks , the bank counts that as an asset . you then put it in checking . well it gets counted again .
the bank can loan 200 out less reserves off 100 .
when loans stopped and the credit markets froze the system started to implode on itself . so like replacing the air in a balloon trillions went into replacing the "phantom money "
Yes. I sat through a talk Jeremy Siegel gave a couple weeks ago and he made the point that the money that entered the system in 08/09 mostly sat on bank balance sheets as additional reserves due to new bank solvency requirements. It didn’t enter into the economy in the way that direct checks to the public will this time around. That will create upward inflationary pressure, but as I said earlier there are plenty of deflationary pressures this time around that weren’t present in 08/09.
I can’t even begin to discuss the lunacy from these “real money” people in the thread. I’m just glad they don’t have the keys to the economy or we would be living in the dark ages again. The Great Depression would look like the good times. I also think it highly unlikely that Trump has a firm grasp on the macroeconomic conditions. Jay Powell certainly does though and that’s what matters. Mnuncin may get it as well, but getting in a Twitter fight with Axl Rose isn’t exactly confidence inspiring. Add that to the list of things I never thought I’d see in 2020.
I sat through a talk Jeremy Siegel gave a couple weeks ago and he made the point that the money that entered the system in 08/09 mostly sat on bank balance sheets as additional reserves due to new bank solvency requirements.
Jeremy Siegel is an idiot and is almost always wrong. The guy looks like the ultimate creep too.
Jeremy Siegel is an idiot and is almost always wrong. The guy looks like the ultimate creep too.
I believe in getting information from many sources. Siegel raised some interesting points regarding the cash in the system. I also sat through talks from Mohamed El-Arien, Kent Smetters, Austan Goolsbee, Steven Meyer, and Raghuram Rajan. If you think one person is universally right or wrong during this crisis, you’re missing a lot.
Siegel is a lot of things, but he’s not an idiot. Tell me why he’s wrong about this.
You wish.
Debt is not money. Never was. No money has circulated since 1933.
Every vendor I go to accepts my major credit cards for payment. I hardly ever use paper currency. As long as vendors will hand over goods in exchange for digital credit card transactions, digital debt is real money.
Digital credit card money is superior to paper notes and gold. Credit card purchases have a theft and fraud guarantee. If somebody rips you off in a Craigslist deal and he's got your cash, you are out of luck. My credit card has a negative interest rate. I get "cash back" for every purchase. As long as I pay off my balance every month (which I do), I get an electronic payment in my checking account for using the credit card. Dollars and gold have never done that for me.
Yes. I sat through a talk Jeremy Siegel gave a couple weeks ago and he made the point that the money that entered the system in 08/09 mostly sat on bank balance sheets as additional reserves due to new bank solvency requirements. It didn’t enter into the economy in the way that direct checks to the public will this time around. That will create upward inflationary pressure, but as I said earlier there are plenty of deflationary pressures this time around that weren’t present in 08/09.
I can’t even begin to discuss the lunacy from these “real money” people in the thread. I’m just glad they don’t have the keys to the economy or we would be living in the dark ages again. The Great Depression would look like the good times. I also think it highly unlikely that Trump has a firm grasp on the macroeconomic conditions. Jay Powell certainly does though and that’s what matters. Mnuncin may get it as well, but getting in a Twitter fight with Axl Rose isn’t exactly confidence inspiring. Add that to the list of things I never thought I’d see in 2020.
Most of those excess bank reserves were beyond requirements and sat there since there just weren't enough reliable borrowers at the time. That was some of the QE weakness and why it did not incite inflation. Banks were also paid interest on the excess reserves, so that was another factor.
Most of those excess bank reserves were beyond requirements and sat there since there just weren't enough reliable borrowers at the time. That was some of the QE weakness and why it did not incite inflation. Banks were also paid interest on the excess reserves, so that was another factor.
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