“Federal Reserve notes are legal tender currency notes. The twelve Federal Reserve Banks issue them into circulation pursuant to the Federal Reserve Act of 1913. A commercial bank belonging to the Federal Reserve System can obtain Federal Reserve notes from the Federal Reserve Bank in its district whenever it wishes. It must pay for them in full, dollar for dollar, by drawing down its account with its district Federal Reserve Bank.
Federal Reserve Banks obtain the notes from our Bureau of Engraving and Printing (BEP). It pays the BEP for the cost of producing the notes, which then become liabilities of the Federal Reserve Banks, and obligations of the United States Government.
Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
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.”
That was directly from the IRS website...for all to see.
The currency we use day in and day out are "valueless." They cannot be exchanged for anything. They are backed by nothing. A bank has only a fraction of all the depositors money because we have a "fractional" banking system that projects what banks actually NEED in cash on deposit, the rest is loaned out to make a profit FOR THE BANK, with your money, that is valueless.
These notes are only backed by, if anything, the goods and services of the country, which if you viewed a balance sheet and the US as a company, our debts OUTNUMBER our assets. Our future debts outnumber OUR FUTURE asset flows (tax revenues, there's no gold left).
The problem we first encounter here is...you're paid with VALUELESS securities, basically debt instruments, because they lay claim to nothing but that which they can be traded for within the economy. Moreover, they fluctuate wildly based on HOW many the Federal Reserve print or contract. It's nothing like being paid GOLD, for services rendered, and knowing you have value for WHAT YOU DID. Dollars now aren't worth much 10 years from now. Or even 1 year from now.
http://www.wealth4freedom.com/money/nod.htm
I'm sure some will believe that this is the way system should be...because it works that way, however, it is NOT as how the COnsitution intended for it to be. Do any other posters have information or experience with Federal Reserve Notes, money, etc, they care to post on?
There have been undisclosed court cases where a robber, tried in court, claimed he had stolen nothing of value when he robbed a bank for Federal Reserve Notes, because by the IRS/TREASURY's own admission, they are VALUELESS. In this criminal's case, his only crime would be breaking and entering, which would be minor compared to the size of the robbery.
A-Unit
Federal Reserve Banks obtain the notes from our Bureau of Engraving and Printing (BEP). It pays the BEP for the cost of producing the notes, which then become liabilities of the Federal Reserve Banks, and obligations of the United States Government.
Congress has specified that a Federal Reserve Bank must hold collateral equal in value to the Federal Reserve notes that the Bank receives. This collateral is chiefly gold certificates and United States securities. This provides backing for the note issue. The idea was that if the Congress dissolved the Federal Reserve System, the United States would take over the notes (liabilities). This would meet the requirements of Section 411, but the government would also take over the assets, which would be of equal value. Federal Reserve notes represent a first lien on all the assets of the Federal Reserve Banks, and on the collateral specifically held against them.
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.”
That was directly from the IRS website...for all to see.
The currency we use day in and day out are "valueless." They cannot be exchanged for anything. They are backed by nothing. A bank has only a fraction of all the depositors money because we have a "fractional" banking system that projects what banks actually NEED in cash on deposit, the rest is loaned out to make a profit FOR THE BANK, with your money, that is valueless.
These notes are only backed by, if anything, the goods and services of the country, which if you viewed a balance sheet and the US as a company, our debts OUTNUMBER our assets. Our future debts outnumber OUR FUTURE asset flows (tax revenues, there's no gold left).
The problem we first encounter here is...you're paid with VALUELESS securities, basically debt instruments, because they lay claim to nothing but that which they can be traded for within the economy. Moreover, they fluctuate wildly based on HOW many the Federal Reserve print or contract. It's nothing like being paid GOLD, for services rendered, and knowing you have value for WHAT YOU DID. Dollars now aren't worth much 10 years from now. Or even 1 year from now.
http://www.wealth4freedom.com/money/nod.htm
I'm sure some will believe that this is the way system should be...because it works that way, however, it is NOT as how the COnsitution intended for it to be. Do any other posters have information or experience with Federal Reserve Notes, money, etc, they care to post on?
There have been undisclosed court cases where a robber, tried in court, claimed he had stolen nothing of value when he robbed a bank for Federal Reserve Notes, because by the IRS/TREASURY's own admission, they are VALUELESS. In this criminal's case, his only crime would be breaking and entering, which would be minor compared to the size of the robbery.
A-Unit
