IOU Nothings
Posted: Mon Sep 21, 2020 10:06 pm
Actually, they are "who owes you nothing?", as there isn't even an obligor.Hal wrote: ↑Mon Sep 21, 2020 10:06 pm John Exters paper
https://www.aier.org/wp-content/uploads ... 197206.pdf
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IOU Nothings
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Re: IOU Nothings
Posted: Tue Sep 22, 2020 4:50 pm
Re: IOU Nothings
Posted: Tue Sep 22, 2020 4:56 pm
I've always been fascinated by the "Legal tender for all debts public and private" clause on the notes.
Traditionally, a "note" is essentially an IOU. But these days, the IOU in a Federal Reserve Note has been diminished from gold, to silver to "debts".
OK.
I can see that this has some credibility as long as the USA requires that all taxes are paid in FRN's - then FRN's maintain value.
It will be interesting if/when that declaration of value is rescinded.
Traditionally, a "note" is essentially an IOU. But these days, the IOU in a Federal Reserve Note has been diminished from gold, to silver to "debts".
OK.
I can see that this has some credibility as long as the USA requires that all taxes are paid in FRN's - then FRN's maintain value.
It will be interesting if/when that declaration of value is rescinded.
Re: IOU Nothings
Posted: Tue Sep 22, 2020 8:43 pm
A Federal Reserve Note isn't really a note.Mark Leavy wrote: ↑Tue Sep 22, 2020 4:56 pm I've always been fascinated by the "Legal tender for all debts public and private" clause on the notes.
Traditionally, a "note" is essentially an IOU. But these days, the IOU in a Federal Reserve Note has been diminished from gold, to silver to "debts".
OK.
I can see that this has some credibility as long as the USA requires that all taxes are paid in FRN's - then FRN's maintain value.
It will be interesting if/when that declaration of value is rescinded.
To have a note, you need an obligor.
Who is the obligor on a Federal Reserve Note?
Re: IOU Nothings
Posted: Tue Sep 22, 2020 9:21 pm
They look suspiciously not like a note to me. No disagreement.Libertarian666 wrote: ↑Tue Sep 22, 2020 8:43 pmA Federal Reserve Note isn't really a note.Mark Leavy wrote: ↑Tue Sep 22, 2020 4:56 pm I've always been fascinated by the "Legal tender for all debts public and private" clause on the notes.
Traditionally, a "note" is essentially an IOU. But these days, the IOU in a Federal Reserve Note has been diminished from gold, to silver to "debts".
OK.
I can see that this has some credibility as long as the USA requires that all taxes are paid in FRN's - then FRN's maintain value.
It will be interesting if/when that declaration of value is rescinded.
To have a note, you need an obligor.
Who is the obligor on a Federal Reserve Note?
Re: IOU Nothings
Posted: Tue Sep 22, 2020 11:04 pm
From how I read it, it is an irredeemable credit noteMark Leavy wrote: ↑Tue Sep 22, 2020 9:21 pmThey look suspiciously not like a note to me. No disagreement.Libertarian666 wrote: ↑Tue Sep 22, 2020 8:43 pmA Federal Reserve Note isn't really a note.Mark Leavy wrote: ↑Tue Sep 22, 2020 4:56 pm I've always been fascinated by the "Legal tender for all debts public and private" clause on the notes.
Traditionally, a "note" is essentially an IOU. But these days, the IOU in a Federal Reserve Note has been diminished from gold, to silver to "debts".
OK.
I can see that this has some credibility as long as the USA requires that all taxes are paid in FRN's - then FRN's maintain value.
It will be interesting if/when that declaration of value is rescinded.
To have a note, you need an obligor.
Who is the obligor on a Federal Reserve Note?
https://willembuiter.com/Heliw10163.pdf
Love this footnote
Re: IOU Nothings
Posted: Wed Sep 23, 2020 9:26 pm
One more reason that I like the PP philosophy. You can't pretend that the real world doesn't exist. Money is made in markets that make no sense. So best to just go with it. But keep sloshing some of the proceeds into hard assets... You never know.
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