John Exters paper
https://www.aier.org/wp-content/uploads ... 197206.pdf
IOU Nothings
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IOU Nothings
Aussie GoldSmithPP - 25% PMGOLD, 75% VDCO
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Re: IOU Nothings
Actually, they are "who owes you nothing?", as there isn't even an obligor.Hal wrote: ↑Mon Sep 21, 2020 10:06 pmJohn Exters paper
https://www.aier.org/wp-content/uploads ... 197206.pdf
- Mark Leavy
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Re: IOU Nothings
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It will be interesting if/when that declaration of value is rescinded.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It will be interesting if/when that declaration of value is rescinded.
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- Executive Member
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- Joined: Wed Dec 31, 1969 6:00 pm
Re: IOU Nothings
A Federal Reserve Note isn't really a note.Mark Leavy wrote: ↑Tue Sep 22, 2020 4:56 pmI'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It will be interesting if/when that declaration of value is rescinded.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?
- Mark Leavy
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- Location: US Citizen, Permanent Traveler
Re: IOU Nothings
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 pmI'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
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 pmI'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
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Aussie GoldSmithPP - 25% PMGOLD, 75% VDCO
- Mark Leavy
- Executive Member
- Posts: 1950
- Joined: Thu Mar 01, 2012 10:20 pm
- Location: US Citizen, Permanent Traveler
Re: IOU Nothings
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.