IOU Nothings

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Hal
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IOU Nothings

Post by Hal » Mon Sep 21, 2020 10:06 pm

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Libertarian666
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Re: IOU Nothings

Post by Libertarian666 » Tue Sep 22, 2020 4:50 pm

Hal wrote:
Mon Sep 21, 2020 10:06 pm
John Exters paper 8)

https://www.aier.org/wp-content/uploads ... 197206.pdf
Actually, they are "who owes you nothing?", as there isn't even an obligor.
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Mark Leavy
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Re: IOU Nothings

Post by Mark Leavy » 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It will be interesting if/when that declaration of value is rescinded.
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Re: IOU Nothings

Post by Libertarian666 » Tue Sep 22, 2020 8:43 pm

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It will be interesting if/when that declaration of value is rescinded.
A Federal Reserve Note isn't really a note.
To have a note, you need an obligor.
Who is the obligor on a Federal Reserve Note?
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Mark Leavy
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Re: IOU Nothings

Post by Mark Leavy » Tue Sep 22, 2020 9:21 pm

Libertarian666 wrote:
Tue Sep 22, 2020 8:43 pm
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.
A Federal Reserve Note isn't really a note.
To have a note, you need an obligor.
Who is the obligor on a Federal Reserve Note?
They look suspiciously not like a note to me. No disagreement.
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Hal
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Re: IOU Nothings

Post by Hal » Tue Sep 22, 2020 11:04 pm

Mark Leavy wrote:
Tue Sep 22, 2020 9:21 pm
Libertarian666 wrote:
Tue Sep 22, 2020 8:43 pm
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.
A Federal Reserve Note isn't really a note.
To have a note, you need an obligor.
Who is the obligor on a Federal Reserve Note?
They look suspiciously not like a note to me. No disagreement.
From how I read it, it is an irredeemable credit note
https://willembuiter.com/Heliw10163.pdf

Love this footnote :D
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Mark Leavy
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Re: IOU Nothings

Post by Mark Leavy » 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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