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Originally Posted by Shoonra
No, the expression "lawful money" exists only the 1862 law creating United States Notes. Gold and silver coin were no declared lawful money and, judging from the Trebilcock decision, United States Notes, declared to be lawful money, were not automatically convertible to gold. The expression is therefore applied only to paper money, evidently to show it had legality equal to gold and silver.
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Indeed. Lawful money is confined by Congress to be US notes.
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Originally Posted by Palani
"Lawful money" would then be "money which is not forbidden by law". Of course, "law" requires honest weights and measures so paper money would not be lawful as it is forbidden.
If in doubt on this matter I might be willing to sell you a piece of paper that represents a bushel of oats. It might not be as nutritious as the real thing though.
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That truth is during no emergency. We have been in a state of emergency in America since March 28, 1861. And therefore Shoonra described US notes eloquently as inelastic. The only thing that makes elastic currency like private credit from the Fed seem lawful is that endorsement of that private credit bonds the currency increase of fractional lending.
Thanks again Shoonra,
David Merrill.