Kmcarr posted:
FED Meltdown-Redemption of FED Notes
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The Fed maintains a ready supply of United States notes in hundred dollar denominations for redemption purposes should it be required, and coins are available to satisfy claims for smaller amounts. However, should the general public decide to redeem large amounts of private credit for public money, a financial melt-down within the Fed would quickly occur.
The process works like this. Suppose $1000 in Federal Reserve notes are presented for redemption in public money. To raise $1000 in public money the Fed must surrender U.S. Bonds in that amount to the Treasury in exchange for the public money demanded (assuming that the Fed had no public money on hand). In so doing $1000 of the National Debt would be paid off by the Fed and thus canceled.
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So I get paid on Friday, I take my paycheck to "my" bank and cash it with FOR CREDIT ON ACCOUNT OR NON-NEGOTIABLE FEDERAL RESERVE NOTES. I take my 10 crisp new 100$ FRNs down to my local FED bank here in Saint Louis and ask the tella for 1000$ in US notes. These notes are then non taxable and carry the same unleinable quality of gold? What happens if I then deposit these US notes back in my account at "my" bank. An exercise in futility, or a nice walk are all I have gained? I just like the idea of buying off the public debt my own little part at a time. Im not sure these notes even exist but I'll let you know next Friday. After I find the necessary laws to let the tella know what I mean by US notes.
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Kmcarr, I'm very interested to know where that first quote you posted came from. Do you have a link to the source, or perhaps the title and page number of a published reference or an article from which you obtained that? Thanks!
After I find the necessary laws to let the tella know what I mean by US notes.
