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Board Beginners & Help
Re: Is American Debt default really possible??
by
indio007
on 20/09/2011, 15:24:18 UTC
The US can never default. FRN's are not money. They are a promise to pay money. No one ever even attempts to collect so how can there ever be a default until people redeem their FRN's for lawful money?

U.S. v. Thomas 319 F.3d 640

Quote
Paper currency, in the form of the Federal Reserve Note, is defined as an "obligation[] of the United States" that may be "redeemed in lawful money on demand." 12 U.S.C. § 411 (2002). These bills are not "money" per se but promissory notes supported by the monetary reserves of the United States.