Six Kinds of United States Paper Currency - Although the Treasury had been unable to print money since 1878, it was now given an indirect ability to do so, whenever it could persuade the Federal Reserve to create money by buying United States securities itself, either directly from the Treasury or indirectly off the open market.
Mike - The Constitution in Article 1 Sections 8 and 10 requires that only gold and silver COIN shall be used as legal tender, and that no bills of credit such as our current day Federal Reserve Note shall be emitted. The Constitution was never amended to change this,
When United States Note (Wikipedia): After the death of Abraham Lincoln in April 1865, additional "first charter period" (i.e. banks chartered between 1863 and 1882) National Bank Notes and Gold Certificates of 1865 were issued. The notes were issued until January 1971, after which they were entirely replaced by the Federal Reserve Notes which had circulated alongside them since 1914....
This colorization continued with the later and more widespread United States Notes later in this war, which were not directly redeemable in specie. The still-later Federal Reserve Notes and also gold certificates and silver certificates in the United States, were printed with distinctive green reverse sides to mimic the well-known United States Note.
Fiat Currency (Wikipedia) : Fiat currency (fiat money) is money that exists because an authority or custom declares it to be money. (From the Latin fiat, which means "let it be done"). It achieves value because a government says it can be used to pay debt or buy goods and services and because people trust that the currency will be reasonably stable.[1] Fiat money is a subset of credit money (money backed by promise to pay in goods or services controlled by the creditor) in which a government, often through a central bank or reserve bank, is the major creditor backing the currency.
Federal Reserve Note (Wikipedia): A Federal Reserve Note is a type of banknote issued by the Federal Reserve System and is the only type of U.S. banknote that is still produced today.
Federal Reserve Bank Note (Wikipedia): Federal Reserve bank notes were United States currency banknotes issued by individual Federal Reserve Banks. They were based upon the earlier National Bank Notes. They differed from Federal Reserve Notes in that they could only be redeemed at the Federal Reserve bank that issued them. Federal Reserve notes could be redeemed at any Federal Reserve bank.
Series of 1929 Federal Reserve Bank NoteAs large size notes they were first issued in 1914 with a design that shared elements with the both the National Bank Notes, and the Federal Reserve Notes of the time, but as small size notes they were issued only as an emergency issue in 1933 using the same paper stock used for National Bank Notes. This emergency issue was prompted by the public hoarding of cash because of the many bank failures happening at the time. This also limited the ability of the National Banks to issue notes of their own. They were phased out within 2 years, but served their purpose dutifully. As small size notes, they have brown seals and serial numbers, the same as National Bank Notes of the era.
Keep Yahoo Answer: Does the Federal Reserve print money out of "thin air?" And if so, is it responsible for massive inflation?
Keep How Does the Federal Reserve "Print Money?"
Keep Where can I purchase sheets of uncut money?
2006 seried Dollar Bills - $16.00 costs $32.00 at the The United States Treasury Bureau of Engraving and Printing.Of course, the Fed doesn't actually print the money. According to the U.S. Department of the Treasury FAQs, "The Federal Reserve Act of 1913 authorized the production and circulation of Federal Reserve notes. Although the Bureau of Engraving and Printing (BEP) prints these notes, they move into circulation through the Federal Reserve System. They are obligations of both the Federal Reserve System and the United States Government...."
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Among suggested viewing was Freedom to Fascism a 2006 film by Aaron Russo. Some of the premises of the film include:
1. The Federal Reserve System is unconstitutional and has maxed out the national debt and bankrupted the United States government.
2. Federal income taxes were imposed in response to, or as part of, the plan implementing the Federal Reserve System.
3. Federal income taxes are unconstitutional or otherwise legally invalid.
4. The use of the Federal income tax to counter the economic effects of the Federal Reserve System is futile.
The film has been critiqued as factually dubious by some reviewers. It has, however, developed a cult following. And if you watch the first few minutes, it's easy to see why I was drawn into it.
In fact, at one point in the thread at 24hourcampfie, I said, "I'm beginning to feel I'm in the Matrix with Keanu Reeves." Frankly, I felt a little sick too.
But as I researched and read on, I came across something about the "Country's available credit" that no one at the "'fire" could explain to my satisfaction. And then there was this:
On August 15, 1971 the U.S. government announced that it was "ending the dollar's convertibility, closing the gold window, cutting the dollar's tie to gold, and allowing the dollar to float."and this:
... On December 18, 1971 the U.S. government raised the "official gold price" from $35 to $38. This was a devaluation of 8.57%.And so I asked the intelligent folks involved in that thread: "How was this a devaluation? They raised the price, but gold didn't increase in value? I don't understand." And I asked, "And did the gv't possess all the gold in America? I mean, like, were they the 'Gold Store'? I can see they probably did have A LOT, but now that it no longer backed up the currency, so what? Gold was just for jewelery now, right?"
Nobody could explain that one either. Because this stuff wasn't about the currency in the first place. It was all about gold. And I let myself get caught up in it for a while.
My last post in that thread was
I've about decided I like the Matrix. Still, it's very intriguing how and why Philander Knox played his part in all this. I'd like to find out more about the whole deal because it's such a mystery to me - a cloak and dagger kind of thing.
I appreciate everyone's effort in trying to educate me. But I think I'll stick to Wikipedia for the answers.
