How is it used?
Like most things dealing with Law or History, to understand them one must study both the law and the history that precedes them. The Federal Reserve Note (hereinafter “FRN”) is no exception. First and foremost we must remember the FRN is not money; rather, it is merely a transaction instrument rented by Corp. U.S. in their bankruptcy. On its face, it appears to simply be a note, likely made in compliance with the law of notes. As such, because it appears to be a bearer note with no facially published due date, it would be due and payable on demand. But, whereas its specific conditions of existence are not otherwise described on the note, it can only compel redemption in like kind. That is to say, if you present it to its maker you can only count on getting back another note of the same nature. Whereas the note was generated for Corp. U.S. who remains under the control of its 1933 bankruptcy the note is not in instrument of substance; rather, it remains a rented transaction instrument. In other words, it was arbitrarily created by decree out of thin air for Corp. U.S.’ use. On first hearing that and doing any real investigation to confirm these facts most people are appalled; however, let’s take a look at the actual relationships wherein the FRN is used starting with the employer employee relationship, because that is the source where most people come into contact with the FRN or with some instrument representing the same:
Following the Standard for Review let’s review the parties:
In accord with the terms of the employment agreement between such employers and their employees, the employee provides the contracted goods and or services and the employer remunerates the funds required by the agreement. Now considering that the relationship is in reality made between two separate agencies of the same organization (Corp. U.S.) is there any need for money in the transaction? The answer is no. The transaction could easily be completed by a debit entry from the one agency (employer), which is balanced out by a credit to the other agency (employee). No money is needed. However, where there are hundreds of millions of such agencies, tracking them in 1935 would have been impossible without some device that could be totally controlled by the specific agencies involved in the transactions themselves.
Enter the FRN. Though it appears to be a debt instrument, in reality it is simply an official transaction instrument used to formally exchange debits and credits between Corp. U.S. agencies. It therefore requires no backing and can be generated in accord with the needs for its flow in circulation.
The final step: once the employee has been remunerated with such “funds” they can go to a merchant and exchange the funds for hard assets, like: food, shelter, clothing and transportation. In virtually every case today such exchanges are made with other Corp. U.S. agencies, which is exemplified by their own respective TIN. Thus, again, no money is needed and the FRN or any other instrument representing the same will suffice.