So I was peepin' around in Title 12 of the US Code...

[sirgonzo420]

Title 12 of the United States Code concerns Banking, and from time to time, I like to peruse it (what can I say, I do all sorts of weird things for recreation).

In this thread I will post statutes I find to be 'gems'.

Here's the first one:

12 USC 531 http://www.law.cornell.edu/uscode/html/uscode12/usc_sec_12_00000531----000-.html

Federal reserve banks, including the capital stock and surplus therein and the income derived therefrom, shall be exempt from Federal, State, and local taxation, except taxes upon real estate.

[Phoenix]

Why isn't Federal Express and Federal Cartridge exempt, as well?

::)

[sirgonzo420]

GEM #2

12 USC 411 http://www.law.cornell.edu/uscode/12/411.html


Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.

From my reading of 12 USC 411, if one is in possession of non-redeemed (non-endorsed) federal reserve notes, then one is, by operation of 12 USC 411, a federal reserve bank and/or a federal reserve agent!

[sirgonzo420]

Why isn't Federal Express and Federal Cartridge exempt, as well?

::)


'Cause they don't "make the money*".






*I use the term "money" ridiculously loosely here...

[The Great Ag]

Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized.
What I think is funny is to look at the basic sentence. The words in between the commas are simply extra info.

The basic sentence reads, "Federal reserve notes are authorized." That is it, just authorized, nothing else. When you hold them, you are a "holder in due course." Which means YOU are responsible for the debt. How about that for an honest monetary system.

As far as the phrase, "redeemed in lawful money" means, it does NOT mean gold and silver. The key to understanding the sentence is to know the meaning of the word "redeemed."

Legally, "redeem" means to remove the obligation to. As this pertains to FRNs, it means the duty to pay the interest has been removed. As far as I can tell, when a FRN has been redeemed, it is public money. Public money is NOT taxable, except in a few instances which are consistent with the US CON. Having redeemed FRNs does NOT remove a US citizen's duty to file a tax return.

The Great Ag

[sirgonzo420]

Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized.
What I think is funny is to look at the basic sentence. The words in between the commas are simply extra info.

The basic sentence reads, "Federal reserve notes are authorized." That is it, just authorized, nothing else. When you hold them, you are a "holder in due course." Which means YOU are responsible for the debt. How about that for an honest monetary system.

As far as the phrase, "redeemed in lawful money" means, it does NOT mean gold and silver. The key to understanding the sentence is to know the meaning of the word "redeemed."

Legally, "redeem" means to remove the obligation to. As this pertains to FRNs, it means the duty to pay the interest has been removed. As far as I can tell, when a FRN has been redeemed, it is public money. Public money is NOT taxable, except in a few instances which are consistent with the US CON. Having redeemed FRNs does NOT remove a US citizen's duty to file a tax return.

The Great Ag


As always, good points by The Great Ag!

:)

[iOWNme]

Good post and i like Ag's points as well....

But when reading the USC one must ALWAYS look at what the definitions of the words are, as defined by the code in each section. Without that, we are merely attaching our own standard English definitions to words like purpose, advances, agents, authorized, redeemed, etc....And we all know those nice little word attorners like to change the definition of the word you already know the definition of. That way you speak the same language, and mean 2 completely different things.

Always look at the definition section of any of the code you are reading. If not, you are wasting your time....

[The Great Ag]

Good post and i like Ag's points as well....

But when reading the USC one must ALWAYS look at what the definitions of the words are, as defined by the code in each section. Without that, we are merely attaching our own standard English definitions to words like purpose, advances, agents, authorized, redeemed, etc....And we all know those nice little word attorners like to change the definition of the word you already know the definition of. That way you speak the same language, and mean 2 completely different things.

Always look at the definition section of any of the code you are reading. If not, you are wasting your time....



Good advice, SJ. Also it is good to have legal dictionaries. I have 4, (Two Blacks, 1 Ballantine and one Bouvier).

The Great Ag

[gunDriller]

Title 12 of the United States Code concerns Banking, and from time to time, I like to peruse it (what can I say, I do all sorts of weird things for recreation).


there you go again, Sir Gonzo, rockin' the boat, questioning authority. :o

MORE POWER TO YOU BRO !! ;D

[Phoenix]

They shall be redeemed in lawful money on demand


I'm still waiting for an answer from the Feds on how we can obtain this "lawful money."

[sirgonzo420]

Title 12 of the United States Code concerns Banking, and from time to time, I like to peruse it (what can I say, I do all sorts of weird things for recreation).


there you go again, Sir Gonzo, rockin' the boat, questioning authority. :o

MORE POWER TO YOU BRO !! ;D


Hahaha thanks!

What can I say, I'm a rebel!

;D

[sirgonzo420]

They shall be redeemed in lawful money on demand


I'm still waiting for an answer from the Feds on how we can obtain this "lawful money."


Well, "lawful money" is no longer defined as "gold/silver coin" by the United States Code (it used to be, but 12 USC 152 was repealed not too awful long ago, and "lawful money" is now without statute definition).

Here's what investopedia.com says about "lawful money":


What Does Lawful Money Mean?
Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves. Fiat money includes legal tender such as paper money, checks, drafts and bank notes.

Also known as "specie", which means "in actual form."

Investopedia explains Lawful Money
Oddly enough, the dollar bills that we carry around in our wallets are not considered lawful money. The notation on the bottom of a U.S. dollar bill reads "Legal Tender for All Debts, Public and Private", and is issued by the U.S. Federal Reserve, not the U.S. Treasury. Legal tender can be exchanged for an equivalent amount of lawful money, but effects such as inflation can change the value of fiat money. Lawful money is said to be the most direct form of ownership, but for purposes of practicality it has little use in direct transactions between parties anymore.