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What is ‘legal tender’ (technically)? Let’s explore!

June 8, 2014

Today we use mostly Cyber Money (also called the digital dollar) as our medium of exchange for goods and services. Is this unit (now created by merely ‘typing’ numbers into the computer) a legal form of ‘legal tender’ for payment of goods and services in the USA? Let’s think about this concept which we call ‘legal tender’! What has been ‘legal tender’ (historically) and what have our courts approved as our ‘legal tender’ (since our founding)? To understand this concept called ‘legal tender’ we need to go back in history to 1792.

Is Cyber money a type of ‘legal tender’ which has been challenged and approved by our Courts? What is Cyber money and how is it created by our banking system? What is QE money? How is QE created?

The Coinage Act of 1792 initiated this concept called ‘legal tender’ and also our currency unit (called the ‘dollar’). After our Congress ruled on what should be ‘money’ in America they placed words in our Constitution which spelled out what should be our ‘money’ and our ‘currency’. The decision of our Congress was that our dollar (another name for our currency unit) would be 371.25 grains of silver and later our courts approved the dollar paper note (backed by silver and/or gold) as an additional form of ‘legal tender’. Subsequently, the fiat paper dollar (with no backing) was also approved…via challenges within our court system as another form of ‘legal tender’. Let’s review our history and what our courts have approved as our ‘legal tender’ (1792 to 2014)!

Image of America’s original silver dollar (minted at the Philadelphia Mint). It contained 371.25 grains of silver! Silver is a physical commodity derived from our earth. It was perceived to contain ‘intrinsic value’!

In 1785, the ‘name’ dollar was chosen as our currency unit (most likely by Thomas Jefferson). Later, our Congress agreed and our ‘dollar’ became a unit of currency (legal tender). For the ‘name’ dollar to become a unit of currency it was necessary to ‘define’ this ‘name’ (which we call ‘dollar’). This was done with the Coinage Act of 1792. So, initially, our ‘legal tender’ unit was the currency unit called ‘dollar’ with a definition of 371.25 grains of silver. Our commercial banks (later) were also allowed to create bank notes (backed by silver/gold) as additional units of currency. These paper notes also became official units of ‘legal tender’ (our payment for all debts, taxes,  and for goods/services in the marketplace).

Image of a printed paper bank-note (backed by gold). This ‘legal tender’ note survived until 1933 as official currency! A paper note is a physical item which can be possessed and held in one’s hand!

So our courts allowed silver/gold coins as ‘legal tender’, bank notes (backed by silver/gold) as ‘legal tender’, and then fiat paper notes (unbacked) as additional forms of ‘legal tender’. In 1933, our Federal Reserve Note was created and circulated as our official unit of ‘legal tender’ (under the administration of Franklin D. Roosevelt). The court challenges to this fiat paper note were many (1974, 76, 78, 84, 85, etc.) yet this paper note was upheld as another form of ‘legal tender’ for all our debts, taxes, and goods/services (by our court system). This meant that our currency unit (called the Federal Reserve Note) was also an official form of ‘legal tender’ for all Americans (and later for the international community as of FRN also became the Reserve Currency Unit of our World in 1944-46).

This printed paper note was approved as the Reserve Currency Unit of the World in 1944-46 via the Bretton Woods Monetary Conference! It was initially backed by gold (for foreign holders) until the closing of the ‘gold window’ in 1971 under the Nixon administration! The note was perceived as a physical currency!

Another printed fiat paper note was called the Greenback (this note was created and printed during the administration of President Lincoln). This paper note also was officially and legally allowed to serve as our ‘legal tender’ for a time period during and after our Civil War. It was later retired and eliminated from circulation.

This printed paper note became ‘legal’ tender during the administration of Abraham Lincoln! This note as perceived as a physical item which one could hold in one’s hand!

This fiat printed paper note became ‘legal tender’ in 1933 during the administration of Franklin D. Roosevelt. Court challenges have been upheld with reference to its legal validity! It is now used for about 4% of all currency transactions within the USA. To qualify as ‘legal tender’ a note must have materiality.

But now let’s think about our currency unit called the Cyber Dollar (which has become ubiquitous mostly since the QE operations of our Fed). Is this unit of nothing (which circulates within our computer screens) also a court approved form of ‘legal tender’? Has this unit been officially challenged within our court system and approved as ‘legal tender’ for all our uses? My answer is emphatically, NO! The vast majority of Americans are now using this Cyber unit (still called ‘dollar’) for their purchases of goods/services, their savings, their investments, their credit transactions, their debts, taxes, etc. But is this unit really the same as our printed paper fiat dollar (the physical dollar which has substance and materiality)? Has this Cyber unit been challenged and approved by our courts? Personally, I am not aware of any courts of law which have approved this Cyber dollar as our ‘legal tender’!

This image shows how our currency unit has changed from a printed paper note to ‘digits’ (ones and zeros) within our computer screen (what we call Cyber Money). How is Cyber Money created and who controls its creation and distribution? Should Cyber Money be viewed as official ‘legal tender’ for all our goods and services?

Currently, I have silver coins in my possession, printed Federal Reserve Notes in my possession, gold coins in my possession, and historical paper certificates (silver certificates) in my possession. All these would most likely be ruled as official forms of ‘legal tender’ by our courts as they are physical and material (composed of matter/energy). But our Cyber dollar is a different ‘breed of cat’ from all these prior forms of ‘legal tender’. Cyber dollars (also called the digital dollar) are created merely by ‘typing’ numbers into the System Open Market Account of our unconstitutional Fed. These units are then circulated (and used) for what is called ASSET PURCHASES within our greater global markets. From 2008 until today, these Cyber dollars have been created in the $trillions to effect and manipulate our global markets for goods and services. What are these Cyber dollars (in reality)? Have these metaphysical (non-physical units) been challenged and approved within our court system? Where do these units derive from?

This image reveals a false perception of QE dollars (quantitative easing). In reality, QE dollars are not ‘printed’ as physical notes. Our Fed merely ‘types’ metaphysical numbers into the computer screen ($trillions to date have been created at the computer Desk of the N.Y. Fed which acts as the proxy for our Federal Open Market Committee)…what we call the Federal Reserve Banking System! Isn’t this a form of ‘counterfeiting’? Who decides how, when, and how much of these metaphysical units to create? What is their impact on our markets?

What we need to recognize today, is the ‘nature’ of our so-called currency units which are created and transmitted within cyberspace (our computer screens). What are these units (in reality)? How are these units created? What is meant by the concept ‘created out-of-nothing’? What is meant by the concept ‘created out-of-thin air’? What is meant by the concept of ‘created from the consciousness of our Central Bank elites’? What does the word ‘dollar’ denote today (in reality)? Is our current ‘dollar’ mostly a ‘mental abstraction’? Is it a subjective unit which is used to manipulate our greater national and global markets? Why do many today desire to replace this Cyber dollar as the World’s Reserve Currency? Why are many now recognizing that this Cyber dollar has no substance and derives from the Consciousness of select elite administrators within our Central Banking System? Let’s think seriously about the ‘nature’ of our currency (what we call ‘money’) today! Would our court system approve this Cyber unit as ‘legal tender’ today?

Would our courts of law approve Cyber money as official ‘legal tender’ if they understood its ‘nature’? Cyber money (metaphysical units of nothing) are derived from the consciousness of our Central Bankers and then ‘typed’ into the computer screen. Is this really ‘legal tender’? Would Americans view this type of currency as objective units for the measurement of economic ‘value’? Personally, I don’t think so!

My sense is that this ‘mental abstraction’ called our ‘dollar’ would NOT be approved as ‘legal tender’ by a court of law today. This means that all money transactions via this unit would need to be cancelled and legally abolished. What we now need to think about is a challenge in our court systems of the concept of what is ‘legal tender’ for our debts, taxes, and goods/services. A challenge would prove whether this Cyber dollar (metaphysical in ‘nature’) would be held as official ‘LEGAL TENDER’ going forward. My sense is that it would NOT be upheld within our Courts of Law! Think about initiating a CHALLENGE within our COURT SYSTEM. Let’s see if our courts would uphold the Cyber dollar as ‘legal tender’ for our debts, taxes, and all our other currency transactions! Enjoy and think on this issue! I am:  https://kingdomecon.wordpress.com

 

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