I had a great weekend walking through the ghetto of Indianapolis. There were bars with security bouncers and daytime chicken limos and steakhouses. Steam came from manholes and added to the feeling of urbanization with its cracked sidewalks, cool buildings, and police everywhere. It was dirty.
Must All U.S. Businesses Accept Legal Tender as Payment?
About legal tender - Bank of Canada
Federal Reserve Notes are the only type of U. Federal Reserve Notes are legal tender , with the words "this note is legal tender for all debts, public and private" printed on each note. Federal Reserve Notes are backed by the assets of the Federal Reserve Banks , which serve as collateral under Section This monetized debt can increase the money supply , either with the issuance of new Federal Reserve Notes or with the creation of debt money deposits. This increase in the monetary base leads to a larger increase in the money supply through fractional-reserve banking as deposits are lent and re-deposited where they form the basis of further loans. Prior to centralized banking, each commercial bank issued its own notes.
For All Debts Public and Private
M3 is a fond memory. It's OK with me when inflation hits. As long as the Federal Reserve Banknote is the legal currency backed up by The United States Government and its military I don't have anything to worry about.
This is entirely legal, though admittedly a painful process for all involved. According to Wikipedia, legal tender is payment that, by law, cannot be refused in settlement of a debt denominated in the same currency. From the US Treasury :. According to the Coinage Act of , specifically Section 31 U. Public Debts: This means that any existing public debt, charge, tax, or dues held in the US can be paid in any form of US legal tender.