Can debts be paid with Federal Reserve Notes or only discharged?
This question creates a discussion much about nothing. Really! Many will argue that when using a fiat currency one can never pay a debt, but only discharge the debt. This is misleading at best. However, before continuing, please read the response to the question, “What makes Federal Reserve Notes valuable?” Again, we must understand the essence or fundamental nature of money (which this web site provides much information about). All currencies, regardless of substance, represents an unfinished exchange of goods and services; an unfinished exchange of wealth. Currency therefore represents debt, not wealth. When speaking about wealth and currency, at best currency represents unclaimed wealth, but is not wealth in itself. Currency is therefore a mere claim check on wealth. Unlike barter, currency represents an unfinished exchange of goods and services, of wealth. When used, currency always gets passed around from one person to another. Within any society exercising a high division of labo
