The Women Warriors

[constantin]

What is the value of FRN (federal reserve note). $1,5,20,50,100 ?

One might be inclined to believe the FRN's are worth, $1,5,20,50,100, whatever it says on it. Not quite so. I heard a lot of versions about the value of the FRN's.

I did a google search to find out. I figured united states department of the treasury, should have the answer. The treasury deals with FRN's and US notes, so they're the ones will have the answer.

They sure do, here's the answer and this is a quote from the government site :

"Federal Reserve notes are not redeemable in gold, silver or any other
commodity, and receive no backing by anything This has been the case since 1933. The notes have no value for themselves, but for what they will buy. In another sense, because they are legal tender, Federal Reserve notes are "backed" by all the goods and services in the economy."

So far it is very clear that the FRN's have NO VALUE, at least that's what the government says on its website. Now what about US notes ? A lot of people think US notes have value and they're different than the FRN's.

Well, let's see what the government has to say about US notes :

"Both United States Notes and Federal Reserve Notes are parts of our national currency and both are legal tender. They circulate as money in the same way. However, the issuing authority for them comes from different statutes. United States Notes were redeemable in gold until 1933, when the United States abandoned the gold standard. Since then, both currencies have served essentially the same purpose, and have had the same value. Because United States Notes serve no function that is not already adequately served by Federal Reserve Notes, their issuance was discontinued, and none have been placed in to circulation since January 21, 1971 "

So, US notes and FRN's circulate AS MONEY in the same way. They circulate AS money, so they are not money....in the same way, basically are the same. And US notes have had the same value as FRN"s. The government says FRN's have no value for themselves and US notes have the same value, so US notes have NO VALUE either.

Apparently since 1933, you never paid for anything because you never got paid to begin with. You work, you get a check (which you redeem in FRN's) or cash, so for your labor you got something with no value. Then, you go to Walmart and buy something and give the walmart "associate" a check, cash, or plastic, in exchange for the goods you just purchased. So you gave them exaclty what your employer gave you...something with NO VALUE.

I can go on and on. Bottom line is we managed to find out what is the value of the FRN's, US notes. Both have "NO VALUE FOR THEMSELVES".

More details here : http://www.treas.gov/education/faq/currency/legal-tender.shtml


Constantin