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Offline santaclause102

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What gives value to the USD?
« on: September 09, 2014, 05:23:28 PM »

In the US is everyone FORCED to accept the USD? I know you can accept other money but do you have to accept USD?

« Last Edit: September 09, 2014, 05:41:16 PM by delulo »

Offline santaclause102

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Re: What is backing the USD?
« Reply #1 on: September 09, 2014, 05:25:27 PM »

Side question: In the US is everyone FORCED to accept the USD? I know you can accept other money but do you have to accept USD?

AFAIK I have never heard of a law forcing someone to take USD.  I am not sure what you are asking?  If you have goods in a store for sale, then you must accepted USD?  I suppose that might be a law somewhere, possibly some ancient state law, but I've never heard of such a thing.

Offline santaclause102

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Re: What is backing the USD?
« Reply #2 on: September 09, 2014, 05:28:42 PM »
So then the USD is backed by having to pay taxes with it and by (another speculation /theory of mine) the fact that the FED is only lending out USD to banks and nothing else. Based on this FED lent money (reserve) the banks then can lend more money into existence. So in a fractional reserve / debt money monetary system the state/FED defines what the reserve which defines the legal tender. Makes sense?

Offline GaltReport

Re: What is backing the USD?
« Reply #3 on: September 09, 2014, 05:30:52 PM »
Side question: In the US is everyone FORCED to accept the USD? I know you can accept other money but do you have to accept USD?

Legal Tender Status
 
"I thought that United States currency was legal tender for all debts. Some businesses or governmental agencies say that they will only accept checks, money orders or credit cards as payment, and others will only accept currency notes in denominations of $20 or smaller. Isn't this illegal?

The pertinent portion of law that applies to your question is the Coinage Act of 1965, specifically Section 31 U.S.C. 5103, entitled "Legal tender," which states: "United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes, and dues."

This statute means that all United States money as identified above are a valid and legal offer of payment for debts when tendered to a creditor. There is, however, no Federal statute mandating that a private business, a person or an organization must accept currency or coins as for payment for goods and/or services. Private businesses are free to develop their own policies on whether or not to accept cash unless there is a State law which says otherwise...."

http://www.treasury.gov/resource-center/faqs/currency/pages/legal-tender.aspx

Seems like you don't have to.


 

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