If The U.S. Dollar Is A Promissory Note Then Who Is Promising To Pay?


A Promissory Note is exactly that, a note promising to pay, it is a contract. The terms of the contract determines what type of promise it is for example some promissory notes such as a bank loan have a date for specific performance and an amount. Federal Reserve Notes or Dollar Bills is an open promise without a date for specific performance but the payee promises to pay one day. 

A promise to pay is only as strong as the person making the promise and if it is acceptable to the seller. Normally, a Promissory Note is made binding by the signature of the payee. Therefore, your signature can and does create Promissory Notes that is actually currency. Federal Reserve Notes (U.S. Dollars) do not have your signature and so it is not your promise but a public promise. FRNs are actually public debt. What we are really doing when we promise to pay with FRNs is pass around public debt amongst ourselves nothing is actually being paid. Since the currency is not actually backed by anything of real value nothing can be paid with it. With each commercial transaction we increase public debt.

On a larger scale each country pass debt around in trade. According to a report by The Bank for International Settlements (BIS) in December 2010, the three largest creditors to the Irish economy were, Germany, with €109 billion the UK, with €100 billion and France, with €40 billion.

Each country has debtors and creditors, payers and payees just like individuals. We all just pass debt around to each other in this system. The monetary system provides opportunities for those people and those institutions who create, manage and receive interest payments to turn your debt into their profit, then exchange profit for control of items with real value.

So, dollar bills are printed by the Federal Reserve for the Congress of the United States for use by the citizens in exchange for Treasury Bonds equaling the amount of the dollar bills printed plus interest. Take not of the word “bill” because it is exactly that a bill or debt to be paid by the issuer.

Since interest is paid on all money that is printed, each dollar is really is a debt instrument that can only be paid through labor. Therefore, your labor is what gives today's money its value because you have to work for it, to pay for your living expenses and if you don't, then you won't have what you need in order to survive.


The Federal Reserve and the U.S. Congress are simply exchanging printed pieces of paper. In actuality, the money isn't worth the paper it is printed on since only 3% of money in circulation actually exist as paper money, 97% of all money only exists digitally in virtual networks. The fallacy of the system is that because the Fed's allow private banks to have only 10% in reserves, and lend up to 90%, this means $9 out of every $10 was created out of nothing, it doesn't exist anywhere. This also means that the money supply must continually expand in order to create the appearance of prosperity. 

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