Is anything purchased with Federal Reserve Notes automatically property of the US Government?

Question

I heard that one of the consequences of the Federal Reserve Act of 1913 is that anything purchased with Federal Reserve Notes are automatically property of the United States Government. This is what makes the "unlawful" searches and seizures performed by the IRS actually lawful. What is the truth behind this, and can you cite proper U.S. Code?

Answer 1

Ha! That's a case of somebody pulling your leg. Read the note. "good for all debts public or private"

That means that you can use it to pay public debts like Bail or taxes and the such. you can also use it for private debts like a purchase.

And random police searches or checkpoints are only legal with your consent. You ask for a warrant and keep insisting, they cannot search. If they have probable cause, then it's not random and legal.

Answer 2

No, that is not correct. The Federal Reserve System is a part of the system that creates "money" out of nothing. But that is a subject for another day.

Federal Reserve Notes come into existence when they are created by the Federal Reserve -out of nothing- to purchase interest bearing treasury bonds. The bonds are a major part of the national debt. Approximately 30% of our national budget goes to pay the interest on our national debt.

Once the treasury receives the new FRNs, they are used to pay off government obligations, such as salaries of government employees, purchases of equipment, government handouts & c. Since these FRNs are given in exchange for goods and services paid for by the government, they are used as currency by whoever receives them. In fact, FRNs must be accepted as payment for all debt public and private. They are legal tender, but they are not money. Money has intrinsic value. Gold and silver are real money. Article 1, Section 10 of the US Constitution says: "No state shall...make anything but gold and silver coin a tender in payment of debts...". This is one of the many areas Congress ignores - like declaring war.

Answer 3

Popycock. Federal reserve notes are good for all debts, public and private. It says so on the note.