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<p>[QUOTE=&quot;medoraman, post: 1308158, member: 26302&quot;]But you cannot use FRN or coins to buy treasury securities. They will not sell them to you for FRN&#039;s. The dollars used to buy them have to be electronically transmitted to the seller of the treasury. When you redeem a treasury the same thing happens, they will only pay you US dollars back electronically.</p><p><br /></p><p>When you buy something on Ebay do you use FRN&#039;s? I think you probably use Paypal. You pay in US dollars, but not FRN&#039;s. Now, at an ATM you can convert some of these electronic US Dollars into FRN&#039;s to pay for small transactions if you wish. lets think about that transaction a second. You have $100 in your savings account, but at an ATM you convert it to $100 FRN. Do you have any more or less money? Of course not, you have the same $100 you started with, but now instead of electronic $100 you have FRN $100. The reverse happens when you deposit a $100 FRN into your bank. You haven&#039;t lost $100, you converted it from FRN $ to electronic $. Either way its still a US dollar. What is the amount of money you have deposited into your bank denominated in? They are not FRN&#039;s, but they are dollars. They are not Canadian dollars, not Aussie dollars, but US dollars. And today, with debit cards, you use those electronic dollars to pay for everything, and not one single FRN has to ever change hands. You do this every day and don&#039;t realize it I guess. When you deposit your paycheck, use credit or debit cards, and write checks, all of these things are in US dollars, and not one single FRN is involved.</p><p><br /></p><p>Again, like Cloud and others besides me have said, All FRN&#039;s are dollars, but most dollars are not FRN&#039;s. FRN&#039;s are really only useful for transactions where either you want privacy for what you are buying, or the transaction is to small to worry about doing it electronically. They are the worst form of a US dollar since it is, bottom line, an interest free loan to the Fed. I tend to have only the bare minimum amount of my dollars as FRN&#039;s in my pocket, the majority of them I keep in interest bearing accounts.[/QUOTE]</p><p><br /></p>

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