John Titus of the Solari Report had some interesting comments last year about paper currency not being money. He said that the issuing credit card company technically does not have to accept your cash or check to extinguish any or all of the outstanding balance.
He cited several legal aspects supporting his conclusion, but I still did not have it straight in my head, other than it just is the way it is.
I finally have that clarity. As we all know, Federal Reserve Notes are a form of debt. While not money and cannot legally force the discharge of a debt, the credit card issuers accept it as the U.S. Government has always been seen as a higher quality debtor than the cardholder. So it is basically swapping my debt for that of the Federal Reserve, and that is why permission is given. Not a law, but simply a smart business decision based upon the past.
Just an Old Guy Noodling…..