— Warren Buffett on CNBC
Appellant has filed a substantial brief and an adequate reply brief and has argued his full share of allotted time in support for a demand that his $50.00 Federal Reserve Bank Note be redeemed in “lawful money” of the United States, which he says, in effect, must be gold or silver. Appellant refused appellees’ tender of an equivalent value in Federal Reserve Notes.
While we agree that golden eagles, double eagles and silver dollars were lovely to look at and delightful to hold, we must at the same time recognize that time marches on, and that even the time honored silver dollar is no longer available in its last bastion of defense, the brilliant casinos of the houses of chance in the state of Nevada. Appellant is entitled to redeem his note, but not in precious metal. Simply stated, we find his contentions frivolous."
Ninth Circuit Court of Appeals judgement in Milam v. United States, 524 F.2d 629 (9th Cir. 1974), which upheld the constitutionality of paper money, or fiat currency. Federal Reserve Bank Notes hold the same value as Federal Reserve Notes, the official name of those greenbacks in your wallet.
This means that, constitutionally, the United States is not required to pin its currency to precious metals, nor is it required to redeem its currency for such.
- Jon Stewart: If we could just keep starting world wars and then doubling down on GI Bills, we'd have this figured out.
- Fareed Zakaria: World wars are actually really useful. The small wars don't help at all. And then you've got to destroy the other competitors. See, that was the great thing about World War II: You flatten all the other competitors; you're left on top. Hey, that's the Stewart-Zakaria Plan.
- Stewart: Fareed, let me tell you something: I don't know why no one's running on that platform. "America. We'll flatten you."
- Zakaria: And then we'll sell to you.