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Paying a debt vs. discharging it?

Discussion in 'Central Banking & Fed Reserve' started by Ragnarok, Aug 10, 2016.



  1. Ragnarok

    Ragnarok I'd rather be Midas Member

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    Some random questions rattling around in my head. From my limited understanding a debt cannot actually be paid with federal reserve notes of debt, however it can be discharged (passed to another) with them?

    Is there actually a practical difference between paying a debt and discharging it? Why then use two different terms? Does it matter? Why/why not?

    Does that mean that everythjng one "buys" with federal reserve debt notes actually belongs to the note owner, the Fed, until actual payment is made?

    R.
     
  2. Joe King

    Joe King Gold Member Gold Chaser

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    Making a "purchase" is not the same as paying or discharging a debt.
    Debts are to creditors. When groceries are purchased at the Piggly Wiggly, it is not a debt that is being paid.
    If you "pay" with a CC, you are incurring a debt with the card issuer, not the store.
     

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