In a conversation I was having with a conspiracy buff, he made a big deal that a private company, the Federal Reserve, was the issuer of all paper monies in the US. According to him only coins are actually issued by the US Government. First off I guess, is this the truth? I was under the impression that the Department of the Treasury was the body that issues all us monies.
Secondly, could then the US Treasury department issue a coin in a high enough denomination to pay off the Federal Reserve? My friend seemed to think this a great idea, but couldn’t exactly say why. Any ideas on helping me call a potential BS on these?