TRN, why it doesn't exist and why it confuses people.
Here is my understanding of the TRN issue everyone keeps bringing.
First, let’s get the definitions correct.
Federal Reserve Note: http://www.investopedia.com/terms/f/federal-reserve-note.asp
US Note: http://www.moneyfactory.gov/usnotes.html
Treasury Bill (<1yr maturity): http://www.investopedia.com/terms/t/treasurybill.asp
Treasury Note (1-10yr maturity): http://www.investopedia.com/terms/t/treasurynote.asp
Treasury Bond (>10yr maturity): http://www.investopedia.com/terms/t/treasurybond.asp
The populous, in general, deals with Federal Reserve Notes all the time. It is the cash in their pocket and they are extremely familiar with it.
They don’t deal with Treasury notes on a daily basis.
Thus, it is easy for someone, who is unfamiliar with Treasury Notes, to relate the name to what they are most familiar with, that being Federal Reserve Notes.
Thus, they can easily think that Treasury Notes are some new form of currency they will be using on a daily basis (excluding the semantics of the definition of money).
At one point, there were US Notes, Silver Certificates, and Gold Certificates.
These were issued by the UST. There isn’t anything called a TRN, Treasury Reserve Note.
It doesn’t even make sense as there isn’t a “Treasury Reserve”.
If the UST were to start issuing currency notes, they couldn’t call them Treasury Notes as it would confuse the financial world by re-defining the definition of a “Treasury Note”.
If the Treasury started issuing currency again, with all probability, then they would call them “US Notes”.
Hope that helps.