The Federal Reserve Act established and authorized the Federal Reserve in 1913 and was signed into law by President Woodrow Wilson. Later President Wilson remorsefully stated (referring to the FED), "I have unwittingly ruined my country."
Federal Reserve Notes (FRNs) are not redeemable in gold, silver or any other commodity, and receive no backing by anything other than the "faith and credit" of the federal government. In other words, FRNs are backed only by government debt. FRNs have no intrinsic value for themselves, but as "legal tender" are used to discharge debt rather than used for exchanging something of value (silver or gold) for something of value (commodities, goods or labor).
Sadly, the Federal Reserve creates inflation when it issues the FRNs that are printed by the US Treasury. Since 1913, our "money" (FRNs) have lost 96% of its purchasing power due to inflation. The more "money" the US Treasury prints for the Federal Reserve to create - the less the Federal Reserve "money" (the FRNs you carry daily) will buy. From 1913 to 2001 (88 years) the national debt grew to $6 trillion. Over the next three years, in 2004, it climbed to $7 trillion dollars. By the end of 2005, it climbed to over $8 trillion dollars and it continues growing every second of every day:
If you think the economy is bad now ... you need to know what is coming!: SurvivalGuy.org