History of Federal Reserve Bill
In December 1910, The Federal Reserve bill was written by the 6 most influential people such as head of banks, branches of government and richest people of the time.
The bill was designed to gave power to the central bank to print money out of nothing. They introduced it as The Federal Reserve Act to the Congress and masked it as limiting the power of banks. It was passed on December 23rd, 1913.
Since WW2, the USD has been reserve currency for all the central banks in the world. Thus, all other currencies are backed by USD. When bretton-woods-system was introduced, all USD was backed by Gold reserves making the currencies really stable in relation to each other.
In 1971, the USD was taken off the gold reserve due to falling USD, international flow into gold and funding of Vietnam war by president Nixon. This made USD backed by nothing and it's been floating ever since. Money backed by nothing is called Fiat Currency, Latin for let it be done.
When Federal Reserve writes a cheque, it makes money out of nowhere.
When we take out loan from a commercial bank, the bank invents money out of nowhere. They just write a negative balance in your loan account and you have you pay it back and the interest on it.
Each and every time a bank makes a loan, new bank credit is created - new deposits - brand new money.
97% of the whole money in the world is digitally created when the bank type a number in your loan account. Only 3% actually exists in physical form. The banks can lend out 10 times more money than they have in reserve. This is called fractional-reserve-lending.
When more loans are given out, more money is created making the money in circulation value less and less as the years go on. This is called inflation. It is a tax we all pay for the fraud of money printing.