One of my favorite new websites produced a great article on our current Fed system and why we should move away from it, giving a candid history behind the creation of the Fed.
Therefore, Congress unlawfully transferred its power to coin money to a privately owned bank, which now unlawfully prints or creates it. Now, when the government needs money, it prints Treasury Bonds and exchanges them for Federal Reserve Notes (US dollars), which are given to them by the Fed, a company whose only shareholders are other banks.
This means that in order to create money, government bonds, which are debt, must be created. This debt comes with an interest rate. Therefore, our government pays a private bank interest to create its own money. Yet more importantly, this means that any money created in our financial system is created from debt with interest tacked on. However, the Fed only prints the principal amount of the loan, not the interest needed to pay it off. So how is it possible to completely pay off all the debt in our financial system? Simply put, it isn’t. Every dollar you carry around actually is somebody else’s debt. You own nothing.