From Murray N. Rothbard, “The Case Against the Fed,”:
The other major monetary change accomplished by the New Deal, of course, and done under cover of a depression “emergency” in the fractional reserve banking system, was to go off the gold standard. After 1933, Federal Reserve Notes and deposits were no longer redeemable in gold coins to Americans; and after 1971, the dollar was no longer redeemable in gold bullion to foreign governments and central banks. The gold of Americans was confiscated and exchanged for Federal Reserve Notes, which became legal tender; and Americans were stuck in a regime of fiat paper issued by the government and the Federal Reserve. Over the years, all early restraints on Fed activities or its issuing of credit have been lifted; indeed, since 1980, the Federal Reserve has enjoyed the absolute power to do literally anything it wants: to buy not only U.S. government securities but any asset whatever, and to buy as many assets and to inflate credit as much as it pleases. There are no restraints left on the Federal Reserve. The Fed is the master of all it surveys.
And that is why we need to “Slay the Creature From Jekyll Island.”
My favorite book by MN Rothbard is ‘The Mystery of Banking’. His presentation of fractional reserve banking has been my cornerstone to understanding the Fed’s machinations. I can’t recommend it enough.