The Federal Reserve is the root of all evil in the American political system. For that matter, it is the root of all evil in the world political system because it serves as the world’s central bank. The wars of the 20th century could not have been fought without central banking. The public would not have suffered the vast expansion of state power in the 20th century if it was not for the Federal Reserve. There would have simply been no way to raise taxes high enough to fund American government from the New Deal forward. Instead, the Federal Reserve stole money through inflation and loaned it to the Federal Government.
The politicians and bankers were the big winners of central banking. The American political class in D.C. received the money that they wanted for their political boondoggles and the privately owned Federal Reserve was able to print off money and loan it at interest to the American Government. The American people on the other hand saw 98% decline in value of the dollar. At the same time, the banking and political class have seen a huge transfer of wealth into their hands. There will never be true political reform until the United Sates has free banking.
Murry Rothbard, probably the greatest economist of the 20th century, explains the founding of the Federal Reserve.