Here's some interesting reading:
12 USC 411:
Federal reserve notes, to be issued at the discretion of the Board of Governors of the Federal Reserve System for the purpose of making advances to Federal reserve banks through the Federal reserve agents as hereinafter set forth and for no other purpose, are authorized. The said notes shall be obligations of the United States and shall be receivable by all national and member banks and Federal reserve banks and for all taxes, customs, and other public dues. They shall be redeemed in lawful money on demand at the Treasury Department of the United States, in the city of Washington, District of Columbia, or at any Federal Reserve bank.I wonder what that "and for no other purpose" implies, legally? And what is "lawful money?"
Federal reserve notes, to be issued at the discretion of the Board of Governors... The said notes shall be obligations of the United States. They shall be redeemed in lawful money on demand... What is "lawful money?" In 1913, lawful money was gold. But when FDR confiscated the people's gold in 1933, it became meaningless. Nonetheless, people too "unsophisticated" to understand the wonderment of fiat did, from time to time, present the notes for redemption. When someone sought to redeem a 10 after 1933, he would be given 2 5's. In 1963, they just removed PAY TO THE BEARER ON DEMAND, completely. Nowadays, a so-called $10 bill says to the bearer, I owe somebody 10 nothing which I may or may not pay now or in the future. Thank god for that bigger fool theory.