Art I sec 8 of The constitution stays this:
FISCAL AND MONETARY POWERS OF CONGRESS
Coinage, Weights, and Measures
The power “to coin money” and “regulate the value thereof” has been broadly construed to authorize regulation of every phase of the subject of currency. Congress may charter banks and endow them with the right to issue circulating notes,1281 and it may restrain the circulation of notes not issued under its own authority.1282 To this end it may impose a prohibitive tax upon the circulation of the notes of state banks1283 or of municipal corporations.1284 It may require the surrender of gold coin and of gold certificates in exchange for other currency not redeemable in gold. http://www.law.cornell.edu/anncon/html/art1toc_user.html
From Wikipedia, the free encyclopedia I also found this.:
Federal Reserve
The Federal Reserve Act (ch. 6, 38 Stat. 251, enacted December 23, 1913, 12 U.S.C. ch.3) is an Act of Congress that was written by Carter Glass that created and set up the Federal Reserve System, the central banking system of the United States of America, and granted it the legal authority to issue Federal Reserve Notes (now commonly known as the U.S. Dollar) and Federal Reserve Bank Notes (a.k.a. Red Seal Notes) as legal tender. The Act was signed into law by President Woodrow Wilson
So What makes the Fed not perfectly Legal?
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