What would happen if the U.S. secretly printed two trillion U.S. dollars a year privately and then took two trillion to other countries to buy goods?

The United States does not have a national central bank, and the functions of the central bank are performed by the Federal Reserve.

The Federal Reserve was established by the Federal Reserve Act on December 23, 1913. The central governing body of the Federal Reserve is the Federal Reserve Board.

The Federal Reserve System consists of the Federal Reserve Board in Washington, D.C., and 12 regional Federal Reserve Banks located in major cities across the country. The Federal Reserve derives its authority from the U.S. Congress and exercises such responsibilities as setting monetary policy, issuing dollars, and regulating U.S. financial institutions.

The Federal Reserve Board consists of seven members, including the Chairman and Vice Chairman of each, five members, who must be nominated by the President of the United States, approved by the Senate of the upper house of the U.S. Congress before taking office. This means that by law, the US authorities have taken full control of the personnel of the Federal Reserve.

Who are the major shareholders of the Federal Reserve?

In 1983, the shareholdings were: Citibank 15%, Chase Manhattan 14%, Morgan Trust 9%, Hanover Manufacturing 7%, and Hanwha Bank 8%.

The Federal Reserve Bank of New York registered capital of 143 million U.S. dollars, whether these banks actually paid the money is still a mystery.

Historians believe that the operation of the Federal Reserve is actually “to issue paper as collateral for paper”. The Federal Reserve System was neither “federal” nor “reserve” and was not a bank.

From 1913 to 1949, the Federal Reserve’s assets soared from $143 million to $45 billion, and the money went directly into the pockets of the Federal Reserve Bank shareholders.

Does the Fed just get to print dollars at will? Putting the printed money into the market at will? The answer is a resounding no.

According to U.S. law: the Federal Reserve must hold an equivalent amount of U.S. Treasury bonds to issue dollars. This means that every dollar issued must be backed by a dollar of U.S. Treasury bonds, which are approved by the U.S. Congress and issued by the U.S. Treasury.

So this process is equivalent to the Federal Reserve printing dollars to buy Treasury bonds after the Treasury Department has issued them.

We can understand that the credit of the dollar is based on the credit of the U.S. Treasury, which is the credit of the U.S. government, so the ultimate credit of the dollar is the credit of the U.S. government.
The issue that is now troubling countries around the world is the creditworthiness of the U.S. government, with the U.S. national debt growing by nearly $3 trillion between January and early June of this year, compared to no more than $1.5 trillion in previous years. Predictions are that the U.S. national debt could climb further and exceed $30 trillion by the end of 2020.

If the U.S. economy under the impact of the epidemic, a severe recession and the U.S. Treasury continues to increase the issuance of U.S. Treasury bonds, the U.S. government and the credit of the U.S. Treasury may collapse, although the world does not want to see such an outcome, but must be prepared for the collapse of the dollar credit.

Countries around the world are now actively preparing for the discovery of digital currencies, with the aim of adopting digital currencies to replace the dollar settlement system in the event of a collapse of the dollar.