I
would urge my colleagues to consider the benefits we receive from our
relationship with China, one of which is that American consumers benefit from
lower-priced goods. Adopting the policy urged by supporters of this bill would
cause consumer prices to increase, thus reducing consumers’ wealth. Other
producers would suffer as a result of the consumers decreased purchasing power.
I doubt that many of our constituents want us to increase the prices they pay
for goods and services.

Congress
should also consider how the Chinese benefit the United States government by
holding our debt. The dollars the Chinese acquire by selling us goods and
services must be returned to the United States. Since the Chinese are not
buying an equivalent amount of American goods and services, they are using the dollars
to finance Congress’ extravagant spending.

This deep and legitimate
concern for the trade imbalance between China and the U.S. will fall short if the
issue of fluctuating, world-wide fiat currencies, is not addressed. The fact
that the U.S. dollar is the principal reserve currency of the world gives us a
benefit that others do not enjoy. It allows us to export paper dollars and
import goods manufactured in countries with cheap labor. It also allows us to
finance the welfare/warfare state with cheap loans from China and Japan. It’s a
good deal for the government but according to economic law must come to an end,
and the end will be messy for the US consumer and for world trade.

Our current account deficit
and huge foreign indebtedness is a reflection of the world monetary system of
fiat money. The longer the trade imbalances last, the more difficult the
adjustment will be. The market will eventually force these adjustments on us.

Instead
of having fluctuating currency exchange rates and the inevitable instability
that accompanies them, we should be working to establish a commodity-backed
currency whose value is determined by the market. This would provide an
objective measurement of the value of economic goods and services and thus
strengthen the economy by freeing it from the negative effects of our unstable
monetary policy.

Instead
of promoting global economic government, the United States Congress should
reform those policies that reduce our manufacturers’ competitiveness. The taxes
and regulations imposed on American businesses are damaging economic growth and
killing jobs. If we were serious about creating jobs, we would be working on an
aggressive agenda of cutting taxes and repealing needless regulations.

Congress
can also improve America’s competitive position by ending the practice of
forcing American workers to subsidize their foreign competitors through
organizations such as the Export-Import Bank and the International Monetary
Fund.

In
conclusion, I remind my colleagues that stability in currencies is
something we should seek, not something we should condemn. The bill before us
today will not solve our problems. In fact, by refusing to address the economic
stability created by fiat currency and instead embracing protectionism, it will
further weaken the American economy.