FIRST TIME ON FOX: The United States must catch up with China’s digital currency to avoid a threat to America’s “dollar dominance”, economic experts say in a new political volume compiled by former House Speaker Paul Ryan.
“American Renewal: A Conservative Plan to Strengthen the Social Contract and Rescue the Nation’s Finances” describes solutions to America’s emerging financial crisis, which was “completely self-created.” It provides policy advice from 19 academics, mostly from the American Enterprise Institute, and aims to put forward concrete decisions that Congress can take before a “debt crash” engulfs the country.
Ryan, of Wisconsin, told Fox News Digital in an interview ahead of the book’s release that it “is designed to prevent America from falling into a debt crisis and losing the dollar as the world’s reserve currency.”
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“If we lose the dollar as the world’s reserve currency, it will cause huge fiscal and monetary damage to our country. Frankly, it will be harder for us to finance our government, our social safety net, and our economy because interest rates will be much higher,” he said. “Fiscal policy in this book is a proposal to fix these programs. so that they are reliable and solvent and that they do not lead to a debt crisis.”
The former speaker wrote in the foreword to Thursday’s edition that the US system of “self-rule” built up over the past 250 years is being challenged around the world by China’s “repressive regime and other authoritarian strongholds.”
“The rules that apply to other countries don’t always apply to the United States, or at least not exactly the same way. However, the US cannot forever ignore the laws of economic gravity,” the forward said, referring to more than $31. trillion the country holds in public debt and 40-year inflation at a high level.
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Ryan says that “the world is moving to digital currencies,” which presents both a challenge and an opportunity for the US as new technologies take over the world.
“If America wants to maintain its place as the custodian of the world’s reserve currency, which gives us huge privileges and advantages as a country, then we should also digitize our dollar so that we have the attributes of a digital dollar, that is, frictionless money that is much more efficient,” he told Fox News Digital. “But more importantly, to show the world how a free society should deal with this problem by having a two-tier system that ensures that the government is not involved in managing our money. Because the Chinese, how they will manage money, violate privacy. and freedom.”
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The former speaker said the central bank digital currency (CBDC) proposal, presented by leading academic economist and former Federal Reserve Board member Kevin Warsh, is a tool that will advance the national interest by encouraging competition without unnecessary government interference.
“Two tiers [CBDC] the system ensures that there is a layer between the citizen and the government for money,” Ryan explained. “That’s why this proposal exists, because we know where the world is going. We want to get ahead of him. And we want to make sure that we can become a global leader in ensuring that digital money upholds our core principles of privacy and freedom.”
Warsh, now a scholar at the Hoover Institution, has argued for a US-based CBDC that could be a solution to the problems that other digital currencies create.
“I don’t expect China’s fiat currency to displace the US dollar from the global stage in the next decade,” wrote Warsh, board member of UPS and Coupang, a leading Korean e-commerce company. “But the combination of two powerful trends — the emergence of great power rivalry and the technological revolution in financial infrastructure catalyzed by the creation of blockchain technology — poses a consistent threat to the current American-led financial architecture.”
“If US policymakers do not recognize the new technological frontier, the US risks losing the privilege of currency dominance,” Warsh said.
The book is meant to “start a debate” in Congress to solve the problems facing the nation.
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“And what this book is trying to do is start that debate. It should get our country, our political leaders and politicians to look at the really big problems facing America and talk about them,” Ryan said.
“And if we are going to successfully compete with China, we will have to solve our problems from the inside,” he said.
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Ryan’s biggest accomplishment in his 20 years in Congress was his tax reform plan, he told Fox News Digital, calling it “an extremely important down payment.”
But he said that “we can go even further in the same direction and achieve even better results for the American people with an even better tax system, building on the successes we have made with the Tax Cuts and Jobs Act. And that’s the offer, do it.”