How do we get the US economy out of the ditch that our politicians have driven us into?
1. Link the dollar to gold by passing H.R. 6690, sponsored by Rep. Ted Poe.
2. Allow companies to expense capital investments.
3. Suspend mark to market accounting.
Sounds like a pretty good plan. Read the whole article by Louis Woodhill at RealClearMarkets. An excerpt:
The root cause of this whole mess is the unstable U.S. dollar. The Federal Reserve has put our economy through two boom-bust cycles in the past ten years. During the first cycle, the excess money created by the Fed was used to bid up the price of tech stocks. During the second, it was used to bid up the price of housing. Both booms were inevitably followed by busts.
There is no point in blaming Silicon Valley, Wall Street, Main Street, or “greed” for these asset boom-bust cycles. If the Fed puts too much liquidity into the system, it has to express itself somewhere. The only way to stop these damaging oscillations is to stabilize the dollar.
To have a stable economy, we must have a stable dollar. Under the Constitution, it is Congress—not the Federal Reserve—that is responsible for regulating the value of our money. On July 31, “Judge” Ted Poe (TX-02) introduced a bill, H.R. 6690, that would require the Fed to stabilize the value of the dollar by making it equal to that of 1/500th of an ounce of gold. This bill would require the Fed to do this directly, by using their Open Market operations to target the COMEX price of gold, rather than indirectly, by manipulating interest rates.