Wednesday, March 05, 2008

It's the Dollar, Stupid

Judy Shelton, writing in the WSJ, wonders what the candidates would do about the dollar:

We need to ask Sens. Barack Obama, Hillary Clinton and John McCain what they would do -- if anything -- to restore the integrity of the dollar as a meaningful unit of account, a reliable store of value. Would they put forward any new proposals for more comprehensive international monetary reform?

I'm not holding my breath that any candidate, other than Ron Paul, will start talking about the dollar or monetary policy any time soon. Shelton has been calling for reform for a long time; see her book, Money Meltdown.

Her prescription is a gold standard of some sort, but the chances of politicians limiting their ability to deficit spend is slim. There may come a day when they have no choice, but apparently we aren't there yet.

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