my connection with the tea party

[kandrathe]

[*]Peg the value of the dollar to the average price of a basket of precious commodities. This is not a volatile as a gold standard, yet eliminates the Federal Reserve and Treasury departments fiat currency shenanigans.

Could you explain how this works? How do you "peg" the value of the dollar at an average value of commodities? When I went to the treasury with my dollar and said "give me what this is worth," what would they give me? Under a gold standard, that would be a fixed quantity of gold. But under this system, what?

(Nevermind. I suppose they could just give you the fixed basket itself, and that would do the same thing.)

It would need to be a composite index that correlated strongly to hedge inflation. The purpose of pegging the dollar to a standard is to protect savings from eroding. In a bad economy, a gold standard is more heavily influenced by passion and fear. That is what makes it unreliable as a standard. It's just morally wrong that the US is resolving it's debt problem by printing the money.