How Can The US Treasury "Prop Up" The Dollar & How Would it Effect The Price of Gasoline ??

Question

JohnK - Thanks for the info but - Wouldn't restricting the money supply (M-1) create a shortage in the supply of dollars ? That would cause interest rates to spike up and take liquidity out of business commerce.

I am afraid the best solution would be a tax increase on the wealthiest 1% of Americans coupled with a small increase in interest rates and eliminate the Iraq War.

Answer 1

Stop printing mass quantities of dollars, Though it would have to start by Congress also lowering its spending, it would however on the short term cut the economic activity off, but we're heading that way anyway.