Congress Suing OPEC?

Just when I thought the news couldn't get any crazier (other than oil hitting $133/barrel), this is the headline I read.

Now I'm convinced that 99% of our Congressmen and Senators are economically illiterate, crazy and stupid. I'm pretty sure their ears are burning from angry constituents wanting them to 'do something' about the skyrocketing cost of gasoline and diesel fuel.

But this isn't the long-term solution, just a short-term election year PR opportunity.

The biggest cause of increasing food and energy prices is our national central bank, the Federal Reserve. The Fed has continued to increased the supply of fiat currency, and as a result, we have a larger number of dollars chasing the same number of goods.

It's done its best to keep this bubble/consumption economy afloat, and bail out the investment bankers on Wall Street. But this juicing of the money supply is hurting Americans and everyone else who holds dollar-denominated investments.

I don't think anyone outside of the Bush Administration really believes Hank Paulson when he says our government has a 'strong dollar' policy. Yeah - pull my other leg, Hank, it plays Jingle Bells. The Fed is letting the dollar sink in value, while trying to pump up the economy and Wall Street.

In the meantime, all Americans are seeing their wealth decline because the value of our money is declining. Unless they hold their wealth in appreciating foreign currencies, stocks of high-quality foreign companies, or commodities such as gold and silver.

Yes, I probably sound like a broken record, but it's the best investing advice I can recommend for current market and economic conditions. Please read Chapters 8 through 10 of Peter Schiff's book Crashproof, and move your money accordingly.