What about a balanced budget amendment?
A balanced budget is a great idea. Financially sound states and households must balance their budgets, so why not make the federal government do the same thing? The constitution allows the government to raise money through taxes and borrowing. Most balanced budget amendment proposals only allow funding through taxes except during times of emergency such as war, so a balanced budget amendment does control taxes and spending. However, it does not deal with the monetary system itself.
Bailouts: A balanced budget amendment effectively stops the Fed from monetizing US debt, but could still allow bailouts because the Fed would be able to monetize other debt. Without our amendment, the Fed could monetize debt by purchasing corporate debt or the debt of other countries which would expand the money supply and debase our currency.
Spending: Our amendment would curtail spending by force because it would keep Congress from using the Fed to monetize debt and they would have to exist only on taxes and real borrowing. Both amendments could work together for similar purposes to control the government and protect the citizens.
For more information on this issue, see www.balanceourbudget.com.