I caught a clip from last night’s GOP Debate of Sen. Ted Cruz (R-TX), and Oh. My. God! Have a look for yourself.
What Cruz accomplished here was nothing short of remarkable.
When Neil Cavuto asked him if Bank of America should be allowed to fail, even though millions of depositors would be on the line, Cruz courageously and unequivocally stated: “Yes.”
But he didn’t appear to respond in the affirmative simply because he’s been told by advisers what opinion to hold on the matter. Instead, his explanation is much too penetrating and accurate to consider Cruz an empty suit on this subject.
For example, aside from referring to Federal Reserve (Fed) officials as “Philosopher-Kings” who try “to guess what’s happening with the economy,” he also placed the Federal Reserve System at the heart of boom-bust cycles:
“…one of the reasons we had the financial crash is–throughout the 2000s we had loose money, we had an asset bubble, it drove up the price of real estate, it drove up the price of commodities. And then in the third quarter of 2008 (snaps fingers) the Fed tightened the money. And crashed those asset prices which caused a cascading collapse.”
According to Cruz, then, another bailout would merely kick the can of another recession down the road, rendering depositors no better off! Therefore, the Fed only makes things worse when it starts “adjusting monetary policy according to whims” because this simply causes recurring booms and busts.
And this isn’t some outlandish Republican position to take, either. It’s actually quite outlandish for a Republican to take this position! Remember George W. Bush, who in 2008 abandoned free market principles to save the free market system?!
If Cruz is correct, then getting to the heart of the matter–monetary policy–ought to trump temporary “solutions.” He mentioned tying the money to gold, and although that may not be an ideal alternative would it not improve drastically upon what we currently have? Plus, it seems better than what anybody else on the stage is proposing.
Even if you disagree with Cruz on this issue, can we at least agree that he deserves a loud applause for his bravery to stand on principle? I mean, he clearly wasn’t up there just to pander to the crowd, because talk about a snooze-fest out in the audience!
Well done, Senator. Stand up and take a bow!