Ted Cruz during last night's debate stated that the financial crisis was the result a long period of accelerated money growth by the Fedearl Reserve followed by the tightening of money supply growth in the third quarter of 2008.The point is at the heart of my book, The Fed Flunks: My Speech at the New York Federal Reserve Bank.
Cruz also made clear the country was much better off when it was on a gold standard and said he wouldn't bailout banksters.
-RW
They are all 'libertarians' when it is convenient for them
ReplyDeleteAgreed. They long for the libertarian/classical liberal vote and say all the right things during a campaign. Yet, where would their lust for foreign intervention be without the money-printing? Will Cruz embrace nonintervention as a result of his gold standard? Not ever, I would think.
DeleteAt least these issues are being brought up. Perhaps it will lead some people down the right path. Maybe they'll google these issues, come up on mises.org, do some more reading... We can only hope.
DeleteBob, Thanks for this article. I thought loose money created the financial crisis, not tight money. What am I missing? Michael
ReplyDeleteIt's both. First, the Fed aggressively expands the money supply, which creates the boom phase on the business cycle followed by monetary tightness which creates the bust phase.
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