As the new year dawns, it seems the current occupant of St. Peter’s Chair will take on a new function which is outside the purview of the office that the Divine Founder of his institution had clearly mandated. Besides being a self proclaimed expert on global warming and a vociferous advocate of societal-wrecking mass immigration, it looks as if “Pope” Francis has entered the realm of global economics specifically, international monetary policy.
In an 18-page document issued through the Vatican’s Office of Justice and Peace, Bergoglio has called for, among other repressive and wealth-destructive measures, the establishment of a “supranational [monetary] authority” to oversee international monetary affairs:
non-partisan, through the rule of law of the person, promotes the integral developmentthe entire human community, understood – in this context – as a “community of Nations “.I conclude with the words of Benedict XVI. In the Encyclical Caritas in Veritate wrote:
“The complexity and gravity of the situationeconomic rightly cause us concern, but we must take with realism, confidence andhope the new responsibilities to which we called by the prospect of a world that hasneeds a profound cultural renewal and rediscovery of values background on which to build a better future. The crisis forces us to rethink theour way, to give us new rules and to discover new forms of commitment, build on positive experiences and to reject negative ones. The crisis becomes an opportunity for discernment and new strategic planning. In this, with confidence rather than resignation, it is appropriate to address the difficultiesthe present moment “(CIV, 21).Only then can the wind blow hard go of hope, the onlyable to remove the biggest enemy of our time: the fear of present and future.[01488-01.01] [Original text: Italian]
Intervention by HE Mons. MARIOTOSO
The note of the Pontifical Council for Justice and Peace on
Reform of international financial and monetary system in perspective of a public authority intends to propose a universal jurisdiction reflection on possible ways forward – in line with latest social teaching of the popes
– to achieve political andeffective financial and monetary institutions and representative inworld-oriented to a truly human development of all people and popoli. È known that the Church intervenes when talking about social issues,moves on the floor of his expertise in ethics and religion. Therefore, if it addresses the current crisis in the monetary and financial system is not intendedentering into purely technical issues, while not ignoring them. The discernment and planning that it has in place are the result of cooperation of knowledge within a variety of theological and moral perspective.It is sothat in the analysis, interpretation and practical guidelines elaborated,The Church proposes a knowledge of wisdom, synthetic type, global, which ethical and cultural framework that underpins and directs the practice and manufacturer presented – to recover the primacy of the spiritual and ethics, and, with them, primacy of politics – responsible for the common good – the economy and thefinance. The latter should be brought within the bounds of their realvocation and their function, including social, givenof their clear responsibilities towards society, to give life tomarkets and financial institutions that are effectively serving the person, are capable, that is, to meet the needs of the common good andof universal brotherhood, transcending all forms of economics and flat performative of mercantilism.
Consistent commitment of the political orientation of financial systems andmoney to establish the common good, are suggested by the PontificalCouncil, by way ‘of example, three possible ways forward: a) measurestaxation of financial transactions, b) forms of recapitalization banks, c) distinction between ordinary credit and
Europe compared to the second point, in these lastdays, has already expressed its positive opinion.Here, in short, some parts of the projects drawn up byreflections under consideration, and that should be taken not only by the mostdirectresponsible for the common good at the national and supranational levels, fromthosethat, especially in universities and cultural institutions, are called to formclasses tomorrow’s leaders. _____________________ 1
Cf BENEDICT XVI,
Caritas in Veritate,
Libreria Editrice Vaticana, Vatican City 2009, nos.
cf. Pontifical Council for Justice and Peace,
a reform of international financial and monetary system in perspective
a public authority to universal jurisdiction,
the Vatican Press, City
Vatican 2011, pp..
Cf BENEDICT XVI,
Caritas in Veritate,
Editrice Vaticana, Vatican City 2009, No
reform of international financial and monetary system,
for a reform of the financial system and monetary
The International Monetary Fund and World Bank, if
initially have been able to respond to the scene after the Second
World War II, seem to have gradually lost the mandate and vocal Universal implicit to the Bretton Woods agreements of which were the result.
In Ultimately, the International Monetary Fund and World Bank have not been able to meet its objective of monetary and financial stability, and an appropriate economic development, so that they would win or at least significantly scaled situations of poverty and inequality; indeed, often have increased, contributing, however, a significant its international credibility.
STATEMENT BY PROF.LEONARDO BECCHETTI
The good thing about crisis is that they are both moments of great opportunities. The global financial crisis is an opportunity to reformthe architecture of the global financial system, strengthen the European Union by point of view to the harmonization of fiscal policies and farther quickly towards the goal of political unity, increase disciplinefiscal policy nazionali.Il Vatican document focuses on two key issues:i) build a framework of rules of
that if can make a frame for the action of global institutions;ii) reform the international financial system with a series of proposalsspecifications.On the first point, the
is urgently needed toovercome the asymmetry of the globalization of markets and global institutionsandrules that remain predominantly national.Globalization makes us increasingly interdependent and makes it virtuallyimpossible to ignore the problems of other countries once far:
stabunt simul simul cadent.
Only a few examples, there are six fundamental elements interdependence of economic and financial systems: i) the debt crisis American is a problem that concerns not only that country but savers around the world who invest in it and among the first large states such as China invested in Treasury securities a substantial portion of their reserves;ii) the debt crisis and the likely reduction of Greek nominal value government securities in the country (between 20 and 60 percent) will set losses on banks’ balance sheets had more French and German invested in such financial assets, iii) the presence of an enormous mass of poor and underprivileged in the world, are willing to work at wages much lower than those of our workers of equal status, protected and unionized, represents a formidable threat to maintaining of well-being of the high-income countries, iv) the exit from the euro would serious damage not only to developing countries but also for Germany itself,which for years has enjoyed the advantage of being able to export their goods to market countries of the eurozone without the cost of its rate of appreciation return v) the coordination of central banks is now increasingly important in a globally integrated world and developing countries have complained several times expansionary monetary policies recently that the U.S. central bank and European (quantitative easing) exported inflation in their countries, vi) for some time in the meetings of the G-20 seeks to coordinate policiesthe deficit countries and surplus ones trying to encourage the latter toto adopt more expansionary policies to boost demand atthe world.There is a big table full of diners who have availablelong spoons. The difference between hell and paradise in this familiar storyIn the first case is that the guests use spoons groped clumsilyTake yourself to no avail while the latter use them totake the other. It ‘just this situation in front of which isare nation states in globally integrated markets. Try to pursue their own short-sighted short-term interest becomes evencounterproductive because it is only by cooperating together that you can exit by the crisis.On the second point (the rules of financial markets) the document is itssome proposals already launched by the Dodd-Frank legislation in the UnitedStates and theVickers commission in the United Kingdom, not yet implemented and came intoforce for a number of obstacles.And ‘return key finance the real economy. Tothis is necessary:i) reduce the leverage of banks too big to fail (lever 30 to 1 andimbalance between current liabilities and long academic activities are among themaincauses of the spread of the
subprime mortgage crisis inWorld).ii) to adopt the so-called Volcker rule that prevent banks from making proprietary trading with customer deposits.iii) more strictly regulate the derivatives market that ariseas insurance instruments. Insurance policies in the real economy is buy if you own the underlying asset and to ensure financial markets that takes place in no more than 5 percent of cases. There isIn this regard a proposal for the EU to achieve this goal.
Naturally, as one of the planet’s preeminent social justice warriors, Bergoglio claims that if a world central bank is not commissioned, than the gap between rich and poor will be exacerbated even further:
If no solutions are found to the various forms of injustice, the negative effects that will follow on the social, political and economic level will be destined to create a climate of growing hostility and even violence, and ultimately undermine the very foundations of democratic institutions, even the ones considered most solid.
Bergoglio acknowledges that if a central monetary authority is established it will mean a loss of sovereignty and independence among nations, but such “costs” are well worth the overall societal and economic gains:
Of course, this transformation will be made at the cost of a gradual, balanced transfer of a part of each nation’s powers to a world authority and to regional authorities, but this is necessary at a time when the dynamism of human society and the economy and the progress of technology are transcending borders, which are in fact already very eroded in a globalized world.
While the document demonstrates that Bergoglio has not a clue of basic monetary theory, it shows again that the “pope” is a radical socialist who has more in common with the loony ideas of Karl Marx than he does with Roman Catholicism.
The ongoing and deepening financial crisis that Bergoglio seeks to address is not because there has been no global central bank to regulate more effectively the money and credit flow of the various nation states, but the crisis is because of the machinations of central banking. Central banking, through the fraudulent practice of fractional-reserve banking, has been the culprit in almost every financial calamity that has beset the Western world since the institution was first created.
If “Pope” Francis was truly interested in solving the financial crisis and alleviating the income gap between rich and poor, he would call for the abolition of this evil institution and advocate the re-establishment of an honest international monetary order based on gold and silver as money. But, as a good neo-Marxist, Francis is more concerned with the redistribution of wealth from rich to poor.
Yet, as sound economic theory has shown, this Leftist ideal is a scam. Redistribution of income never enhances the conditions of the poor but instead enriches the politically-connected elites and impoverishes the middle class.
Unlike what Bergoglio believes and what is taught in nearly all college and university economics classes, wealth can only be created by real savings (the abstention from consumption) and the investment of those savings into the production of capital goods which, in time, creates consumer goods. To foster such an environment, however, there must be a sound monetary order not open to manipulation via inflation and credit expansion by central banks.
As he has been accused by several of his cardinals for espousing heretical views on re-marriage and the reception of the Sacraments, “Pope” Francis’ position on international money and banking matters is equally erroneous. Jorge Bergoglio’s “pontificate” has been an unmitigated disaster plagued by constant scandal so it would be wise of him before it is too late to remember the ominous words of the Founder of the institution he now heads about the grizzly consequences that are in store for those who bring about scandal.