Newvatican's Global Financial Reform Proposals By Patricius Anthony TRADITIO Traditional Roman Catholic Internet Site E-mail: firstname.lastname@example.org, Web: http://www.traditio.com Copyright 2012 P. Anthony. Reproduction prohibited without authorization. Last Revised: 02/23/12
In October 2011, the Pontifical Council for Justice and Peace released a document, Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority (TRIFMSCGPA), which offers a response to the global economic crisis which has persisted and worsened since 2008. TRIFMSCGPA met with widespread criticism upon its publication because it called, in part, for a global monetary authority and advocated certain wealth redistribution schemes.
TRIFMSCGPA caused Newvatican to distance itself from the document and issue new procedures for future publications of documents by its agencies. Newrome's Secretary of State, Cardinal Bertone, claimed to have had only seen the document at the "last moment." Under the new policy, documents for publication must first be 'inspected" and "authorized" by the Secretary of State.
Neoconservative Catholics and cheerleaders of Benedict-Ratzinger predictably fell in line with Newvatican's explanation and dismissed the document as "not an expression of the papal magisterium" and the Council for Justice and Peace was a "minor office." While the uproar over TRIFMSCGPA abated somewhat and neoconservative Catholics appeared to have weathered another embarrassment, Benedict-Ratzinger, himself, returned to the global economic crisis in a message ("Educating young People in Justice and Peace") for the celebration of the 2012 World Day of Peace where Newpope speaks of redistributing wealth. And, to make matters worse for neoconservatives, the address was released by none other than the Council for Justice and Peace!
The rest of Benedict-Ratzinger's message for a World Day of Peace, his earlier encyclical, Charity in Truth and, TRIFMSCGPA, the content of which the Newvatican obviously approves, all demonstrate that Benedict-Ratzinger is a confirmed Leftist. Not only does he and the Council for Justice and Peace possess a collectivist mentality, but both are clueless as to the cause of the financial crisis or the measures needed to resolve it.
Not surprisingly, many of the same neoconservative Catholics who gave a pass to Newvatican for distancing itself from TRIFMSCGPA, generally praised Charity in Truth despite the fact that a number of these commentators consider themselves "free-market devotees." Of course, when it comes to maintaining access to Newchurch's hierarchy, media appearances, and the like, devotion to "market principles" are cast aside.
Instead of offering policies to corrrect the "shortcomings" of the financial systems, the Council for Justice and Peace should clean up its own backyard. What about a document that seeks justice instead of talk for the crimes - rape and assault, to name the most heinous - that members of Newchurch's clergy have committed against the innocent in the tens of thousands? What about an expose on Bendict-Ratzinger's role in this abominable affair? Now, that would be something worth reading!
The document goes out of its way to criticize certain schools of economic thought which must have come as a surprise to some of these economists who have championed Benedict-Ratzinger as a "traditional pope" and have considered him friendly toward free enterprise. Not only does TRIFMSCGPA disagree with the methodolgy of these schools of thought, but it contends that it is "economic liberalism" which these economists promote that is responsible for the current financial crisis.
In refuting economic liberalism, the document asks: "What has driven the world in such a problematic direction for its economy and also for peace?" The answer: laissez faire:
First and foremost, an economic liberalism that spurns rules and controls. Economic liberalism is a theoretical system of thought, a form of 'economic apriorism' that purports to derive laws for how markets function from theory, these being laws of capitalistic development, while exaggerating certain aspects of markets.
So much for the conversion of the Newvatican to the deductive method in economics!
After lambasting free-market economics, TRIFMSCGPA tries to explain what lies at the heart of the current crisis and cites Charity in Truth for guidance: "Benedict XVI precisely identified the roots of a crisis that is not only economic and financial but above all moral in nature. . . . to function correctly the economy needs ethics; and not just of any kind but one that is people-centered."
Granted, the ultimate cause of the financial mess is not financial or political and mankind certainly needs to be governed by moral principles, but it is not that "people centered" type that Leftists like the Council for Justice and Peace and their boss, Benedict-Ratzinger, advocate. The Western world has been ruled by different variants of people-centered ethics since 1789, the tragic result of which has led it further and further from Almighty God.
What is needed are societies that are ruled by GOD-CENTERED principles! And, to be clear, this "God" is not the contrived oecumenical Diety of Benedict-Ratzinger and the Conciliar faith of which he ascribes, but instead, the religion revealed by the Holy Trinity where the Second Person of that Sacred Entity suffered, died, and arose from the dead for man's salvation and was given all power in heaven and on earth. The Triune God is the foundation upon which any sane society's ethics should rest not man-made laws and morals which Benedict-Ratzinger and all other naturalists ascribe.
It is because the Western world is governed by secularism and not that of God that it finds itself in the current economic and, more importantly, moral mess. Western man has drifted toward the economic abyss because he has long ago rejected God's Holy Commandments and Christ's call to love one another. No Christ-centered society would ever permit governments to engage in the massive redistribution of wealth which has taken place or would have allowed to go unpunished the frauds and swindles committed by the financial community.
Typically, when there is no or little understanding of economic theory, interpretation of history and that of current events will be flawed and TRIFMSCGPA's analysis of the years leading up to the present crisis suffers from a distinct lack of knowledge of basic economic principles. Thus, its discussion of "developing economies," the industrialized world, financial bubbles, and the cause of price inflation are decidely mistaken.
Take, for instance, what TRIFMSCGPA says of the severe price inflation of the 1970s. The document blames "oil price shocks" which led to increases in the general price level worldwide. Increases in energy prices were not the cause of the rise in general prices, but an effect. The cause of increases in fuel and energy prices was the vast money printing by the world's central banks which devalued the purchasing power of national currencies beginning in earnest in the late 1960s and escalating throughout the next decade.
The monetary event that brought about the rampant price inflation of the 1970s which, or course, TRIFMSCGPA fails to mention was President Richard Nixon's infamous decision to "close the gold window" to foreign banks requesting gold redemption for U.S. dollars. With this destructive act, gold was completely severed from all national currencies and the dollar became the world's reserve standard. Instead of hounding Nixon from office for covering up the rather harmless affair at the Watergate, he should have been impeached for abandoning the last remnant of the gold standard, an act that continues to haunt the world's financial systems.
Of course, for Nixon, the U.S. government, and its banking and financial elites, the decision to jettison the gold standard was perfectly understandable. Without the restraint of gold, the power of governments were enhanced as was the enrichment of all state-connected financial institutions and individuals. Money and credit could thus be created out of thin air and the surreptitious redistribution of wealth from the non-political classes to the state and its minions acclerated rapidly.
After a brief review of the major global financial busts of the past half century, TRIFMSCGPA addresses the most recent crisis which began in 2008: ". . . the outbreak of the crisis. . . was characterized by a different factor compared with the previous ones, something decisive and explosive. Generated in the context of the United States, it took place in one of the most important zones for the global economy and finances. It directly affected what is still the currency of reference for the great majority of international trade transactions." The "currency of reference" is the U.S. dollar which is the world's reserve currency.
Next, TRIFMSCGPA attempts to explain the cause of the crisis which gives it the opportunity to take another swipe at free-market economics: "A liberalist approach, unsympathetic towards public intervention in the markets, chose to allow an important international financial institution to fall into bankruptcy, on the assumption that this would contain the crisis and its effects. Unfortunately, this spawned a widespread lack of confidence and a sudden change in attitudes."
The "important international financial institution" was Lehman Brothers and as most socialists contend its collapse and the crisis itself was the result of free enterprise and in Lehman's case the sluggishness that monetary authorities displayed in their rescue attempts. Nothing, of course, could be further from the truth. That the Council for Peace and Justice believes that the current money and banking system is "laissez faire" demonstrates how truly ignorant it is of economics!
The Lehman collapse as well as the financial meltdown that followed was the inevitable consequence of the boom/bust cycle generated by central banks, in particular the Federal Reserve. The Fed, through the banking system, massively expanded the money supply which created a huge boom in the U.S. residential real estate market. Evenutally, all booms must come to an end with a bust which, in this instance, took place in the fall of 2008. The Fed, however, instead of letting the banking system collapse which would have cleared away the malinvestments brought about by the massive expansion of credit, intervened in the market to bail out and aid the "too big too fails." This became officially known as TARP (troubled asset relief program).
Such action, of course, is the antithesis of free enterprise. In a true market economy, the banks would have failed as with any other firm which makes unsound business decisions. A system of free enterprise is one of profit and loss where the latter is just as an essential component of the system as the former. The bailout of the banking sector and other industries, such as automobiles, is what many have called "crony capitalism."
More importantly for Western governments, the bailouts were done to protect their solvency which has become increasingly impaired with the expansion of the respective welfare states and in the U.S. its colossal welfare/warfare state. Western nation states' bloated welfare systems have been sustained by the central banks through "monetization of debt" since the current level of public spending cannot be financed soley by taxation. Monetization of debt takes place when a government issues debt (bonds) and the central bank "buys" the bonds by the creation of fiat paper currency printed out of thin air. This, to say the least, is an untenable situation which will lead to severe price inflation and ultimately systematic monetary collapse.
The bailout of banks and governments has been done at the impoverishment of those outside the state-bankster oligarchy. The contemporary money and banking systems have been deliberately designed to enrich the financial elites and empower the governing classes through the manipulaton of money and credit. Through inflation of the money supply, central banks are able to surreptitiously redistribute wealth from the productive classes to those of the banking and governing sectors.
Instead of calling for a return to an honest and sound monetary system based on gold and the elimination of central banking, TRIFMSCGPA advocates even greater global centralization, suggesting the establishment of a "world political authority" the description of which could have easily been authored by any number of New World Order organizations, or, from the likes of a George Soros. Of course, the authors of TRIFMSCGPA believe that their supranational authority if set up "deliberately," with the "proper safeguards," and whose focus is on the "common good" would be an effective tool at building a more "fraternal and just human family." Yeah right!
Such naivite shows how out of step the Newvatican is with current geopolitical realities and what has taken place "on the ground" over the past year. The "Arab Spring," the mass demonstrations in Europe, and the "Occupy Movement" in the U.S. are reactions albeit, in large part, misdirected and unorganized, against the ruling state-bankster oligarchy.
The call for a global authority also shows a lack of understanding of rudimentary political theory. If the type of global authority that TRIFMSCGPA envisions was ever established, it would be a disaster for human freedom and economic well being. The power that governments currently possess is overwhelming as every facet of life is regulated, taxed, and controlled. With the never ending War on Terrorism, basic individual rights are being violated at an alarming rate. A supranational agency more powerful than the U.N. would add a further layer of statism upon the world at a time when there needs to be political decentralization.
At least individuals can, to some extent, still "vote with their feet" and migrate within their own countries or expatriate. With a supranational authority, the option of migration to escape repression would be eliminated as each political jurisdiction would be subjected to the dictates of another global authority. If TRIFMSCGPA really seeks greater individual autonomy and wants to lift living standards for all, it should look to the history of European Christendom. The multitude of kingdoms, principalities, and states which existed was the primary reason for the remarkable amount of personal freedom that individuals enjoyed and the tremendous economic growth which took place. More importantly, the decentralized political environment of Christian Europe proved most conducive for the flourising of the Faith.
Benedict-Ratzinger's World Day of Peace Message - "Educating Young People in Justice and Peace"
Before a review of his pronouncements on the current economic crisis, a few comments will be made on Benedict-Ratzinger's ramblings on education. He laments the fact that life in modern society is extremely stressful which is not conducive for the well being of families. The pressure of contemporary times makes it difficult for children to experience "one of the most precious treasures: the presence of their parents."
Yet, the Conciliar Church's marriage annulment policy ("Catholic divorce") has been a significant factor in the breakdown of the family among post-Vatican II Catholics. While Benedict-Ratzinger admits that "the family is the primary cell of society" and where "children learn the human and Christian values which enable them to have a contributive and peaceful coexistence," he and his predecessors have allowed this scandalous practice to take place which is in direct defiance of Christ's sacred words: "What God has made one, let no man part asunder."
Like all Leftists, Benedict-Ratzinger accepts the notion now enshrined throughout Western life that education is a "natural right" which, in the modern sense, contains a heavy dose of coercion. Instead of the Christian ideal of education being the responsibility of the family and individual, schooling must be provided at taxpayers' expense so that "no one is ever denied access." Heaven forbid that a young person might miss out ot twelve years of atheistic indoctrination in what purports to be "schooling" in most Western lands!
It is unlikely that the dramatic de-Christianization of society over the past century could have been accomplished without "free" public education. Yet, Benedict-Ratzinger urges "political leaders" to "assist" families and institutions in their educational duties: "I ask political leaders to offer concrete assistance to families and educational institutions in the exercise of their right and duty to educate. Adequate support should never be lacking to parents in their task. Let them ensure. . . that families are able to freely choose the educational structures they consider most suitable for their children. Let them be committed to reuniting families separated by the need to earn a living. Let them give young people a transparent image of politics as a genuine service to the good of all."
Benedict-Ratzinger apparently does not understand that public schooling and state aid to education in general have been a deliberate and, unfortunately, very successful plan by forces long hostile to the Church to undermine Catholicism. Popes have always maintained that only the Church and its auxiliaries have the moral right and authority to instruct the young, and, for that matter, anyone else since it alone has the full Deposit of Faith.
Moreover, Benedict-Ratzinger does not comprehend that state assistance comes with "strings attached." And this has clearly meant that government supported education must be "Godless." Any mention of the Blessed Trinity is verboten. Not only will state aid be suspended, but violators of this "sacred" law will be prosecuted.
In the section "Educating in Peace," Benedict-Ratzinger has redefined "peace" in a collectivist fashion. Peace is not merely a "gift" to be received, but coercive action must be undertaken to achieve it: "In order to be true peacemakers, we must educate ourselves in compassion, solidarity, working together, fraternity, in being active within the community and concerned to raise awareness about national and international issues and the importance of seeking adequate mechanism for the redistribution of wealth, the promotion of growth, cooperation for development and conflict resolution." [emphasis mine.]
Funny, when Christ spoke of peace and peacemakers there was never any reference to coercion, but again, Benedict-Ratzinger is not a true vicar of Christ, but speaks as head of the Conciliar Church of Catholicism where he represents the likes of Karl Rahner, Hans Kung, and Annibale Bugnini.
Not only does Benedict-Ratzinger's idea of peace contain a contradictory element of force in it, but redistribution of wealth will lead to the opposite goals of the "promotion of growth" or the "cooperation for development and conflict resolution." Every income redistribution scheme implemented has always created "class conflict" and lower levels of economic growth. Why produce more if it will be confiscated? Envy between those who receive public largesse and those that are fleeced of their property is the by-product of such a policy.
Along with public debt financing, redistribution of income schemes have been used to fund the modern welfare state which has taken over many of the social functions and tasks that the Catholic Church once performed such as health care, education, and charities. Instead of advocating a return of the Church's traditional role in the provision of these services, Benedict-Ratzinger wants more statism.
Like TRIFMSCGPA, Benedict-Ratzinger criticizes "economic liberalism: ". . . despite the profession of good intentions, the value of the person. . . is seriously threatened by the widespread tendency to have recourse exclusively to the criteria of utility, profit and material possessions, it is important not to detach the concept of justice from its transcendent roots." He adds: ". . . some currents of modern culture, built upon rationalist and individualist economic principles, have cut off the concept of justice from its transcendent roots, detaching it from charity and solidarity."
Deciphering Vatican II-speak of Benedict-Ratzinger is always difficult as words such as "dignity," "transcendent," "solidarity," and the like can take on a number of meanings which Modernists cleverly use to advance their agenda. What is clear from the above passage, however, is that Benedict-Ratzinger is no fan of those who espouse free-market principles despite what some clueless neoconservative Catholics may believe.
If Benedict-Ratzinger is so concerned about "justice," he should focus on the greatest injustice of modern economic life: the massive couterfeiting that central banks undertake on a continuous basis. Does not this fraud "threaten" human dignity and violate basic human rights as the value of individuals' wealth are diluted and, in effect, stolen at the behest of the global-bankster cartel? Where is the outrage of Newpope at the redistribution of wealth or that the very banks who have participated in this immoral activity have been bailed out at taxpayers' expense?
Benedict-Ratzinger still does not get it! Despite millions paid out in settlements to victims of rape and assault by his perverted Novus Ordo clergy, the defection of millions of Novus Ordinarians over his unwillingness and indifference to address the sex scandals that continue to this day, Benedict-Ratzinger does not understand the destruction that he and his predecessors have inflicted on Christ's once Holy, Catholic Church. If he did, he could not write such words to the world's youth on the occassion of the World Day of Peace as if nothing has happened:
My Message is also addressed to parents, families and all those involved in the area of education and formation, as well as to leaders in the various spheres of religious, social, political, economic, and cultural life and in the media. Attentiveness to young people and their concerns, the ability to listen to them and appreciate them, is not merely something expedient; it represents a primary duty for society as a whole, for the sake of building a future of justice and peace.
What "youth" in his or her right mind or for that matter what parent or guardian of one would listen to or abide by anything this cretin would have to say in the development or formation of young people?! It is lucky that Benedict-Ratzinger has lived in such a pusillanimous age. For if he had covered up the heinous crimes of his subordinates in an epoch where Catholics took their faith seriously, the "Holy Father" might find himself at the bottom of the Tiber with a millstone around his neck!
While the Conciliar Church is sinking into the abyss of apostasy, corruption and scandal, Benedict-Ratzinger and the Council for Justice and Peace have the temerity to make proposals in a field which neither have any competence. Not only that, but their recommendations, if implemented, would only exacerbate the situation causing further misery while continuing to enrich those who have "profited" from the current political and financial configuration.
A true vicar of Christ would never call for a secular global political authority to oversee international financial matters. To remedy the current crisis, a real vicar of Christ would argue for a return to the Social Reign of Christ the King whose sovereignty extends not only to the spiritual world but to every facet of human endeavor. Until a legitimate representative of the Divine Savior once again heads His Church, Catholics are obliged to ignore the current imposter in anything he says whether in regard to Faith or economics.