Jan 11, 2017

Pope Francis Now International Monetary Guru

Neo-Papist transmogrification. We highly recommend the economic thought of one of Francis’ storied predecessors, John Paul II, which we have written about on previous occasions. In “A Tale of Two Popes” and “Papal Eco-Hysteria”, we have contrasted Francis and John Paul II and quoted from the latter’s seminal encyclical “Centesimus Annus”, which probably contains the most clear-headed thinking on human liberty and economics that has ever emerged from the Vatican. Francis strikes us as a throwback to a completely discredited and dangerous ideology by comparison. Lately he is even calling for the establishment of a global central bank!
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:
“In fact, one can see an emerging requirement for a body that will carry out the functions of a kind of ‘central world bank’ that regulates the flow and system of monetary exchanges similar to the national central banks.”*
The paper, “Towards Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” contends that a world central bank is needed because institutions such as the IMF have failed to “stabilize world finance” and have not effectively regulated “the amount of credit risk taken on by the system.”
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.”
A globalist pope. Argentina, where Francis hails from, was once the fifth-richest country on the planet in terms of GDP per capita. It was ruined by statism, interventionism and inflationism and was never able to regain its past glories. And yet, the policies Francis advocates are precisely the ones that produced the economic downfall of his homeland.

Clueless and Dangerous – the False Promise of Redistribution

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.
The new gospel according to Marx?
Cartoon by Ramirez

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.
There is actually no such thing as “distribution” that is distinct from production, or at least there shouldn’t be. It is the creation of wealth that should be the focus, not its “distribution”. Capitalist modes of production have lifted billions of people worldwide out of abject poverty and helped an unprecedented number of them to attain “middle class” status. The idea of socialist redistribution is based on an erroneous view of the economy as static – a fixed pie over which people must fight. But a progressing economy based on voluntary human cooperation (i.e., capitalism) is not static.
Cartoon by Mike Lecter
*Baxter Dmitry, “Vatican Calls for ‘Central World Bank’ and ‘Global Authority.‘”   Your News  2 January 2017.
Image captions by PT
Antonius Aquinas is an author, lecturer, a contributor to Acting Man, SGT Report, The Burning Platform, Dollar Collapse, The Daily Coin and Zero Hedge. Contact him at antoniusaquinas[at]gmail[dot]com