Category Archives: Great Recession

Pope Francis Now International Monetary Guru

pope-francis-marx

Neo-Marxist Pope Francis

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:

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.

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.

*Baxter Dmitry, “Vatican Calls for ‘Central World Bank’ and ‘Global Authority.'”  Your News Wire.com  2 January 2017.

Antonius Aquinas@AntoniusAquinas

https://antoniusaquinas.com/

 

Donald and the “Maestro”

trump-ii            greenspan-ii

Former Federal Reserve Chairman Alan Greenspan, who was once laudably referred to as “Maestro” for his supposed astute stewardship of U.S. monetary policy, commented last week on the nation’s current political and economic climate:

We’re not in a stable equilibrium.  I hope

we can all find a way out because this too

great a country to be undermined, by how should

I say it, crazies.*

Well, if there is anyone who knows how to “undermine” an economy, it is the Maestro, since it was his “crazed” policies that brought about the 2008 financial crisis which ushered in the Great Recession that continues to this very day.

In a demonstration of how truly clueless Greenspan is about economic conditions, he cautioned that the U.S. is “headed toward stagflation – a combination of weak demand and elevated inflation.” Memo to the Maestro: stagflation is already here and has been for quite a while, especially when real economic gauges are used instead of the phony baloney numbers routinely lied about by the BLS and other corrupt state agencies.

The “crazies” that Greenspan refers to are, of course, the “deplorable” Trump supporters and The Donald himself, who the Maestro contends is responsible for “the worst economic and political environment that I’ve ever been remotely related to.” Oh, poor Alan has to suffer through an election where one of the candidates has not been approved by the ruling class.  Too bad.

Instead of carping about the current state of political affairs which, at least financially, he and his successor, Helicopter Ben Bernanke, largely contributed to, Greenspan should be grateful that he has had no reprisals for the financial crimes, chaos, and misery that he has afflicted upon the world.  Instead of significant jail time or worse, Greenspan is free to pontificate on current events, receiving hefty financial remuneration, and just as important for top members of the governing elite, ego-enhancing hosannas!

While Ben Bernanke has been a lifelong committed Keynesian and inflationist, Alan Greenspan, at least in his younger days as a member of Ayn Rand’s circle, was a free marketer who spoke positively about the efficacy and moral soundness of a gold standard.  That he abandoned these beliefs to go over to the Dark Side is further cause for retributive justice.

Greenspan’s betrayal was similar to those economists of the 1930s (Lionel Robbins most notable) who were followers of the teachings of Mises and Hayek, yet were swept away by the fanciful Keynesian deluge of the day and abandoned their economic senses and conscious for similar allurements which seduced the Maestro.  Had these economists as well as Greenspan stuck to their original principles, the world may not be in its current financial mess.

While Greenspan was lamenting the state of political affairs, the head “crazy,” Donald Trump, commented on the Maestro’s former place of employment.  Unlike the Maestro, the financial media, and just about every other politician, Trump had some perceptive things to say about the nation’s central bank, showing again that the billionaire businessman’s political acumen is quite good:

The Fed is being totally controlled politically because

Obama wants to go out with no stock market disruptions.**

The Republican Presidential hopeful could have easily added that the Fed’s policy is being deliberately carried out to ensure his Democratic opponent’s victory this fall.  A booming stock market is perceived by most as an indication of a vibrant economy.

Trump does not buy the supposed “independence” of the Fed from political influence and the conduct of monetary policy solely for the well being of the economy:

If it was a choice between the right decision and a political

decision… The Fed would choose the political decision.

Throughout the campaign, Trump’s instincts on political and economic matters have been quite good and hopefully if he does become chief executive those instincts will translate into positive change.

A Clinton Presidency would assuredly mean a continuation of the ruinous policies of Greenspan and his successors.  The election of Donald Trump could not only mean a new direction in monetary policy, but the public demotion of the likes of Alan Greenspan who will hopefully fade into the sunset never to be heard or seen from again.

*Rich Miller, “Greenspan Worries That ‘Crazies’ Will Undermine the U.S. System.”  Bloomberg.  14 September 2016.  http://www.bloomberg.com/news/articles/2016-09-14/greenspan-worries-that-crazies-will-undermine-the-u-s-system

**Tyler Durden, “Trump Slams ‘Totally Politically Controlled’ Fed, Sees No Rate Hike Until Obama Has Left.”  Zero Hedge. 15 September 2016.  http://www.zerohedge.com/news/2016-09-15/trumps-slams-totally-politically-controlled-fed-sees-no-rate-hike-until-obama-has-le

Antonius Aquinas@AntoniusAquinas

https://antoniusaquinas.com/