Weekend Economists Salute Ruin July 3-5, 2015

[bread_and_roses]

50. The Pope on the banks

http://www.alternet.org/economy/revolutionary-pope-calls-rethinking-outdated-thinking-rules-world

A Revolutionary Pope Calls For Rethinking the Outdated Thinking That Rules the World
Pope Francis’ revolutionary encyclical addresses not just climate change but the banking crisis.
By Ellen Brown / Web of Debt blog

Pope Francis’ June 2015 encyclical is called “Praised Be,” a title based on an ancient song attributed to St. Francis. Most papal encyclicals are addressed only to Roman Catholics, but this one is addressed to the world. And while its main focus is considered to be climate change, its 184 pages cover much more than that. Among other sweeping reforms, it calls for a radical overhaul of the banking system. It states in Section IV:

Today, in view of the common good, there is urgent need for politics and economics to enter into a frank dialogue in the service of life, especially human life. Saving banks at any cost, making the public pay the price, forgoing a firm commitment to reviewing and reforming the entire system, only reaffirms the absolute power of a financial system, a power which has no future and will only give rise to new crises after a slow, costly and only apparent recovery. The financial crisis of 2007-08 provided an opportunity to develop a new economy, more attentive to ethical principles, and new ways of regulating speculative financial practices and virtual wealth. But the response to the crisis did not include rethinking the outdated criteria which continue to rule the world.

You go, Pope!