The Vatican has today issued a document calling for a financial institution with global authority.

The document, ‘Towards reforming the international financial and monetary systems in the context of global public authority’, issued by the Vatican says ‘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 call is made against a picture that the piece paints of a current economic system that has failed the vast majority of the people of the world. This was exacerbated by the liberalist stance taken it goes on.

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. Various public interventions of enormous scope (more than 20% of gross national product) were urgently requested in order to stem the negative effects that could have overwhelmed the entire international financial system.”

It also says that the International Monetary Fund is no longer up to the job. The IMF ‘…has lost an essential element for stabilizing world finance, that of regulating the overall money supply and vigilance over the amount of credit risk taken on by the system. To sum it up, stabilizing the world monetary system is no longer a “universal public good” within its reach.’

The dangers of the growing reliance on technology are also pointed out.

In this context Benedict XVI's encyclical warns about the dangers of the technocracy ideology: that is, of making technology absolute, which “tends to prevent people from recognizing anything that cannot be explained in terms of matter alone” and minimizing the value of the choices made by the concrete human individual who works in the economic-financial system by reducing them to mere technical variables.”

This could be seen as something to be welcomed by the “Occupy” movement. But they are already railing against huge global behemoths. Would the establishment of another even more powerful global entity actually help?

Surely what we really need is smaller, better run financial institutions operating for the benefit of their local communities and controlled by local stakeholders.

A world financial authority would have about as much success in controlling global finances as one church would have in regulating all of the world’s religions.

Especially when the Earth’s most powerful religion is that of money itself.

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