Page 12 - Reflexions of African Bishops and Priests

ever! The first duty of a sovereign government is to by the banks is literally created out of nothing, with
create and issue money according to the needs of a simple stroke of a pen or by entering digits in com-
the citizenry. The greatest betrayal in all of history puters, then it is easy to understand that debts can be
is the surrender of this primary function to private cancelled in the same manner, without anyone being
corporations, the chartered banks. penalized.
Banks do not give money its value. Value origin- Pope St. John Paul II wrote in his encyclical letter
ates in a nation’s productive potential. The banker Centesimus annus (n. 35.): “It is not right to demand
produces nothing whatsoever. All he does is cre- or expect payment when the effect would be the im-
ate figures, or numbers, that allow a nation to make position of political choices leading to hunger and
use of its own productive capacity; its own wealth. despair for entire peoples. It cannot be expected
Through a Central Bank, the government could just as that the debts which have been contracted should
easily create figures and numbers without resorting be paid at the price of unbearable sacrifices. In such
to private banks and reaping unpayable debts. cases it is necessary to find — as in fact is partly
As money is basically a social tool, Social Credit happening — ways to lighten, defer, or even cancel
the debt, compatible with the fundamental right of
philosophy holds that money must be issued by so- peoples to subsistence and progress.”
ciety for the common good and not by private bank-
ers for profit. In Quadragesimo Anno, Pope Pius XI Once debts have been written off, the only way
states: to stop countries from going into debt again is for
them to create their own debt-free and interest-free
“There are certain categories of goods for money; for If you leave the banks the power to cre-
which one can maintain with reason that they ate money, debts will build up again. This we are re-
must be reserved to the collectivity when they minded by Sir Josiah Stamp, former head of the Bank
come to confer such an economic power that it of England:
cannot, without danger to the common good, be “Banking was conceived in iniquity and born in
left to the care of private individuals.” sin... Bankers own the earth. Take it away from them,
The effects of compound interest but leave them the power to create money, and, with
Institutions such as the International Monetary a flick of a pen, they will create enough money to
Fund and the World Bank would like us to believe that buy it back again... Take this great power away from
they are helping countries in financial difficulties by them, and all great fortunes like mine will disappear,
the loans they grant. Because of the interest they are and they ought to disappear, for then this would be a
charged, these countries are impoverished further. better and happier world to live in... But, if you want
Here are some striking examples: to continue to be the slaves of the bankers and pay
During a ten year span, from 1980 to 1990, Latin the cost of your own slavery, then let bankers con-
tinue to create money and control credit.”
American countries paid $418 billion in interest on
original loans amounting to $80 billion... and they still The Goal of Economics:
owed the capital even though they paid it back more The Satisfaction of Human Needs
than five times over! The social doctrine of the Church rests on a fun-
According to the Jubilee 2000 Coalition, for every damental principle, the primacy of the human person:
dollar flowing as aid to poor countries each year, “The Church’s teaching on social matters has truth
$8 are paid back as interest on their debt. It is such as its guide, justice as its end, and love as its driving
examples that have lead Saint Leo to write: “The force… the cardinal point of this teaching is that in-
avarice that claims to do its neighbour a good turn dividual men are necessarily the foundation, cause,
while it deceives him is unjust and insolent... He and end of all social institutions.” (John XXIII, encyc-
who, among the other rules of a pious conduct, will lical letter Mater et Magistra, May 15, 1961.)
not have lent his money at usury, will enjoy eter- The aim of both the economic and financial
nal rest... whereas he who gets richer to the detri- systems is the service of man, according to Church
ment of others deserves, in return, eternal damna- teaching. The economy of a nation is required to
tion.” Saint John Chrysostom taught that: “Nothing ensure the satisfaction of human needs. Pope Pius
is more shameful nor cruel than usury.” XI, in Quadragesimo Anno, further clarified the ob-
Debts must be cancelled jectives of an economic system:
Any sensible person will realize that it is crim- “For then only will the economic and social
inal to require nations to continue to pay interest on organism be soundly established and attain its
debts that have already been paid several times. We end when it secures for all and each those goods
can see now why the Church condemns usury (lend- which the wealth and resources of nature, tech-
ing money at interest) and calls for the cancellation nical achievement, and the social organization of
of debts. When you understand that the money lent economic affairs can give.

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