The Fallacy of a Global Bank

Thomas E. Woods wrote an excellent piece addressing the document from the Vatican's Council for Justice and Peace that called for a new centralized global banking system.

The document released yesterday by the Pontifical Council for Justice and Peace calling for a world economic authority and condemning the "idolatry of the market" could have been written by any number of secular think-tanks in the United States.

It is also deeply confused. On the one hand, it speaks of excessive money growth as a problem that can lead to "speculative bubbles" whose bursting can do significant damage to economies around the world. On the other, it calls for a world economic authority that will…what? Be exempt from the errors and hubris of government officials and national central banks? ...

It’s been idolatry not of the market but of central banks, institutionalized sources of moral hazard and financial instability around the world, that has yielded us the boom-bust cycle.