Archived Posts 2011 » Page 9 of 56 | Acton PowerBlog

If you were lucky enough to be at our Houston luncheon last Thurday, you enjoyed Rev. Robert A. Siciro’s very well-received talk on The Moral Adventure of a Free Society, and the company of more than 200 other friends of the Acton Institute. We are grateful to the Honorable George W. Strake, Jr., who served as emcee, and Dr. Robert B. Sloan, Jr., president of Houston Baptist University, who gave the invocation.

The table of young men from Western Academy

 

A great big thank you to the host committee is in order:

Jeremy S. Davis
Maureen and James Hackett
Shanna and Andrew Linbeck
Bette and Leo Linbeck
Paige and Craig Moore
Wiley L. Mossy, Jr.
Annette and George Strake
Barbara and Robert Zorich

The luncheon’s sponsors were:

Bridges to Life
Alice and Philip Burguieres
The Center for Peace
Anthony and Coleen Madden Ethridge
Donna and Richard Hanus
Mossy Nissan
Marianne and Joe Quoyeser
Spence Media
Western Academy

We look forward to coming back to Texas soon!

Dr. Robert Sloan, president of Houston Baptist University, gives the invocation

Lunch is served

 

Wang Yue

On The American Spectator, Acton Research Director Samuel Gregg looks at the death of Wang Yue, a Chinese toddler run over — twice — in a public market while passersby continued on their way.

Gregg:

Accidents happen. But what made little Wang Yue’s death a matter for intense public discussion was the fact that nearly 20 people simply walked by and ignored her plight as she lay bleeding in the gutter.

What, hundreds of Chinese websites, newspapers and even state media outlets are asking, does this say about Chinese society? Have Chinese people lost all sense of concern for others in the midst of the scramble for wealth unleashed by China’s long march away from economic collectivism? One local official summarized the collective angst by stating: “We should look into the ugliness in ourselves with a dagger of conscience and bite the soul-searching bullet.”

Gregg points to widespread business-government corruption as a major contributor to China’s moral crisis:

The problem, from the perspective of China’s party-government-military elites, is such soul-searching may lead increasing numbers of Chinese to conclude that the circumstances surrounding Wang Yue’s death are symptomatic of deeper public morality problems confronting China, some of which could significantly impede its economic development.

One such challenge is widespread corruption. By definition, corruption doesn’t easily lend itself to close study. Its perpetrators are rarely interested in anyone studying their activities. Few question, however, that there’s a high correlation between corruption and widespread and direct government involvement in the economy. The more regulations and “state-business” partnerships you have (and China has millions of the former and thousands of the latter), the greater the opportunities for government cadres to extract their personal pound of flesh as the price of doing business.

Read “China’s Morally Hollow Economy” on the website of The American Spectator.

Acton’s prolific director of research Samuel Gregg writes at Crisis Magazine about those who would modernize the Catholic Church (theologically): “Dissenting Catholics’ Modernity Problem.” His reflection centers on the thought of Pope Benedict XVI, whose recent visit toGermany brought the modernizers out of the woodwork, and whose speeches and writings have placed the faithful in their proper context.

Judging from the hundreds of thousands of Germans who attended and watched Pope Benedict XVI’s September trip to his homeland (not to mention the tsunami of commentaries sparked by his Bundestag address), the pope’s visit was — once again — a success. And, once again, it was also an occasion for self-identified dissenting Catholics to inform the rest of us what the Church must do if it wants to remain “relevant.” To no-one’s surprise, their bottom-line remains the same. The Church is “out of touch.” Why? Because it’s insufficiently “modern.”

The “we-must-be-more-modern” argument reflects the workings of a logic that privileges whatever is considered “contemporary” (an ever-moving target) over the knowledge imparted by Christ to His Church from its very beginning.

Such reasoning often runs along the following lines. In modernity, X is considered not good; ergo, the Church must accept X is not good. Or, modern people regard X as good or licit; ergo, the Church should teach X is good or licit.

Hmm…

You don’t need to be a professional philosopher to recognize that these are what logicians call non sequiturs: arguments in which the conclusions don’t follow from the premises. The fact that something is considered modern tells us nothing about its goodness or evil, let alone whether it conforms to the truth found in Divine Revelation. It also produces very strange arguments such as the claim made in 1968 (of course) by the ex-Jesuit theologian John Giles Milhaven, that “modern people” (whoever they are) by virtue of their “modernity of spirit” (whatever that means) enjoyed a type of “standing dispensation” from God to pursue what they “feel” to be good.

Gregg sets this post-Enlightenment ethic of feelings against the Church’s foundation in reason, which makes it truly catholic. Those who would re-orient the Church,

marginalize the conviction that the fullness of Christian truth is to be found in the reasonable faith entrusted to and proclaimed by the Church. And the faith of that Church goes beyond the particular views held by us today to embrace the right belief (orthos-doxa) of the whole communio of believers, the living and the dead, from the apostles onward — the truth of which is confirmed by the consensus of the Church Fathers, the lives of the saints, the witness of the martyrs, and the teaching authority of the successors of Peter and the other apostles.

Of course, Catholicism doesn’t have an in-principle opposition to the post-Enlightenment world per se, any more than it allegedly locates everything that is good and true in the 13th century. Any effort to associate the fullness of Catholic faith with any one historical period risks relativizing those truths knowable by faith and reason that transcend time and bind Catholics across the ages.

Perhaps such a relativizing is what many dissenting Catholic activists want. If so, they should concede that this would mean making the Church in their own image rather than that of Christ the Logos. And there is no surer way of making the Church truly irrelevant in a modern world that desperately needs more reason and light than emotivism and darkness.

Full text here.

Andreas Widmer, co-founder of the SEVEN Fund and Acton’s research fellow in entrepreneurship, explains the lessons in entrepreneurship he learnt while serving Pope John Paul II as a Swiss Guard in this interview from the Wall Street Journal. He then describes the mission of the Seven Fund. He makes a number of thought-provoking points in the eight minute video:

Andreas Widmer is also a voice of the PovertyCure project.

Acton On The AirIn the wake of the release of the Vatican’s Note on Global Financial Reform, the media has called on Acton for comment and analysis. Presented here are three interviews on the topic from the past few days; we’ll post more as audio becomes available.

On Monday afternoon, Acton’s Director of Research Dr. Samuel Gregg joined host Al Kresta on Kresta in the Afternoon to discuss the problems with the note:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

The following day, Dr. Gregg joined host Drew Mariani on Relevant Radio to discuss the same topic:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Finally, on Tuesday Acton President Rev. Robert A. Sirico made an appearance on Kresta in the Afternoon that served as a preview to his discussion of the good and bad portions of the Vatican’s note in today’s Wall Street Journal, and sheds light on exactly what a “note” from the Vatican is:

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

Update: Sam Gregg audio clips are now working!

When the Pontifical Council for Justice and Peace needed an expert economist to assist in articulating the “Note” titled Towards Reforming the International Financial and Monetary Systems in the Context of Global Public Authority to feisty journalists at an Oct. 24 Vatican press conference, it called on the University of Rome “Tor Vergata” economics professor, Leonardo Becchetti.

For an English translation of the professor’s remarks at the Vatican press conference, go to the end of this post.

Prof. Becchetti is a local celebrity of sorts, whose TV time has increased since the outbreak of the global financial crisis and growing cynicism on the future of the European Union. He has provided his expert assessments and criticism to Italian news channels and late night talk show programs, and has become a “go-to guy” when speaking on the relationship of economics to human happiness, central banking and monetary policy. See his interview of the monetary policy and inflation:

[youtube http://www.youtube.com/watch?v=woOyekGo89g]

No doubt, Prof. Becchetti was charged with the very difficult task of articulating and defending some the Note’s bold economic and political prescriptions – usually a “no-fly zone” for Vatican officials. Moreover, in all fairness, Becchetti removed his professor’s hat to his best ability, while speaking in relatively plain language to the journalists, most of whom, like myself, do not hold PhDs in international finance and monetary policy.

What follows is the unofficial English translation (actually my own) of the transcript of Prof. Leonardo Becchetti’s presentation. Becchetti’s technical debriefing on the Note last Monday raised a few eyebrows and provoked some critical thinking on what the Vatican document said (and didn’t say) regarding international financial and monetary reform.

For example the following finer points jumped out when translating Becchetti’s remarks:

1. The logic that a global economy requires global governance seems not quite right. What about the Church’s traditional support of subsidiarity, that is, crises should be resolved at the local level of problem. The financial crisis is a pandemic and will require massive effort to resolve it, but local symptoms and outbreaks of this financial disease are manifest in unique ways from nation to nation. A single global monetary and financial authority might simply enforce a “one-size-fits-all” policy that is not practical in most countries. This logic smacks of the 20th century centralized economic planning that has proven destructive in Eastern Europe.

2. Becchetti’s analogy of the “long spoons” is not sensitive to the fact that, through human innovation, those same klutzy over-sized spoons can be creatively re-invented through human innovation to allow for self-feeding. For me, Becchetti’s long spoon analogy inspires ideas of spoon-feeding each other (i.e. receiving easy hand-outs) and not creative cooperation to resolve our financial crisis. If left to fend for ourselves, it might be a clumsy experience at first, but we will then be forced to find ingenious and independent ways of self-preservation.

3. It is true that our world is increasingly interdependent and this provides great opportunity for international solidarity and cooperation, but why use the term “formidable threat” when addressing the fact that first world job holders are feeling the heat of equally qualified laborers from developing countries? I like the thought that the first world feels the need to compete and intelligently find more efficient ways of production, but Becchetti’s subtle semantics seem to infer that Marxist class struggles are at play in devising a global financial peace plan .

4. Lastly, what evidence is there that a financial transaction tax on stock exchange activity will ease the pain and suffering of today’s struggling businesses and unemployed? How many ways have we tried to tax and redistribute our way to human fulfillment? Is this the missing link in international economic planning? Cannot someone speaking on behalf of the Church and who is an expert in economics and happiness, at least make some sort of plea for greater spiritual wealth and its redistribution (i.e. by becoming fulfilled in Christ evangelizing His Word)?

I am sure you will have more questions yourself. Please feel free to share your own opinions.

Translation of Prof. Leonardo Becchetti’s remarks (original Italian version)

The bright side of the [financial] crisis is that it represents a time of great opportunity.

The global financial crisis is an opportunity to reform the very architecture of the global financial system, strengthen the European Union in terms of harmonizing its fiscal policies, while progressing more swiftly toward a goal of political unity and increasing discipline over national fiscal policies.

The Vatican document focuses on two key issues:

i) Building a set of rules for global governance which, if possible, will be used as a framework [to guide] the actions of global institutions;

ii) Reforming the international financial system with a series of specific proposals.

Concerning point i), global governance is urgently needed to overcome the asymmetry caused by the globalization of markets, institutions and rules that remain predominantly national.

Globalization makes us increasingly interdependent and makes it practically impossible to ignore other countries whose problems once seemed so distant: Simul stabunt simul cadent [Latin for similar things fall together].

To give you a few examples, there are at least six fundamental elements of interdependence between economic and financial systems:

i) the American debt crisis is a problem that concerns not only [the U.S.] itself but savers around the world who have invested in it and in the largest economies, like China, that [in turn] have invested a substantial portion of their own reserves in [U.S.] treasury bonds;

ii) the Greek debt crisis and the likely reduction in the facevalue of this country’s bonds (between 20% and 60%) will result in serious losses on the balance sheets of the French and German banks that had invested in them;

iii) the presence of a huge mass of poor and underprivileged in the world, willing to work at wages much lower than those of our own employees (bearing equal credentials and who are also protected and unionized) is a formidable threat to the maintaining levels of wealth of high-income countries;

iv) exiting from the euro would have damaging effects not only on developing countries but also on Germany itself, which for years has enjoyed the advantage of exporting its goods to markets within the Eurozone without additional costs linked to exchange rates;

v) the coordination of central banks is now increasingly important in a globally integrated world; recently, developing countries have often complained that the expansionary monetary policies of American and European central banks (quantitative easing) have exported inflation into their countries;

vi) for some time now G-20 meetings have tried coordinate the policies of countries with deficits with those with surpluses to encourage the latter to adopt more expansionary policies to boost demand throughout the world.

The [current situation is like] a large table full of guests, each of which is given a very long spoon to eat with. The difference between hell and heaven in this familiar story is that in some guests use their spoons to clumsily and unsuccessfully feed themselves while others use their long spoons to feed each other. It is in the former situation which nation states find themselves in globally integrated markets as they try to pursue their own short-sighted and short-term interests. This becomes counterproductive, because it is only by cooperating with each other that we will be able to put an end to this financial crisis.

On the second point (the rules of financial markets), the document adopts some proposals already launched by the Dodd-Frank legislation in the United States and by the Vickers Commission in the United Kingdom, but which have not yet been implemented and are not in force due to a number of obstacles.

It is fundamental that the world of finance returns to its role of serving the real economy. To do so it is necessary to:

i) reduce the leverage of banks that are “too big to fail” (the disproportionate 30:1 leverageratio between short-term liabilities and long-term assets is among the main causes spreading the subprime crisis throughout the world).

ii) adopt the so-called Volcker Rule which prevents banks from doing proprietary trading with customer deposits.

iii) more severely regulate the trading of derivatives born from insurance instruments. In the real economy insurance policies are purchased when someone owns an actual asset to be insured, while in financial markets this occurs in no more than 5 percent of cases. For this purpose, there is an EU proposal to achieve this objective regarding the credit default swaps of government bonds.

A fourth proposal concerns the instituting of a tax on financial transactions for reasons explained in the following paragraph.

It is important to ask why the position on taxing financial transactions of economists and civil society (a majority EU citizens in fact are in favor) has changed radically in recent years.

Last year, 130 Italian economists signed an appeal in support [of the proposition], which garnered further support with a similar appeal put forth by 1000 economists from 53 countries and delivered to the Finance Ministers of G20 countries attending the 2011 Summit held in Washington, D.C. last April 14-15 (among the prominent signees were highly respected leaders such as Dani Rodrik, Tony Atkinson, Joseph Stiglitz and Jeffrey Sachs) See: http://www.guardian.co.uk/business/2011/apr/13/robin-hood-tax-economists-letter
.
There are two reasons for this change of opinion: the events of the global financial crisis and further evidence that has helped to alter some [former] prejudices.

Upon the advent of the global financial crisis, the public finances of some major Western countries have been severely weakened while bailing out banks and, consequently becoming new targets themselves of speculative attacks.

A part of the financial world has thus privatized profits, socialized losses, and then utilized public funds used to bailout those who had come to the rescue in the first place.

It is, therefore, understandable why the majority of public opinion believes that those working in the financial markets should, therefore, help pay for the costs of this crisis, the burden of which has been currently shared by the most vulnerable [taxpayers in society].

From this point of view the FTT responds to the simple demands of justice, which seems urgent, given the most recent current events, in order to maintain social cohesion within the Community.

The second reason for increased favor for such a tax stems from the shedding of prejudice.

Until recently the tax was considered inappropriate and not globally applicable should it involve capital from the country in which it was enforced.

This bias is unfounded, as documented in research conducted by the International Monetary Fund, because there are at least 23 countries today that unilaterally apply a transaction tax (which is none other than a stamp tax) without there ever having been any [from their respective countries]. (See. T. Matheson , Taxing Financial Transactions. Issues and Evidence, IMF WorkingPaper No 11/54, March 2011, 8).

The United Kingdom is the country with the highest tax transaction with the application of its Duty Stamp Tax on one single type of financial asset (0.005% duty on the value of shares owned and listed on the London Stock Exchange).

This tax raises about 5 billion pounds in revenues each year.

By way of this evidence [EU Commission President] Barroso’s proposal to establish such a tax in the EU correctly addresses a “harmonization” of taxes throughout Europe on financial transactions –and not of their first introduction.

The London [Stock Exchange] tax has provided an interesting example of tax avoidance, as some operators have exited the stock market to invest in new OTC derivatives (contracts for differences) which essentially consist of bets on variations in share prices.

It is interesting to note, therefore, that the transaction tax has now split the market into two: those really interested in investing in company shares and those who bet on short-term variations in prices.

Such [tax] avoidance is already implicitly considered in the Barroso proposal, which would extend taxation to derivatives (and thus also to contracts for differences). Such problems can also be countered by banning contracts for differences as is already the case in a major financial market, like the United States.

From a scientific perspective, there are numerous ways to measure the elasticity of volumes of transactions upon introducing such transaction taxes, demonstrating a conservative coefficient rather than supporting the capital hypothesis.

Another reason for why the cannot occur is that a very high frequency of financial operations benefit from being in close proximity to the Stock Exchange’s physical location, where the information is released firsthand electronically. (See: New York Times (2009): Stock Traders Find Speed Pays, in Milliseconds). Moving away from the live center of market operations would mean losing such a [critical time] advantage.

One seemingly unfounded objection is the impact the tax will have is on the overall cost of capital.

To set the rate proposed by the Barroso tax proposal, calculations based on the capitalization models of expected future asset values show that this cost is basically null (See again: Matheson 2011).

The other objection is based on reduced liquidity caused by the tax within markets. This is a matter of opinion. How much cash do we really need? Dean Baker, in his commentary on this issue, says that the tax would spell a return to transaction costs and to the state of liquidity of some ten years ago – that is to say, returning to a period that was far more flourishing than the times we are currently experiencing.

The truth is that there is no solid evidence on the effects of this tax on [total] liquidity, but only a series of different models with opposing results depending on the particular type of microstructure of financial markets and competition models hypothesized by intermediaries.

Summing up the four main objections to the institution of such a tax ([1] the tax cannot be imposed except on a global level, [2] there would be no control over the , [3] the tax significantly increases the overall costs of capital, and [4] the tax reduces market liquidity, they are either are false or unsubstantiated based on factual evidence (the first two) or lack of proof (the latter two).

Regarding the above arguments, the transaction tax (certainly not a panacea for all evil) may just represent an important step in recalibrating the relationship between financial institutions and other reforms that can help to prevent a new financial crises, as advocated by the Dodd Frank legislation [in the U.S.] and the Vickers Commission in the United Kingdom (cf. the Volcker Rule, the deleveraging of “too big to fail” intermediaries, and penalizing capital requirements for riskier investments as opposed to ordinary credit) and the restoration of civil society’s confidence in the financial institutions we so urgently now depend on.

For too long government-run systems have dominated American primary and secondary education. As innovations of the past two decades such as charter schools and vouchers prove, parents, children, and society benefit when government promotes rather than stifles educational reform based on choice and competition. Add to the mounting evidence another success story: St. Martin de Porres school in Philadelphia. This inner city school is finding new life through the cooperation of three not-always-cooperative entities: church, community, and government.
Read the rest of the commentary.

In the Wall Street Journal, Acton Institute President and Co-Founder Rev. Robert A. Sirico looks at the recent “note” on economics released this week by the Vatican. The document, titled “Toward Reforming the International Financial and Monetary Systems in the Context of a Global Public Authority,” was published with an eye toward the upcoming G-20 meeting in Cannes, France, on Nov. 3-4. This 18-page document has, Rev. Sirico observes, “been celebrated by advocates of bigger government the world over.”

But what’s missing from the popular analysis is that the Vatican document “embraces a sound economic theory concerning the cause of the world financial crisis: the breakdown of the postwar Bretton Woods monetary system and the unleashing of fiat currencies and central-bank printing presses.”

Rev. Sirico:

We went from a hard-money regime, in which there were restrictions on the power of central banks and financial institutions to create money and credit, to one where money became purely paper. There were no restrictions remaining on the power of governments to finance unlimited debt. Banks could create credit seemingly without limit. Central banks became the real power in the world economy.

None of this was true under a gold standard. That system limits the expansion of credit by an indelible physical fact. There was a limit, a check, a rule that went beyond the whim of financial masters and politicians. The Vatican seems to understand this.

But discerning the disease and finding the cure are very different undertakings, and here the document falls short. It imagines a new world central bank and political authority that will rule without “any partial vision or particular good” but rather seek “the common good.” Its decisions should “be made in the interest of all, not only to the advantage of some groups, whether they are formed by private lobbies or national governments.”

Somehow, with an intelligence never before discovered in government bureaucracies, these proposed global authorities would create “socio-economic, political and legal conditions essential for the existence of markets that are efficient and efficacious.”

Read “The Vatican’s Monetary Wisdom” on the website of the Wall Street Journal (may require registration).

Acton’s director of research, Samuel Gregg, blogs about Cardinal Pell’s speech on global warming over at The Corner. He summarizes the remarks and then provides their ecclesiastical context, defending both the cardinal and the Pope from the radical left and from charges of submission to intellectual fashion.

[Pells] key points are simply that (1) the scientific debate is not over, (2) the climate movement has always seemed more driven by ideology than evidence, and (3) this isn’t a basis for implementing extremely costly policies.

The context of Cardinal Pell’s remarks is the growing concern among Church leaders about the radical green movement, whose positions are not confined to environmentalism.

It’s no secret that when it comes to those moral questions that are truly non-negotiable for Catholics (e.g., abortion, euthanasia), Greens invariably take the most permissive positions. Their hostility to robust religious-liberty protections is a matter of record. Moreover, anyone who delves into “deep Green” literature soon discovers frankly humanophobic ideas. Such are the concerns of some Catholic bishops that, before elections were held in the Australian state of New South Wales in March this year, Pell and most of the state’s Catholic bishops issued an unprecedented pre-election statement warning their flocks against the more troubling, less publically mentioned parts of the Greens’ party platform.

And what of Cardinal Pell’s friendship with Pope Benedict, who has been called the “green pope?” The mainstream media may try as hard as it likes, but

Benedict himself has wondered on many occasions (including during his recent Bundestag speech) about the disconnect between many peoples’ contemporary angst about the environment and their seeming indifference to what Benedict calls the “human ecology” of the natural law, which provides the only truly rational basis for human freedom, dignity, and civilization.

Leaving aside efforts to establish nonexistent tensions between cardinal and pope, the usual suspects — secular and religious — will surely excoriate Pell for this lecture. But in an age where far too many Christian thinkers are way too submissive to transitory intellectual fashions that make them acceptable at fashionable cocktail parties but also partakers in profound intellectual incoherence, it’s refreshing to know not everyone is so intimidated.

Today, George Cardinal Pell delivered a lecture at the invitation of the Global Warming Policy Foundation titled “Eppur’ si muove, or ‘yet it moves:’ One Christian Perspective on Climate Change.” He insisted that a scientific consensus is a lazy basis for the making of policy, and that before states impose drastic environmental regulations, an analysis of their demonstrable costs and benefits must be undertaken.

Galileo is supposed to have muttered the lecture’s title after recanting his heliocentrism in the face of a “scientific consensus.” Cardinal Pell spent a large portion of his lecture demonstrating the historical existence of a Medieval warm period which in the last ten years the green movement has tried to explain away, since it’s rather inconvenient to find that pre-industrial man lived in a hotter climate when you want to assert that carbon emissions must be causing current global warming. “And yet, it was warm,” the Cardinal is saying.

Cardinal Pell began with the Tower of Babel, and quoted Leon Kass’s description of that project as “the all-too-human, prideful attempt at self-creation.” Before making any sort of climate policy, the Cardinal warned,

we should ask whether our attempts at global climate control are within human capacity, (that is, the projected human imperium); or on the other hand, are likely to be as misdirected and ineffective as the construction of the famous tower in the temple of Marduk, Babylon’s chief god.

Where is the borderline separating us from what is beyond human power? Where does scientific striving become uneconomic, immoral or ineffectual and so lapse into hubris?

Even more dangerous than ineffectual scientific striving is ineffectual unscientific striving, which what we have when policy is made based not on scientific finding, but on scientific consensus. Of this consensus, Cardinal Pell says it “is a category error, scientifically and philosophically. In fact it is also a cop-out, a way of avoiding the basic issues.” He goes on:

What is important and what needs to be examined by lay people as well as scientists is the evidence and argumentation which are adduced to back any consensus. The basic issue is not whether the science is settled but whether the evidence and explanations are adequate in that paradigm.

The complacent appeal to scientific consensus is simply one more appeal to authority, quite inappropriate in science or philosophy.

Thomas Aquinas pointed this out long ago explaining that “the argument from authority based on human reason” is the weakest form of argument, always liable to logical refutation. [Summa I, 1, 8 ad 2]

Then the Cardinal goes into his lengthy defense of the Medieval warm period, which you may read for yourself in the full text of his speech.

After poking a hole in the green lobby’s weather balloon, Cardinal Pell makes his appeal to lawmakers and bureaucrats.

A final point to be noted in this struggle to convince public opinion is that the language used by AGW proponents veers towards that of primitive religious controversy. Believers are contrasted with deniers, doubters and sceptics, although I must confess no one has dubbed me a climate change heretic.

The rewards for proper environmental behaviour are uncertain, unlike the grim scenarios for the future as a result of human irresponsibility which have a dash of the apocalyptic about them, even of the horsemen of the Apocalypse. The immense financial costs true-believers would impose on economies can be compared with the sacrifices offered traditionally in religion, and the sale of carbon credits with the pre-Reformation practice of selling indulgences. Some of those campaigning to save the planet are not merely zealous but zealots. To the religionless and spiritually rootless, mythology — whether comforting or discomforting — can be magnetically, even pathologically, attractive.

For this reason (among others) I support the recommendation of Bjorn Lomborg and Bob Carter [in The Australian] that, rather than spending money on meeting the Kyoto Protocol which would have produced an indiscernible effect on temperature rise, money should be used to raise living standards and reduce vulnerability to catastrophes and climate change (in whatever direction), so helping people to cope better with future challenges.

It is folly, the Cardinal says, to rush into climate regulation efforts of little proveable benefit when their cost will be extreme. The city of Athens spent half its GDP building the Parthenon, and after eleven years of work had a fantastically beautiful temple to show for its expense. Al Gore hasn’t yet called for a 50 percent green tax, but when he does, will a two degree drop in summer temperatures be worth it?

The text of the speech was released at 3:15 ET and will soon be on the Archdiocese of Syndey’s website. We’ll link it here when it’s up.