John Couretas - Acton Institute PowerBlog

Bubble Behavior and Market Panic

blog@acton.org (John Couretas) — Thu, 15 May 2008 09:20:00 -0600

Congress is debating a number of measures designed to “rescue” homeowners facing foreclosure as the housing and credit crisis grinds more and more financial and real estate assets to dust. Much of the reporting on the credit crisis, in the tradition of objective journalism, strains to explain the problem objectively, as if what was happening in the markets was somehow an act of nature, something unguided by human action. Thus, people “fell” into the problem as if pulled by a gravitational force:

Congress has been struggling for months to respond to a mortgage crisis that has left more than 1.2 million homes in foreclosure, with an additional 3 million forecast to join them over the next two years. Most involve subprime loans that established terms the borrowers could not afford. As homeowners defaulted and fell into foreclosure, home prices fell more than 10 percent. Many borrowers who are having trouble making payments find that they cannot sell or refinance their homes because they owe their banks more than their homes are worth.

But markets and industries and trade are guided by human beings, who have fairly well known tendencies. In “The Human Foundation of Financial Risk,” Alex J. Pollack of the American Enterprise Institute looks at that depressingly predictable mass hysteria that has propelled one financial bubble after another from the South Sea Bubble of 1720 and beyond. The “great twenty-first century housing and mortage bubble,” he argues, is just the most recent example.

Pollack notes how the mortgage securities market, looking out on a housing expansion that seemed unending, became “enamored” of statistical models of risk crafted by some of the best and brightest on Wall Street. How well did these arcane formulas come to grips with the human factor?, Pollack asks.

Did they pick up the effects of short memories--of the inclination to convince ourselves that we are experiencing “innovation” and “creativity” when all that is happening is a lowering of credit standards by new names--or of what are rightly considered unearned risk premiums being counted as profits and paid out as bonuses? Did the models adequately take into account the cumulative human forces of optimism, gullibility, short-term focus, genuine belief in momentum, extrapolation of so-far-profitable speculations, group psychology, and increasing fraud? Did the models keep up with the fact that as they were running, the behavior was changing? Obviously, they did not.

He reminds us that the reason financial bubbles are so seductive is that, for awhile at least, everyone associated does pretty well. Homeowners were getting more and more house with easier borrowing terms, lenders were generating profits from ever more creative strategies, and Wall Street was packaging and reselling this stuff to investors all over the world. All the while, Congress and the White House were crowing about ever higher levels of home ownership and participation in the American Dream.

Pollack points to the “widespread realization” in early 2007 that a large proportion of subprime mortages and subprime mortgage securities were going to default as the beginning of the end. It was the disillusion that crashed the party. “The end of belief ends the bubble and begins the bust,” Pollack writes. Let the panic begin.

We’re now in the early phase in what is likely to be a massive push in Washington to bring new regulation to the financial services industry and “rescue” more homeowners in an election year (but probably not the homeowners who have been paying their bills). Pollack again sees how this typically plays out:

In the wake of a bust, there is always a predictable series of political activities: first, the search for the guilty; second, the fall of previously esteemed heroes; and third, legislation and increased regulation to ensure that “this will never happen again.” But, with time, it always does happen again. Consider in this context the statement of the comptroller of the currency in 1914 that with the creation of the Federal Reserve, “financial and commercial crises, or panics . . . seem to be mathematically impossible.”

Pollack talks about the “cumulative human forces” behind the bust. From a Christian perspective, these “cumulative” factors would also include a healthy awareness of the reality of sin. There will always be the risk of cheating and greed and theft in financial affairs, personal and corporate. When that risk is inflated with the bubble, then its effects, as we have seen, may be impossible to contain. And no group caught up in the enthusiasm of the housing and mortgage bubble was immune from it -- not the homeowner, not the lender, not the securities market.

The new risk we face is that the regulatory cure proposed by Washington will have it’s own illusions of “innovation” and “creativity” -- with a naive belief in the power of government to make any more financial crises “impossible.” Federal bailouts for both bankers and borrowers are on the table. Over-reaction and over-regulation is likely to follow. There will be no discussions about the nature of sin in Congressional hearings, but there will be plenty of demons. Mostly, mortgage lenders. As Pollack observes, it’s all too predictable.

Rev. Sirico delivers Krieble Lecture

blog@acton.org (John Couretas) — Wed, 07 May 2008 14:38:00 -0600

Acton Institute President Rev. Robert A. Sirico was invited to deliver the Krieble Lecture at the 31st Annual Heritage Foundation Resource Bank Meeting on April 24 in Atlanta. His talk ranged widely over “the simple idea of human liberty” and what is required to preserve it.

“People live off of a legacy of the past and all too many people find themselves incapable of defending the heritage of Western civilization,” Rev. Sirico said in his lecture. “Each day people assume that prosperity is just part and parcel of the natural law. Wasn’t it always so?”

The Heritage Foundation’s Annual Resource Bank Meeting gathers more than 500 think tank executives, public interest lawyers, policy experts, and elected officials from around the world to discuss issues, strategies, and methods for advancing free market, limited government public policies. The Resource Bank is also conducted in partnership with groups such as the Atlas Economic Research Foundation, State Policy Network, and World Taxpayers Associations.

Listen to an audio recording of Rev. Sirico’s Krieble Lecture here.

Medvedev and Madison

blog@acton.org (John Couretas) — Fri, 28 Mar 2008 10:54:00 -0600

Russian emigre philosopher Georgy Fedotov (1888-1951) proposed two basic principles for all of the freedoms by which modern democracy lives. First, and most valuable, there are the freedoms of “conviction” -- in speech, in print, and in organized social activity. These freedoms, Fedotov asserted, developed out of the freedom of faith. The other principle of freedom “defends the individual from the arbitrary will of the state (which is independent of questions of conscience and thought) -- freedom from arbitrary arrest and punishment, from insult, plundering and coercion on the part of the organs of power ... ”

In an ideal world, all of these freedoms would be present. But Fedotov also cautioned that “freedom is the late, refined flower of culture.”

For the flower to bloom, the roots need to be watered. A free society, from the ground up, requires a respect for the rule of law, a judiciary and police force that aren’t easily bought, a political culture that knows how to rid itself of corruption, and a vigorous free press to keep the pols and bureaucrats honest. I would also add a liberal measure of economic freedom and property rights that secure wealth from the “arbitrary” plunder of the government.

All of which gets us back to Russia. In an interview this week in the Financial Times, President-elect Dmitry Medvedev pledged to root out the “legal nihilism” that plagues his country. Excerpt:

[Medvedev’s] starting point is his legal background – he is, he says, “perhaps too much of a lawyer”. Meticulous and precise, he sees almost every issue through the prism of legal thinking. But behind the occasionally laboured language lies a deeper goal. Mr Medvedev says he wants to do what no Russian leader has done before: embed the rule of law in Russian society.

“It is a monumental task,” he agrees, switching momentarily to English. “Russia is a country where people don’t like to observe the law. It is, as they say, a country of legal nihilism.”

The pledge to overcome “legal nihilism” became a central part of Mr Medvedev’s low-key election campaign. It seems a restatement of Mr Putin’s own promise eight years ago to establish a “dictatorship of laws”, although critics say Mr Putin delivered too much of the former and not enough of the latter. Even today, Russians quote the 19th-century satirist Mikhail Saltykov-Shchedrin’s aphorism that “the severity of Russian laws is alleviated by the lack of obligation to fulfill them”. The result is a society plagued by endemic corruption, arbitrary use of the law by the state against individuals or companies – and by companies against each other – and a judiciary that has never known genuine independence.

To paraphrase, all democracy is local. One of the strengths of the American democratic tradition is its intensely local nature. Most Americans’ experience with democracy happens when they vote for a judge, attend a school board meeting, or run afoul of the local traffic cop. If democracy doesn’t work at this level, it doesn’t work at all. As Medvedev pointed out to his interviewers: “When a citizen gives a bribe to the traffic police, it probably does not enter his head that he is committing a crime ... People should think about this.”

But bribing a cop is a moral issue, just as much as it is, if not exactly a political crime, then a seemingly simple act of convenience. Morality cannot be legislated, but it can be taught and for this we need the Church and the family and those other neighborhood groups, charities, and small businesses, that act as civic training grounds and make up a healthy community. Edmund Burke called these “the little platoons” of society.
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Hoekstra: 'Islam and Free Speech'

blog@acton.org (John Couretas) — Wed, 26 Mar 2008 10:43:00 -0600

In today’s Wall Street Journal, Rep. Peter Hoekstra discusses the impending release of Fitna, a short film highly critical of Islam, by Geert Wilders, a member of the Dutch parliament. Hoekstra:

Radical jihadists are prepared to use violence against individuals to stop them from exercising their free speech rights. In some countries, converting a Muslim to another faith is a crime punishable by death. While Muslim clerics are free to preach and proselytize in the West, some Muslim nations severely restrict or forbid other faiths to do so. In addition, moderate Muslims around the world have been deemed apostates and enemies by radical jihadists.

Radical jihadists believe representative government is un-Islamic, and urge Muslims who live in democracies not to exercise their right to vote. The reason is not hard to understand: When given a choice, most Muslims reject the extreme approach to Islam. This was recently demonstrated in Iraq’s Anbar Province, which went from an al-Qaeda stronghold to an area supporting the U.S.-led coalition. This happened because the populace came to intensely dislike the fanatical ways of the radicals, which included cutting off fingers of anyone caught smoking a cigarette, 4 p.m. curfews, beatings and beheadings. There also were forced marriages between foreign-born al Qaeda fighters and local Sunni women.

Read all of “Islam and Free Speech” here.

Acton Lecture Series: Rise of Religious Left

blog@acton.org (John Couretas) — Fri, 14 Mar 2008 14:40:00 -0600

A large crowd packed into St. Cecilia Music Center in Grand Rapids yesterday to hear Rev. Robert A. Sirico’s presentation on “The Rise and Eventual Downfall of the Religious Left.” This is a political movement, he said, that “exalts social transformation over personal charity, and social activism above the need for evangelization of the human soul.” (He also took time to critique the Religious Right.)

An audio recording of Rev. Sirico’s Acton Lecture Series presentation is available on the Acton Web site here.

Rev. Sirico, president of the Acton Institute, began by pointing to a “series of signs” that often characterize the Religious Left today:

1) A tendency to believe that the Kingdom of God is not something essentially eschatological; it is a state of being that can and should be achieved on earth through human effort.

2) A loathing of the economically successful rooted in the assumption that wealth is generally unjustly acquired even and especially if it has been accumulated through market means.

3) A conviction that the cause of material inequality is due to injustice that must be rectified, usually by a forced redistribution of the wealth.

4) A reliable bias against commerce and the merchant classes, their products, their marketing, and their cultural presence.

5) A fixation on government programs that purport to do good for others and a pronounced preference for public policy (that is political) solutions instead of voluntary individual or communal efforts.

6) A judgment that unless physical states of social well being are realized, issues such as faith and morals are somehow invalidated.

7) An attachment to the idea that the natural environment represents a source of moral light in the world that is darkened by the activities of human beings.

Rev. Sirico will be discussing the Religious Left on Friday, March 14, on Ave Maria Radio at 4 p.m. with host Al Kresta. (The originally scheduled debate with Jim Wallis is being rescheduled at Wallis’ request). Pick up a live stream for Ave Maria Radio here. (Update: Audio of this interview is available for download in .mp3 format here.)

Homeschooling under fire in California

blog@acton.org (John Couretas) — Fri, 14 Mar 2008 11:31:00 -0600

In this week’s Acton commentary, Chris Banescu looks at a ruling by the Second District Court of Appeals for the state of California which declared that “parents do not have a constitutional right to home school their children.” The ruling effectively bans families from homeschooling their children and threatens parents with criminal penalties for daring to do so.

Chris Banescu was reminded of another sort of government control:

The totalitarian impulses of the court were further evidenced by the arguments it used to justify its decision: “A primary purpose of the educational system is to train school children in good citizenship, patriotism and loyalty to the state and the nation as a means of protecting the public welfare.” As someone who has lived and suffered under a communist regime (I grew up in Romania), the “good citizenship,” “patriotism,” and “loyalty to the state” justifications have struck a little too close to home. These were precisely the kinds of arguments the communist party used to broaden the power of the state, increase the leadership’s iron grip on the people, and justify just about every conceivable violation of human rights, restrictions on individual liberties, and abuses perpetrated by government officials.

Read the entire commentary here.

Solovyov on Economic Morality

blog@acton.org (John Couretas) — Wed, 05 Mar 2008 14:11:00 -0700

Vladimir Solovyov

Towards the end of his life, the 19th century Russian philosopher Vladimir Solovyov published his “On the Justification of the Good: An Essay on Moral Philosophy” (1897). In this book, wrote historian Paul Valliere, Solovyov abandonded his vision of a “worldwide theocratic order” in favor of the more concrete demands of building a just society. With “Justification of the Good,” Solovyov (1853-1900) presented a general theory of economic and social welfare based on the idea that all human beings have “a right to a dignified existence.”

The following excerpt is from the chapter, “The Economic Question from the Moral Point of View” in Solovyov’s “On the Justification of the Good.” Translated by Nathalie A. Duddington; annotated and edited by Boris Jakim; foreword by David Bentley Hart. Wm. B. Eerdmans (2005). Cross posted from The Observer.

For the true solution of the so-called ‘social question’ it must in the first place be recognized that economic relations contain no special norm of their own, but are subject to the universal moral norm as a special realm in which they find their application. The triple moral principle which determines our due relation towards God, men, and the material nature is wholly and entirely applicable in the domain of economics. The peculiar character of economic relations gives a special importance to the last member of the moral trinity, namely, the relation to the material nature or earth (in the wide sense of the term). This third relation can have a moral character only if it is not isolated from the first two but is conditioned by them in the normal position.

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Kosovo: Pandora's Box

blog@acton.org (John Couretas) — Tue, 19 Feb 2008 17:16:00 -0700

Nearly two years ago, in “Who Will Protect Kosovo’s Christians?” I wrote:

Dozens of churches, monasteries and shrines have been destroyed or damaged since 1999 in Kosovo, the cradle of Orthodox Christianity in Serbia. The Serbian Orthodox Church lists nearly 150 attacks on holy places, which often involve desecration of altars, vandalism of icons and the ripping of crosses from Church rooftops. A March 2004 rampage by Albanian mobs targeted Serbs and 19 people, including eight Kosovo Serbs, were killed and more than 900 injured, according Agence France Press. The UN mission in Kosovo, AFP said, reported that 800 houses and 29 Serb Orthodox churches and monasteries - some of them dating to the 14th century — were torched during the fighting. NATO had to rush 2,000 extra troops to the province to stop the destruction.

All this happened despite the presence of UN peacekeeping forces. According to news reports posted by the American Council for Kosovo, Albanian separatists are opposing the expansion of military protection of Christian holy sites by UN forces. A main concern of Christians is the fate of the Visoki Decani Monastery - Kosovo’s only UNESCO World Heritage Site.

Now that Albanian separatists have declared the Serbian province of Kosovo to be an independent nation -- and won backing from President Bush -- a chain of events has been put in place that EU lawmakers are already describing as a Pandora’s Box.

Why? Because the secessionist move in Serbia is likely to kindle others in places like Georgia, Moldova and Russia (which now much entertain similar aspirations from places like Abkhazia, South Ossetia, or Transdniester). This explains Russia’s opposition to the Kosovo breakaway, but it’s not alone. Spain, which has contended with Basque, Catalan and Galician separatist movements for decades, refused to recognize an independent Kosovo, saying the move was illegal. Then there’s Slovakia, Romania, Bulgaria, Greece and Cyprus. Some Asian countries also view the Kosovo split as a dangerous precedent. Sri Lanka said the move was a violation of the UN Charter. Canada has officially remained mum on the question so far.

For a good balanced look ahead for Kosovo, see “After Kosovo’s Secession,” by Lee Hudson Teslik on the Council of Foreign Relations Web site, and the online debate between Marshall F. Harris, Senior Policy Advisor, Alston + Bird, and Alan J. Kuperman, Assistant Professor, University of Texas, LBJ School of Public Affairs.

But I am a skeptic, in case you were wondering.
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Orthodoxy and Economic Globalization

blog@acton.org (John Couretas) — Tue, 19 Feb 2008 12:09:00 -0700

AGAIN Magazine has published my “Conflicted Hearts: Orthodox Christians and Social Justice in an Age of Globalization.” The magazine is produced by Conciliar Press Ministries, Inc., a department of the self-ruled Antiochian Orthodox Christian Church of North America.

Excerpt:

Just as there is no real understanding of many bioethical issues without a general grasp of underlying medical technology, there is no real understanding of “social justice” without an understanding of basic economic principles. These principles explain how Orthodox Christians work, earn, invest, and give to philanthropic causes in a market-oriented economy. Economic questions are at the root of many of the problems that on their face seem to be more about something else—poverty, immigration, the environment, technology, politics, humanitarian assistance. In the environmental area, for example, the current debate on global warming is just as much focused on how to finance the means of slowing the rising temperatures of the earth as it is on root causes. And the question always is: Who will pay?

What, exactly, is social justice? It is an ambiguous concept, loaded with ideological freight. No politically correct person would dare oppose it. To be against “social justice” would be tantamount to opposing “fairness.” Today, the term is most often employed by liberal-progressive activists and a “social justice movement” that advances an economic agenda which includes such causes as a “living wage,” universal health care and expanded welfare benefits, increased labor union powers, forgiveness of national debts in the developing world, and vastly increased transfers of foreign aid from rich countries to the poor. Because religious conservatives tend toward support for free market economic systems, they have largely shunned the “social justice” agenda and its government-based solutions.

Read the entire article here.

'A Patriarch in Dire Straits'

blog@acton.org (John Couretas) — Fri, 15 Feb 2008 10:25:00 -0700

Bartholomew I

My commentary this week looked at “Encountering the Mystery,” the new book from Ecumenical Patriarch Bartholomew I of the Orthodox Church.

In 1971, the Turkish government shut down Halki, the partriarchal seminary on Heybeliada Island in the Sea of Marmara. And it has progressively confiscated Orthodox Church properties, including the expropriation of the Bûyûkada Orphanage for Boys on the Prince’s Islands (and properties belonging to an Armenian Orthodox hospital foundation). These expropriations happen as religious minorities report problems associated with opening, maintaining, and operating houses of worship. Many services are held in secret. Indeed, Turkey is a place where proselytizing for Christian and even Muslim minority sects can still get a person hauled into court on charges of “publicly insulting Turkishness.” This law has also been used against journalists and writers, including novelist Orhan Pamuk for mentioning the Armenian genocide and Turkey’s treatment of the Kurds.

In a 2005 report on the Halki Seminary controversy, the Turkish think tank TESEV examined what it called the “the illogical legal grounds” behind the closing and how it violates the terms of the 1923 peace treaty of Lausanne signed by Turkey and Europe’s great powers. TESEV concluded that “the contemporary level of civil society and global democratic principles established by the state, are in further contradiction with the goal to become an EU member.” And, because of its inability to train Turkish candidates for the priesthood, TESEV warned: “It is highly probable that the Patriarchate will not be able to find Patriarch candidates within 30-40 years and thus, will naturally fade away.”

The Turkish Daily Hürriyet is reporting today on a proposed government revision of the “insulting Turkishness” law.

The European Union has been calling Turkey to amend the article 301, which has been the basis for charges against past cases against Turkish intellectuals such as Hrant Dink, Elif Safak, and Orhan Pamuk.

[Justice Minister Mehmet Ali] Sahin, also said the deputy parliament leaders of AKP will decide when to send the proposal of the amendment to the parliament.

According to Sahin’s statement, the article’s new status would be as follows:

Article 301: The insulting of the Turkish people, the Turkish Republic, as well as the institutions and organs of the state

1-A person insulting the Turkish people, the Turkish Republic, the State, the Turkish Parliament, the government of the Turkish Republic, the justice organs of the state, as well as the military or policing organizations of the state, will receive anywhere between 6 months to 2 years prison sentence.

2-Statements explaining thoughts which are expressed with the purpose of criticism are not to constitute a crime.

3-Any prosecution based on article 301 is to be tied to specific permission from the office of the President of the Turkish Republic.

Read “A Patriarch in Dire Straits” here.

Acton on Religious Liberty and Huckabee's Economics

blog@acton.org (John Couretas) — Thu, 31 Jan 2008 09:16:00 -0700

Two new Acton commentaries this week:

In “Religious Liberty and Anti-Discrimination Laws,” Joseph Kosten looks at recent controversies in Colorado and Missouri involving Roman Catholic institutions.

Without the liberty to decide who represents its views and who disperses its message to the public, a religious institution or organization lays bare its most vulnerable aspect and welcomes destruction from within. Separation of church and state does not mean that religious institutions may not function within a state, nor does it mean that they can not decide who they hire.

Michael Miller and Jay Richards examine the economic proposals of Gov. Mike Huckabee in “The Missing Link: Religion and Economic Freedom.”

Now of course there is no one “Christian” set of policies on the best way to help poor or stimulate an economy. Unlike life issues, these are prudential matters and good Christians can disagree. Yet there seems to be a growing tendency among Christians to allow the left to claim the moral high ground with their big government interventionist plans despite the fact that history has shown this to be not only ineffective but harmful.

Gregg on NRO: End of the Jesuits?

blog@acton.org (John Couretas) — Fri, 25 Jan 2008 14:30:00 -0700

On National Review Online, Sam Gregg, Acton’s director of research, takes a look at the new Father-General of the Society of Jesus and what’s ahead for “one of Catholicism’s most influential — and controversial — religious orders.”

The Jesuits are dealing with a steep decline in numbers and other serious problems, as Sam points out:

Many Jesuit universities have become virtually indistinguishable from your average left-wing secular academy. Some Jesuits candidly say the order’s intellectual edge began seriously fraying in the 1970s, corroded by an idolatry of the contemporary — marked particularly by an embrace of Marxist critiques that would engender bad politics and even worse theology, including efforts to water down Christ’s uniqueness in the name of that ubiquitous word: “dialogue.”

By the early 1980s, Rome had had enough. In 1981, John Paul II took the radical step of suspending the order’s normal governance. In 1983, Fr. Kolvenbach was elected Father-General. Though widely considered a good man, it’s unclear he affected any significant change in the Jesuits’ direction.

For example, three of the last four Catholic theologians publicly notified by the Vatican’s doctrinal office that their writings contradict basic Christian beliefs were Jesuits: Frs. Jon Sobrino, Roger Haight, and Jacques Dupuis. Some see this as the price of doing cutting-edge theology. Others view it as the result of simply muddled theology.

Read “End of the Jesuits?” on NRO here.

Natural Capitalism

blog@acton.org (John Couretas) — Tue, 22 Jan 2008 15:45:00 -0700

Over at the OrthodoxNet.org blog, editor Chris Banescu had an entertaining exchange in the comment boxes with a writer who asserted that “capitalism can be just as infected with materialism and the concomitant need to tyrannize as communism.”

Here is Chris’ response:

Capitalism is really not an ideology. It simply describes reality, like mathematics and economics describe reality. It’s a word that explains how free human beings interact voluntarily with one another to exchange value and how they invest the excess of the fruits of their labors to produce more or gain more value. It is value and morally neutral.

You are positing your argument from the Marxist and leftist ideological point of view that made up this bogeyman they called “capitalism” as if it was some alien force dreamed up by rich to oppress the poor. That is a lie. You should know better than that.

On the other hand you are right that materialism is a moral failure, but that is the fault of the moral choice of individuals and groups, not the fault of capitalism. That’s like saying that it’s the fault of mathematics when someone does a wrong addition or multiplication, or the fault of accounting when someone embezzles money from their employer and writes down the incorrect cash register total.

When man deposits his money in a bank and requires interest payments, he is practicing capitalism!

When he buys food, clothing, furniture, medicine, etc.. from someone who produced it, he is practicing capitalism!

When he expects to be paid a fair salary for the work that he’s doing, he is practicing capitalism!

When he is the beneficiary of any retirement or pension fund, he is practicing capitalism!

When he buys property and hopes value will increase, he is practicing capitalism!

When he lends money to someone else and wants interest in return, he is practicing capitalism!

When he invents something new and unique and wants to sell it to someone else for a profit, he is practicing capitalism!

When he is the beneficiary of any government program providing social assistance, he directly benefits from others who practiced capitalism and created the profits the gov’t can now use and distribute to those in need!

When Churches and Synagogues get donations from people who first had to work and earn it, they are the beneficiaries of capitalism.

Even communists and socialists rely on capitalism to actually produce anything of value and generate the value and returns that fund and fuel their governments.

'Harp of the Spirit'

blog@acton.org (John Couretas) — Mon, 21 Jan 2008 11:34:00 -0700

St. Maximos the Confessor

Today the Orthodox Church remembers St. Maximos the Confessor, the great saint who -- virtually alone -- stood against the Monothelite heresy and its powerful allies in the Church and in the Byzantine Empire. The importance of St. Maximos (580-662) also is built on his work in the Philokalia, the collection of texts written between the fourth and the fifteenth centuries by spiritual masters of the Eastern Christian tradition.

Here is St. Maximos on truth (Third Century, 32):

Because it transcends all things, truth admits of no plurality, and reveals itself as single and unique. It embraces the spiritual potentialities of all that is intellective and intelligible, since it transcends both intellective and intelligible beings; and by an infinite power it encompasses both the ultimate origin and the ultimate consummation of created beings and draws the entire activity of each to itself. On some it bestows lucid spiritual knowledge of the grace they have lost, and to other it grants, through an indescribable mode of perception and by means of participation, clear understanding of the goodness for which they long.

On “divine power” (Third Century, 12):

Providence has implanted a divine standard or law in created beings, and in accordance with this law when we are ungrateful for spiritual blessings we are schooled in gratitude by adversity, and brought to recognize through the working of divine power. This is to prevent us from becoming irrepressibly conceited, and from thinking in our arrogance that we possess virtue and spiritual knowledge by virtue and not by grace.

The editors of the Philokalia note that when St. Maximos “opposed Monothelitism, this was not because of some technicality, but because such a view subverted the understanding of the full reality of man’s salvation and deification in Christ. The Monotheletes wished to reconcile the supporters of the Council of Chalcedon (451), who ascribed two natures to the incarnate Christ, with the Monophysites, who believed that He has only one nature; and so they proposed as a compromise the theory that Christ has two natures, the one divine and the other human, and but only a single will. Against this St. Maximos maintained that human nature without a human will is an unreal abstraction: if Christ does not have a human will as well as a divine will, He is not truly man; and if He is not truly man, the Christian message of salvation is rendered void.”

Father Alexander Mileant describes the saint’s courageous stand against this heresy:

The heretics often went from urging and appealing Maximos, to threatening, abusing and beating him. Venerable Maximos was sent into exile several times and called back to Constantinople each time. On one occasion, St. Maximos was called back, and the imperial grandees, Troilus and Sergius, subjected him yet again to interrogation. They began to accuse St. Maximos of pride for esteeming himself as the only Orthodox who would be saved and for considering all others to be heretics who would perish.
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Rev. Sirico on 'The Great Lie'

blog@acton.org (John Couretas) — Wed, 09 Jan 2008 16:41:00 -0700

What have many academics and a good number of religious leaders learned from the collapse of communism and the failures of so many utopias of socialism that couldn’t deliver on their promises? Well, nothing. In “The Great Lie: Pope Benedict XVI on Socialism,” Rev. Robert A. Sirico looks at a critique of the socialist impulse offered by the Pope in his new encyclical Spe Salvi.

In the article, published on InsideCatholic.com, Rev. Sirico discusses the futility of a salvation based on a materialistic worlview:

History is strewn with intellectuals who imagined that they could save the world -- and created hell on earth as a result. The pope counts the socialists among them, and Karl Marx in particular. Here was an intellectual who imagined that salvation could occur without God, and that something approximating the Kingdom of God on earth could be created by adjusting the material conditions of man.

Socialist theorizers simply cannot wish away economic realities. “The economic problem is intractable,” Rev. Sirico writes. “Simply asserting that the new world will magically appear begs critical issues, such as how we are to feed, clothe, and house people.”

Pope Benedict sees this flaw clearly. This is from Spe Salvi:

Together with the victory of the revolution, though, Marx’s fundamental error also became evident. He showed precisely how to overthrow the existing order, but he did not say how matters should proceed thereafter. He simply presumed that with the expropriation of the ruling class, with the fall of political power and the socialization of means of production, the new Jerusalem would be realized. Then, indeed, all contradictions would be resolved, man and the world would finally sort themselves out. Then everything would be able to proceed by itself along the right path, because everything would belong to everyone and all would desire the best for one another.

This utopian impulse, Rev. Sirico says, blinds the socialist to unchangeable realities of the economic order:

... the pope has put the problems of economics exactly in the right light: the practical issue that needs to be settled within the framework of a sound morality and understanding of human nature. Socialism fails for a precise and practical reason: It has no system for pricing factors of production to make economic calculation possible. Prices come from the exchange of the very private property with which socialism dispenses.

Read the encyclical letter Spe Salvi on the Vatican Web site here.