Thursday, March 5, 2015

Benedict XVI OK'd Usury?

This is being cited as overturning all Christian prohibition on usury:
Both the regulation of the financial sector, so as to safeguard weaker parties and discourage scandalous speculation, and experimentation with new forms of finance, designed to support development projects, are positive experiences that should be further explored and encouraged, highlighting the responsibility of the investor. Furthermore, the experience of micro-finance,which has its roots in the thinking and activity of the civil humanists — I am thinking especially of the birth of pawnbroking — should be strengthened and fine-tuned. This is all the more necessary in these days when financial difficulties can become severe for many of the more vulnerable sectors of the population, who should be protected from the risk of usury and from despair. The weakest members of society should be helped to defend themselves against usury, just as poor peoples should be helped to derive real benefit from micro-credit, in order to discourage the exploitation that is possible in these two areas. Since rich countries are also experiencing new forms of poverty, micro-finance can give practical assistance by launching new initiatives and opening up new sectors for the benefit of the weaker elements in society, even at a time of general economic downturn.
Yet, this is the analysis:
Dr. Marc Cohen, a seasoned corporate banker, compared the Jewish and Christian concepts of lending and usury using the Talmud and the Holy Bible. He said that both religious traditions condemn usury and stress the need to lend money without interest. Both Biblical texts stress that the money of individuals is neither common nor private property, but a resource entrusted by God to them to fulfill their and others’ needs. He pointed out that this principle was negated in the last papal encyclical of Pope Benedict XVI, which permits lending with interest.
How does a reiteration to not employ usury become a negation of usury prohibition?   Of course a banker will read it backwards.

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