FaithWorld

from Nicholas Wapshott:

Austerity is a moral issue

Security worker opens the door of a government job center as people wait to enter in Marbella, Spain, December 2, 2011. REUTERS/Jon Nazca

In the nearly five years since the worst financial crash since the Great Depression, the remedy for the world’s economic doldrums has swung from full-on Keynesianism to unforgiving austerity and back.

The initial Keynesian response halted the collapse in economic activity. But it was soon met by borrowers’ remorse in the shape of paying down debt and raising taxes without delay. In the last year, full-throttle austerity has fallen out of favor with those charged with monitoring the world economy.

Christine Lagarde, managing director of the International Monetary Fund, has been urging German Chancellor Angela Merkel, who has been imposing singeing public spending cuts on her neighbors, and George Osborne, Britain’s finance minister, who has been doing the same to the Brits, to ease up. The IMF is now urging fiscal measures beyond monetary easing “to nurture a sustainable recovery and restore the resilience of the global economy.”

Earlier this month, Lagarde criticized America’s automatic sequester cuts for being too deep, too soon. The United States, she said, “should consolidate less in the short term, but give … economic actors the certainty that there will be fiscal consolidation going forward.”

Could abortion law backfire on Spain’s Zapatero?

zapateroIn a country like Spain, where a large majority still identify themselves as at least more-or-less Catholic, you’d think the government would shy away from taking on the Roman Catholic Church.  In fact, there are probably few things Spanish Prime Minister Jose Luis Rodriguez Zapatero likes better than a brawl with the bishops.

Lingering anti-clerical sentiment in sectors of Zapatero’s Socialist Party, particularly on its left-most fringes, means the PM has few more effective tools for rallying his voters than the sight of a protest march led by priests and nuns. (Photo: Prime Minister Zapatero, 5 June 2009/Juan Medina)

At a time when unemployment is closing in on 20 percent, Zapatero knows matters economic are not going to provide anything to cheer his supporters. So there was little surprise when the government rolled out a bill to liberalise abortion laws, including a provision to allow 16 year olds to abort without parental consent, in time for the European elections. At present, Spanish law allows abortion only in certain circumstances, such as if the birth poses a psychogical risk to the mother, although in practice it is easily available.

from UK News:

‘We are all to blame for financial crisis’ – archbishop

Bankers, auditors, money-market speculators and regulators all came in for criticism at the Church of England's General Synod during a discussion on the implications of the financial crisis and the recession.

The City had lined its pockets, regulators had not done their job properly and auditors had signed off financial deals that should not have seen the light of day, the synod heard at its meeting in London.

The result is a deep recession, the first since the early 1990s, with Britain suffering a shrinking economy, rapidly rising unemployment and falling output.