Richard Mellor
Afscme Local 444,
retired
GED/HEO
I see Vatican Inc. has instructed Catholic institutions throughout the world to
invest their capital in ways that are in accordance with Catholic teachings, or
“faith-consistent investing”. I am
not sure if these guidelines, issued as “MENSURAM
BONAM” Faith-Based Measures for Catholic Investors: A Starting Point and Call to Action, apply
to individual Catholic investors, hedge fund managers, speculators and other
social parasites. One can’t help wonder if the ten Vatican employees, including a cardinal, on trial
for money laundering, fraud and embezzlement has contributed
to this revolutionary announcement. The trial is a Vatican trial so we know it
will be fair.
The
new guidelines call on Catholic institutions to avoid companies that produce
violent video games (the US military is a big player, in the violent video game
market) drugs that “induce” abortion
(not sure about condom manufacturers) or the fossil fuel industry and I assume
planned Parenthood is out. I didn't read the entire Vatican document but in the reports I read in the media, there was no mention of not investing in WalMart, Target, Apple or any company that uses workers in countries that crush unions, or bar them altogether, many of them brutal undemocratic regimes. In fact, the Vatican sees no problem with expoiting workers just doing it in a way that will not offend god.
The
US Conference of Catholic Bishops (USCCB) like others throughout the world,
have their own guidelines apparently and the Vatican hopes they will tow the
Vatican line to put it bluntly. One issue particular to the US and the USCCB is
those companies that produce drugs used in state or federal executions by
lethal injection. One problem from the start is that according to the reports I
have read, many US dioceses have significant investments in the oil and other
fossil fuel industries but the most recent USCCB guidelines adopted in 2021 call for investing, “in companies whose business models are consistent with the emission
reduction goals of the Paris Agreement” so we should all be safe with that
revolutionary decision.
Other
industries the Vatican suggests are not appropriate investment opportunities,
is the pornography industry (a difficult habit to break as about anyone with a
computer enjoys the programming at some
point or another) and Genetically Modified seeds because the lawyers for
haven’t won that battle yet. A little more money will have to change hands
first. The Vatican’s hesitation is that, “environmental
and health risks not yet precisely defined”.
Arms Manufacturers
A big problem will be the arms industry that is included in the Vatican
blacklist. The profits are very lucrative for this branch of capital
investment. What with all the conflict throughout the world and in particular
the proxy war with Russia the US is waging in Ukraine. Western arms
manufacturers are running short of weapons from bullets to missiles due to the heroic
defense of Ukraine, national sovereignty and democracy; using their own workers
on the battlefield is not in the plans . Arms manufacturers in Europe are
increasing capacity to meet the demand as there has been too much peace in
Europe for too long. It’s even increased mergers as producers of weapons of
mass destruction try to keep up.
European
arms manufacturers have gained significantly and shares of German and Swedish arms manufacturers “….have soared on hopes of big orders” the
Wall Street Journal
reports. It’s uplifting to hear that manufacturers are
doing their best to bring peace to the world: “You have to make an entrepreneurial decision……the customers will give
contracts to the companies who have the capacity.”, says the CEO of
Rheinmetall the largest of Germany’s arms manufacturers which is looking to
gobble up a rival in order to compete with the demand.
The
US has committed $17 billion to Ukraine for weapons and another $3.5 billion to
beef up US supplies as well as its allies as the wonderful market for weapons
has blossomed to the point that domestic supplies are running low. The free
market is a wonderful thing.
The
arms business is on fire. The US has ordered stinger missiles from Raytheon
Corp. that were so important in liberating Iraq and Afghanistan and that the
taxpayer hasn’t purchased since 2008. “Lockheed
Martin Corp. is doubling output of the Javelin antitank missiles it coproduces
with Raytheon, and it is boosting output of Himars rocket launchers and GMLRS
missiles by 60%.”, according to reports in the media. The generosity of the
US taxpayer in this struggle for world peace is admirable.
Shares
in US and European arms producers are up and running in 2022:
BAE
Systems (UK) 40%
Saab ( Sweden)30%
Lockheed Martin US 36%
General Dynamics (US) 22%
Raytheon (US) 12%
Rheinmetall (Germany) 115%
Even
South Korea is selling artillery shells to Ukraine (These would be made in the
US I suppose.) under what the media describes as a “confidential” deal with the US. Surely it’s not that confidential
as I know about it.
In
the midst of this booming peace industry, the Vatican’s veiled threat that Catholics
participating in these ventures through capital investment could end up in
hell, it’s quite likely there is some panic brewing among those involved.
These
honorable market players, probably many of them the same investors in the oil
and fossil fuel industries need not fret though. The Cardinal---those are the
guys with the rather large colorful hats but not as large and colorful as the Pope’s---
that oversaw the development of the guidelines, stresses that the guidelines
are only advisory and the Vatican is not demanding Catholics divest from
companies on the list.
Note:
much of the information is this commentary is from the Wall
Street Journal and New
York Times
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