Markets need regulation; poor need protection from fallout, pope says

In a May 4 video message, Pope Francis said markets must be regulated and the poor protected. (CNS photo)

POPE Francis launched his monthly prayer intention for May with a video warning about a fracture between the economy of ordinary work and the skyrocketing prices in financial markets. 

“The true economy, the one that creates work, is in crisis,” he said.

“How many people are now unemployed, but the financial markets have never been as inflated as they are now.”

Pope Francis went on to note that high finance, if unregulated and left to its own devices, becomes “pure speculation driven by various monetary policies”.

“This situation is unsustainable and it is dangerous,” he said. 

“So that the poor do not suffer painful consequences from this system, financial speculation must be carefully regulated.”

Pope Francis then repeated his emphasis on the term “speculation”.

He expressed his hope that finance might be a vehicle to meet people’s needs.

“May finance be a form of service, and an instrument to serve the people, and to care for our common home,” he said.

He urged everyone to promote a form of economy which is more just and sustainable, and which leaves no one behind.

“We can do this,” he said. 

“And let us pray that those in charge of finance will work with governments to regulate financial markets and protect citizens from its dangers.”

His prayer intentions come as the Reserve Bank of Australia left interest rates at their historically low level of 0.1 per cent.