Redneck Review
No. 32  11/30/15
No discussion of capitalism and socialism as has been the topic the last couple of RNR articles, would be complete without returning for a last look at the formula MV = PO as mentioned some time ago.
In brief, the formula can be found in a study of the Austrian School of Economics, which depended heavily on the thinking and writing of economist Ludvig von Mises, whose major work is a huge book called HUMAN ACTION!
A look at this formula is pertinent to understanding socialism and Keynesian economics because, first, socialism looks to government to raise the living style of the laboring class by redistributing the wealth of the capitalist class..., and second, because Keynes called for the regulation of business cycles by the policies of government and big banks.
Note that both require and rely heavily on government to make important economic decisions! And both are reluctant and refuse to allow natural forces like supply and demand to deal with problems.
So, back to the formula. As explained earlier, the M represents the amount of money that is in an economy at any given time, while the V is velocity, which represents the number of times a unit of money in that economy is spent in a year's time. (Recently, there has been discussion that V has slowed down lately, probably because of a reluctance some have of spending or borrowing now due to the uncertainty of the economy.)
On the right side, the P represents the overall price level, while the O is a measure of the total output of goods and services in an economy.
The claim is that increases of M on the left side in excess of a similar increase in O on the right side, must mathematically increase P, the overall price level in the economy. That is of course, if the M increase is not negated by a similar V decrease on the same side.
An example! Suppose that a huge plane passing over the Prairie would dump by design or by accident, several million $100 bills on the people below, and those people would be able to keep all of the bills picked up! A big increase in M! Now, unless all that money was quickly taken home and buried, an off setting decrease in V, common sense tells us that prices would go up everywhere! The fancy car on a local car lot would quickly be bid up by holders of those bills who before could not afford the asking price! Local retailers would now be free to forget their competitive sales ads, and simply raise prices, because they now know that customers had excess money to buy!!
If meaningful, what does this example tell us about our national economy? Simply that the huge national debt, now around 18.5 trillion dollars, represents a huge increase of M in our economy. Thus it is predictable that prices somewhere are going to respond! Ask any housewife about the price of food these days! And note also, the explosion that has taken place in the stock market... definitely a response to the low and near zero interest that makes debt-fueled investment possible and profitable!! Not a whole lot different from conditions in the "roaring '20's" that ended in the following depression! So, are we going to experience "runaway inflation" in the future? Or a depressing recession? You tell me, 'cause I have my own theories, but am making no predictions!!! What about you?
Jake Wren 

Dear Editor 
I would like to thank (Clearwater Progress) editor Ben Jorgensen for his very informative report last week concerning the possible and very real dangers we in the North American west face in the event of a new and massive disruption of the Cascadia Subduction Zone fault line.
I'm sure that the entire community at large is grateful for this alert as provided us through the work of the Lewis County Emergency Planning Committee.  I read the news report with great interest and even a fair amount of trepidation, but appreciating both the insights and the concerns expressed by those in attendance at this most recent emergency planning meeting, starting with those of our Kamiah City and Lewis County officials.
I totally agree with their views that all mature, individual citizens should take personal, as well as collective, community responsibility for both preparedness for, and response to, any natural ("acts of God") disasters that may occur.
Reading between the lines, however, I noted several elements in the report that I did NOT like:
*  First off, why is FEMA here, heading up the call for disaster preparedness?  Why indeed, ever since the highly questionable "terrorist" attacks of 9-11-01, have we allowed the federal tentacles of FEMA/DHS (Homeland Security)  to extend everywhere into our communities, when LOCAL people and their LOCAL officials are fully capable of handling all respective LOCAL  needs? 
*  Even many years before 9/11, why did we the people allow the federal government to divide our 50 (formerly sovereign and independent) States into 10  federal regions, of which we here in the northwest are #10? Constitutionally, the federal government was granted exclusive jurisdiction over  no more than 10 square miles of Washington, D.C.. Constitutionally, lawfully, what has changed?? Beware: Regionalism is but one step removed from one-worldism!
*  Next, why is the U.S. military named as a partner in matters of our CIVIL preparedness? In both the letter and the spirit of America's founding documents--and some important  subsequent documents, as well--private citizen lands were declared STRICTLY OFF LIMITS to military involvements.
*  Likewise of concern to me is our partnering with the Canadian government in this matter. Hidden shades of NAU (North American Union?) While  the Cascadia fault line is equally of concern to British Columbia, it is with their LOCAL OFFICIALS and PRIVATE CITIZENRY that we here in the northwestern  States might well cooperate, but NOT reaching into the levels of their provincial or federal government. 
My final comment, along a somewhat different line of thought, is to urge freedom-loving, private  Americans to be both aware and wary of certain existing military/industrial (weather and geologic manipulation) technologies such as HAARP, including its later, more advanced, versions. In the hands of certain federal and globalist powers, might such machinery be used to accidentally and artificially disrupt a fault line, for example? Though never quite proven, there has long been considerable suspicions that an underwater nuclear device possibly set off the 2004 Indonesian quake, triggering a tsumani that then took the lives of over a quarter million people, not to mention livestock, wildlife and all of nature and infrastructure. Again, let's at least be aware and beware,  for as the saying goes,  Make yourselves sheep and the wolves just might eat you.
Thank you. 
Carol Asher
Kamiah

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