Redneck Review!
No. 231 - 9/30/2019
A quick look back, then a "WOW" section triggered by items in our local Tribune!  First, back to our discussion of money evolution, ending at the FIAT stage, and the inevitable inflation that occurs when new money is flooded into an economy.  Take note of the following facts!
Our FED recently lowered the interest rate 1/4%, a second time recently, so the total interest rate has been lowered 1/2%!  Why?  Because the same thing has happened around the world in other major countries, and Pres Trump has insisted that we do the same to avoid loss of a trade advantage.  Briefly, when one country lowers its rate, it triggers a tiny advantage in their international trade balance. (Complicated enough to delay explanation here!) So Trump has  insisted we match our trading partners to avoid giving them that little advantage!
But, using Keyne's theory logic, we only LOWER interest rates to combat RECESSION or DEPRESSION scares!  Hey!  Our economy is BOOMING, at least we are so told, and the facts seem to support that claim. So the FED is it not, caught between the proverbial ROCK and a HARD PLACE?  Trying to maintain trade access and the stock market roaring at the same time keeping inflation under control? (Low interest rates -->more borrowing, so economy, housing, and the market profits, and of course, an increase in the money supply occurs!)
So if  inflation is rearing its ugly head, Keyne's theory says, "Raise interest rates," and use other Macroeconomic tools to combat price increases!  Whoa!  We learned recently that our Clarkston Walmart admitted they were forced to raise prices an average of 5% last year! And our Cottonwood money drop discussed in RNR 230 clearly indicates what is the result when more money is dumped into an economy!  Prices RISE!  And the national dump of money still continues!  Google NATIONAL DEBT CLOCK again, and see the total debt listed in RNR 229 of $22.567 trillion, about $67,000 per citizen, date 9/16/19, is now on the date above, nearly $22,637 trillion!  That gives us that the total debt the 327 million of us in the U.S. have incurred, including new born children!,  has risen $70 billion!  You do the math! That means that every last person in the U.S. has accumulated another $214 of debt in just the past two weeks! Since there are 52 weeks in a year, multiply that $214 by 26, and every last citizen of the U.S. will have a theoretical added debt of $5,564 each year, their share of the national debt, added of course, to the record PERSONAL debt that has been accumulated by taxpayers!  (Do you suppose that your share of the national debt and your own personal debt will ever get paid?)
Now for the "WOW" section!  (The "gabby" length of the above will force only a brief comment below!  So more is coming next week on this matter!)
Tribune readers have read in just one past week that "climate change" is a most serious if not the MOST SERIOUS problem facing the world today!  And most of these "climate change" articles are concerned with "global warming!" A headline in the Tribune NW section, 9/20/19, reads "Moscow students joining 'climate strike.'"  Lower in  the article it says participants "felt galvanized by a 2018 report from the Inter-government Panel on Climate Change stating that if earth warms more than 1.5 degrees Celsius, climate change would become irreversible."  Ouch! Are we to worry about that increase locally?
Space is closing in, so next week a look will be taken at Tribune articles on 9/21.  One in the  NW section and the other in the A.M. Report!  Then front page on  9/24, "Frustrations abound at U.N. climate meeting." On 9/26, again front page: "Oceans and ice are in trouble..." (Tribune subscribers might look back and reread these articles entirely prior to next week's RNR!)
Jake Wren

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