By Vern Gowdie – Port Phillip Insider (Australia) –
We are bombarded with fake news to influence our thoughts and actions. Filtering fact from fiction is not easy.
Given that the intent of fake news is ‘…to mislead in order to gain financially or politically’, treating financial and political institutions with healthy scepticism is essential to our financial wellbeing.
How many people, to their great cost, believed former Fed chair Ben Bernanke when, in 2007, he said ‘…the subprime market seems likely to be contained’?
Was Bernanke guilty of fake news or did he simply not have a clue? My guess is the latter.
Whatever the reason, the lesson is crystal clear: You believe these self-interested bozos at your own peril.
The fact that the Fed has doubled down on the same strategy (low interest rates and increased liquidity) that created the dotcom and property bubbles tells you so much more than any of its public statements.
The closeted academics in charge of this economic nuthouse have learnt nothing.
The other fact is that hardly anybody in a position to influence public thinking is warning people about this deception.
Thankfully, there are some exceptions.