Thursday, July 29, 2010

SOS The Market can stay irrational longer

Economy is basically partial science (can be measured and tested) and partial arts (basically a collection of human behaviour)

Hence, if ANY government gave a set of statistics or information to the public, and in the best interest of the public to know, more often than not it is not accurate. Of course this arguable. However, one thing is for sure, the government will paint a story (in the government's interest) with whatever set of information or statistics or data.

An example: assuming the Fact that oil price surge to USD120 per barrel

1. They can say, the good new is that demand is good, which translated into a vibrant economy, hence push the price to higher level.

2. However they choose not to mentioned it "may" be cause by stimulus or money printing or speculation with "cheap money", which is not sustainable, i.e. the same fact can be explain in 2 different ways.

So, as usual, the society will always live in a "delusion" based on what the government has "mold" the mind of its citizens. An the truth is always not told, because, it is in the best interest of the country not to tell the truth.

MyView

When the reality and the "painted story" gaps grows wider, something drastic will happen, example, when the mass realised what is said and what is the reality is so different, the citizen will "revolt", no matter what the satistics say otherwise.

The American is good at hiding the truth, hence, voted # 1. So is China, the Chinese Communist Party will take the #2 spot. Check out what did the CCP did to its citizens since the revolution, google, NINE COMMENTORIES.

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