Crisis Actors? Economics? What?

Difficulty: 3/3 (Requires a lot of historical knowledge to read)
Review: 4/5 (Really interesting article, except the quotes and pictures at the beginning should have been dispersed throughout the article instead of before, very confusing)

*This blog post is not on Mankiw's Economics textbook. Rather, this is an exception, and will be an analysis of the Salient article: Crisis Actors and a Reichstag Fire. The link can be found here: http://www.salientpartners.com/epsilon-theory/crisis-actors-reichstag-fire/ *


There was once this Danish folktale about a foolish emperor. When a clever merchant told him of a beautiful garment that was transparent, the emperor gladly purchased it. Now, wearing this "garment", the emperor flaunted it around his people. Up front, the people would all praise the emperor for his fashion, but behind his back, they laughed at the silly naked emperor. Finally, a truly loyal friend reveals the truth to the emperor and he suicides in his own shame.

"...acting AS IF doesn't mean acting AS" This short quote is my favorite line in the article. It summarizes much of the main idea the author wanted to convey. The author's intent was to inform the people to not be like patsies, like the emperor described above. He tells us how the media is plagued with various self-interests, persuading rather than informing; it's just the way of human nature. But the author, Ben, tells us to be cautious and self-aware. Although we as individuals may not have it in our best interests if we do not comply with the messages, we should always keep the truth and look through the crisis actors (patsies putting a show up for the broadcaster), and instead keep in mind that everyone has a bias or a motive.

What has this patsy nonsense have to do with economics, you ask? Well, in keeping your mind above the crisis actors and twisted truths, you are more likely to identify actual problems in the world of politics and economics. Although central banks and such may blame various scapegoats, by following their motives and not falling for their narratives, one can possibly identify the catalysts and prepare for when the actual crisis hits.