Knowledge has always been power. That’s why those in power in governments all over the world today are obsessed with obscuring real knowledge and the truth from its citizens. However the truth is out there, especially on the internet. Most people just ignore it and instead embrace the lies spread on mainstream media. If we don’t want to be misled anymore, then the first active step we must take is to study and understand the psychology behind why we fail to understand the truth. There are many reasons why many of us ignore the truth. Many of us never actively seek out the truth and rely on mainstream media lies for our financial news and that is why we believe that the debt crisis in the EU is over and that the contagion of Banco Espirito Santo in Portugal will never spread to “our country” if we live in other countries in the EU. This is also why Americans feel so secure with leaving their wealth in the form of digital fiat currencies in American banks as well and why, if we live in America, we falsely believe that the threat of bank failures and runs are also over.
However, even more damning is the fact that most of us brush off the truth when it is presented to us if it conflicts with preconceived notions we hold. Why? For some of us, it is as simple as being just a matter of ego. We just can’t take the psychological bruising that the realization some of our beliefs may be wrong inflicts upon our ego. However, most of us are not so unfulfilled in our psychological development that this situation applies to us. Many of us often reject the truth even when it has been presented to us because we have been conditioned to do so through academia. Educator Sir Ken Robinson discussed a longitudinal study that illustrated how institutional academia shaped people’s thinking from being divergent as a child into becoming convergent once one transitioned into adulthood. Divergent thinking, in basic terms, means that one retains the ability to consider many different solutions to the same problem. Convergent thinking, on the other hand, tries to ram every line of thinking back to only one acceptable solution to a problem. Thus, it is easy to understand why, if we have been conditioned to become inflexible in our thinking and to only believe that there is one correct solution to each problem, we reject an alternative, perhaps better and correct viewpoint if we already possess one we believe to be correct.
Yet, flexibility and openness to challenging our preconceived notions about finance, banking and money will be the key to surviving the next five years and the culmination of Central Banker currency wars. Those that hold preconceived notions about what is real money and how capital markets operate that are wrong will perish financially, while those that remain flexible and open are likely to adapt, survive, and perhaps even flourish. Without further ado, I present to you below a discussion of the many reasons “Why We Fail to Understand the Truth”.