The Federal Reserve and the Federal government are both desperately attempting to “manage perceptions” of the bogus “recovery” and of their own legitimacy. Can “managed perceptions” replace reality?
The Federal Reserve is quite open about the ultimate purpose of all its machinations: to “manage perceptions” so the citizenry believe the “recovery” is real. The Fed reckons that belief will cause people to start a new debt-consumption orgy that will fuel a self-reinforcing cycle of expansion.
Put another way: the Fed is trying to induce a reanimation of “animal spirits,” i.e. a restored faith in future prosperity that inspires households to load up on more debt and buy, buy, buy.
The difference between blatant propaganda and “managing perceptions” is… well, there isn’t any. The Fed and Federal machinery are both engaged in a massive propaganda campaign to obscure the gargantuan risks implicit in their various trillions-dollar campaigns to mask systemic failure and risk and construct a facade of normalcy and “recovery.”