Apr 18, 2013

News is bad for you

http://boingboing.net/2013/04/17/news-is-bad-for-you-an.html

News is bad for you – and giving up reading it will make you happier. News is bad for your health. It leads to fear and aggression, and hinders your creativity and ability to think deeply. The solution? Stop consuming it altogether

The Guardian, Friday 12 April 2013 15.00 EDT

Out of the 10,000 news stories you may have read in the last 12 months, did even one allow you to make a better decision about a serious matter in your life, asks Rolf Dobelli.

In the past few decades, the fortunate among us have recognised the hazards of living with an overabundance of food (obesity, diabetes) and have started to change our diets. But most of us do not yet understand that news is to the mind what sugar is to the body. News is easy to digest. The media feeds us small bites of trivial matter, tidbits that don't really concern our lives and don't require thinking. That's why we experience almost no saturation. Unlike reading books and long magazine articles (which require thinking), we can swallow limitless quantities of news flashes, which are bright-coloured candies for the mind. Today, we have reached the same point in relation to information that we faced 20 years ago in regard to food. We are beginning to recognise how toxic news can be.

News misleads. Take the following event (borrowed from Nassim Taleb). A car drives over a bridge, and the bridge collapses. What does the news media focus on? The car. The person in the car. Where he came from. Where he planned to go. How he experienced the crash (if he survived). But that is all irrelevant. What's relevant? The structural stability of the bridge. That's the underlying risk that has been lurking, and could lurk in other bridges. But the car is flashy, it's dramatic, it's a person (non-abstract), and it's news that's cheap to produce. News leads us to walk around with the completely wrong risk map in our heads. So terrorism is over-rated. Chronic stress is under-rated. The collapse of Lehman Brothers is overrated. Fiscal irresponsibility is under-rated. Astronauts are over-rated. Nurses are under-rated.

We are not rational enough to be exposed to the press. Watching an airplane crash on television is going to change your attitude toward that risk, regardless of its real probability. If you think you can compensate with the strength of your own inner contemplation, you are wrong. Bankers and economists – who have powerful incentives to compensate for news-borne hazards – have shown that they cannot. The only solution: cut yourself off from news consumption entirely.

News is irrelevant. Out of the approximately 10,000 news stories you have read in the last 12 months, name one that – because you consumed it – allowed you to make a better decision about a serious matter affecting your life, your career or your business. The point is: the consumption of news is irrelevant to you. But people find it very difficult to recognise what's relevant. It's much easier to recognise what's new. The relevant versus the new is the fundamental battle of the current age. Media organisations want you to believe that news offers you some sort of a competitive advantage. Many fall for that. We get anxious when we're cut off from the flow of news. In reality, news consumption is a competitive disadvantage. The less news you consume, the bigger the advantage you have.

News has no explanatory power. News items are bubbles popping on the surface of a deeper world. Will accumulating facts help you understand the world? Sadly, no. The relationship is inverted. The important stories are non-stories: slow, powerful movements that develop below journalists' radar but have a transforming effect. The more "news factoids" you digest, the less of the big picture you will understand. If more information leads to higher economic success, we'd expect journalists to be at the top of the pyramid. That's not the case.

News is toxic to your body. It constantly triggers the limbic system. Panicky stories spur the release of cascades of glucocorticoid (cortisol). This deregulates your immune system and inhibits the release of growth hormones. In other words, your body finds itself in a state of chronic stress. High glucocorticoid levels cause impaired digestion, lack of growth (cell, hair, bone), nervousness and susceptibility to infections. The other potential side-effects include fear, aggression, tunnel-vision and desensitisation.

News increases cognitive errors. News feeds the mother of all cognitive errors: confirmation bias. In the words of Warren Buffett: "What the human being is best at doing is interpreting all new information so that their prior conclusions remain intact." News exacerbates this flaw. We become prone to overconfidence, take stupid risks and misjudge opportunities. It also exacerbates another cognitive error: the story bias. Our brains crave stories that "make sense" – even if they don't correspond to reality. Any journalist who writes, "The market moved because of X" or "the company went bankrupt because of Y" is an idiot. I am fed up with this cheap way of "explaining" the world.

News inhibits thinking. Thinking requires concentration. Concentration requires uninterrupted time. News pieces are specifically engineered to interrupt you. They are like viruses that steal attention for their own purposes. News makes us shallow thinkers. But it's worse than that. News severely affects memory. There are two types of memory. Long-range memory's capacity is nearly infinite, but working memory is limited to a certain amount of slippery data. The path from short-term to long-term memory is a choke-point in the brain, but anything you want to understand must pass through it. If this passageway is disrupted, nothing gets through. Because news disrupts concentration, it weakens comprehension. Online news has an even worse impact. In a 2001 study two scholars in Canada showed that comprehension declines as the number of hyperlinks in a document increases. Why? Because whenever a link appears, your brain has to at least make the choice not to click, which in itself is distracting. News is an intentional interruption system.

News works like a drug. As stories develop, we want to know how they continue. With hundreds of arbitrary storylines in our heads, this craving is increasingly compelling and hard to ignore. Scientists used to think that the dense connections formed among the 100 billion neurons inside our skulls were largely fixed by the time we reached adulthood. Today we know that this is not the case. Nerve cells routinely break old connections and form new ones. The more news we consume, the more we exercise the neural circuits devoted to skimming and multitasking while ignoring those used for reading deeply and thinking with profound focus. Most news consumers – even if they used to be avid book readers – have lost the ability to absorb lengthy articles or books. After four, five pages they get tired, their concentration vanishes, they become restless. It's not because they got older or their schedules became more onerous. It's because the physical structure of their brains has changed.

News wastes time. If you read the newspaper for 15 minutes each morning, then check the news for 15 minutes during lunch and 15 minutes before you go to bed, then add five minutes here and there when you're at work, then count distraction and refocusing time, you will lose at least half a day every week. Information is no longer a scarce commodity. But attention is. You are not that irresponsible with your money, reputation or health. Why give away your mind?

News makes us passive. News stories are overwhelmingly about things you cannot influence. The daily repetition of news about things we can't act upon makes us passive. It grinds us down until we adopt a worldview that is pessimistic, desensitised, sarcastic and fatalistic. The scientific term is "learned helplessness". It's a bit of a stretch, but I would not be surprised if news consumption, at least partially contributes to the widespread disease of depression.

News kills creativity. Finally, things we already know limit our creativity. This is one reason that mathematicians, novelists, composers and entrepreneurs often produce their most creative works at a young age. Their brains enjoy a wide, uninhabited space that emboldens them to come up with and pursue novel ideas. I don't know a single truly creative mind who is a news junkie – not a writer, not a composer, mathematician, physician, scientist, musician, designer, architect or painter. On the other hand, I know a bunch of viciously uncreative minds who consume news like drugs. If you want to come up with old solutions, read news. If you are looking for new solutions, don't.

Society needs journalism – but in a different way. Investigative journalism is always relevant. We need reporting that polices our institutions and uncovers truth. But important findings don't have to arrive in the form of news. Long journal articles and in-depth books are good, too.

I have now gone without news for four years, so I can see, feel and report the effects of this freedom first-hand: less disruption, less anxiety, deeper thinking, more time, more insights. It's not easy, but it's worth it.

This is an edited extract from an essay first published at dobelli.com. The Art of Thinking Clearly: Better Thinking, Better Decisions by Rolf Dobelli is published by Sceptre, £9.99. Buy it for £7.99 at guardianbookshop.co.uk

Apr 11, 2013

Winner takes all

“Far from giving you a blueprint for your rise to the top, these routines will probably cause you to reconsider the whole idea of becoming CEO of a major communications conglomerate. For the most part, it sounds horrible. There is no respite at the top of the greasy pole, no finish line at the end of the rat race – it's just more of the same. What's the point of being rich and successful if you have to get up before dawn every day to answer 500 emails? There are so many other options open to you: wage slave, failed artist, cowboy plumber, petty thief, local weirdo. The money isn't good, but the hours are very attractive.” 

Guardian, 4/2/13

As demonstrated in the Cyprus situation, where the solution, of simply seizing everyone's bank accounts, in the national interest, of course, of course, has now been admitted to be the long planned blueprint for future action.  The British Chancellor of the Exchequer, (Finance Minister), is surely only one of many to be licking his lips at the prospect.

The main bludgeon being used is that Derivatives, (Bank gambles on future movements) and their associated Credit Default Swaps have super priority over all other creditors; they take what the banks demand as their cut (all of it) and all other creditors, (like the poor slobs who put their money in the bank) count as 'unsecured creditors' and get - you guessed it - nothing, except shares in the new bank.

The following is a short excerpt from a piece by Ellen Brown in CounterPunch of April 10, 2013 on possible alternative actions:

Putting the Brakes on the Wall Street End Game


Besides eliminating the super-priority of derivatives, here are some other ways to block the Wall Street asset grab:

(1) Restore the Glass-Steagall Act separating depository banking from investment banking. Support Marcy Kaptur’s H.R. 129.

(2) Break up the giant derivatives banks. Support Bernie Sanders’ “too big to jail” legislation.

(3) Alternatively, nationalize the TBTFs, as advised in the New York Times by Gar Alperovitz. If taxpayer bailouts to save the TBTFs are unacceptable, depositor bailouts are even more unacceptable.

(4) Make derivatives illegal, as they were between 1936 and 1982 under the Commodities Exchange Act. They can be unwound by simply netting them out, declaring them null and void. As noted by Paul Craig Roberts, “the only major effect of closing out or netting all the swaps (mostly over-the-counter contracts between counter-parties) would be to take $230 trillion of leveraged risk out of the financial system.”

(5) Support the Harkin-Whitehouse bill to impose a financial transactions tax on Wall Street trading. Among other uses, a tax on all trades might supplement the FDIC insurance fund to cover another derivatives disaster.

(5) Establish postal savings banks as government-guaranteed depositories for individual savings. Many countries have public savings banks, which became particularly popular after savings in private banks were wiped out in the banking crisis of the late 1990s.

(6) Establish publicly-owned banks to be depositories of public monies, following the lead of North Dakota, the only state to completely escape the 2008 banking crisis. North Dakota does not keep its revenues in Wall Street banks but deposits them in the state-owned Bank of North Dakota by law. The bank has a mandate to serve the public, and it does not gamble in derivatives.

Ellen Brown on Counterpunch, Winner Takes All, April 10, 2013

ELLEN BROWN is an attorney and president of the Public Banking Institute. In Web of Debt, her latest of eleven books, she shows how a private banking oligarchy has usurped the power to create money from the people themselves, and how we the people can get it back. Her websites are http://WebofDebt.com,
http://EllenBrown.com, and http://PublicBankingInstitute.org.