90 Miles From Tyranny

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Thursday, July 18, 2013

10 Psychology Tricks You Can Use To Influence People

10
Get Favors
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Trick: Get someone to do a favor for you—also known as the Benjamin Franklin effect.
Legend has it that Benjamin Franklin once wanted to win over a man who didn’t like him. He asked the man to lend him a rare book and when the book was received he thanked him graciously. As a result, this the man who had never wanted to speak to him before, became good friends with Franklin. To quote Franklin: “He that has once done you a kindness will be more ready to do you another than he whom you yourself have obliged.”
Scientists decided to test this theory and found that those who were asked by the researcher for a personal favor rated the researcher much more favorably than the other groups did. It may seem counter-intuitive, but the theory is pretty sound. If someone does a favor for you, they are likely to rationalize that you must have been worth doing the favor for, and decide that therefore they must like you.
9
Aim High
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Trick: Ask for way more than you want at first then scale it back later.
This trick is sometimes known as the door in the face approach. You start by throwing a really ridiculous request at someone—a request they will most likely reject. You then come back shortly thereafter and ask for something much less ridiculous—the thing you actually wanted in the first place. This trick may also sound counter-intuitive, but the idea behind it is that the person will feel bad for refusing your first request, even though it was unreasonable, so when you ask for something reasonable they will feel obliged to help out this time.
Scientists tested this principle and found that it worked extremely well as long as the same person asked for both the bigger and smaller favor, because the person feels obliged to help you the second time and not anyone else.
8
Names
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Trick: Use a person’s name, or their title depending on the situation.
Dale Carnegie, the author of How to Win Friends and Influence People, believed that using someone’s name was incredibly important. He said that a person’s name is the sweetest sound in any language for that person. A name is the core part of our identity, and so hearing it validates our existence, which makes us much more inclined to feel positively about the person who validated us.
But using a title, or form of address can also have strong effects, according to the as if principle. The idea is that if you act like a certain type of person, you will become that person, it’s a bit like a self fulfilling prophecy. To use this to influence others, you can refer to them as what you want them to be, so they will start thinking of themselves this way. This can be as simple as calling an acquaintance you want to be closer to “friend,” or “mate” whenever you see them, or referring to someone you want to work for as “boss.” But be warned: this can come off as very corny.
7
Flattery
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Trick: Flattery will actually get you everywhere.
This one may seem obvious at first, but there are some important caveats to it. For starters it’s important to note that if the flattery is not seen as sincere, it’s going to do more harm than good. But researchers have studied the motivations behind peoples reaction’s to flattery, and found some very important things.
To put it simply, they found that people tend to look for cognitive balance, trying to always keep their thoughts and feelings organized in a similar way. So if you flatter someone who has high self esteem, and it is seen as sincere, they will like you more, as you are validating how they feel about themselves. However, if you flatter someone who has low self esteem, there is a chance it could backfire and cause them to like you less, because it interferes with how they perceive themselves. That, of course, does not mean you should demean a person of low self-esteem!
6
Mirroring
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Trick: Mirror their behavior.
Mirroring is also known as mimicry, and is something that some people do naturally. People with this skill are considered to be chameleons; they try to blend into their environment by copying other people’s behaviors, mannerisms and even speech patterns. However, this skill can also be used consciously, and is a great way to make you more likable.
Researchers studied mimicry, and found that those who had been mimicked were much more likely to act favorably toward the person who had copied them. Even more interesting was their second find that those who had someone mimic their behavior were actually nicer and more agreeable to others in general—even those not involved in the situation. It is likely that the reason why this works is that mirroring someone’s behavior makes them feel validated. While this validation is likely to be most positively associated with the person who validated them, they will feel greater self-esteem and thus be more confident, happier and well disposed towards others.

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First The IMF And Now The U.N. Call For Replacing The U.S. Dollar As The World Currency Reserve With SDR's

If the world replaces the dollar as the official currency reserve, make no mistake...the U.S. becomes an
instant third world country due to the massive debt the Obama Administration has racked up.  The UN and the IMF has recommended using SDR's or Special Drawing Rights to replace the dollar, the SDR is an IMF construct that serves as an alternative to the US dollar and bypasses the dollar as the main exchange currency for international currency exchange....


From The Himalayan Times:

The rise in petroleum prices is becoming a destabilizing factor on both the prices and trade fronts along with nullifying effect on the advantages of dollar appreciation. Dollar control and other direct measures may have dampening effect including adverse effect on revenue
In the aftermath of the Great Financial Crisis, the confidence on the dollar as a dominant world reserve currency had eroded substantially. Based on the exhaustive study, the United Nations Conference on Trade and Development (UNTAD), which champions for the cause of the poor nations, concluded that the current system of currencies and capital rules binding the world economy was largely responsible for the financial and economic crises. On the same ground, it recommended on the need of replacing dollar with a global currency. Even the International Monetary Fund (IMF) last year issued a statement indicating the need for replacing dollar as the world’s reserve currency with a system of Special Drawing Rights (SDR’s). However, it could not stand with this for long due to strong objection from the US. Parallel to this, a momentum to move away from the dollar with alternative payment arrangements picked up in many countries. The BRICS nations officially decided to establish mutual lines of credit in local currencies. In the backdrop of these developments, an influential American economic daily newspaper on April 20, 2012 had indicated that the hegemony of the US dollar as a global reserve currency may end within the next ten years.

Now, the scenario has changed dramatically. The dollar has gradually appreciated and peaked up markedly in recent months. What are the principle reasons? What is the implication on the global economy? Does it mean that the demand for alternative currency should subside now?

There are five-six main reasons for the steep rise in value of the dollar as against other major currencies. First, after a policy of quantitative easing by the US as a move to devalue dollar and enhance export competitiveness, among others, a competition to devalue own currency against dollar escalated among countries worldwide.

The massive rise in the property prices and thereby the creation of bubble amidst larger capital inflows due to high interest rate in developing countries compared to almost zero interest rate in the US led to fueling of prices and erosion of export competitiveness compelled the countries to retaliate against US’s unilateral move. Second, continuing crisis in peripheral and some other European countries and slowdown in some fast growing economies like China, India together with worsening current account balance also enhanced dollar scarcity. Third, along with the rise in petroleum prices, the demand for dollar increased massively as most of the transaction of trade in petroleum product takes place in US dollars. Fourth, the sharp fall in gold prices also prompted speculators to switch to carry trade in currencies more aggressively. Fifth, the improvement in the US economy compared to many other advanced countries attracted capital inflows to the US from the global investors.

Finally, the recent hint of Federal Reserve that it may start tapering its policy of quantitative easing is generating fear of liquidity problem, contributing to appreciation of the dollar more sharply.

Theoretically, one may argue that, ceteris paribus, with the appreciation of the dollar, the export competitiveness of developing countries vis a vis US should rise leading to gradual reversal in the present trend. With similar expectation across the countries amidst global competition, the internal condition makes a lot of difference. As many developing countries are facing stagflation type problems, the policy space is very limited.

The interest rate rise as an option for attracting capital inflows is not feasible, as this may jeopardize domestic investment and thereby growth further adding more inflationary pressure.

At the same time, many export-oriented industries depend on imported raw materials.

Now, the rise in petroleum prices is becoming a major destabilizing factor on both the prices and trade front along with nullifying effect on the likely advantages of dollar appreciation. Dollar control and other direct measures may have more dampening effect including very adverse effect on revenue and fiscal balance. The debt rise is particularly emerging a big problem again. Despite similar adverse effects more so due to very limited export capacity, countries like Nepal may be partly advantaged by remittances inflows.

At the same time, economic recovery in US is not strong enough. Debt is very high at every level added by huge liability to Federal Reserve due to quantitative easing. If quantitative easing is actually phased out, more aggressive cheap interest rate policy has to be pursued under present financial capitalism to ensure a huge profit amidst structural problems in real economic and labor market front as without this the financial system will collapse. By implication, bubble followed by bust cycle will intensify along with widening of trade deficit.

Thus, in the serious policy space restricted by the dollar to the developing countries as pointed out above, the US policy of beggar thy neighbor will pose more risks and uncertainty to the global economy in the days to come. This means that the need of alternative global currency driven by the principle of more stable exchange rate regime has increased markedly today than the past.

http://www.thehimalayantimes.com/fullNews.php?headline=Dollar+and+global+economy+&NewsID=383720