What is Problem > Reaction > Solution?
Also known as The Hegelian Dialectic, or Hegals Hegelian Dialectic, it was seen to perfection by the Blair Government in the UK (1997-2007) spin machine it is a basic psychological method, developed in the early 20th Century, of manipulating an agenda, whether it be an individual salesman making a sale, a Government wanting to push through potentially unpopular legislation or a Corporation trying to increase its profit margin.

Simply Put:

Manipulate people's reactions by creating a perceived/false problem, perhaps by leaking false stories to the press.
Examples: Iraq WMD, Terrorist threat, Global Warming.

People obviously become concerned by these apparent events and demand help and protection usually from the government.

Voila, the government comes up with a solution to save the day, the same “solution” that you would never have been able to sell before making the people worried.
Examples: 5 years of Iraq war; an endless war on a noun (terror); a false press report. Now people are willing to pay more taxes and cut back on their consumption give up civil liberties such as free speech or guns to save the world all under a false pretext.

Here is what is said in the video:
There are several key mind manipulation techniques which are very very powerful propaganda tools.

The most effective and the most powerful and its used on us all the time, is something I call Problem-Reaction-Solution. It’s a cracker this one.

It’s a mind manipulation technique that avoids not only opposition to what is the goal of the manipulators; it actually manipulates people to demand they do what they want to do anyway.

And it’s happening all the time. Once you see this technique and how it works you watch the news and read the newspapers in a completely different light, cause you start to see it happening.

It works like this:

You start by secretly creating a problem in the world and making sure someone to blame for it in the public arena, in the public mind.

It could be a run on a currency, it could be a government collapse, at its most extreme it could be a war.

Because the 2 world wars in this century were funded (all side) were funded by the same people, provable.

The same people who funded the allies in the Second World War and funded the Soviet Union also funded Hitler.

Though loans from America know as the “Young plan” and the “Dawes Plan” and also by the German subsidiaries of American multinational companies.

Why would they do that? Why would someone want to fund both sides of a war? What good is a war?

Well first of all on one level it makes vast amounts of money, if your lending money to all side and you’re also selling them lots of arms and all that stuff.

But the fundamental reason for a war is to change the nature of post war society.

And what we saw in the First World War and Second World War were massive global examples of Problem-Reaction-Solution.

Which work like this:
The problem is created secretly. You then use the media (which isn’t difficult) to wind up public opinion in relation to your manufactured problem to the point where public opinion utters the classic words “something must be done, this can’t go on!”
Which is all but always follows by “give my power away” “what are they going to do about it”

And at that point those who created the problem and got someone else to be blamed for it, wound up that public reaction then openly in the public area, in the parliaments of the world, in the newspapers and on the television offer the solutions to the problems they have created.

And in doing so they get vast numbers of people to demand what they want to do anyway.

Get people frightened and the first thing people do when they are in fear of something is they look for someone out there to protect them from what they are frightened of.

So get people frightened that they are going to be burgled, get people frightened they are going to be mugged in the streets and they will demand you take their freedoms away, they will demand cameras in the streets and more authoritarian laws.

And we have a very proper example of that in the last few years. Problem-Reaction-Solution