On the So-Called ‘Failure’ of Free Banking in Australia : the Banking Crisis of 1893

The anti-free bankers sometimes rehash Hickson and Turner’s paper “Free banking gone awry: the Australian banking crisis of 1893” (2002) as a refutation of the theory of free banking while ignoring the many other successful episodes. In fact, some evidence provided by the paper contradicts their conclusion that the root cause of the 1893 crisis stems from the fact that “Australian banks opportunistically diverted dramatically increased deposits into overly risky assets without corresponding increases in equity capital”. Hickson and Turner ironically support the evidence brought by Selgin that the boom is caused “not by any increase in the bank money multiplier, but by injections of high-powered money from Austra-lian gold mines and from the British capital market”.

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The Tragedy of the Euro, Philipp Bagus

The Tradegy of the Euro, Philipp Bagus, Ludwig von Mises Institute.

Chapter 4

Why High Inflation Countries Wanted the Euro

Socialized Seigneuriage

Some countries, especially France, made gains at the expense of the Germans due to a socialization of seignorage wealth. [3] Seignorage are the net profits resulting from the use of the printing press. When a central bank produces more base money, it buys assets, many of which yield income. For instance, a central bank may buy a government bond with newly produced money. The net interest income resulting from the assets is seignorage and transmitted at the end of the year to the government. As a result of the introduction of the Euro, seignorage was socialized in the EMU. Central banks had to send interest revenues to the ECB. The ECB would remit its own profits at the end of the year. One could imagine that this would be a zero sum game. But it is not. The ECB remits profits to national central banks based not on the assets held by individual central banks, but rather based on the capital that each central bank holds in the ECB. This capital, in turn, reflects population and GDP and not the national central banks’ assets.

The Bundesbank, for instance, produced more base money in relation to its population and GDP than France, basically because the Deutschmark was an international reserve currency and was used in international transactions. The Bundesbank held more interest generating assets in relation to its population and GDP than France did. Consequently, the Bundesbank remitted relatively more interest revenues to the ECB than France, which were then redistributed to central banks based on population and GDP figures. While this scheme was disadvantageous for Germany, Austria, Spain and the Netherlands it was beneficial to France. Indeed, the Bundesbank profits remitted back to the German government fell after the introduction of the Euro. In the ten years before the single currency, the Bundesbank obtained euro 68.5 billion in profits. In the first ten years of the Euro the profit fell to euro 47.5 billion.

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IQ-Motivation : réfutation de Angela Lee Duckworth

L’étude “Role of test motivation in intelligence testing” (2011) menée par Duckworth et ses collègues est régulièrement citée par les partisans “anti-QI” comme une preuve à l’encontre de la “thèse du QI”. Il y a premièrement un grand malentendu. Comme Duckworth et al. ont noté dans leur conclusion :

It is important not to overstate our conclusions. For all measured outcomes in Study 2, the predictive validity of intelligence remained statistically significant when controlling for the nonintellective traits underlying test motivation. Moreover, the predictive validity of intelligence was significantly stronger than was the predictive validity of test motivation for academic achievement. In addition, both Studies 1 and 2 indicate that test motivation is higher and less variable among participants who are above-average in measured IQ. These findings imply that earning a high IQ score requires high intelligence in addition to high motivation. Lower IQ scores, however, might result from either lower intelligence or lack of motivation. Thus, given closer-to-maximal performance, test motivation poses a less serious threat to the internal validity of studies using higher-IQ samples, such as college undergraduates, a popular convenience sample for social science research (43). Test motivation as a third-variable confound is also less likely when experimenters provide substantial performance-contingent incentives or when test results directly affect test takers (e.g., intelligence tests used for employment or admissions decisions).

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Les individus intelligents sont plus progressistes, mais pas parmi les moins éduqués (GSS)

Satoshi Kanazawa (2010) et bien d’autres chercheurs ont fait prévaloir que les individus intelligents tendent à être plus progressistes. En fait, les données du GSS révèlent quelque chose d’inédit. L’intelligence est effectivement associée à l’idéologie progressiste, mais pas parmi les individus ayant un niveau scolaire “less than high school” (en utilisant DEGREE comme variable de contrôle).

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Racism, Guilt, Self-Hatred and Self-Deceit

Racism, Guilt, Self-Hatred & Self-Deceit, par Gedaliah Braun.

Racism, Guilt, Self-Hatred and Self-DeceitPrelude To a Continuing Discussion: Can A Fact Be Racist? (p. 10)

Question: can such a true belief – a fact – be racist? The very idea seems absurd. A fact is merely something that is the case, and such a thing cannot, in and of itself, be racist. To call something racist is to say it is morally bad and it would seem absurd to call a fact morally bad.

But if a fact cannot be racist, neither can a proposition, for a proposition is simply what is made true (or false) by facts. A proposition, therefore, is like a ‘picture’ of a fact: to every fact there corresponds the proposition which would assert that fact, while, conversely, to every proposition there corresponds either a fact (which makes it true) or the absence of that fact (whose absence makes it false). So propositions and facts are intimately related, and if facts cannot be racist neither can propositions.

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Les individus intelligents aiment la ‘diversité’ (GSS)

Les données du General Social Survey révèlent que les individus intelligents expriment de l’admiration pour les noirs, et pensent que les noirs apportent une contribution importante au pays. Ceci, évidemment, est complètement dépourvu de sens étant donné les nombreuses données indiquant que les noirs sont infiniment plus susceptibles de violence, même lorsque le statut socio-économique a été pris en compte. En outre, le lien entre faible QI et racisme envers les minorités ethniques n’est pas clairement établi.

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