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Archive for the ‘Epistemology’ Category

Archaeology, the Internet and Neutrinos

2011-11-15 1 comment

Or: Space and the Universe are a Palimpsest

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Most recently Israeli archaeologists unearthed a crusader’s inscription believed to be around 800 years old and, which is why it makes headlines, written in Arabic.

For those who have followed archaelogical progress over several decades (and reconstructed it from the very beginnings of “modern” archaeology starting probably with people like Schliemann trying to find Troy etc.) it is quite obvious that not only have many things been unearthed in recent years that former generations would have never believed to have existed but it seems clear that what has so far been found is but a fraction of what there is to be found at some future point; and then some, because probably most of the stuff will never be found, go unrecognised or being inadvertently destroyed, e.g. while excavating for a new underground rail system etc. Read more…

Economic Fallacy VII: The Net Economic Gain through Pharmaceuticals

2010-04-12 9 comments

Are double-blind studies of pharmaceuticals enough to prove the efficiency of a new drug? You may be surprised to hear that potentially 90% of such studies could be flawed.
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Economic Musings VI: Modern Economies – Dying of Consumption

There is a great debate in the history of economics whether there can be under-consumption in any real historic moment of the state of an economy and if so, whether it has detrimental effects and if so, what is to be done about it. And modern economists seem to have found a magic wand with which to unfailingly repair any such damage and smoothen the otherwise rough ride of economic cycles. We’ll see if they have and what it might be worth, whether it’s a wand or a cane.

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Economic Fallacy VI: The Divisive Multiplier

2010-03-28 5 comments

There is a widespread believe that if governments inject a certain amount of money into “an” or “their” economy, it will miraculously multiply and bear fruit beyond what was invested. This is one of the mainstays of Keynesian economics in that it justifies state subsidies, public works, in short just any intervention by a state in the realm of private enterprise on the expenditure side. Read more…

Economic Fallacy V: Can CPI measure Deflation?

2010-03-23 1 comment

In a recent post Woodford warns of deflation threat as CPI drops to 3% CrisisMaven found another instance of the widespread belief that not only sinking prices (misspelt “deflation”) are harmful as they cause buyers “to strike” but that the housing market has “deflated”. Read more…

Economic Fallacy IV: Buyers’ Strike during Deflation?

2010-03-21 2 comments

If buyers don’t buy during a period of deflation why would sellers sell during periods of inflation? Read more…

Economic Musings IV: How Bank Robbers cause Inflation

2010-03-20 6 comments

If a robber robs a bank and runs away with the money, never gets caught or if he gets caught has spent the money before that, has that caused inflation? No – the bank now has less money and thus its money holdings have decreased exactly as much as the robber’s holdings increased. But what if the bank gets “recapitalised”? Read more…

Economic Musings III: The Bubble Analogy

2010-03-19 5 comments

There’s this fear that if a financial bubble bursts this would be tantamount to deflation (after all, when an inflatable dinghy bursts it’s called deflation). And because deflation is deemed to be a bad thing the panacea must be (re)inflation of “the” economy. Well, let’s look at what happens when a balloon bursts … Read more…

Economic Fallacy II: Speculation is Harmful?

2010-01-27 1 comment

Apart from outright naval blockade or sieges there has probably been hardly another operation considered as deadly and therefore been at times revenged than what is deemed “profiteeringspeculation. The idea to many is that speculation robs honest people of their livelihood. Alleged speculators have been tortured, hanged, disenfranchised, robbed, denigrated, banned, imprisoned, scandalised and impoverished throughout human history and still today economic policy is rife with discussions on how to curb “illicit” forms of speculation. Read more…

How GDP betrays the Economy

Isn’t the crisis over, albeit the recovery may be slow? Hasn’t GDP contraction slowed down, been stopped, maybe reversed? Isn’t all that good news? Couldn’t it have been worse if the Fed hadn’t done the right things?

The problem with almost all macro-economic aggregates ist that Read more…

What’s wrong with Economics?

2010-01-23 3 comments

This article is a prerequisite to understanding many of the arguments put forth on this blog in the future and therefore probably one of the most important if not the most important one. It is, as many of CrisisMaven’s posts, rather lengthy, however, compared to so many trillions lost in paper money, what are a few hours spent reading “between friends”? Read more…

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