Category Archives: Self Education

This self education category is to inspire the reader to improve their education and critical thinking skills, particularly in relation to financial freedom and personal development with sub categories of philosophical and financial. A key part of my personal development has been to overcome the ‘dumbing-down’ process I have experienced and here I present information which has been key to this process for me. Self education is about empowering yourself and taking responsibility – these are crucial aspects of entrepreneurialism and have many knock-on benefits which I will explain in various posts in this section.

What Is Debt? Money As Debt

This is the ideal ‘starter’ video to point people towards when you are having a discussion with someone who has no idea how the monetary system really works and no clue about fractional-reserve banking.

As more people come across this subject, the typical response to an explanation of just how fundamentally flawed and skewed the whole financial system is, tends to be one of disbelief.

There are some criticisms of this film and even the filmmaker Paul Grignon admits that ‘his presentation of fractional-reserve banking may have been “misleading”‘, but it’s a good place to start.

You can read a little more about this 2002-released film by clicking HERE. Grignon has so far made three films in this series so I will also add the other two to this blog, although the third film – ‘Money As Debt 3 Evolution Beyond Money’ is not available for me to embed just yet. The second one, ‘Money As Debt 2’, can be viewed by clicking HERE.

These films are animations which, although a little basic in terms of presentation seem to be the ideal format for films of this nature.

Propaganda – Lies, Damned Lies And Statistics – Poll Result/Conclusion Manipulation

Newspaper article writers love to take the results and conclusions of polls (especially fundamentally flawed ones) and to perform further extrapolation upon these results in order to jump to further ‘interesting’ conclusions.

It can be educational to examine these things more closely, which is precisely what the typical newspaper reader/commenter doesn’t bother to do, in an entirely predictable example of confirmation bias, which the writer is clearly aware of and hoping for.

The first thing to do when confronted with a poll is to search for the sample size – search being the operative word, because it’s typical to find that those who publish their conclusions based upon these polls tend to make this information difficult to locate.

Secondly, one should look for some kind of bias regarding the demographics of those being polled. So for example, a poll about attitudes to child-rearing might provide polar-opposite conclusions if the sample is made up entirely of mothers as opposed to fathers, or parents as opposed to non-parents.

Here is an interesting example that I stumbled across today –

Headline in newspaper – (from this link)

Lifestyle ‘is better in Poland than Britain’: Less crime and violence – and it’s cheaper too.

It’s important to take a moment to stop and consider the headline (above), because it’s likely to demonstrate the main deception that the writer is attemtping to make.

Just 5 per cent of Britons describe themselves as happy
Poland, France, Spain and Italy all have less material wealth, but fared better than the UK

Next we should examine the sub-heading (above), which will probably attempt to reinforce the deception as well as sometimes also doing the opposite – by offering a little truth in order to water down the deception of the main heading (which everyone will read) the sub-heading can also reassure the sceptical (more likely to also read the sub-heading) via this watering-down process.

The main fallacy used by polls and their resulting write-ups is the unrepresentative sample fallacy which can clearly be observed throughout the headline and sub-heading. Specifically, unless the whole of Britain is polled it is extremely poor and misleading journalism to use a sub-heading such as ‘Just 5 per cent of Britons describe themselves as happy.’

There are many more lessons to be found regarding propaganda within the article (for example, to ask yourself ‘what are they trying to achieve via this deception?’) but let’s move on to the first and most necessary part of our process here – finding the actual poll that the article is written about.

You will notice that nowhere in the actual article does it explain where the poll results are derived from. The only place where I can see it is at the bottom right of the first graphic – ‘Source -USwitch.com’.

So we head off to Google search engine and a quick search for ‘USwitch poll’ returns two pages and one of them is the poll we are looking for – USwitch poll August 2011.

Of course, the first consideration is that this is a poll (apparently – but see below for clarification) conducted by a commercial company (not a dedicated polling company) which is in the business of providing online price comparisons of various consumer utilities and everyday purchases, such as insurance and communications contracts.

Next we should eagerly look for the sample size of people polled and any demographic bias. What we find is that many of the statistics used for the pollsters to arrive at their own conclusions are firstly (1) drawn from a variety of sources and secondly (2) these statistics are manipulated somewhat using formulae devised by the pollsters.

Examples –

1) the poll is designed to compare Britons with the rest of Europe, but some of the statistics used are derived from sources which use international statistics – EG –

Working hours based on average usual weekly hours worked on main job. data from OECD/ ILO http://laborsta.ilo.org

2) an example of the formulae –

 Income data is net income after taxes (in GBP) for a two-earner married couple, one at 100% of average earnings and the other at 33% with 2 children. Data from from the Taxing Wages reports by OECD (these reports are currently not available on the OECD website).

So already, we have found two areas where the statistics are being skewed, before the newspaper gets their hands on them and skews them even more with creative headlines.

But back to the core fallacy, the unrepresentative sample. It’s right at the bottom of the article on the USwitch page –

The accompanying poll was carried out by Opinium Research. Sample size of 2,036 Nationally Representative (UK adults aged 18+) between 26th and 29th August 2011.

So the poll was actually conducted by a dedicated polling company. But who in their right mind would suggest that you can accurately define the attitudes of a nation with a population of over 61 million (according to 2006 estimates) by polling 2,036 people?

This is roughly one three-hundredth of a per cent! That’s 0.00333(reoccurring) of a percent.

But there’s more. Now that we have found the company who conducted the poll, let’s just take a brief look at their website.

I found this page called ‘Research based PR stories – fact or fiction?’

Extracts –

It was Benjamin Disraeli who said that, ‘There are lies, damned lies and statistics’. He might have been referring to some of the research-based PR stories that crop up in the media. A headline such as ’80 per cent of Brits face pension misery’ may grab the attention, but, if the research behind the headline is of dubious quality, then so is the story.

For me, the real culprit, however, is poor questionnaire design. Put yourself in the position of a panellist taking part in an omnibus survey. You’ll be expected to answer questions on a wide variety of topics. If you don’t know an answer, chances are you’ll take a guess, as opposed to ticking a ‘don’t know’ box. This is a particular problem in financial research, where most questions revolve around how much people earn, borrow, save, invest and spend. I don’t know about you but, off the top of my head, I couldn’t tell you what interest rate I’m paying currently on my mortgage or what my annual car insurance premium is. And I might not want to admit my ignorance, so would probably take an educated guess. If I’m not alone in doing this, then the survey findings – and resultant statistics – are going to be completely skewed.

Market research is great at producing headline-grabbing news stories, but ‘damned lies’, as Disraeli put it, are not worth the paper they’re written on.

It’s nice to see that the company responsible for this poll feel exactly the same way that I do about propaganda. 😉 No doubt they will be releasing a press-release shortly to explain their decisions regarding their interesting formulae, their ridiculously low sample size and to rebuke the Daily Mail for their use of this poll to construct their umm, ‘conclusions’?

The point which they make in the middle quote (above) is entirely valid. We have no idea what form the questioning in this poll took. But anyone with a brain knows that you can easily skew the results of a poll before it is taken by using multiple-choice instead of open questions, with the choices specifically chosen in advance for nefarious reasons.

When challenged on this, it is easy to defend by stating that it’s too much work for researchers to extrapolate results from the answers to open questions (so intead we use a computer to read the results), plus one could also point out that the interpretation of the answers by the researchers could be used to add bias to the findings – therefore multiple choice is ‘more accurate’.

The whole point of my article is to demonstrate the educational value of paying attention to these polls, the sample size, the demographics (or lack of information about them) and how these results are taken by other sources and extrapolated into sweeping generalisations.

What lessons can we learn about polls, statistics, newspapers and those who read them and take their findings at face-value? For example, as of this time (9am on the morning of publication) there are 190 comments on this article and only one that I can find, where the commenter doesn’t appear to be completely taken in by the deception. He calls himself ‘ExRat’ 😉

I hope that you find this useful and educational.

‘Anyone who doesn’t take truth seriously in small matters cannot be trusted in large ones either.’ Albert Einstein.

‘It’s no wonder that truth is stranger than fiction. Fiction has to make sense.’ Mark Twain

There are only two mistakes one can make along the road to truth; not going all the way, and not starting.’ Buddha.

‘A lie gets halfway around the world before the truth has a chance to get its pants on.’ Winston Churchill.

Updated –

I knew there was another article similar to this which used a sample of 2000 people in a poll to draw sweeping conclusions about the British consumer, although at least this one clearly points out the sample size in the article, right at the end of it –

Consumer Confidence Improves For First Time In Five Months

As you can see, this article is a fair bit more informative and factual than the previous one, but still – why do they choose to survey only 2000 people?

The GfK survey was based on a sample of around 2,000 people and conducted between September 2 and September 11 on behalf of the European Commission

Things that make you go hmmm.

9/11 In Five Minutes – Excellent Message Delivery Example For The Attention Deficit Generation

I saw this video earlier and thought it was worthy of embedding here for a few reasons. If you consider how much speculation, argument and literally how many words have been said on this subject, then I think that it is highly educational to examine how one person has managed to encapsulate one side of the argument and many of the most relevant points into a short video.

It’s even more relevant for anyone who is trying to get their message across via the internet in this day and age where publishers are having to try and adapt to the sound-bite attention span of the average internet surfer.

It might well be wise to assume that one of the most valuable skills to posess is the ability to deliver your message in as much of a punchy, brief, accurate and uncluttered manner as possible. Of course, when you are working with the spoken word plus other audio along with images, animations, video clips (the main options available to video publishers) if you can get these to knit together in the most effective way possible in order to accomplish that goal, you win.

In my opinion, this video wins. It gets the message across, holds your attention and concludes before your cup of tea has gone cold.

‘Who Are You? Who Voted For You?’ Nigel Farage Of UKIP Asks Herman Van Rompuy

 

I’m not intending to get too political on this blog, but I decided to post this video at this time due to some conversations I have been having in online mediums. One that triggered this in particular was a fellow Englishman (I presume) who, in response to a discussion about Nigel Farage of UKIP stated that –

‘…its no good being “right”, you have to be successful.’

This is the kind of apologist nonsense that makes me frustrated. I gave a reply to this person along the lines of the fact that it’s people who are ‘right’ who are precisely what we need right now across the world, regardless of whether they are ‘successful’. Many of the ‘successful’ in the world (in this context) are currently there, not by merit but by favour. Consequently, they are only successful in one misleading sense of the word.

It’s the other types of success that count. If everyone gave up on telling the truth in order to grease the wheels and gain a dishonourable kind of success, where would that leave the disenfranchised masses? Where would that take us? We already have too many people talking from the side of their mouths in this manner.

I have no idea if Mr. Farage is purely a shill, placed there to placate those disenfranchised masses. It’s only wise to consider this possibility but I would rather have a possible shill speaking the truth than no-one at all fighting my corner. Mr. Farage is a modern day David who is taking on Goliath. Those who would criticise him in this way, for not being ‘successful’ are possibly shills themselves.

There are three quotes from Ayn Rand’s great book Atlas Shrugged that really strike a chord with me currently, because I feel that they accurately sum up the state of the world and how this affects self-starters with entrepreneurial intentions – you know, ExRats.

‘When a society establishes criminals-by-right and looters-by-law, men who use force to seize the wealth of disarmed victims, then money becomes its creators’ avenger. Such looters believe it safe to rob defenseless men, once they’ve passed a law to disarm them. But their loot becomes the magnet for other looters, who get it from them as they got it. Then the race goes, not to the ablest at production, but to those most ruthless at brutality. When force is the standard, the murderer wins over the pickpocket. And then that society vanishes, in a spread of ruins and slaughter.’

‘When you see that trading is done, not by consent, but by compulsion- When you see that in order to produce, you need to obtain permission from men who produce nothing- when you see that money is flowing to those who deal, not in goods, but in favors- when you see that men get richer by graft and by pull than by work, and your laws don’t protect you against them, but protect them against you- when you see corruption being rewarded and honesty becoming a self-sacrifice- you may know that your society is doomed.’

‘When you have made evil the means of survival, do not expect men to remain good. Do not expect them to stay moral and lose their lives for the purpose of becoming the fodder of the immoral. Do not expect them to produce, when production is punished and looting rewarded. Do not ask, ‘Who is destroying the world?’ You are.’

Stefan Molyneux & Gerald Celente ‘The Eye Of The Storm’


 

In this video Stefan Molyneux talks with Gerald Celente. Gerald talks about a probable QE3 in the USA and other Ponzi schemes. Stefan adds that the money-printing by governments/central banks around the Western world is like a default by proxy. Gerald agrees and follows up by pointing out that ‘when all else fails they take you to war.’

This is grim stuff, but try arguing with the logic that they are presenting. It’s history repeating itself – this has been played out before.

I always enjoy listening to Stefan Molyneux and always learn something from him, but I was really impressed with Gerald Celente too. He’s a likeable character with a very clear and direct point of view. I recommend taking the 23 minutes to watch this video. There are a lot of people suggesting that things are coming to a head. Tomorrow the EU meets up to try and save itself from it’s inevitable demise. The USA has 10 days to raise it’s debt ceiling.

When people like Stefan and Gerald start telling us that we’re right on the edge of the precipice, my ears prick up. Gerald proposes the solution of direct democracy (although his new site is not up and running yet).

I don’t know if that could be part of the solution or the solution itself, but we need a solution quickly and it sounds a lot better than what we currently have.