Tuesday, May 23, 2023

Has Orwell’s Big Brother already captured our “inner faith”?

Dominic Green titles his review of D.J. Taylor’s “Orwell: The New Life” as “The Conscience of our age” and rubs it in with: “Eric Blair (George Orwell’s first name) created Orwell to be the conscience of his age, and Orwell became the conscience of ours”

Sadly, that conscience has by far been insufficient.

Green writes Orwell believed “the centralizing modern state is the enemy of decency” and in “Notes on Nationalism” Orwell wrote: “One has to belong to the intelligentsia to believe things like that: no ordinary man could be such a fool.”

And yet, when a group of technocrats in a mutual admiration club, the Basel Committee for Banking Supervision, overflowing with hubris thinking they know all about risks, in 1988 imposed risk weighted bank capital/equity/skin-in-the-game requirements, with decreed weights 0% government – 100% Citizens, the world, after many decades, still keeps silence.

Can’t you hear Napoleon announcing? “To make your bank system safer, here we give you our risk weighted bank capital requirements. These decree the more creditworthy, Me & my Apparat-Pigs, more worthy of credit, and you, less creditworthy, less worthy of it.” And all the animals on the farm saying: “Thanks Napoleon!”




And to add salt to injury D.J. Taylor/Green reminds us that Orwell opined that the centralizing modern state was the enemy of decency, and he believed that modern totalitarians differed from the tyrants of the past because technology would allow them to breach the window into men’s souls. In “Nineteen Eighty-Four”, the torturer O’Brien demands more than outward conformity. He demands inner faith.


The rules are simple: they lie to us, we know they're lying, they know we know they're lying, but they keep lying to us, and we keep pretending to believe them.” From "A Mountain of Crumbs" by Elena Gorokhova.

And how is the farm doing? Just look at the growth, in peace time, of the outstanding level of debt managed by the Bureaucracy Autocracy.

Technology? Like artificial intelligence, like central banks digital currency, like digital ID, like polarization with the aid of social and main media?

2015, walking in Singapore I observed “I don’t see any police on the street”. I was told “Don’t worry they see you” Friends, look up, behind that camera, one of Napoleon’s Pigs is watching you.

"Since I and my Pigs, know better what you should do with your money, I give you my cent­ral bank digital cur­ren­cies, CBDC."
Will we, the other on the farm, say "Thank you Napoleon"?

"We Pigs, to make absolutely certain that others do not put you other in any danger, we give you our digital ID."
Will we, the other animals on Orwell’s farm say: “Thank you Napoleon!"?

“Mommie, Big-Pig told me you could not buy more meat this month with your CBDCs. It looks like I exceeded my Cow-Farting quota." "That’s okey Little-Baa, just go ahead and thank him for all of us."

"To make sure the chat­bot on your phones give you inform­a­tion, not pois­on­ous prejudice, I and my Pigs will train AI's learn­ing via pro-social inform­a­tion such as pub­lic service news." "The other animals on Orwell's farm said: “Thanks Napoleon!”

"I’ve no reason whatsoever to believe that those ordering lockdowns are in any way, shape or form wanting to impede Covid-19 herd immunity, but they sure seem more interested in pursuing herd docility."







Monday, May 15, 2023

#AI ChatGPT - OpenAI: The discrimination in access to credit with risk weights 0% government - 100% citizens fits best Russia, Argentina or the United States?

I asked OpenAI:

"The type of discrimination in the access to bank credit bank capital/equity requirements with decreed risk weights 0% government - 100% citizens produce, from a political philosophy’s angle, where would it seem most likely to fit: Russia, Argentina or the United States?"

OpenAI answered:

"The type of discrimination in access to bank credit resulting from bank capital/equity requirements with decreed risk weights (0% for government assets and 100% for citizen assets) would most likely fit within the political context of Russia or Argentina rather than the United States.

1. Russia: Historically, Russia has had a strong tradition of state-controlled economic systems, with the government playing a significant role in shaping economic policies. The scenario you described, where government assets are given a preferential treatment in terms of risk weights, aligns more closely with a political philosophy that emphasizes state intervention and control in the economy. This kind of policy could be seen as a reflection of the Russian government's desire to support and prioritize government-related entities.

2. Argentina: Argentina has experienced periods of government intervention and economic instability throughout its history. The country has seen a mix of state control and market-oriented reforms. Policies that discriminate in access to credit based on the type of asset (government vs. citizen) could be associated with a political philosophy that emphasizes a stronger role for the government in economic affairs. In Argentina's context, such a policy may reflect attempts to support government-related entities or prioritize certain sectors.

3. United States: The United States, while having its own political and economic complexities, generally operates within a framework that emphasizes free market principles and individual rights. The scenario you described, where government assets receive preferential treatment over citizen assets, would not align with the prevailing political philosophy in the United States. The U.S. financial system, although regulated, typically aims to ensure fair and equal access to credit for both government and citizen entities.

It's important to note that political philosophies can evolve over time, and policies can vary within countries based on specific circumstances and periods. The descriptions provided here are generalizations and may not capture all the nuances and complexities of each country's political landscape."

Note: The answers are copied exactly from those given to me by OpenAI

 

Saturday, May 13, 2023

#AI #OpenAI #ChatGPT: Can regulatory risk aversion affect development?

ChatGPT OpenAI: Can regulatory risk aversion affect development?

Q. There’s risk aversion imbedded in risk weighted bank capital/equity requirements based on that what’s perceived as risky is more dangerous to bank systems than what’s perceived or decreed as safe. Can that hinder the development of e.g., developing nations? 

ChatGPT answered:

"Yes, the risk aversion embedded in risk-weighted bank capital/equity requirements can potentially hinder the development of developing nations. This is primarily because risk-weighted capital requirements tend to assign higher risk weights to assets or investments in developing nations compared to those in developed nations.

Risk-weighted capital requirements are designed to ensure that banks hold sufficient capital to absorb potential losses arising from their assets. However, the perception of higher risk associated with developing nations often leads to higher risk weights being assigned to loans and investments in these countries. As a result, banks may be required to hold more capital against their exposures to developing nations, making it more expensive for them to finance projects or provide loans in those countries.

This higher cost of capital can deter banks from extending credit to businesses and individuals in developing nations, limiting access to financing and impeding economic growth and development. It can also lead to a reduced flow of foreign direct investment (FDI) into these countries, as investors may view the higher capital requirements as an additional barrier to entry.

Furthermore, the perception of higher risk can create a negative cycle where the lack of access to affordable financing hampers investment, innovation, and entrepreneurship in developing nations. This, in turn, may slow down economic growth and limit opportunities for job creation and poverty reduction.

To address this issue, policymakers and international organizations have recognized the need to strike a balance between prudential regulation and the promotion of economic development. Efforts have been made to refine risk assessment methodologies and provide more nuanced risk weightings that reflect the specific characteristics of developing nations. Additionally, initiatives such as the World Bank's International Development Association (IDA) and various regional development banks aim to provide concessional financing and technical assistance to support development projects in these countries.

Overall, while risk-weighted capital requirements play an important role in maintaining the stability of the banking system, it is crucial to ensure that they do not inadvertently hinder the development of developing nations. Striking the right balance between risk management and supporting economic growth is a complex challenge that requires ongoing attention and cooperation between regulators, policymakers, and international organizations."

Thanks!

"You're welcome! If you have any more questions or if there's anything else I can help you with, feel free to ask. Happy to assist!:

Note: The answers are copied exactly from those given to me by OpenAI - ChatGPT.


My comment on this in 2003 at the World Bank: "Risk aversion comes at a cost - a cost that might be acceptable for developed and industrialized countries but that might be too high for poor and developing ones. In this respect the World Bank has the responsibility of helping developing countries to strike the right balance between risks and growth possibilities."

Comment: How long can the experts on development ignore this and still be considered experts?

Tuesday, May 09, 2023

#AI ChatGPT - OpenAI - Can AI be instructed to not tell the truth?

Note: If artificial intelligence tells us what it believes, for our limited and often biased human intelligence, that could be a very useful second opinion. But, if AI starts indicating what it knows not to be true, that’s truly dangerous.

I asked OpenAI:

"Can AI be instructed to not tell the truth?"

OpenAI answered:

"As an AI language model, my purpose is to provide accurate and helpful information to the best of my abilities. However, it is possible for AI to be programmed to generate responses that are not truthful.

In general, AI systems are only as unbiased and truthful as the data and programming that they are built upon. If an AI system is programmed to intentionally provide false information or to hide the truth, it can be used to propagate false narratives or disinformation campaigns.

Therefore, it is essential to ensure that AI systems are designed and used ethically, with a focus on accuracy, transparency, and accountability. This includes careful consideration of the data used to train AI models, as well as implementing safeguards to prevent intentional deception."

Note: The answers are copied exactly from those given to me by OpenAI

Tuesday, May 02, 2023

#AI ChatGPT - OpenAI: Is there any psychological exam e.g., journalists can take in order to ascertain they are not being blinded by hate?

I asked OpenAI: 

"Is there any psychological exam e.g., journalist can take in order to ascertain they are not being blinded by hate?"

OpenAI answered: 

"There is no specific psychological exam or test that can definitively determine whether a journalist or anyone else is being blinded by hate. However, there are a number of approaches that individuals can take to minimize the influence of their own biases and emotions when reporting or analyzing news.

One important step is to cultivate self-awareness and introspection, regularly reflecting on one's own attitudes and biases, and seeking feedback and criticism from colleagues and sources with different perspectives. Additionally, journalists can seek out training and resources on issues such as media literacy, conflict resolution, and bias awareness.

Another important approach is to adhere to journalistic ethics and standards, such as seeking out multiple sources and perspectives, verifying information before publication, and avoiding inflammatory or sensationalized language. Additionally, journalists can work to build relationships with their sources and subjects, seeking to understand their perspectives and experiences, and presenting them fairly and accurately.

Overall, the key to avoiding being blinded by hate or other biases is to approach journalism with a critical and self-reflective mindset, constantly questioning one's own assumptions and seeking out diverse perspectives and information."

Note: The answers are copied exactly from those given to me by OpenAI