#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

PS. Has the US Congress approved risk weights of 0% Federal Government – 100% We the People? 

Here my many other questions to ChatGPT – OpenAI on bank regulations

 

My Fourth of July 2019 tweets to the United States of America

This Fourth of July 2019 here are two tweets in which I expressed, to that United States of America that I admire and that I am so grateful to, some very heartfelt concerns.

In 1988 America signed on to the Basel Accord’s risk weighted capital requirements for banks. 

These gave banks huge incentives to finance what was perceived as safe, and to stay away from the “risky”. 

It is so contrary to a Home of the Brave, opening opportunities for all.

And regulators decreed risk weights: 0% sovereign, 100% citizens

That implies bureaucrats know better what to do with credit than entrepreneurs

That has nothing to do with the Land of the Free, much more with a Vladimir Putin’s crony statist Russia

http://subprimeregulations.blogspot.com/2019/03/my-letter-to-financial-stability-board.html

PS. Why “grateful”? Had my father, a polish soldier not been rescued by American’s from a German concentration camp April 1945, I would not be.

PS. As one of those millions Venezuelan in exile, I know my country’s future much depends on America’s will to support its freedom.

Time, the ANC and meridians

I have no intention of putting the right to punctuality in the same category as the basic traditional human rights such as the right to education, security, access to health care, food and work. 

However, in a country such as Venezuela we can easily lose up to three hours per week waiting for something or another, due mostly to a total lack of respect for the value of our time. Accumulated over our average active life span of 55 years, this adds up to approximately one year of our lives. I therefore think that this matter is not at all irrelevant, less so in times of a constituent assembly.

 

As a matter of fact, our Constitution and laws supposedly protect the common citizen against the unjustified loss of his or her right to freedom. All civil rights organizations in the world would go ballistic if someone would dare propose the possibility of unjustified arrest, even if it were for only one year. 

So how come nobody says anything when we lose our liberty for more that one year, even if it is bit by bit, due to the lack of punctuality or mediocre and/or non-existent services.

 

I am not a candidate for the constituent assembly. My other responsibilities to my family and country allow me to avoid a process which would only bring my lack of powers of assembly to light. However, this does not limit nor my right nor my obligation as a citizen to present proposals and observations to the process. 

In this sense, I must remind the 131 members of the constituent assembly that, for example, when the State requires the country’s population to carry an identification card and the latter takes more than fifteen minutes to issue, we are essentially in the presence of a clear violation of human rights.

 

But in the case of the lack of punctuality, it is evident that we need a total reform of all civil society. There is no doubt that among the majority of the population, both among defenders of human rights as well as among those that complain about the public administration, there hide a bunch of vulgar violators of human rights who, without remorse whatsoever, blithely ignore the existence and purpose of the clock.

 

How, then, do we reform our civil society? This is a difficult question to answer, specially when you consider that should we require punctuality as a basic prerequisite for election to the constituent assembly, it would surely be very difficult to complete the roster of 131 members.

 

One alternative would be the creation of a Punctual Venezuela, parallel to the actual one. For example, if we start to use a little symbol that could be printed on all invitations to those activities that really require punctuality at the risk of being either excluded from the event or publicly chastised, we could possibly begin to create some semblance of civility.

This symbol could be a watch, but I would rather leave that up to the specialists in advertising.

 

The interesting part of this alternative is that it would simultaneously allow us to impose, as of today, a heavy public sanction for those who lack punctuality without having to request that notorious sinners must go through a process of painful public remorse. Additionally, the mere fact of maintaining the option of a “Punctual Venezuela” alive, would allow us to simultaneously allow us to continue to humor those foreign visitors who, with a tropicalisation which rivals that of the inhabitants of Borburata, take every chance to take revenge on and/or liberate themselves of the yoke of punctuality.

 

I wish to take this opportunity to mention another problem that preoccupies me and that also is related to time. We have recently been witness to public spectacles such as the fight the United States has sustained with Europe about bananas. I have often suggested that the effect of global warming has been much greater that we first suspected. It seems to have moved the parallels normally identified with Banana Republics northwards towards Washington.

 

I consider, however, that not only the parallels have gone crazy, the meridians have gone haywire as well. I often take my daughters to parties that begin at midnight, which to me simply seems like a real and crude version, in cinéma vérité, of Saturday Night Fever. I can not but suspect that their generation has simply decided to substitute the East Coast’s meridian for that of the West Coast. Some of the television channels seem to suffer from the same syndrome. Somehow, I always seem to go to bed at night watching comics while, if I am not careful, my daughters wake up with XXX.

Three bullets on punctuality

Time and human rights

I have no intention of putting the right to punctuality in the same category as the right to education, security, health care, food, and work. 

However, in a country such as ours (Venezuela) where we because of sheer lack of punctuality can easily lose up to three hours per week waiting for something or another, this, over our an average active life span of 55 years, adds up to around one year. 

As civil-rights organizations normally go ballistic whenever anyone is arrested without justification even for a couple of hours, I wonder how they let this pass.

There can be no doubt that the majority of our countrymen do, without any remorse whatsoever, blithely ignore the existence and purpose of the clock, and so it is evident that in terms of punctuality we need a total reform of our civil society. How do we achieve this? 

One alternative would be the creation of a “Punctual Venezuela,” parallel to the actual one. For example, if we start to use a little symbol that could be printed on all invitations to those activities that really require punctuality at the risk of being either excluded from the event or publicly chastised, we could possibly begin to create some semblance of civility. This symbol could be a watch, but I’d rather leave that up to the specialists in advertising.

The interesting part of this alternative is that it would allow us to impose, as of today, a heavy public and social sanction for those who lack punctuality without having to request that “notorious and incurable sinners” kick the habit cold-turkey. Also, maintaining the option of a not punctual Venezuela alive would allow us to continue to humor those foreign visitors who with a tropical flare that rivals our best take every chance they get to free themselves from the yoke of punctuality.

About parallels and meridians

We have recently witnessed public spectacles such as the fight the United States has sustained with Europe about bananas. Perhaps the effect of global warming has been much greater than we suspect as it seems to have moved the parallels normally identified with Banana Republics northward.

However the meridians might have gone haywire as well. I often take my daughters to parties that begin at midnight, which to me simply seems like a real and crude version, in cinéma vérité, of Saturday Night Fever. I cannot but suspect that their generation has simply decided to substitute the East Coast’s meridian for that of the West Coast. Some of the television channels seem also to suffer from the same syndrome. Somehow, I always seem to go to bed at night watching their afternoon comics while, if I am not careful, my daughters could wake up with their XXX-rated after midnight material.

My daughter’s cult

She is rarely late but she is absolutely never ever a minute early. She follows that Just-In-Time cult that drives us inhumanely nuts.

Extracted from "Voice and Noise" 2006. The first two bullets are based on an article published June 11, 1999 in The Daily Journal

A New English Language Empire

I have often harbored reservations about the possibility of success of the European Union. In particular my worry is about its new currency, the euro, the bases of which I believe are rather weak. I recently heard that there is still much debate going on which, even when new to me, leads me to rethink many of today’s geopolitical aspects.

I refer to the thesis that the United Kingdom is finding it extremely difficult to get used to the idea that it must forgo much of its autonomy in favor of an entity formed by other nations which are geographically close, but still very mystifying, and therefore could possibly abandon the idea altogether, forging instead an alliance with the English speaking world. Among the sponsors of this line of thought, I find the Canadian newspaper owner Conrad Black and the well renowned historian Paul Johnson.

Having observed how much time and effort the UK and the United States spend coordinating their foreign policy and considering how tempting it must be to unite cultures of the same origin that speak the same language and share the same legal system into one global superpower, it should not really be surprising if we were all of a sudden presented with the creation of an English Language Union, or ELU. Considering the recent impact of Shakespeare in Hollywood it might be a lot closer than we think.

The possible implications of a NAFTA expanded to include the UK plus perhaps even other nations such as Australia and New Zealand (both disillusioned by the Asian crisis) lead me to reflect on other issues in addition to the importance of the English language. 

The first issue that occurs to me is that any pact of this sort would effectively wipe out any aspiration Europe may nurture of going head to head with the United States unless it undertakes internal expansion (Russia or its former satellites, maybe?).

Another important thought is the fact that in a globalized and computerized world, geographical proximity seems to be losing its importance. The truth is that once you have incurred the cost of loading merchandise on an airplane or ship, the marginal cost of transporting it a few thousand miles further is not really that great. This could be of importance to Venezuela, especially when it owns so much oil.

The Andean Pact, is basically a commercial agreement with Colombia. This makes a lot of sense if we are trying to create bigger markets with their corresponding economies of scale for our respective industrialists. 

It does not make much sense as far as real complementary economics are concerned.

It is possible that Venezuela, while not abandoning its policy of creating larger markets, should be intensifying its efforts of negotiating commercial agreements with countries very different from itself, in which we can maintain our competitive advantages.

While oil prices remain low, our currency will be sufficiently weak so as to allow industries heavily dependent on labor, such as the textile confection sector to compete with Colombia. Evidently, if oil prices were to spike upwards, the bolívar would become stronger and would make survival of industries such as these difficult, obligating the country to impose protective duties.

If, however, our agreements would be based more on real complementary issues and economics, then it would be possible to create sustainable results. A simple theoretical example would be a negotiation of an commercial agreement with one of the Nordic states, with a wintry climate, allowing them preferential access to our market, with the establishment of the beaches of Margarita as the preferred winter tourist attraction for its citizens. Chile, for one, has made a lot of this, in for instance promoting fruit exports, taking advantage of the fact that their seasons are opposite to those of the Northern Hemisphere.

There is no doubt that we are in a fluid and rapidly changing environment in which it is of extreme importance to be alert to the possibilities that are presented to us. Personally, I feel that Venezuela should not hurry into commercial agreements, simply because it is the thing to do, the flavor of the month. What’s more, with the sole exception of Colombia, with which we share a permeable border which in turn makes the negotiation of agreements a must, I believe Venezuela has not signed one single agreement in which it comes out ahead in practical terms as a country.

Published in The Daily Journal, Caracas, April 1999

PS. Oops! Does Brexit now reignite this alternative? How much should the English language proprietors now charge the remainder EU for the use of it… so as to avoid a war between Germans, French and Spaniards on which should now de facto be its official language? Or will EU go for Esperanto?