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On (invoking) the Impartial Observer On (invoking) the Impartial Observer

11-20-2023 , 01:12 AM
It was Nick Szabo formalization of Smith's TWON that had me seriously interested in TOMS.

Quote:
Combine this with Metcalfe's Law and we reach a dramatic but solid mathematical conclusion: the potential value of a land transportation network is the inverse fourth power of the cost of that transportation. A reduction in transportation costs in a trade network by a factor of two increases the potential value of that network by a factor of sixteen. ...
Spoiler:

Quote:
Originally Posted by Szabo
Metcalfe's Law states that a value of a network is proportional to the square of the number of its nodes. In an area where good soils, mines, and forests are randomly distributed, the number of nodes valuable to an industrial economy is proportional to the area encompassed. The number of such nodes that can be economically accessed is an inverse square of the cost per mile of transportation. Combine this with Metcalfe's Law and we reach a dramatic but solid mathematical conclusion: the potential value of a land transportation network is the inverse fourth power of the cost of that transportation. A reduction in transportation costs in a trade network by a factor of two increases the potential value of that network by a factor of sixteen. While a power of exactly 4.0 will usually be too high, due to redundancies, this does show how the cost of transportation can have a radical nonlinear impact on the value of the trade networks it enables. This formalizes Adam Smith's observations: the division of labor (and thus value of an economy) increases with the extent of the market, and the extent of the market is heavily influenced by transportation costs (as he extensively discussed in his Wealth of Nations).


He synthesized new computer science theory with centuries old observations on the nature of our economy and translated it into formal math. When I read this I connected the style with a section in the bitcoin whitepaper where satoshi translates sigma notation to code (namely a 'for loop').
Spoiler:


Smith's writing is very much balanced and balancing observations. He is the ultimately purple talker. He gives the red, then he gives the blue.

In TOMS (which I am not near finished studying but I claim here to have gained a special insight from) Smith explains the concept of the 'impartial spectator'. Its a very powerful concept that I think will change our interactions (although perhaps at first some need to trip up on it. The impartial observer is something that can be 'invoked' in each of us, and therefore is always there implicitly to play its role. And as we understand, quickly, the importance of invoking the impartial observer I think then we will understand chatGTP and similar technology will be used as tools to invoke the impartial observer.

Quote:
Originally Posted by TOMS
“We endeavour to examine our own conduct as we imagine any other fair and impartial spectator would examine it. If, upon bringing the case home to ourselves, we find that it does not coincide with our own sense of propriety, we reject it immediately.”

"When I endeavour to examine my own conduct... I divide myself, as it were, into two persons; and that I, the examiner and judge, represent a different character from that other I, the person whose conduct is examined into and judged of."

"The man within the breast, the abstract and ideal spectator of our sentiments and conduct, requires at our hands this particular refinement of justice."

"By the imagination we place ourselves in his [the impartial spectator's] situation... We enter into his sentiments and become in some measure the same person with him."

"It is reason, principle, conscience, the inhabitant of the breast, the man within, the great judge and arbiter of our conduct."
11-20-2023 , 09:05 PM
I had meant to call the thread "On Propriety and the Impartial Observer". I wasn't sure I could bridge the concepts succinctly. They are powerful and important.

Propriety is the social normal set by the collective interactions of the participants of the forum (or have I misunderstood how to use the word?)....
Quote:
pro·pri·e·ty
/p(r)əˈprīədē/
noun
the state or quality of conforming to conventionally accepted standards of behavior or morals.
If you feel at some point your 'red/blue' opponent is engaging insincerely you can invoke the impartial observer by reminding them that the entire forum is reading the dialogue. If your opponent isn't a psychopath, they will at least care if they lose the favor of whom they deem to be their supporters.

There is a concept there, a type of pressure, or feeling/conscience that exists, even if the audience isn't actually impartial, there is a relationship that keeps us in check, lest internally we feel like we are losing...because we think maybe we are losing the favor of the crowd.

Our projection of this crowd and the crowd itself therefore shape and temper the (in)sincerity of our interactions.

Even mods have to bend to the propriety of the forum.

Thus, propriety is the great rule setter and its rules are upheld by the collective of participants of whom form the (great) impartial observer.
11-20-2023 , 10:51 PM
And then as a greater observation we can see the evolving role of chatGTP as an impartial contributor. ChatGTP comes with a caution warning, its not always correct. But I think it can be used to at least partially invoke the impartial observer...

Here is an example:

https://forumserver.twoplustwo.com/s...&postcount=375
Quote:
Quote:
Originally Posted by PointlessWords
the fed gives out tbills?
Ur playing with semantics again...
Quote:
Originally Posted by ChatGPT
Yes, the Federal Reserve, as part of its monetary policy operations, is involved in transactions with U.S. Treasury bills (T-bills). However, it's important to clarify the roles:
Spoiler:
Quote:
Originally Posted by ChatGPT
Issuance of T-Bills: The U.S. Department of the Treasury is responsible for issuing Treasury bills. T-bills are short-term government securities with maturities ranging from a few days to 52 weeks. They are issued through a competitive bidding process at regular auctions.

The Federal Reserve's Role: The Federal Reserve does not issue T-bills, but it does buy and sell them in the open market. These operations are part of the Federal Reserve's open market operations (OMO), which are used to regulate the supply of money in the banking system and influence short-term interest rates.

Buying T-Bills: When the Federal Reserve buys T-bills, it increases the money supply in the banking system, as it pays for these securities, and this action can help lower interest rates.
Selling T-Bills: Conversely, when the Fed sells T-bills, it takes money out of circulation, which can help to increase interest rates.
These transactions are a key tool in the Federal Reserve's monetary policy arsenal for managing the economy. They are not about funding the government's deficit but are aimed at managing liquidity and controlling short-term interest rates.
11-21-2023 , 01:30 AM
Here we have a discrepancy:

Quote:
Originally Posted by chatGTP4
Bank Reserves and Lending: With more reserves, banks have more capacity to lend money. According to the fractional reserve banking system, banks only need to keep a fraction of their deposits as reserves. The rest can be lent out. When banks have excess reserves, they seek to loan out this money to earn interest.
Quote:
Originally Posted by Feder Reserve
As announced on March 15, 2020, the Board reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions.
https://www.federalreserve.gov/monet...reservereq.htm

Thats before chatGTP4's snapshot...so its supposed to be in its knowledge base afaik. Its inherited the biases of the propriety of the internet. So how can it be useful then?

If chatGTP inherits our biases then can it be used to alleviate them?
11-21-2023 , 07:53 AM
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