The obvious follow-up question is why is there not epic capital flight by every dollar that isn’t under capital controls? Who would ever invest in a Chinese company if they had a choice (other than me, a fool whose portfolio includes IEMG)? Certainly not anyone outside China, and those inside China would only do it if they couldn’t buy outside assets, even treasuries or outside savings accounts. No reason to stick around while they drink your milkshake.
If I understand correctly basically all money is under controls—individuals can buy only 50′000 USD worth of foreign currencies per year.
It used to be possible to exchange more by exchanging yauns for casino chips, playing and exchanging winning chips for USD but ~2021 china cracked down on this (eg. sending someone to prison for 18 years for running an operation like that) and it’s harder now.
Yes but signal / noise ratios matter a lot.
Language is somewhat optimized to pick up signal and skip noise. For example “red” makes it easier to pick ripe fruit, “grue” doesn’t really exist because its useless, “expired” is a real concept because it’s useful.
It also has some noise added. For example putting (murderers and jay wakers) in a category “criminal” to politically oppose something.
Also not being exposed to the kind of noise that’s present IRL might be an issue when you start to deal with IRL (sometimes people say something like “just do the max EV action” is a good enough plan)
I’m pretty sure this is some obstacle for LLMs, I’m pretty sure its something that can be overcome, I’m very unsure how much this matters.