Armstrong Economics Blog/Socrates Re-Posted May 12, 2023 by Martin Armstrong
QUESTION: Allison Schrager at Bloomberg claimed that AI does a great job finding solutions based on existing rules and information. But it’s less suited for finding novel solutions to new problems. Somehow, this does not seem to apply to Socrates for there are no new problems anyway. Am I correct that Socrates will find new solutions?
ANSWER: Yes, you are correct. However, Socrates has a database that is unprecedented and cost tens of millions of dollars to assemble. It can find solutions that are certainly not mainstream and may appear to be revolutionary but in fact, may have taken place even 2,000 years ago.
Socrates is NOT a Neutral Net. This is something I created from scratch. I put myself into this system. I had to teach Socrates how to analyze. I did not create some open AI and let it develop in some unknown manner. This is not Chat GPT where it is searching the net to come up with answers to what is the name of Lady GaGa’s dog.
Socrates has the largest financial database in the world. It has a money supply recreated from the coinage of thousands of years. It has correlated that with wars and plagues and it makes the connections. It has a database of 6,000 years which is unsurpassable. If I even tried to recreate this at today’s prices, it would be more than $1 billion.
Just on Forex Exchange, I had staff recording all the currencies back hundreds of years taking down quotes for all the world newspapers stored at the Royal Newspaper Library in London for years. Without that, we would never have been able to forecast that the pound would drop to par in 1985 when it was trading at $2.40.
What Socrates will do is it will test what attempts were made to solve crises in the past and what worked and what failed. Diocletian (284-305AD) imposed wage and price controls to try to stop inflation the same as Richard Nixon.
There was a major earthquake in Turkey that devastated the region. Emperor Tiberius issued coins to provide relief and suspended all taxes in the region to help rebuild. There have been so many different solutions that people today would never consider, but Socrates will.