👋 ASB Partners Nuggets 2.7.25
This is a short weekly email that covers a few things I’ve found interesting during the week.
Interesting Links/Reads
Many links are sourced from Marginal Revolution
o1 pro is the smartest publicly issued knowledge entity the human race has created (aside from Deep Research!). Adam Brown, who does physics at a world class level, put it well in his recent podcast with Dwarkesh. Adam said that if he had a question about something, the best answer he would get is from calling up one of a handful of world experts on the topic. The second best answer he would get is from asking the best AI models.
Except, at least for the moment, you don't need to make that plural. There is a single best model, at least when it comes to tough questions (it is more disputable which model is the best and most creative writer or poet).
I find it very difficult to ask o1 pro an economics question it cannot answer. I can do it, but typically I have to get very artificial. It can answer, and answer well, any question I might normally pose in the course of typical inquiry and pondering. As Adam indicated, I think only a relatively small number of humans in the world can give better answers to what I want to know.
In an economics test, or any other kind of naturally occurring knowledge test I can think of, it would beat all of you (and me).
Its rate of hallucination is far below what you are used to from other LLMs.
Yes, it does cost $200 a month. It is worth that sum to converse with the smartest entity yet devised. I use it every day, many times. I don't mind that it takes some time to answer my questions, because I have plenty to do in the meantime.
I also would add that if you are not familiar with o1 pro, your observations about the shortcomings of AI models should be discounted rather severely. And o3 pro is due soon, presumably it will be better yet.
The reality of all this will disrupt many plans, most of them not directly in the sphere of AI proper. And thus the world wishes to remain in denial. It amazes me that this is not the front page story every day, and it amazes me how many people see no need to shell out $200 and try it for a month, or more.
Ezra on the blitzkrieg strategy (NYT).
If you want to understand the first few weeks of the second Trump administration, you should listen to what Steve Bannon told PBS’s “Frontline” in 2019:
Steve Bannon: The opposition party is the media. And the media can only, because they’re dumb and they’re lazy, they can only focus on one thing at a time. …
All we have to do is flood the zone. Every day we hit them with three things. They’ll bite on one, and we’ll get all of our stuff done. Bang, bang, bang. These guys will never — will never be able to recover. But we’ve got to start with muzzle velocity. So it’s got to start, and it’s got to hammer, and it’s got to —
Michael Kirk: What was the word?
Bannon: Muzzle velocity.
Muzzle velocity. Bannon’s insight here is real
What Bannon wanted — what the Trump administration wants — is to keep everything moving fast. Muzzle velocity, remember. If you’re always consumed by the next outrage, you can’t look closely at the last one. The impression of Trump’s power remains; the fact that he keeps stepping on rakes is missed.
That is the tension at the heart of Trump’s whole strategy: Trump is acting like a king because he is too weak to govern like a president. He is trying to substitute perception for reality. He is hoping that perception then becomes reality. That can only happen if we believe him.
I had a conversation a couple months ago with someone who knows how the federal government works about as well as anyone alive. I asked him what would worry him most if he saw Trump doing it. What he told me is that he would worry most if Trump went slowly. If he began his term by doing things that made him more popular and made his opposition weaker and more confused. If he tried to build strength for the midterms while slowly expanding his powers and chipping away at the deep state where it was weakest.
But he didn’t. And so the opposition to Trump, which seemed so listless after the election, is beginning to rouse itself.
3. "525-Lb. Bear Discovered Under Evacuated Altadena Home Too Fat to Tranquilize."
4. Trumpian policy as cultural policy
I have a theory that tries to explain all these and other facts, though many other factors matter too. I think of Trumpian policy, first and foremost, as elevating cultural policy above all else.
Imagine you hold a vision where the (partial) decline of America largely is about culture. After all, we have more people and more natural resources than ever before. Our top achievements remain impressive. But is the overall culture of the people in such great shape? The culture of government and public service? Interest in our religious organizations? The quality of local government in many states? You don't have to be a diehard Trumper to have some serious reservations on such questions.
Podcast/Videos
👇Best 30 minute overview of top financial stories of week with Matt Levine…I can’t recommend his work enough…This is much more than news…I feel like I learn something new every time I listen
I hope you enjoyed it.
Adam