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Eliezer_Yudkowsky comments on My Fundamental Question About Omega - Less Wrong
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The simulated Omega says, "I have predicted blah blah blah," when Omega has made no such prediction yet. That's a lie.
Omega doesn't have to simulate people. It just has to know. For example, I know that if Omega says to you "Please accept a million dollars" you'll take it. I didn't have to simulate you or Omega to know that.