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abramdemski comments on Reflection in Probabilistic Logic - Less Wrong
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Ok, I see!
To put it a different way (which may help people who had the same confusion I did):
We can't set all statements about probabilities to 1, because P is encoded as a function symbol within the language, so we can't make inconsistent statements about what value it takes on. ("Making a statement" simply means setting a value of P to 1.)
I'm very pleased with the simplicity of the paper; short is good in this case.