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Equality of two circular sets

Given the definition of subsets and equality of sets:

  • A $\subset$ B, if x $\epsilon$ A $\rightarrow$ x $\epsilon$ B for every set x.
  • A = B, if A $\subset$ B and B $\subset$ A

Why is it impossible to decide whether two circular sets I = {I} and J = {J} are equal.

I mean, the way is see it is that I is not an element of J, since only J is an element of J, so the two circular sets are not equal.

What's wrong in my reasoning?