Feel like I’ve been hearing this for months with nothing happening in the end. Is it just hype dying down? When will it actually all crash and burn
Feel like I’ve been hearing this for months with nothing happening in the end. Is it just hype dying down? When will it actually all crash and burn
If you consult my handy diagram, you can see that the AI bubble is currently being bodyblocked by the end of US dollar hegemony, the hollowing out of US manufacturing, the collapsing consumer economy, a lost trade war, ICE pogroms, and probably a dozen other minor and interlinked crises:
But seriously, I am starting to wonder if they’ll just be able to drag out the AI bullshit until the dollar’s reserve status hits some critical mass where the floor of the US consumer economy just completely collapses because who would want to export manufactured goods to the US in exchange for monopoly money? I can see a (very near) future where the slop machines are still going strong, but food riots start breaking out nationwide.
The AI boom might be keeping the US dollar hegemony afloat rather than the other way around.
I think dollar finance basically works by creating money pits where the wealthy can pour their money in a way that is largely disconnected from the productive economy, therefore avoiding uncontrolled inflation. Then those people are rewarded with new money for which new pits need to be created.
The stock market sort of works like that too. After the IPO you generally are buying stocks from other investors, the money doesn’t go to the company who’s stocks you are buying, it doesn’t go towards buying new machines or building more factories.