I heard that there would be a new Great Depression.
I’ve also heard a lot of different theories, and one of them interested me: after the bursting of the bubble, AI will not disappear anywhere, is it in vain that so many data centers were built? AI will be embedded everywhere, people won’t even be able to test how it works, “it works somehow, great!” because all human workers will be fired, not at once, of course, but gradually, In a few years, about 2-7 years to be exact(depending on the industry). And because of this, AI systems will begin to get out of control, this will cause incorrect diagnoses, failures in the banking system, arresting or killing innocent people by drones, and so on.
The reason I’ve explained this so poorly is because, in the first place, the topic of AI and the debate around it is terribly infuriating to me, and it’s obvious that the harm from AI won’t be able to compensate for the little benefit it will bring. Secondly, I use a translator, so my text may seem crooked, unnatural, or silly.
What’s more interesting is that the AI fueled replacement of human labor is happening along side the largest global rebalancing of trade and finances in history. It could be argued that the U.S. is entering a phase of readjusting to not controlling all of the international trade and being able to run endless debts by doing it. At the end of WW2, the U.S. was able to set the terms for many countries. The contrast between these changes in reduced funding to social welfare programs, which the eventual collapse of the U.S. bond market will force as there will be no money to pay for much besides an outdated military and the interest on the debt. To keep the party going they massively hyped up AI and dumped even more imaginary dollars into it, hoping to be able to replace the need for workers. Creative ways of keeping the bond market bubble going crossed over between these two issues. One example is how tethered currency to the dollar for things like USDT have behind the scenes been funding an increasing share of Treasury debt. It’s all one big interconnected house of cards where at the root of it is an idea based off having exorbitant privilege with a reserve currency. Where you can create this imaginary private company called the Federal Reserve which has magic balance sheets that can act as a second unlimited treasury, while feeding the debt issued by the primary treasury. All of this money just moves around causing inflation and higher interest payments. A system like this will have to collapse at some point and with all the international finanace changes happening, it’s only a matter of time.