When I was around 10 years old I remember us asking the teacher why not just print money to solve the worlds problems and the teacher scoffing. It took me another 15 years to realise that’s basically what central banks do, especially these last five years. BTC is at $125k, gold at $4000, and every other week we are inundated with some multi-hundred billion dollar deals somewhere or other. All this talk about multi GW data centers where one will notice the consumer is no where to be found, just like an extension lead plugged into itself.
Are we supposed to pretend that this is normal? Does anyone not feel like this push for AI is a last ditch effort to save the global stock market, that it MUST work out?
There are consumers but they are getting the stuff for free or close to that. Whether they will ever be monetized enough to pay for it all I don't know.
You forget one side of the equation: yes money is "printed" with abandon, but the other side gets an IOU, a debt, to repay with dividend.
The government BORROWS printed money, the FED emits debt against that money, and the hole keeps getting bigger. You certainly solved a short term problem, but you also created a long term one.
Meanwhile, people make less children, immigration is reduced, debt buyers, the ones receiving the interest, are starting to think twice, someone will be left with the bag and it's gonna be the 401k bondholders relying on these debt interest to finance their non productive retirement.
BTC is being bought maybe due to it's non correlation with those debts, but it's also printed virtually with absolutely no tangible value (the network can just collectively decide to change its rules with no legal repercussion), and gold definitely has tangible value (at least, it makes your wife smile and stop haggling when she gets some to put around her neck, so infinite value right there vs btc) and is bought in India and China to prepare for catastrophe, but it has many issues (heavy, hard to transport cross border, dangerous and expensive to store, concentrated in vaults against paper gold with all the issues that this creates etc)
Are we supposed to pretend that this is normal? Does anyone not feel like this push for AI is a last ditch effort to save the global stock market, that it MUST work out?