The AI bubble runs on a circular flow of liquidity fueled by a massive amount
of debt creation that needs to accelerate for it to not pop. The debt is
created ultimately from central banks which are not part of the federal
government. When those gates begin to close companies are going to drop left
and right like in the dotcom bubble since most have been built just for the
sake of having free money to spend. That is part of the big problem since the
new debt creation steals value from the currency and causes inflation and
countries stop buying US treasuries. But Trump’s plan is to swap dollars to
stablecoins and big tech buys treasuries with those stablecoins earning yield
without paying interest. Is that going to work? Central banks may pull the plug
since they historically run the show unless they are fully on board integrating
with big tech. It’s part of the experiment since the whole debt based fiat
monetary system is a long running experiment.
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Artificial General Intelligence List: AGI
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