*VERY IMPORTANT*
Something’s been bugging me lately and I think more people need to talk about it.
$2.5 trillion in global AI investment this year alone, up 44% from last year.
Amazon, Google, Meta, and Microsoft are set to blow through $560 billion on AI.
Double what they spent two years ago.
Historically, that kind of capital injection means one thing. Jobs, growth, and prosperity.
But this time, it doesn’t…
Because every dollar being deployed is designed to REPLACE the people who would normally benefit from it.
Goldman Sachs knows it, the St Louis Fed knows it, Brookings knows it.
We are heading for something that has NEVER existed before.
Record investment and mass unemployment.
ALL AT THE SAME TIME.
Here’s the chain reaction nobody wants to talk about:
Jobs disappear, spending collapses, revenue dries up, tax receipts fall off a cliff.
Governments already buried in debt have zero room to respond.
Three forces are converging simultaneously for the first time in history:
– Record capital deployment.
– Widespread job displacement
– Unsustainable government debt
We’re in uncharted territory.
Markets aren’t pricing this in yet, and I don’t think that lasts much longer.
The proposed solutions: automation taxes, UBI, are political non-starters that no one is seriously willing to touch.
But the fact that they keep coming up tells you everything about where this is heading.
The old levers: rate cuts, stimulus & regulation, weren’t designed for any of this.
Something MASSIVE is coming.
The next few months look scary. Don’t worry, I’ll keep you updated like I always do.