More Tales From Nvidia: All Is Not Well (Issue #238!)
Has AI become worse than debilitating and inflationary?
The first obvious problem was destroying kids, who are already in trouble, who started to use it for their homework, and this is the result:
I teach calculus at Berkeley. Some of my students can’t do middle school math
Then, because it is so resource intensive and inefficient, it drove up the cost of power. Then the cost of memory and other inputs for consumer goods. It is so problematic, U.S. companies now want to use China as a source of memory, which makes the problem we are trying to get out of even worse.
It has not caused any noticeable increase in productivity, at all.
Now it is so capital consumptive, it is driving rates up (and therefore the deficit). There is not enough money in the world for all of this, plus excessive government spending. Google ($GOOGL) is now resorting to selling debt, again, but now it is in Australia (as mentioned yesterday in “More Tales: Kangaroo Bonds“).
And all the garbage being put into the financial system. If this goes upside down, the amount of damage that will be done is not even measurable. Collateralized AI credits, who knows where this will be stuffed. And they are changing the rules to allow this to happen?
Read the whole thread (below). The key section is on how it will be securitized and the rules were changed to allow for this:
Forget CDOs, Meet CCOs: This Isn’t A Tech Cycle… It’s 2008 With Silicon
But all is well (source: Animal House)!
Position: None
