• UnderpantsWeevil@lemmy.world
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    11 days ago

    Recessions are generally good for the dollar, as they signal lower rates of lending and of monetary circulation.

    But because so much of our economy is predicated on a payout on magic beans AI build out, we could actually see ourselves awash in cheap cash with nothing materially valuable to spend it on at some point in the near future. All our material capital tied up in enormous data centers that do nothing but devour electricity. Fewer and fewer people willing to trade with a nation whose primary exports are bizarro TikTok videos and arms to Israel.

    Stagflation rides again.