posted in Technology
AI Bubble Teetering on the Brink as OpenAI Admits to Massive Financial Failure: A $20 billion setback.
futurism.com/future-society/ai-financial-bubble-openai-billions-failure
Replying to @eicker@lemmy.world
I think they may have located a more extreme, even dumber business category than “too big to fail”: “too big to bail out”.
Unfortunately, nothing is too big to bail for these clowns in power, borrowing money on America’s Credit is like their reason for being, all the lawmakers save few as well as the administration that will of course need to be bribed and paid a percentage of all bail out money.
I bet they can hit 70 trillion in debt by 2029.
Replying to @bedwyr@piefed.ca
I don’t think they can get away with printing the amount of money this will take, but I guess we’ll see. Either way they go, the global economy will have to be rebuilt from the debris.
Replying to @badgermurphy@lemmy.world
They can and they will.
If you’re in the USA you’d better be getting ready to burn stacks of hundred trillion dollar notes to stay warm.
Replying to @leftzero@lemmy.dbzer0.com
Every country not fully divested from the dollar will have to do that.
Replying to @badgermurphy@lemmy.world
We’ll have massive recessions, sure.
Worse than the last couple ones.
Inflation above 10%.
But not hyperinflation like in the USA.
We’ll have to bail out the banks that fell for the scam, but not the scammers themselves.
And it might be a good opportunity to finish decoupling from the USA economy, companies, and policies.
It might take a decade or a decade and a half, but we will recover.
The USA on the other hand will suffer the full brunt of the crash, while being already economically, diplomatically, socially, politically, and morally bankrupt, and infected with the most actively incompetent and outright malicious government in its history, a government whose priorities won’t be to save the country but to exploit the situation, or to take the money and run if that proves impossible.
It would almost certainly have been doomed anyway, but this will be the last nail in the coffin and precipitate the collapse.
Replying to @leftzero@lemmy.dbzer0.com
As dark a picture as you’re painting, I guess youre more optimistic than me that a major global economic player disappearing from the system would not create an economic depression domino effect around the whole world, even with many countries’ investment in the Dollar notwithstanding.
Replying to @badgermurphy@lemmy.world
No, don’t get me wrong, the domino effect will be there, we will suffer decade long depressions.
It’s just that a) the order of magnitude of the bailouts will be much larger for the USA (because they’ll have to bail out the AI companies’ billions of debt, and because the grifters in power will grift as much as possible), and b) any existing international trust in the USA has already been destroyed by Trump’s antics, so the rest of the world has been decoupling as fast as possible for the last few years, and will keep on doing so, which will mitigate the impact.
In a sense the American domino has already been leaning and putting pressure on its neighbours, so they have had time to brace themselves and start inching away from it, and the impact on them when it falls will be lowered due to the fact that it’s already leaning down, but it itself will still shatter due to the fractures and rot that pervade it.