my basic thesis of how the AI bubble works: it doesn't work on market forces at all or it'd be dead already. it's an industry-wide Enron scam. they will all put in whatever money is needed to keep it afloat as absolutely long as possible.
(hence me picking 2027-ish for the final collapse)
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Kevin Beaumont
in reply to David Gerard • • •jaKa Močnik
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Emmanuele Bassi
in reply to Kevin Beaumont • • •Lorraine Lee likes this.
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Lorraine Lee
in reply to Emmanuele Bassi • •I believe so. Arthur Anderson LLP (at the time the world's largest ever partnership) engineered Enron's finances by gaming partnership law to the max, by creating convoluted layers of dummy partnerships. The "A" "I" industry is also built on self-dealing, but seems to be structured as "strange loops." "Computer aided drafting" of contracts (boilerplate in general) and legislative language (cf. ALEC) is a pretty lucrative industry, as it's a LOT easier to obfuscate information than to unravel obfuscation. I suspect that >90% of what is called "consulting" is basically optimizing business processes for minimal compliance. I even suspect there may be some malice motive (as in malicious compliance) along with the profit motive.
The question is, assuming they are optimizing for bubble expansion time, how does one strategize against that? That someone wouldn't be in government, of course (at least not the US federal government). Someone who has resources to strategize against advanced optimization, but also has independence. Resources vs. independence has always been a harsh tradeoff, but the P25 clique of course is finding ways to make it harsher, raising the price of entry into cognitively powerful fields of work.
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Nicole Parsons
in reply to David Gerard • • •The fossil fuel industry has done this before ie keep money-losing startups afloat.
Koch Industries kept rideshare startups, like Uber, alive for a decade to thwart public transit initiatives.
jacobin.com/2019/08/uber-koch-…
The fossil fuel industry believes AI will thwart a fossil fuel phase out as people move to solar & wind.
Data centers chug enormous amounts of fossil fuel & push up electricity rates.
thehill.com/policy/energy-envi…
wired.com/story/trump-energy-i…
visualcapitalist.com/mapped-th…
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Mapped: The Average Cost of Electricity by U.S. State
Bruno Venditti (Visual Capitalist)Nicole Parsons reshared this.
Nicole Parsons
in reply to Nicole Parsons • • •2/
cbsnews.com/news/utility-bills…
The rapidly rising electricity rates are upping inflation and it's de-incentivizing central banks from lowering interest rates.
theguardian.com/business/grogo…
Restrictions on liquidity forces even more to resort to shady private credit schemes & risky tokenized financial instruments, also funded by fossil fuel fascists.
bloomberg.com/news/articles/20…
bloomberg.com/news/articles/20…
forbes.com/sites/jonegilsson/2…
Circular firing squad.
Cryptocurrency is globalized fraud.
So it’s goodbye to lower interest rates – to be honest, the RBA was always looking for an excuse not to cut
Greg Jericho (The Guardian)Nicole Parsons reshared this.
David Gerard
in reply to Nicole Parsons • • •Nicole Parsons
in reply to David Gerard • • •wired.com/story/donald-trump-a…
Fossil fuel & AI money is opaque since most of it is owned by despots.
They're very keen on preventing an urgently needed fossil fuel phase out.
apnews.com/article/trump-ai-op…
bbc.com/audio/play/w3ct71fs
Actual spending on AI is unknown. The malign influence campaigns promoting it are enormous.
nytimes.com/2025/10/29/us/poli…
The delusional spending may indicate plans to orchestrate a global financial crash or a world war before their chickens come home to roost.
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BBC Audio | The Global Story | Trump’s ‘CEO of everything’
BBC NewsNicole Parsons reshared this.
Nicole Parsons
in reply to Nicole Parsons • • •2/
theguardian.com/us-news/2025/m…
Globally, the fossil fuel industry gets over $7 trillion in subsidies; plenty to fund AI fascist movements.
imf.org/en/Topics/climate-chan…
The BBB gives $40 billion in fossil fuel subsidies.
wired.com/story/us-taxpayers-w…
The Saudis promised $100 billion to AI.
bloomberg.com/news/articles/20…
Trump promised $500 billion to AI.
aljazeera.com/news/2025/1/22/t…
They intend to get this money from captive energy markets & taxpayers.
They think that money is infinite & never ending.
US and Saudi Arabia sign $142bn arms deal as Trump to meet Syrian leader
Andrew Roth (The Guardian)Nicole Parsons reshared this.
huntingdon
in reply to Nicole Parsons • • •@Npars01
Good place to start when a govt says it's running out of money to pay for food aid for the poor is to demand it stop paying massive subsidies to the world's most profitable companies.
The subsidies violate capitalism's most basic theoretical tenet, they are blindingly expensive, they underprice a dwindling asset whose use is destroying the planet, and deprive govts of aid needed for worthier and, ironically, more economically efficient goals.
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RiaResists
in reply to Nicole Parsons • • •It feels like the despots are deliberately taking the world into an economic tragedy.
They want it ALL & we suffer the consequences.