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[–] 6 points 4 days ago* (last edited 4 days ago) (5 children)

This is possible, but I don't see how they could get away with this "solution". Wouldn't the most obvious solution to AI wiping everyone's savings out be just to restore the savings one-to-one as normal dollars, so that that would be the first proposal by everyone? Done correctly, it should be nothing but a blip with no inflationary effects, because the amount of money from the US economy before and after is exactly the same.

Doing this would basically ruin the U.S. financial system's reliability on the world stage forever. What would any of the U.S.'s allies think to see that all money in the U.S. can get wiped by a single unhappy AI?

Also, if they do this, everyone at OpenAI and Anthropic is going to get lynched. There will be congressional hearings and loads of regulations on AI, which is exactly what the videomaker said capitalists were trying to avoid from 2008. These regulations would significantly delay capitalists' ultimate goal of full automation of all human labor to replace the working class entirely.

On the consolidation after 2008, that stuff happened because the big banks were in the right place at the right time to snap up the floundering smaller ones. No grand plan is needed, only basic capital accumulation. I don't see how it correlates to some AI monetary crisis.

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  • [–] [S] 6 points 4 days ago (4 children)

    The problem they have now is that global markets already don't trust the US, and everybody is dumping US treasuries. On top of that, the yen carry trade is unwinding and inflation is going up. So, there is basically no faith in the system at this point anyways.

    And the justification here would be simple. They'll say the existing system is not secure enough in the age of AI, and that if this happened once then it could happen again. Then they'll say that Blockchain ledger would ensure this sort of thing can't happen, and that's the reason they have to move to it now.

    I don't really think the US government cares about Anthropic or OpenAI getting lynched either. Some other corp like Google or MS will just buy up their assets when they crash. In fact, they can be the human scapegoat everybody is going to demand for all this.

    Agree on consolidation, there's no conspiracy needed there. It just happens naturally during every crisis. It's basically what I expect to happen with the whole AI ecosystem where there's going to be a mass extinction event when the bubble pops.

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  • [–] 3 points 4 days ago (3 children)

    Good points, though IDK if European financial institutions are as puppeted by the USA as European politicians. For now the EU is still buying US treasuries, but if they stopped things would be bad for the US, and this AI switcheroo would definitely make them stop if they have any sovereignty.

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  • [–] [S] 6 points 4 days ago (2 children)

    As long as the war in Ukraine keeps going, Europeans have no choice here. They have no military industry of their own to speak of, and they're now entirely dependent on the US for energy. When the Americans say jump, the only thing Europeans can do is ask how high?

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