Stuff like this makes me wonder if the tech billionaires might be losing control of the ship of state. It simultaneously threatens both the AI stock market bubble that makes up most of their assets, and their investments in the real economy that rely on cheap energy. Their whole strategy of scooping up cheap assets during a downturn doesn’t work if the US economy is de-developed to the point where it can no longer generate profits, and if they’re locked out of China. Is it just pure ideology that’s blinding them, or have they created a monster they can’t control?
It’s a monster they can’t control because they only look at a quarter ahead. They don’t make multi-year plans for long-term investment. They want maximum profit in short-term investments. If they’re not increasing their short-term profits, the company will lose value in their stock, and the people in control of that company, the people that invest in that company will lose money, which is something they don’t want. So there is no incentive, in fact, there’s an incentive against this type of long-term investing since it will make the balance sheet per quarter look worse when they start their long-term investment project.
Stuff like this makes me wonder if the tech billionaires might be losing control of the ship of state. It simultaneously threatens both the AI stock market bubble that makes up most of their assets, and their investments in the real economy that rely on cheap energy. Their whole strategy of scooping up cheap assets during a downturn doesn’t work if the US economy is de-developed to the point where it can no longer generate profits, and if they’re locked out of China. Is it just pure ideology that’s blinding them, or have they created a monster they can’t control?
Money supply goes up asset prices go up
It’s a monster they can’t control because they only look at a quarter ahead. They don’t make multi-year plans for long-term investment. They want maximum profit in short-term investments. If they’re not increasing their short-term profits, the company will lose value in their stock, and the people in control of that company, the people that invest in that company will lose money, which is something they don’t want. So there is no incentive, in fact, there’s an incentive against this type of long-term investing since it will make the balance sheet per quarter look worse when they start their long-term investment project.