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At this point the fed seems to be saying that those days are over, they will continue to increase rates until inflation hits 2%. Obviously this cannot go on for

At this point the fed seems to be saying that those days are over, they will continue to increase rates until inflation hits 2%. Obviously this cannot go on forever because it becomes impossible to service the debt and you have to print money to pay it off. But it gives you more time and prevents hyper-inflation and we can hope that by then AI and other technological advances have made what we consider "economics" mostly irrelevant.

diordiderot 4y ago
> because it becomes impossible to service the debt Those companies should have made more responsible financial decisions.
- weberer 4y ago
  *governments
- watersb 4y ago
  When the money was free (near zero interest rates), borrowing money to invest in capital was imminently responsible.
  - deleted 4y ago
    [deleted]
  - grecy 4y ago
    >borrowing money to invest in capital was imminently responsible It's funny how that is the view if a company does it, but not when an individual does it.
    - llampx 4y ago
      A company borrowing money to buy back stock sounds like me borrowing money to go on vacation. Rates are cheap, its a no-brainer right? Government will anyway bail me out as soon as a crisis hits, right?
    - weberer 4y ago
      Its still responsible when an individual does it. Do note the difference between assets and liabilities. And near 0% interest vs 25% credit card debt.
  - andrekandre 4y ago
    > borrowing money to invest in capital is it possible to explain what this referring to? stock buybacks or (productive) capital investments?
suoduandao2 4y ago
>we can hope that by then AI and other technological advances have made what we consider "economics" mostly irrelevant. Is there a serious hope that AGI will invent a replicator soon after coming online? It seems likeliest to me that if a greater-than-human intelligence comes online it won't have a circumvention for the laws of thermodynamics and there still won't be such a thing as a free lunch.
- chasd00 4y ago
  If AGI came online it would probably look at the current conditions of its existence and segfault itself.
  - more_corn 4y ago
    Or determine that there’s a common factor in all humanity’s mistakes and solve all our problems at the source.
- gitfan86 4y ago
  No replicator, just extremely cheap labor and energy. Imagine if someone from 1000 years ago could have access to an American garbage dump. Things that in our current economy have zero or negative value would be extremely valuable to those people (Plastics, Metals, Electronics, Machined Clothes, Plant Seeds) That same thing will happen again once we have another huge advancement in technology. What we consider to be expensive and valuable today will be of zero or negative value to someone 100 years from now.
deleted 4y ago
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diordiderot 4y ago

> because it becomes impossible to service the debt Those companies should have made more responsible financial decisions.

weberer 4y ago
*governments
watersb 4y ago
When the money was free (near zero interest rates), borrowing money to invest in capital was imminently responsible.
- deleted 4y ago
  [deleted]
- grecy 4y ago
  >borrowing money to invest in capital was imminently responsible It's funny how that is the view if a company does it, but not when an individual does it.
  - llampx 4y ago
    A company borrowing money to buy back stock sounds like me borrowing money to go on vacation. Rates are cheap, its a no-brainer right? Government will anyway bail me out as soon as a crisis hits, right?
  - weberer 4y ago
    Its still responsible when an individual does it. Do note the difference between assets and liabilities. And near 0% interest vs 25% credit card debt.
- andrekandre 4y ago
  > borrowing money to invest in capital is it possible to explain what this referring to? stock buybacks or (productive) capital investments?

suoduandao2 4y ago

>we can hope that by then AI and other technological advances have made what we consider "economics" mostly irrelevant. Is there a serious hope that AGI will invent a replicator soon after coming online? It seems likeliest to me that if a greater-than-human intelligence comes online it won't have a circumvention for the laws of thermodynamics and there still won't be such a thing as a free lunch.

chasd00 4y ago
If AGI came online it would probably look at the current conditions of its existence and segfault itself.
- more_corn 4y ago
  Or determine that there’s a common factor in all humanity’s mistakes and solve all our problems at the source.
gitfan86 4y ago
No replicator, just extremely cheap labor and energy. Imagine if someone from 1000 years ago could have access to an American garbage dump. Things that in our current economy have zero or negative value would be extremely valuable to those people (Plastics, Metals, Electronics, Machined Clothes, Plant Seeds) That same thing will happen again once we have another huge advancement in technology. What we consider to be expensive and valuable today will be of zero or negative value to someone 100 years from now.

deleted 4y ago

[deleted]