I’m sure many of us have read Jeff Booth’s The Price Of Tomorrow, which describes how new technologies are deflationary. He discusses artificial intelligence as an example, and of course bitcoin.
I have no doubt that his vision of the future will come to pass, and bitcoin will be the money of that future. In the meantime, though, I am wondering if the incredible growth of generative artificial intelligence might help to prop up the fiat system for a while, buying time for central banks to kick the can down the road.
This article lays out what I’m talking about:
https://www.aei.org/articles/what-would-be-the-impact-of-an-ai-boom-on-interest-rates-and-inflation/
There’s no doubt that the U.S. Government needs inflation to monetize the incredible amount of debt it has built up. Without technological advancements improving efficiency, that inflation would likely spiral out of control quickly. AI might in fact keep inflation in check just enough to allow this house of cards to remain standing for a while.
I’m wondering what other stackers think?