Submitted 1 day ago by ICastFist@programming.dev to [deleted]
https://programming.dev/pictrs/image/016040d6-fd00-4f3b-be96-70e22eadf347.png
Could do without it burning the planet
If AI companies were “burning cash” that would significantly increase the amount of total circulating money. “Burning cash” in this context means “spending money very quickly,” and that is the definition of circulating money. The fact that the AI companies are not burning cash, but instead signing complicated deals passing around promissory notes for future revenues, is what makes it look like a capital strike.
Or in layman’s terms, they are pulling an “Enron”. But of course we don’t regulate that anymore
What if “burning cash” wasn’t a metaphore? The grift collects cash. Then there is a pit surrounded by stones and a significant pyre?
I’m only burning my half
More like hoarding it like fat dragons
Cash does not disappear because you spend it. Everything you spend is someone else’s income.
True but more money going to the wealthy stops circulation more than it going to people that actually spends it.
It does not. Instead of necessities the wealthy buy assets, e.g. stocks. Either way the cash is still in circulation.
It’s foolish to have huge piles of cash when most central banks have a stated goal of about 2% inflation.
They just print more
Don’t circulate money anymore, we circulate debt. Most of the m2 money supply didn’t exist.
There is no cash. The price of a stock is just the price the last guy who bought one paid, and does not represent what the company is worth. I suspect (but am to lazy to find out) there isn't even enough money in circulation to buy all companies at current stock price. AI companies take this to the next level, their companies valuation is already based on nothing, and they promise to buy stuff for large amounts which is taken at face value because the company is worth a lot.
It's basically owning one hundred euros, selling one eurocent for a hundred dollars to someone and suddenly everyone believes you're a millionare, so now you can borrow lots of money since you're good for it being rich and all.
angband@lemmy.world 9 hours ago
Wishful thinking.