Of Two Minds

The risks of gambling in speculative frenzies and depending on serial asset bubbles continuing forever are easily observable, yet few act to reduce these risks.

But the status quo has much to unlearn, and it seems the only pathway to a new understanding is a Great Depression.

Those who got out early (i.e. now) will be glad they acted promptly and those caught in the decline will regret their faith in a high-cost system that was no longer affordable or sustainable.

Eventually policy-makers turn the dials to 11 and nothing happens.
Many others have explained why inflation is part-and-parcel of the status quo. In the simplest terms, where’s why inflation is essential:

So what happens if AI destroys both profits (due to it being “free” and a freely distributed commodity) and jobs?

Now that debt is rising faster than “growth,” and “growth” is dependent on speculative credit-asset bubbles, the collapse of the Keynesian dream looms large. Unbeknownst to economists, the Keynesian bedrock of modern economics–using financial repression and government spending funded by debt to manage the business cycle of growth and recession–is an artifact of a century of expansive cheap energy and virtuous demographics.