On the surface it appears that the AI mania is a sign of the development of the productive forces of the US and a sign that Mordor is becoming competitive with China, Russia and Iran.
But this investment is not based on profits already made. Instead, the US is leasing new debt. In other words, this is money that has not been earned yet. Michael Roberts cites the example of England’s investment in their railroads in the 1850s. The results of those led to bankruptcies and two depressions.
Read on Michael Roberts Blog
