How the Fed Is Quietly Inflating the AI Bubble While Hiking Your Electric Bill

xrd

This is a really fascinating exploration of how data center build out, funded by debt, debt that relied on low interest rates, can then put pressure on interest rates, which then causes the utilities to raise their rates. It's beautiful. It feels like this is a game between speculators that want low interest rates, and a money machine that wants to protect their investments in the stock market. If you work for Goldman for 30 years before joining the fed, then you surely have an interest in protecting the status quo. Is there no other system we could envision that makes it possible for us to avoid these goliaths battling and destroying the planet and our opportunities to live in peace?

bubbluppugus

Or... "how humanity fell for yet another promise of Lucy's to not yank the football away" if you just follow orders From religions promise of forever life with your loved ones to "starts a SaaS! Disrupt!" All just political ploys of the elite class of the day. Cause the kids stupid lizard brains take decades to figure it out

Nasrudith

Eww... economically illiterate demagoguery under the guise of this is good/bad for 'ordinary people'. Maybe Matt would be happier if they used Erdogan's Monetary policy and the hyperinflation because he thinks the time opportunity cost should be zero.

maest

Here is a related, somewhat biased but way more entertaining video on how utility pricing works. https://www.youtube.com/watch?v=3fDGcZ8qpPM

kristianp

Where is the "Inflating the AI Bubble" part? Clickbait. Higher interest rates drive demand destruction. There doesn't need to be a credit shock to reduce inflation.