AI generated over-supply of human cognition has already started to saturate the demand
Letter to the Editor
As it currently stands, every other day S&P 500 companies are automating 20% of their workforce. The economic consequence means the company captures economic rent; which refers to the profits generated from the increased production minus the wage expense. So, when every company of a sector automates 20% of its workforce, which takes no longer then a four month business quarter!, the economic rent gets passed directly to the consumers in the form of temporary price bubbles.
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Over the past year, without anyone even noticing, the economy has started its anticipated bifurcation into two different species.
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On the one side, you have the companies sitting on durable scarce assets that cannot be digitally replicated into infinity via AI.
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Then on the other side of the bifurcated equity markets, you have the companies whose entire value potential rests upon the renting of human cognition to customers. These are the rapidly expanding AI centric companies springing up like mushrooms.
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So, without people even realising what’s going on, what we now see happening is that human intelligence is starting to become the cheapest commodity on the planet.
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It is not just a person’s cognition which has been steadily harvested over the past fifteen years, but everything that human intelligence has created over the past 100,000 years or so. It can all be digitally replicated into infinity, digitally modified into new forms of intelligence, and its all done at no cost: – its free.
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Despite its infancy, the AI generated over-supply of human cognition has already started to saturate the demand. People now have infinite knowledge at their fingertips and human lives are too short to digest even a nano-fraction of this. As this process continues, which it will, the economic result will be the re-valuation of human cognitive value to zero: it is headed towards worthlessness. That is end result.
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As ‘cognitive scarcity’ is the precise commodity that AI was built to destroy, then the question arises, that of the two bifurcating equity species, – guess which one is actually going to compound?
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Whilst the less intelligent masses continue to consume and ‘place value’ on a human commodity that is now exponentially depreciating into utter worthlessness, if not already done so, those on the other side of the bifurcation trade are gravitating towards the opposite commodities of supreme scarcity.
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So, whether in eighteen months, or five years, – the re-pricing of the equity markets is coming. This will be like twenty years ago when Argentina repriced its currency, where If you had a million bucks in your bank account on Friday evening, when the banks re-opened again on Monday morning, you had a hundred thousand dollars. The forthcoming repricing will simultaneously devalue everything priced in the old financial era currency.
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As per normal, the stupid and indolent will complain, but they’ll have only themselves to blame. At least they’ll have an infinity of worthless knowledge to continue downloading onto their devices.
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The re-pricing is coming.
From Starship
Victoria
