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.@CJHandmer on how to feed the AIs.
0:00:00 – Why doesn’t China win by default
0:08:28 – Why hyperscalers choose natural gas over solar
0:18:01 – Solar's astonishing learning rates
0:27:02 – How to build 50,000 acre solar-powered data centers
0:40:24 – Environmental regulations blocking clean energy
0:44:04 – Batteries replacing the grid
0:49:14 – GDP is broken, AGI's true value must be measured in total energy use
0:58:45 – Silicon wafers in space with one mind each
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Now that the budget bill has passed Congress, we can see what the projections look like for deficits, government debt, and debt service expenses. In brief, the bill is expected to lead to spending of about $7 trillion a year with inflows of about $5 trillion a year, so the debt, which is now about 6x of the money taken in, 100 percent of GDP, and about $230,000 per American family, will rise over ten years to about 7.5x the money taken in, 130 percent of GDP, and $425,000 per family. That will increase interest and principal payments on the debt from about $10 trillion ($1 trillion in interest, $9 trillion in principal) to about $18 trillion (of which $2 trillion is interest payments), which will lead to either a big squeezing out (and cutting off) of spending and/or unimaginable tax increases, or a lot of printing and devaluing of money and pushing interest rates to unattractively low levels. This printing and devaluing is not good for those holding bonds as a storehold of wealth, and what’s bad for bonds and US credit markets is bad for everyone because the US Treasury market is the backbone of all capital markets, which are the backbones of our economic and social conditions. Unless this path is soon rectified to bring the budget deficit from roughly 7% of GDP to about 3% by making adjustments to spending, taxes, and interest rates, big, painful disruptions will likely occur.