Economics is more like biology rather than physics.
Once you grasp this concept, many problems become easier to solve.
For example, do central banks’ interest rate adjustments and unbacked money printing (QE), as well as the establishment of the social welfare system, disrupt the market economy?
Floods are not caused by dams (or other interventions). Sure, the social security system has lowered the personal savings rate, but that alone isn’t enough to convince people to abolish the social welfare system.
The only way to make a system more robust is to add buffers at every stage. If possible, every individual should have bank savings and own property (and pay off any loans), and every company and country should have similar buffers. Critical components, such as government parties, hospitals, and the military, must have redundancy built in. Redundancy is the key to preventing a complete collapse.
The challenge, however, is how to punish those without sufficient bank savings—or, conversely, how to reward those with ample savings. And how can similar measures be applied to companies and governments?
Another example is the replacement of biological individuals or single cells. Female organisms don’t wait until the moment of death to produce the next generation—even in completely wild species, like sea turtles.
The economy works in a similar way. A business owner shouldn’t wait until the company goes bankrupt to shut it down. A better approach is to close it immediately when it becomes clear that recovery is unlikely.
What is money? Money is equivalent to blood in an organism.
Neither the Keynesian school nor the Austrian school has hit upon the key point.
Economists should delve deeper into biology.
😂
SpaceX has just officially unveiled its AI1 satellite, the first generation of its AI satellite.
Overall Specs:
• 150 kW peak compute payload
• 120 kW average compute payload
• 70 kW per ton
• Compute provider interchangeable
Dimensions:
• Wingspan: 70 meters
• Deployed height: 20 meters
Thermal System:
• 110 m² deployable liquid radiator
• Redundant pumping loops
• Integrated micrometeoroid shielding
• Deployable liquid radiators
Solar Power System:
• 150 kW solar array
• 250 W/m²
• SpaceX-manufactured solar technology from Bastrop, Texas
Architecture:
• Centralized compute module
• Large deployable solar arrays
• Deployable liquid-radiator thermal management system
• AI-focused compute satellite design ("AI1 satellite")
Elon: "The AI satellite is much simpler than a Starlink satellite. The AI satellite is essentially a lot of solar cells, you still need some laser links, but you don't have all of the super complex antennas that you have on a Starlink satellite. The easier one to design for is the AI satellite. It's bigger. A lot of this is technology we've already made with the Starlink V3 satellites."
First principles will upend the world.
Just as "Sapiens" says, religion, nation, justice, law, money, and so on are all collective fictions.
Once those fictions are shattered, what kind of new world will emerge?
And what surprises—and what terrors—might an AI grounded in first principles (for example, GROK 4) bring us?
First, President Trump mentions that higher rates are costing the US more money on interest expense.
At a high level, this is true.
Annual interest expense on US debt has reached $1.2 TRILLION over the last 12 months.
The US is now paying $3.3 BILLION in interest per day.
The continuous growth of U.S. government debt reflects public opinion:
People want the government to collect less tax and provide more welfare, while working less themselves and getting more money.
This is the general trend.
Elon Musk was right yesterday: Only rapid advances in automation and production technology can solve the debt problem.
This would allow the government to collect less tax and provide more welfare, while letting ordinary people work less and earn more.
@brigrey1005@WallStreetApes This is common sense: Trump will use up all this extra $5T in the next 3 years.
Because, there is no reason for him to leave the money to the next president.
@j32pmxr GROK: Roughly 20 km wide, it shows no cometary activity, suggesting it’s asteroid-like. Its high eccentricity (~6) confirms its interstellar origin.