Higgenbotham's Dark Age Hovel

[Higgenbotham]

Bernanke was a drunken gambler and this is the result. Not my predicted result. Much worse.

So if AI told me, no, it's not really an adjunct because AI is now the economy, well...

A.I. buildout is becoming biggest economic bet in U.S. history: research

Jocelyn Fiset
Thu, September 24, 2026 at 6:53 PM CDT 2 min read

KTLA's David Lazarus said that sounds pretty exciting until you realize that much of this building is funded by borrowed money, and that makes the economy unusually vulnerable to any economic reversals, such as multi-billion dollar loans going unpaid.

Simply said, both the U.S. and financial markets are now reliant on A.I.'s rapid expansion, and any stumbles could lead to a recession or worse.

https://finance.yahoo.com/economy/artic ... 57580.html

What does that mean? Well, what it means is that GDP gets cut by 2/3 and the stock market falls (as much as) 98%.

The psychopaths who control the system won't dial that extent in when they start the process.

It starts to slowly dawn on the psychopaths that they're screwed and at first they dial in a really bad recession.

It's starting to look like a massive misallocation of capital.

One thing I repeatedly observe is people today, both individually and as a group, reach too far. Their expectations are too high.

I had no idea how far they would try to reach and just how high their expectations would go. I didn't have a clue.

The Pretence of Knowledge

Friedrich August von Hayek
Lecture to the memory of Alfred Nobel, December 11, 1974

In fact, in the case discussed, the very measures which the dominant "macro-economic" theory has recommended as a remedy for unemployment, namely the increase of aggregate demand, have become a cause of a very extensive misallocation of resources which is likely to make later large-scale unemployment inevitable. The continuous injection of additional amounts of money at points of the economic system where it creates a temporary demand which must cease when the increase of the quantity of money stops or slows down, together with the expectation of a continuing rise of prices, draws labour and other resources into employments which can last only so long as the increase of the quantity of money continues at the same rate - or perhaps even only so long as it continues to accelerate at a given rate. What this policy has produced is not so much a level of employment that could not have been brought about in other ways, as a distribution of employment which cannot be indefinitely maintained and which after some time can be maintained only by a rate of inflation which would rapidly lead to a disorganisation of all economic activity. The fact is that by a mistaken theoretical view we have been led into a precarious position in which we cannot prevent substantial unemployment from re-appearing; not because, as this view is sometimes misrepresented, this unemployment is deliberately brought about as a means to combat inflation, but because it is now bound to occur as a deeply regrettable but inescapable consequence of the mistaken policies of the past as soon as inflation ceases to accelerate.

http://www.nobelprize.org/nobel_prizes/ ... cture.html

I'm aware of the Austrian point of view but haven't extensively studied the writings. But in doing some research this morning and reading Hayek's speech, there is similarity to this speech and my own thoughts at this time as recorded here in recent days. What Hayek is saying here is obvious. If I can understand this, do the likes of Krugman, Bernanke, and Yellen really not understand it?

No, they did not and they do not...as the new dark age tightens its grip.

[Higgenbotham]

While everyone buzzes about AI, it's my guess that this is the most important chart in the world right now.



For the why, I'll just requote Hugo Salinas Price. In fact, I want to requote everything he said which I transcribed from his 2013 interview with King World News because I think it will apply if what he said about interest rates comes to pass soon.

Summary:

Mexican billionaire Hugo Salinas Price in a 10 minute interview. He also thinks the rise in interest rates is the key.

• The rise in interest rates signals the beginning of the end of the world financial system.
• The people in power today are barbarians. They do not understand how civilization came into being and what is required to keep it going. They are comparable to monkeys flying an airplane.
• There are no true elites in charge today with the exception of Vladimir Putin. The rest of the world leaders have a level of learning and morals equivalent to the masses.
• The interest rate derivatives will set off a crisis that will bankrupt the world financial system. The only thing left standing will be gold. Many people will not survive.

On the rise in interest rates:

I think that we're going to see eventually a series of bankruptcies. And I think that the rise in the interest rate is probably the fatal sign which is going to ignite a derivatives crisis that is going to bring down the derivatives system. There is something like a quadrillion of derivatives and most of them are interest rate derivatives. The spiking of the interest rate in the United States may set that off. And I think that what is going to happen in the world is that eventually we're going to come to a moment where there's going to be massive bankruptcies around the world and what is going to be left when the dust settles is gold and some people are going to have it and some people are not. And then the problem will be to hold onto what you've got. Because it's not going to be a very pleasant world. That's what I see coming, my friend.

--Hugo Salinas Price (transcribed from the link above)

"In 1987 Ricardo succeeded his father Hugo Salinas Price as CEO of Grupo Elektra. He is the fourth richest person in Mexico behind Carlos Slim Helu and the 34th richest person in the world with a wealth of around US $17.4 billion in 2012."

http://en.wikipedia.org/wiki/Ricardo_Salinas_Pliego

Other Comments from Hugo Salinas Price:

And he was talking about the appearance on the world stage of individuals, and he was speaking to the growth of the population and the appearance of new individuals coming into the mass of humanity, and these individuals evidently are barbarians. They came too suddenly to be educated and for the knowledge of how to keep the Western way of life alive. And so these people have increased and now they have taken over power and so now we're in the hands of barbarians. They have no idea of how our society came to be and what is necessary to keep it going. And they're fiddling with the controls. You might think of a monkey flying a 747. They have no idea what they are doing and this is not going to end well with the barbarians at the controls.

We don't have people with a true background of education in history and economics and politics. They're all working on the spur of the moment. They're experimenting to see if this works and see if that works and I really have very serious doubts about the survival of our civilization under such people. I rather expect that a great crisis is coming when the grain will be sifted from the chaff. We're going to see a great separation. Some people are just not going to make it and the old truths are going to come back into fashion because of the need for survival.

The elites are really not elites. They're just as vulgar as the mass. We do not have elites anymore. The elites are really in their attitude and in their behavior they are not elites, they are mass. An elite does not just consent to anything, you know. An elite has his values and his firm convictions. He is striving for something better which he may not be able to achieve but at least he is making an attempt. We don't have anybody attempting anything. Nobody wants to risk anything.

We don't have an elite and I don't see an elite anywhere. Well, there's one guy who I consider to be elite and who is it? Vladimir Putin. There's a man who's got some backbone at least. But I don't see anybody else on the world stage.

And I think that's something that we need in the world. We can't just go on this way but we are going on this way and we shall go on, continue on this way.

--Hugo Salinas Price (transcribed from the link above)

"In 1987 Ricardo succeeded his father Hugo Salinas Price as CEO of Grupo Elektra. He is the fourth richest person in Mexico behind Carlos Slim Helu and the 34th richest person in the world with a wealth of around US $17.4 billion in 2012."

http://en.wikipedia.org/wiki/Ricardo_Salinas_Pliego

The link to the interview is broken but this article summarizing the interview is still available:

https://kingworldnews.com/multi-billion ... ilization/

Another Interview:

https://guillermobarba.com/billionaire- ... terview-2/

Quote from that Interview:

In another of your articles (“When Reality overthrows imagination”), you state that at no time in history has the human kind lived in this real, physically tangible world, relying so much on the human brain’s capacity for imagination. Is this a problem that affects lives of human beings? Do they rely too much on technology and erroneous economy theories? Why?

Imagination is a wonderful and beneficent ability of the human brain, no doubt. But imagination must find an anchor in Reality. If we have no anchor, we are adrift in a world of dreams. That is our world today, a Dream World, based on fictitious money which is now being created without any limit. See Japan’s fantastic plans to create vast, astronomical sums of fiat money to get out of an economic funk. We must have imagination, yes, but anchored in Reality, not in fantastic dreams. We are dreaming ourselves into a very real Hell, thanks to imaginary money, which is what we are forced to use – all money in banks is only imaginary money.

The world is enamored of Technology and thinks that the great triumphs of technology are sufficient for us to affirm in all confidence that technology can solve human problems. But the problem is that technology deals with the physical universe, which is subject to predictable responses. The sphere of human action is not amenable to technology, because humans have free will, which atoms do not have. It appears that our so-called “Economists” today forget this fact. They want to “manage” us to prosperity, forgetting that we have free-will and will inevitably frustrate their plans for us. But, they will go on attempting to “manage” us until we collapse into a new Dark Age. That is what lies ahead for humanity, unless….. you fill in the dots.

Thanks for your time and answers Mr. Salinas.

The words I've used is they will "print" us into a new dark age whereas Hugo Salinas Price says they will "manage" us into a new dark age.

Similar Comments from Others:

As a civilization declines, it becomes barbaric. Before the savages invade it from the outside, its own people have become savages. They enthusiastically welcome the savages. They are drawn to the culture and norms of the savages because these echo their own descent into barbarism.

http://sultanknish.blogspot.com/2017/08 ... ation.html