The AI Economy - A conversation with Creditor @redbeard172023

trick or treat or tonight so far. And it's pretty much done. Yeah, none at all. What about you, credit or do you, are you at work? Are you? Yeah, I'm working and riding around in Louisiana. But I don't see many people out. I was just driving around. I didn't see many people out. But it's sprinkling here. So I don't know. It's crazy how this thing, you know, but ever since COVID, Halloween has kind of died off as far as like the given out the candy, doing all the fun stuff. It's just, it's very limited. It's kind of unfortunate. But it's kind of dangerous knocking on somebody's door to be honest nowadays. It is. It really is. Let me get my up in here. We'll shoot. Well, I think I got enough stuff posted. Let's start off. I start all my spaces off with a song or something like that. If you all don't mind and can share and repost out this space. And then we'll get started with what we want to talk about. It's going to be the AI economy, which involves quite a bit. And we'll let the conversation go where it goes, kind of being driven by creditor here. But anyway, enjoy this. And then we'll get started. Appreciate y'all. Oh, my mom and people, my life from the long I'm a girl. Long and it's putting into my running and I'm so far from my home. Oh, my can even down from the gallows. Good evening, everybody. Happy Halloween. Happy Halloween. Everybody's on a great night. We're here tonight, a special guest creditor. Co-host also, money-punny. Thank you for helping out with this. See a bunch of friends in here. We're going to talk about the AI economy and get a little bit of insight. We're going to go whichever way this goes. If anybody else wants to mic, if you all can share and repost this out, I try to start it on the scheduled space and it completely blitzed out, or glitched out. So we're just working off of basically pop up status. But we'll work with it. We always do. So first off, welcome creditor. How are you doing? Can you give everybody a little bit about your background? And then we can go and how I want to contact the space and what we'll get around it with? Yeah, I don't know how I would describe. I guess I'm just passionately curious about all topics. I don't know. It's hard to nail me down on anything. I work in the whole field, but I'm constantly playing with AI and I can't get enough of the law. So that's pretty awkward, maybe it's because I'm a quarrier. But I don't know, man, we were in a space the other day and we were talking about AI and a lot of people are hesitant about AI. I was against it. I'll never use it as garbage. And then I'm also the type of person that I like a challenge. If you're going to do something to, you know, a lot of people think it's going to be used against us and I'm probably in that camp. So I'll accept that challenge. If you give me a tool as powerful as we have, I'm going to do something with it. And you know, so there's a lot of people out there wondering what's everybody doing with it? I'm not the brightest on this topic. There's people that are far more intelligent, but I figured out some cool stuff. So if, you know, I like to talk to people that won't know more about it. I'm using it to exit the system. I'm using it to, I'm using it for everything. You know, I'm using Venice AI because it's uncensored. I just recently swapped to that one. I got rid of all my other ones, but also just picked up Grock Bots. I don't know if anybody's done Grock Bots, but it's fascinating. And so I'm having a lot of fun with that. So I don't know. I guess I'll just land right there, buddy. Appreciate you. Money, Penny. Give us a little bit about your background and expertise. And then we'll dive into the topic and just go where the conversation goes then. Well, unless you were born in February, Smithy, you're outnumbered because I'm also an Aquarius like creditor. Go with Aquarians. Yeah, we're meant to be innovative, a bit sort of nerdy, quite independent, difficult to sort of pin down. We don't like conforming. We know this crazy inventors. We think outside the box and we're also a pain in the ass, so we don't do well in relationships. I'm not asking credit to that question because it would be a bit personal. But hey, Smithy, were you born in February? I'm a November baby. So tomorrow starts my birthday month. And so... Well, you're out. I'm sorry, you're not, you're out. It's Aquarians dominating this space tonight. No, no, no, no, no. I'm in November's quarter, B.O. 2. So that's two for two. Let's go. It's arm month, babies. You know, I'm not one of those that celebrates their birthday month. I'm like, I don't want to, I don't even want to celebrate my birthday. So I just, I just do what I do. Bad, the terious fuck all of you. Yeah, that's a curious. I've started something now, so I finished Aquarians AI. Yes, I was formerly an economist for Chase. Chase investment, as it was called, or Chase Manhattan, Chase Bank, whatever you want to call it. But I was in London. When I worked with them, I was in financial services and financial services technology for 25 years. I was also a journalist for a short amount of time with the BBC and then independently writing about financial services stuff, which is incredibly dull. But I also, I'm a science nerd. I love plasma physics, which is my expert area. And I'm really looking forward to this. Thank you for inviting me, study. And I'm looking forward to hearing what credit has got. Yeah. So let me, so the AI economy, let's just review it. And let me encapsulate that a little bit and kind of what it all is geared around. Because it's rapidly changing day by day, day even. So, you know, I put a grot definition underneath it. I'm just going to recap this a little bit. You know, the AI economy is the emerging economic system in which artificial intelligence, especially advanced generative AI and related technologies, acts as a central driver of activity, investment, productivity, and structural change across the broader economy. It's not limited to just the AI industry itself, which is chips, models, software, and services. Instead, it describes a paradigm in which AI is embedded throughout production, services, capital allocation, energy systems, labor markets, and even how economic activity is measured and transmitted. Analysts and institutions, including McKinsey, UBS, Harbor Capital and others, increasingly treated as a distinct operational environment, often comparing it potential scale and impact to prior general purpose technologies, such as electricity, the industrial revolution, or the earlier Internet IT era. It devolves into some of the core features. You got infrastructure and capital intensity. The next one, you got value chain and ecosystems, which that's the stack runs from negling layer chips, memory, infrastructure, through intelligence layers, which is models, to applications in agents. Ecosystems and interdependence can matter more than traditional sector boundaries. Feedback loops and interconnected forces. That's capability improvements. Falling compute costs, adoptions, investment, energy demand, productivity gains, and market responses, reinforce one another. AI interacts with physical resources, institutions, businesses, markets, geopolitics, and people creating feedback that shapes both the technology and the economy. Productivity, growth, and new activity. So potential channels here include task automation or augmentation, accelerated scientific discovery, and R&D, creation of new products, services, markets, including AI powered services that take on tasks, people previously handled themselves. Capital deepening, realized macro productivity gains, have so far been more limited and uneven than investment effects with estimates longer on impact varying widely. Next, you have labor and organizational effects. So that's differential impacts by occupation and sector. Higher exposure for certain knowledge work shifts between automation and augmentation, possible wage, employment, compression, and some areas alongside new roles in skilled demands and changes in how organizations scale, especially at AI agents, improve coordination as well as individual competence. Lastly, you got the macro transmission and measurement. So that's AI-related capital expenditures become a material contributor to GDP growth in leading economies via equipment, software, structure, and related activity. Equity market performance tied to AI has generated wealth effects supporting consumption. Traditional indicators can understate or mischaracterize dynamics, prompting interest in complementary metrics, which is tokens as a unit of computational work, compute costs and efficiency, hyper scale cap-X, adoption rates, and specialized AI-momentive indicators. Energy-demand and geopolitical competition over chips, talent, data, and power are also integral. So the current character as of 2026 context, the phase is in heavy and heavily investment and infrastructure led with significant contributions to growth and equity markets from AI-related spending. While broader productivity payoffs, widespread diffusion and labor market reallocation are still unfolding that's subject to uncertainty. Some descriptions note a two-track pattern in which AI-linked activity is strong while other parts of the economy is more subdued. Unique economic features of AI wrap the scalability of intelligence, high fixed cost for frontier systems, and the potential for self-improvement or agentic workflows after conventional relationships between investments, productivity, employment, and market structure. In short, the AI economy is the set of production