@henryfudgeofficial: AI companies are borrowing so much money they may be raising the price of money itself. Hyperscaler capex crosses their operating cash flow this quarter. Big tech bond issuance is now a quarter of what the US Treasury sells to private investors. Bank of America puts the effect at roughly 30 basis points on the ten-year. The Cleveland Fed has named AI demand as an inflation pressure. And the bill for all of it arrives before the productivity dividend does. So what happens to mortgage rates, and to a housing market built for 2 per cent, when the rate is being set in a data centre in Virginia? #ai #economics #macroeconomics #interestrates #bondmarket
But why do they invest so heavily on sth that's no profitable for the next 10 years? anyone to explain this?
2026-08-28 10:36:28
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TheRealFatback :
I know this is boring and a bit early. Buy gold/silver starting now. Do not stop. You will thank me in 5 to 10 years.
2026-08-29 15:56:42
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Henry Fudge :
In short. Sam Altman spending all this money on data centers based on debt, will boost inflation and bump up interest rates. All borrowing rates will go up, this will affect your mortgage and your cost of living and the rents.
2026-08-19 15:43:18
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plumchi :
AI better cure cancer pretty quickly or the hate will multiply
2026-08-19 16:28:52
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user7066725516863 :
There is so many money around (think to the 40 Tr. US Debt) that it could buy everything several times. It is obvius that Inflation is inevitable. The real question is how it will affect the different class of people and Capital Owners
2026-08-29 10:33:50
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Donny :
Rentier Black Hole mentioned😁
2026-08-19 16:46:05
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OurInterface :
Stop worrying so much, the losses will be socialized and the billionaires will be fine, that's what matters right?
2026-08-19 20:03:45
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Thotline News and Politics :
Any other business in a free market economy that required 9-10 figures of continuous investment with no foreseeable long term returns would've been laughed out the room on day 1.....
2026-08-19 16:06:20
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Phil :
AI is going to destroy us but not in the way Hollywood predicted
2026-08-19 20:58:56
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glitchy_k :
Plus AI data centres aren't subsea fibre cables that can chill until we get to the point we have enough data to effectively use them. After a couple of years those GPUs are going way out of date from being at the forefront. Thats without China's models being better in pretty much every metric and companies trying to develop small language models so you can have a chatgtp or Claude run locally on your phone easily
2026-08-19 17:05:13
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EconiQ 🇵🇱🇨🇦🇪🇺🇦🇺 :
so recession with no upside to the economy
2026-08-19 23:08:51
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Torgeir :
The Ron T Black Hole 😅
2026-08-19 16:36:53
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fiercelyawk_ward :
I really don’t understand how we are not in another Great Depression - everything about the stock market is so obviously a scam at this point.
2026-08-20 01:17:39
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frodo :
its almost a black hole, isnt it……….
2026-08-19 15:46:34
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Mr. Bruce :
China is building the same if not better AI open source infrastructure with a better electric grid could we be overspending on AI to reach our goal? Only time will tell.
2026-08-19 18:38:33
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Mr. KW :
Another thing not mentioned here is the sheer political instability this is going to cause. I don’t imagine an ever worsening spike in expenses will lead to most people becoming less radicalized. The fallout from this will be far more immense than just rising interest rates. That, and the climate crisis, and the rise of the surveillance state, will only serve to antagonize the working class further. I see a storm brewing and it’s not pretty. Still, excellent analysis Henry! As always, the Rentier Black Hole manages to strike again! 👀
2026-08-19 19:16:18
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Matcha :
The one financial TikTok that doesn’t ask me to sign up a course. Salute Mr Fudge
2026-08-19 23:36:25
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Mike :
I hate AI so much right now. Or rather I hate the orgy of greed it's sparked among the rich and among big corporations. I get that it's going to be incredibly important in the future, but this mad gold rush is causing so much pain, and will end in a burst bubble.
2026-08-20 14:25:12
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SlingshotVPN :
great explanation of the bubbles
2026-08-19 17:47:58
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Haberopapero :
They are funding it by spending the money earned by working class tomorrow. When it crashes they will try to get bailed out by using the money working class would earn day after tomorrow.
2026-08-21 03:30:22
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BalorEvilEye Reborn Again :
Our pensions are probably buying that debt.
This is insane. It is going to make 2008 seem like a mild bump.
2026-08-19 22:08:12
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FosterChild1983 :
so were gonna have to pay extra money for clankers to take our jobs. fun times
2026-08-20 18:34:42
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TeamRoli20082011 :
And US has £40 trillion debt they won’t reduce
2026-08-21 05:21:17
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seb_H96 :
So how similar to the 2008 crash?
2026-08-19 17:31:37
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SonicBoom 🇫🇮 :
they are also using money to buy technology that loses its value eventually. like GPUs. Also data center builders cannot expect the compute they produce, be as valuable as it is now in future. there is going to be a glut of compute in future. and they own money for obsolete hardware
2026-08-19 19:39:09
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