{"id":47973,"date":"2026-10-10T03:00:23","date_gmt":"2026-10-10T07:00:23","guid":{"rendered":"https:\/\/blog.ckms.ca\/?p=47973"},"modified":"2026-10-10T03:00:24","modified_gmt":"2026-10-10T07:00:24","slug":"ai-versus-everything-else","status":"publish","type":"post","link":"https:\/\/blog.ckms.ca\/?p=47973","title":{"rendered":"AI Versus Everything Else"},"content":{"rendered":"<div class=\"wp-block-image\">\n<figure class=\"alignright is-resized\"><a href=\"https:\/\/paulkrugman.substack.com\/p\/ai-versus-everything-else?publication_id=277517&amp;post_id=219079514&amp;isFreemail=true&amp;r=16ex0z\"><img decoding=\"async\" src=\"https:\/\/blog.ckms.ca\/wp-content\/uploads\/2026\/10\/https3A2F2Fsubstack-post-media.s3.amazonaws.com2Fpublic2Fimages2F2e0109df-3353-45c6-aa49-3de4df7e755a_1431x839.jpg\" alt=\"\" style=\"width:330px;height:auto\"\/><\/a><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The hyperscaler boom is crowding out other investment<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Source: <em><a href=\"https:\/\/paulkrugman.substack.com\/p\/ai-versus-everything-else\">AI Versus Everything Else<\/a><\/em><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p class=\"wp-block-paragraph\">fta:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\">\u201cCrowding out\u201d is a familiar term in economics, usually considered a consequence of government spending. When a government engages in deficit spending and the economy is at or near full employment, it drives up interest rates. That\u2019s because, at near or full employment, the private sector is using all the available credit in the economy at the current interest rate. Therefore, in order to attract enough funds to satisfy its deficit, the government has to offer a higher interest rate. And this, in turn, leads to lower private investment. In effect, private investment is \u201ccrowded out\u201d by the government deficit.<br>&#8230;<br>Finally, how much risk is the AI boom creating in the rest of the economy? Tales of financial stress caused by high interest rates are proliferating. For example, a <a href=\"https:\/\/www.wsj.com\/real-estate\/commercial-real-estate-interest-rates-22d04b1b?mod=hp_lead_pos3\">report<\/a> in yesterday\u2019s Wall Street Journal was titled \u201cThe surge in rates is blowing up commercial real-estate deals.\u201d There\u2019s a growing sense among observers I talk to that the adverse financial fallout of the AI boom for private credit and other loosely regulated parts of the financial system may be larger than many realize.<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>The hyperscaler boom is crowding out other investment Source: AI Versus Everything&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[282],"tags":[91,18],"class_list":["post-47973","post","type-post","status-publish","format-standard","hentry","category-article","tag-ai","tag-economics","wpcat-282-id"],"_links":{"self":[{"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=\/wp\/v2\/posts\/47973","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=47973"}],"version-history":[{"count":2,"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=\/wp\/v2\/posts\/47973\/revisions"}],"predecessor-version":[{"id":47976,"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=\/wp\/v2\/posts\/47973\/revisions\/47976"}],"wp:attachment":[{"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=47973"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=47973"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.ckms.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=47973"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}