Published: September 15, 2025
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AI Economic Meltdown: The Coming Expert Squeeze /🧡 There is a frenzy today that is seemingly unstoppable -- the process of replacing human workers with AI. On another front, the idea that AI has now reached a level beyond the smartest human beings is promoted by CEOs like Sam

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The economic feedback loop Tech companies and other firms all over the world are in a frenzy to fire as many employees as possible in order to minimise their payroll, keeping investors happy and increasing their stock price even as the real economy around them collapses.

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The worst thing is even if decision makers are fully aware of the gamble, they cannot change the trajectory because it has become a multi-level ponzi scheme. The software and hardware companies that are currently leading the economy like Microsoft and NVIDIA are dependent on the

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The limitations of "AI" technology When people speak of AI today, they are normally talking about generative AI, or multimodal LLMs. This is actually a form of classification learning models, or supervised learning (with some hybrid techniques in the training stage). To simplify

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This tells you the underlying processes are not the same, and indeed, the best way to understand it is to compare the two realties: Us humans are maximally embedded within the universe, amongst each other, in every moment possible. This is the source of all the data fed to AI,

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This doesn't just affect popular use of AI but also business use, such as using it to substitute junior engineers. You might think of software engineers as "coders", but 90% of their time is spent in meetings and reading each other's code. Often arguing over minute details for

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The Ultimate Trap: AI-Borne Cognitive Collapse Let me take a step back and discuss transactive memory a bit more closely. This is an important concept in psychology which discusses how our brains connect to and depend on other brains. Initially the focus was on husband and wife

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AI takes this degraded cognitive process and gives it a steroidal boost: the human writing the code, the senior engineer helping out, or even debugging it, disappears. AI in this manner can be used to augment the missing knowledge and skill of an inexperienced engineer. Indeed

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In the naive model of human organisations, senior experts dispense knowledge to juniors, who absorb it and learn. Reality is different. Seniors learn from juniors, sometimes even more than juniors learn from seniors, because seniors can see more from less. The juniors act as

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Locked In: The End In Baudrillard's terminology, AI represents a fatal strategy. Bringing efficiency at the cost of understanding at increasingly rapid rates, subsidised to the point where the success of the economy depends on its success. The perfect Ponzi scheme, representing

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@cirnosad AI is looking more and more like a medium for the archon and demiurge, once again trying to copy human creativity and divinity, but falling woefully short except amongst those lacking discernment

@CMichaelsShow It's extremely parasitic!

@cirnosad Impressive @cirnosad Is there a place where all your threads are available ? On your substack there is only one of your writing. Could you put all your threads there ? Or maybe http://archive.org ?

@Solong_amigo My highlight tab!

@cirnosad I've only read the first post so far and know this is an important thread

@Vigne5935719162 It is ! Thank you oomfie

@cirnosad @cirnosad Thank you for all the effort in putting this topic altogether. You have no idea how relieved I feel to know people are paying attention to this serious matter. As a teacher, I know exactly what you’re talking about. Much love πŸ’•

@debscaputo Thank you for reading and even more so for understanding and reaching out. I love that these ideas are familiar to people! It makes me feel like there's hope for all of us coming together again.

@cirnosad It's very depressing knowing that even evolution and technology doesn't follow the linear system and can't evolve forever, instead, it will eventually collapse just like previous advanced civilization. This further reinforces the cyclic System in the universe and debunks the

@Ansel_libert VERY good observation oomfie!

@cirnosad That’s why you the smartest guy on this app, you can write about a multi faceted complex subject and make it digestable for midwitt like us. Cirno the goat.

@jonyyboyyy ❀️❀️❀️

@cirnosad Incredible thread, honestly, it is an issue that was bothering me for a while, basically a reverse spiral nemesis, where in place of an over creative singularity that collapses on itself with endless creations, human potential is simply eaten up and ceases, unable to advance.+

@20ilhados It's the void consuming the light

@cirnosad Very good thread, thank you for your work as always So the skills crisis and the economic crisis are inevitable? And they are looking for them it seems

@SimoneNotBanned Thank you! Yes indeed. It's ironic isn't it? This will hit the bottom rung the hardest.

@cirnosad I honestly should just stop making "debates" inside my head whenever I absorb new ideas and just discuss things... Too bad I'm lonely!

@MirageI6 Discuss with us!

@cirnosad I am always struck by the tsunami of complex information at first to really give the response you deserve to your work. Let me just say, a lot (not all, I'm not one of the smart oomfies) of what you write about I feel I know intuitively in general vague terms. When you write,

@cirnosad Your thread is creating a buzz! #TopUnroll https://threadreaderapp.com/th... πŸ™πŸΌ@debscaputo for πŸ₯‡unroll

@cirnosad Thanks for another great thread Cirno. And to wonder why they're trying to inflate this bubble while simultaneously continuing to gut the *real* economy...

@cirnosad I can never explain it but my instincts always tell me that AI wouldn't live up to the hype because the idea of "Boots on the Ground" would still be superior in every possible way. Those wearing the boots are the ones who have the necessary skills.

@cirnosad Thank you so much. This internal collapse is bound to increace racial resentment, as the 2nd easiest way to decreace upkeep besides firing off people is replacing them with 3rd world immigrants, who may have the same issue home.

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