In Downgrades and Competition For Capital I discussed how AI's insatiable appetite for funds was raising interest rates not just for AI-related debt, but also for everyone else. The impact of these rate increases will take time to become evident, as borrowers roll over existing debt or raise new debt. Below the fold I look at impacts that we don't have to wait for, because they are already happening on a large scale. Krugman Chart 1 Now, Paul Krugman's AI Versus Everything Else presents a different aspect of the competiton for capital — it is "crowding out" investment in everything...