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AI's Insurmountable Flaw: "Mass Regurgitation of Misinformation" June 12, 2026
These immense hidden costs will not show up in GDP until they collapse the entire house of speculative gambling cards propping up the global economy.
I approach all AI topics with several things in mind. One is the nature of problems, which implicitly define what qualifies as solutions, and the resulting incentive to define the "problem" such that the "solution" happens to be the one we own and control. So the "problem" AI solves is "corporate profits are too low," and so the "solution" is to replace costly human labor (made costlier by SickCare insurance and taxes on labor) with "cheaper" AI (cheaper because the full costs are hidden or subsidized). My other lens: the economic, social and cultural consequences of AI as it is and AI hype, a topic I've explored most recently in Is AI Reversing Anti-Progress or Is It Accelerating It?, AI Data Centers Are Not the Railroads of Today and Inequality, AI and Digital Life Are Undermining Society. Correspondent Mike Fasano recently submitted a succinct and telling summary of AI's insurmountable structural flaw: AI's inability to discern the difference between truth and falsehood, be it intentional misdirection / misinformation or errors generated by AI hallucinations, a systemic flaw which he summarized as mass regurgitation of misinformation: * * * "I read you post on AI and railroads. Here is another observation. So far, AI has only regurgitative intelligence. It--at best--can collate and respond to queries on masses of acquired data. But what if that data is wrong? Who now believes the inflation or unemployment statistics? Virtually every human knows that those statistics are false. Does AI know that? And the problem goes much deeper. The former editor of the New England Journal of Medicine, Marcia Angell, noted: 'It is simply no longer possible to believe much of the clinical research that is published, or to rely on the judgment of trusted physicians or authoritative medical guidelines. I take no pleasure in this conclusion, which I reached slowly and reluctantly over my two decades as an editor of the New England Journal of Medicine.' That being the case, can we rely up AI medical advice? And that problem goes beyond medicine. It is now generally conceded that the inability to replicate scientific studies of any type has give rise to a 'replicability crisis' in science. Can we trust 'science' that cannot be proven to be accurate? Any adult past the age of 40 knows that the above listing of questionable information sources is just the tip of the iceberg. We live in a sea of 'official' but false data. Railroads could transport grain to cities, minerals to factories, manufactured goods to those needing those goods. That served a public purpose. But what is the use of the mass regurgitation of misinformation? And is anyone subtracting the losses engendered by the utilization of inaccurate information from GDP?" * * * Thank you, Mike, for clarifying an essential point: the foundation of all "value" is fact, truth, accuracy and the transparency, replicability and accountability of the processes validating fact, truth, accuracy. If AI is incapable by its nature of validating all these, it's worse than useless--it's destructive on a system-wide scale. The evidence of the systemic destruction is already overwhelming. Bogus "scientific papers" are already proliferating at an accelerating rate, making the task of identifying incorrect and fabricated (i.e. hallucinated by AI) data, processes and conclusions impossible due to the scale of the misinformation and the difficulty of identifying the misinformation buried inside superficially legitimate papers. With both scientific and economic data and analysis now untrustworthy without exceedingly expensive, time-consuming vetting by human experts, where does this leave the "AI will automatically generate superabundance" hype? What's already clear--but inconvenient--is the mass adoption of inherently flawed AI is undermining the foundations of "value," however we wish to define it. And as Mike also points out, this undermining of value has a financial consequence. We all know Gross Domestic Product (GDP) is a superficial, distorting measure of "prosperity," and the structural distortions of GDP (Waste Is Growth) are amplified by the hidden destruction of transparency, replicability and accountability by AI slop, whether intentional (malicious, deceptive, fraudulent) or as the unavoidable consequence of AI's core flaw. These immense hidden costs will not show up in GDP until they collapse the entire house of speculative gambling cards propping up the global economy. Only then will the structural damage being wrought by our increasing reliance on tools that cannot discern the difference between fact and fantasy / fabrication / hallucination become visible. 
And by then, of course, the damage will be irreversible without extraordinary costs and sacrifices, sacrifices few will volunteer to bear. Remember that AI isn't "thinking," "understanding" or "making judgments": AI tools are engines of linguistic automation, not engines of understanding. The simulation is not the thing simulated. AI is not a "mind," it is a prompt and a probability distribution. AI and human intelligence are drastically different--here's how. 
My book Investing In Revolution is available at a 10% discount ($18 for the paperback, $24 for the hardcover and $8.95 for the ebook edition). Introduction (free) Become a $3/month patron of my work via patreon.com Subscribe to my Substack for free My recent books: Disclosure: As an Amazon Associate I earn from qualifying purchases originated via links to Amazon products on this site. THE REVOLUTION TRILOGY: Investing In Revolution Ultra-Processed Life The Mythology of Progress Systemic Problems/Solutions Investing In Revolution (2025) Introduction (free) The Mythology of Progress (2024) Introduction (free) Global Crisis, National Renewal (2021) Introduction (free) Money and Work Unchained (2017) Introduction (free) A Radically Beneficial World (2015) Introduction (free) What You Can Do Yourself Ultra-Processed Life (2025) Introduction (free) Self-Reliance in the 21st Century (2022) Introduction (free) When You Can't Go On: Burnout, Reckoning and Renewal (2022) Introduction (free) Get a Job, Build a Real Career and Defy a Bewildering Economy (2014) Intro (free) Novels The Adventures of the Consulting Philosopher Intro (free) The Secret Life of an Asian Heroine First chapters (free) Become a $3/month patron of my work via patreon.com. Subscribe to my Substack for free Investing In Revolution print $18, (Kindle $8.95, Hardcover $24 (145 pages, 2025) 
Only now do we see that we've been investing in revolution for decades--not the revolutions we thought we were investing in, revolutions in technology and finance, but in the social revolution made inevitable by the extremes that we've reached in our single-minded pursuit of private gains.
The pendulum that we've pushed to an extreme will swing to the opposite extreme, and the artifices that have propped up a facade a stability for decades will accelerate the disorder rather than reverse it. We now stand at the point of decision, and this book offers a path to a reformation and renewal that serves the shared interests of us all, not just the few. Introduction (free) Ultra-Processed Life print $16, (Kindle $7.95, audiobook, Hardcover $20 (129 pages, 2025) 
Ultra-Processed Life: the substitution of a synthetic, commoditized, very profitable facsimile for what was once authentic.
Ultra-Processed Life is my term for everything that is analogous to ultra-processed snacks: attractively marketed, instantly alluring, easy to consume, addictive by design, tasty in the moment but harmful over time, its origins a black box of unknown processes, the brightly colored product bearing no resemblance to the real-world ingredients, an idealized form of what is inherently imperfect, untethered from the natural world. As with many others, the catalyst for my exploration was a life-threatening medical crisis that did not have a specific cause. This led me to wonder if our entire way of life is like an ultra-processed snack: tasty but not healthy, edible but stripped of the nutrients we need to be healthy, addictive by design. Introduction (free) The Mythology of Progress, Anti-Progress and a Mythology for the 21st Century print $20, (Kindle $9.95, Hardcover $24 (215 pages, 2024) audiobook, Read the Introduction and first chapter for free (PDF) 
What if the policies to accelerate growth are no longer working because our fix for every problem--growth at any cost--is failing? We're told Progress is inevitable as a result of technology, but everyday life is getting harder, not easier--the opposite of Progress, what I call Anti-Progress.
What if the real source of the unraveling is far deeper than economics or politics? What if the problem is what we see as the inevitable destiny of humanity--Progress--is actually a modern mythology, disconnected from the real-world consequences of growth for growth's sake? We indignantly reject that Progress is a mythology, but our need for mythology hasn't gone away because we've mastered technology; we've created a modern mythology of technology that is heedless of its own consequences. To truly progress, we need a new mythology aligned to 21st century realities. Read the Introduction and first chapter for free
Recent entries: AI's Insurmountable Flaw: "Mass Regurgitation of Misinformation" June 12, 2026 Is AI Reversing Anti-Progress or Is It Accelerating It? June 10, 2026 Choose One: Housing Is Shelter, or Housing Is Just Another Asset in a Bubble Economy June 4, 2026 AI Data Centers Are Not the Railroads of Today June 1, 2026 Could Instability Trigger Radical Change In Your Life? May 28, 2026 Why Is Consumer Sentiment at Record Lows? May 27, 2026 The Overstuffed Freezer Analogy May 25, 2026 When Unfairness Is Systemic, the Consequences Are Flight, Resistance, Revolt May 20, 2026 Inequality, AI and Digital Life Are Undermining Society May 19, 2026 We've Optimized Fragility, Failure, Denial--and Rage May 18, 2026 Remember: In a Crisis, Everyone Will Consider Themselves 'The Good Guys' May 13, 2026
Chaos Unleashed: When "Irrational" Makes Perfect Sense
May 12, 2026
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"There is no security on this earth; there is only opportunity." (Douglas MacArthur) "We are what we repeatedly do." (Aristotle) "Do the thing and you shall have the power." (Ralph Waldo Emerson) "Any intelligent fool can make things bigger, more complex, and more violent. It takes a touch of genius and a lot of courage to move in the opposite direction." (E.F. Schumacher, via Tom R.) "He who will not risk cannot win." (John Paul Jones) "When we drink coffee, ideas march in like the army." (Honore de Balzac) "Progress is not possible without deviation." (Frank Zappa, via Richard Metzger) "Victory favors those who take pains." (amat victoria curam) "The man who has a garden and a library has everything." (Cicero, via Lee Bentley) "A healthy homecooked family meal and a home garden are revolutionary acts." (CHS) "Do you know what amazes me more than anything else? The impotence of force to organize anything." 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Smith's Neofeudalism Principle #1: If the citizenry cannot replace a kleptocratic authoritarian government and/or limit the power of the financial Aristocracy at the ballot box, the nation is a democracy in name only. The Smith Corollary to Metcalfe's Law (The Network Effect): the value of the network is created not just by the number of connected devices/users but by the value of the information and knowledge shared by users in sub-networks and in the entire network. (CHS, 4/6/16) My Credo of Liberation: I no longer care if the power centers of our society--the distant, fortified castles of our financial feudal system--are changed by my actions, for I am liberated by the act of resistance. I am no longer complicit in perpetuating fraudulent feudalism and the pathology of concentrated power. I no longer covet signifiers of membership in the Upper Caste that serves the plutocracy. I am liberated from self-destructive consumerist-State financialization and the delusion that debt servitude and obedience to sociopathological Elites serve my self-interests. (Thank you, Klaus-Peter L., for reminding me) "We've become a culture of excuses rather than solutions: solutions always require sustained effort and discipline." (CHS 4/9/16) "Fraud as a way of life caters an extravagant banquet of consequences." (CHS 4/14/16) "Creativity = problem solving = value creation." (CHS 6/4/16) "Truth is powerful because it is the core dynamic of solving problems." (CHS 7/21/17) "We live in a system of human emotions that masquerades as a science (economics)." (CHS 1/1/18) "Always remember, your focus determines your reality." (George Lucas) "Diversity is for poor people. Sameness is for the successful." (GFB) "When power dissipates suddenly, it dissipates completely." (CHS 7/14/19) "Disobedience is the true foundation of liberty. The obedient must be slaves." (Henry David Thoreau) "Markets cannot price in the value of non-monetized natural assets such as diverse ecosystems." (CHS 7/14/19) "Magical thinking isn't optimism, it is folly." CHS 1/3/22) "Tune in (to self-reliance), drop out (of hyper-consumerism and debt-serfdom) and turn on (to relocalizing capital and agency)." (CHS 1/5/22) "The path to everything you desire starts here: like yourself as you are right now." (CHS 11/20/22) "There are only two signals: how many essentials you produce and share and if you're consuming less with better results. Everything else is noise." (CHS 12/17/22) "Liberation is no longer needing any confirmation or feedback from others or the world for one's sense of self. Wealth, fame, recognition, admiration, praise, prestige, approval, sainthood, martyrdom, success: none are needed, none are desired." (CHS 12/26/22) "When fame, wealth, prestige, status and glory are out of reach, you're free to pursue other more valuable things." (CHS 2/6/22) "It is the sacred duty of every activist who seeks to better their community to grow and share as much life-giving food as is humanly possible." (CHS 6/15/23) "Being anonymous, gray and unknown is the ideal state of freedom." (CHS 3/15/24) "We seem to have entered a world of anti-leisure and anti-productivity in which the unpaid shadow work demanded to keep all the complicated digital bits in motion obliterate our leisure and productivity." CHS (5/22/24) "It is axiomatic that failing systems work the best just before they fail catastrophically." Ray W. "Looking younger is mere technique; thinking younger demands creativity." CHS (10/16/24) "Tell me what's taboo and I'll tell you the truths that threaten the status quo." CHS (12/15/24) "This is the core of the Attention Economy: the ultimate addiction is the addiction to ourselves." CHS (1/28/25) "If You Seek the Truth, Look for What's Taboo." CHS (7/18/25) "My definition of self-reliance: the less you need, the easier it is to get what you need." CHS (7/26/25) "Mastery requires reading and doing." CHS (7/28/25) "The replacement of authentic value, quality, agency, choice, trust, legitimacy and experience with self-serving facsimiles is the key dynamic of Ultra-Processed Life, my term for the present-day human condition." CHS (8/12/25) "Ultra-Processed Life replaces an authentic experience with a synthetic, simulated, commoditized, highly profitable version that's superficially attractive but destructive over the long term." CHS (8/12/25) "What we see everywhere is the replacement of authentic things--including democracy--with synthetic facsimiles designed to maintain the illusion of choice and value." CHS (8/12/25) "Sometimes certainty is the enemy we don't even see and uncertainty is our most faithful ally." CHS (9/20/25) "Sanitized, homogenized, synthesized Ultra-Processed Life isn't more fun; it's just more profitable." CHS (4/6/26) "AI is ultra-processed cognition." CHS (4/6/26) |
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