Elon Musk said AI robotics can solve America’s debt problem. REUTERS The Tesla CEO was asked about the current level of inflation, which remains elevated relative to the Federal Reserve’s 2% target, and said that AI hasn’t boosted productivity enough yet to cause deflation. “AI has not yet made enough of an impact on productivity to increase the goods and services faster than the money supply. The US is increasing the money supply quite substantially with deficits that are on the order of $2 trillion, so you have to have goods and services output more than that in order to not have inflation,” he said. “We’re not there yet, but if you say ‘how long would it take us to get there,’ I think it’s three years. Probably three years – in three years or less, my guess is goods and services growth will exceed money supply growth in about three years,” Musk added. Musk also said he thinks the proliferation of AI and robotics will remake the economy and the monetary system overall. REUTERS The tech billionaire also said he thinks the proliferation of AI and robotics will remake the economy and the monetary system overall. “I think at a certain point you decouple from the sort of conventional economy if you have AI and robots producing chips and solar panels and mining resources in order to make chips and robots… You sort of complete that cycle, once that cycle is complete, I think that’s the point at which you decouple from the monetary system,” Musk said. Musk was asked if that’s the way forward for the US addressing its national debt, and the Tesla CEO noted, “In this future that I’m talking about, the notion of countries becomes sort of anachronistic.”