New Austrian Economics
Open Market Operations at Light Speed: How AI Converted Fekete's 1922 Warning into a Closed-Loop Capital Destruction Engine
Fekete argued that the illegal introduction of open market operations in 1922 made bond speculation risk-free and destabilized the interest-rate structure. AI-driven algorithmic trading has automated this mechanism and accelerated it to the physical limits of latency. The predicted consequence — systemic capital destruction — is no longer theoretical.