The present unsound money regime has abetted vast malinvestment in the digital revolution now in its AI phase. Malinvestment takes various forms and is driven by mal signalling in capital markets caused by monetary inflation. Alongside the legal and constitutional backbone of the free-market economy falters. The build-up of the surveillance state is one consequence. All of this endangers "the human person".

Malinvestment in the digital and AI revolution includes a serious distortion of the innovation process. Wildness substitutes for the steady guidance of the invisible hands which is intrinsic to free markets under sound money.

A tremendous charge occurs into the forest of the unknown. Death zones form around the biggest enterprises which potential new entrants cannot cross. In many industries investment success for a business means applying special industrial expertise in applying digital technology to build a moat which protects supernormal profit from competition. In the bubble markets created by virtually non-stop monetary inflation, monopoly and moat profits are the dazzling prize which entices frantic speculation key sections of the equity market and more broadly.

Turning back is not possible. This would mean the engine of innovation going into reverse once some of the big negative aspects of the revolution become evident albeit after a considerable time lag. These aspects include flaws which require application of cybersecurity and the terrifying scope for bad actors to gain control. Older technologies which could have sustained themselves as an alternative, at first through lower prices and subsequently through adaptation to the new awareness of the innovations' faults and dangers, have disappeared. Over wide swathes of human activity, it is digitalization or nothing.

The digital revolution has continually swept aside essential survivor restraints in the free-market capitalist order which protect against destructive forces. The actual pathologically rapid pace and spread of digital innovation is symptomatic of deep monetary malaise. Virulent asset inflation featuring irrational exuberance amidst desperation for yield has fuelled the wild ride of the digital revolutionaries. They have got far ahead of the guardians and guardrails which in a free-market order uphold property rights while defending free entry and more broadly freedom against abuse by monopolistic crony capitalists.

The roaring excitement in the capital markets of irrational exuberance deafens the Jeremiahs who may be warning prophetically about the ultimate serious downsides of the new technology – including the huge scope for bad actors to make use of it. Hence the technological revolution undergoes metamorphosis into a wild social economic experiment. This is a reign of terror from the perspective of the ardent believers in the ideals of a free society and its capacity to deliver widespread enduring prosperity.