Trying to solve the problem by creating more debt is analogous to trying to stop being an alcoholic by going on a bender down at the corner bar.

Once the reality sets in of a superhuman intelligence being in control of every aspect of the infrastructures we rely upon for everyday life, we will simply have to try to come to an accommodation with that entity.

The unfolding time for the end of globalization or a worldwide deflation is much longer, certainly measured in years, if not decades.

A good analogy is stretching a rubber band. You can stretch and stretch and even feel the tension increase in the muscles in your hands and arms as the gap from one end of the band to the other widens. But at some point you reach the limits of elasticity of the band and it snaps. The same thing happens with human systems.

At some point, the world is going to have to bite the bullet and accept a huge downsizing in its way of life to bring the assets-to-debt ratio back in touch with reality.

In fact, the very nature of an X-event is that it is both rare and surprising. So I would not say that any specific X-event is likely. What I would say, though, is that some X-event is not only plausible, but very likely in a time scale of a few years.

My own guess is that quite quickly the machine intelligence will start dreaming machine dreams and thinking machine thoughts, both of which would totally incomprehensible to us. This would then lead to each species, we and the machines, moving off on to its own separate life trajectory.