Charles Hugh Smith's Substack

Charles Hugh Smith's Substack

Insane Financial Imbalances and Social Revolution

A rebalancing of the economy and society will ultimately prove very positive, but first we must navigate the model collapse of insane financial extremes.

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Charles Hugh Smith
Dec 19, 2025
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I’ve endeavored to explain how self-referential models veer into hallucinations that are accepted as accurate reflections of the real world. Models are by definition synthetic abstractions of the real world, and as these “train” on their own output, they drift away from authentic understanding without the users being aware that their “world” is both art…

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