Background: The possibility of an economic singularity---a finite‑time explosion of AI capability, financial capital, and inequality---has been discussed in futurist and economic literature, but endogenous feedback loops between AI, finance, and labour markets remain underexplored. Methods: This paper presents a dimensional reduction of a dynamical systems model of an economy with recursively self‑improving artificial intelligence and financial autocatalysis. By transforming to three economically meaningful ratios---financial depth per AI capability ($x = K_f/A$), AI capital per financial capital ($u = K_{ai}/K_f$), and employment odds ($z = L_p/(1-L_p)$)---the original four‑variable e... More >

This paper develops a dynamical systems model of an economy with recursively self-improving artificial intelligence and financialization. The model features quadratic self-amplification in both AI capability ($\lambda A^2$) and financial capital ($\gamma_F K_f^2$), coupled through investment flows. It is shown that under mild conditions, the system exhibits a finite-time singularity where AI capability, AI capital, and financial capital diverge. Near the singularity, the wealth ratio between capital owners and workers diverges super-exponentially, with financialization amplifying the exponent by a factor $\gamma_F/\eta$. Introducing taxes on AI returns ($\tau_{ai}$) and financial gains ($\ta... More >