Financial Winter of Our Discontent
The simultaneous deflating of the AI bubble and rapid de-dollarization is a recipe for a multigenerational disaster.
“Now is the winter of our discontent / Made glorious summer by this sun of York …”
—Shakespeare, Richard III
The global financial system is rapidly rotating out of America while we summarily execute our citizens in the street, ignore our own Constitution, engage in imperialist adventurism, and shred the post-WWII world order.
No one trusts us anymore, for good reason. And trust is the one thing, in the end, that really matters.
Two big tells about the true condition of the U.S. economy: the dollar is collapsing, and metals are all exploding to all-time highs simultaneously. This represents people moving assets away from elevated risk in the American system. People don’t want to be overexposed to an economy run by a regime so wildly out control.
Nevertheless, the overall stock market is near all-time highs. Despite Trump hobbling the economy with tariffs on “Liberation Day” (that’s the big dip in the S&P 500 chart below), something has kept the market inflated.
That something, of course, is chatbots—and the trillions being spent on data centers.
The reality is that the US economy is currently being propped up by a massive, artificially-inflated AI bubble. But when the realization finally hits the market that tech bros cannot magically conjure up artificial general intelligence (AGI) using Reddit posts and obscene amounts of energy, what will be the reason for anyone to invest in America—or trade in our currency?
Last night, the foreign spy chief of the United States, Tulsi Gabbard, oversaw a raid on our own election system by FBI agents—to justify the delusions of our aging dictator that he won the 2020 election.
Why would anyone believe us anymore—about literally anything? Why would anyone buy our debt or go out of their way to trade in US dollars when the government is so plainly delusional?
Donald Trump and his billionaire backers are sending America into economic chaos in the hopes of picking up the pieces. But if there is not some divine intervention soon, all this regime will accomplish is a depression. It’s just mathematics.
Trump’s obsession with getting rid of Fed Chair Jerome Powell—to the point of launching investigations into him—reflects Trump’s juvenile understanding of the economy. Trump believes that lowering interest rates is free money. As he said at his Cabinet meeting Thursday morning:
We should have the lowest interest rate anywhere in the world. They should be two points and even three points lower. And if it was each point is the equivalent of I would say uh $500 billion. So if you got two points lower you have a trillion dollars in saving. And it’s almost if you call it call it just a paper expense. You could do it with a pencil. It’s not cutting. It’s not saying we have to get rid of jobs or it’s just like literally so easy to do.
In reality, this is a desperation move to keep the stock market, and the AI bubble, inflated as long as possible. By lowering interest rates, Trump would force money out of savings and bonds and into higher risk securities. It would to some extent backstop the unsustainable rush to spend trillions on GPUs and AI infrastructure. But in the end all it will do is make the bubble, and the crash that results, much worse—especially with a rapidly devaluing dollar.
Democracies, global economies, and healthy societies are all based on trust. It is at the core of our civilization that governments, companies, and people tell the truth as a rule—and live up to their agreements. And if they don’t, they face consequences.
But America has broken our trust with everyone. Under Trump, the government believes “American exceptionalism” means that we can be the exception to the Golden Rule: do unto others as you would have done unto you.
Instead, America follows Trump’s Rule of Gold: do unto others what you want, as long as they don’t have the power to stop you.
Trump’s regime has abandoned and spat on our allies, embraced dictators and war criminals, and entirely ignored international law. This regime is a calamitous embarrassment around the world, and the only thing keeping people connected to America is the promise of magic beans—the galactically stupid, amoral idea that chatbots are going to make people obsolete if we just keep feeding them more and more energy.
We’re about to be simultaneously hit with a stock market crash and rapid de-dollarization, while the economy is controlled by a pack of slow-witted chimpanzees who can’t be trusted as far as you can throw them.
Anyway, release the Epstein files.
“I am in / So far in blood that sin will pluck on sin.”
—Shakespeare, Richard III
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Outside the hand of god coming down and smiting Trump and his entire cabinet, the only thing that is going to save us and save the world, especially Ukraine, is for America to go bankrupt, that means each of us is going to have to feel the pain, but no pain no gain.
Because guess what, the shit storm is blowing our way anyway, and will get here eventually, there is so much fat and momentum in our country and economy, that people are not aware that the frog is being boiled.
Son of York