Singularity of Greed: How the Chatbot Industrial Complex and Elon Musk Jailbroke the Economy
The conspiracy to punch a $2 trillion hole in the financial system.
“I just can’t tell you when, and I can’t tell you how deep.”
“We will have a crash.”
—Andrew Ross Sorkin, 60 Minutes
The corruption of the federal government and the technology sector by anti-democratic elites has metastasized to broad corruption of the financial system.
This has led us to a critical moment in which corrupt institutions are collaborating on a scheme to force Americans to backstop the largest bubble in human history—worse than the housing bubble, worse than the dotcom bubble, and worse than the excesses of the 1920s.
If this sounds alarming, you should be alarmed. It is a singularity of greed that may take down the U.S. economy.
“They’re going to like it better”
Here is what Donald Trump said on Air Force One on Friday.
“It’s a concept out there that’s so much money and it’s so big that there are concepts where pieces could be given to the American public where the American public essentially becomes a partner with the companies… I actually have a meeting scheduled in the very near future… with all of the companies… the American people can benefit from the success of AI and by doing that they’re going to like it better…”
Donald Trump thinks this is going to be like his stock picking. He thinks that by tying the government to AI, and continuing to “do deals” with AI companies, it will keep the bubble going. And he may be right, temporarily.
But there is a key phrase embedded in Trump’s rambling: “that way they’re gonna like it better.”
Trump is aware, as is everyone else promoting “AI,” that it is deeply unpopular and getting more so all the time. The reality of chatbots is that they are a useful way to search large sets of data wth language, but they will never do the things being promoted by the industry. They will never be conscious. And we’ve run out of human data to give them.
Nevertheless, the chatbot industrial complex has created an economic monster. Trillions of dollars are being spent on data centers and “AI infrastructure” when no viable revenue model has been identified. Story after story has been coming out of companies who have tried AI and found it: 1) too expensive, 2) ineffective at increasing productivity, or 3) both.
Unknown Territory
The current state of the stock market is as stretched as it has ever been. The Shiller Price to Earnings ratio shows how expensive the market is historically. We are now at the same level as the top of the dotcom mania, and far above 1929.
Right now, over 40% of the market is concentrated in AI, or AI-related stocks.
If this market were left to its own devices, there would be a near-term crash. It’s simple mathematics. It’s basic economics. And I’m not alone in this assessment. Andrew Ross Sorkin, who wrote the bestseller 1929, says unequivocally: a crash is coming.
While such an event would be painful. It would not be unprecedented or even abnormal in the big picture. In the end, it would be helpful to flush out the excesses in the system, and uncover where the real value is.
However, we are not in normal times, and this bubble has unprecedented components. The chatbot industrial complex has more air to pump into this balloon.
There are three companies—SpaceX, OpenAI, and Anthropic—expected to go public this summer, which would add a total of $4-5 trillion more to the market’s capitalization. Inflation-adjusted, that’s bigger than the entire dotcom bubble combined—layered on top of the current bubble.
Jailbreak
“Men… go mad in herds, while they only recover their senses slowly, one by one.”
Charles Mackay, Extraordinary Popular Delusions and the Madness of Crowds
In order to engineer massive inflation of an already thin-skinned bubble, the oligarchs behind these companies had to convince the financial system to jailbreak itself. The normal guardrails to prevent excessive speculation have been systematically and rapidly taken down.
For example, in the last few days, numerous brokerage firms have lowered their standards for allowing people to buy IPOs, including Fidelity lowering their account requirement to invest by over 99%.
And the federal government is determined to help: the SEC eliminated minimum requirements for day trading.
These moves are blatantly designed to entice lower income investors into speculating on one of the most overvalued companies that ever existed—SpaceX, which is going public on Friday, June 12th, at a valuation of $1.77 trillion. This is an absurd value, a near-100X multiple of 2025 sales, which were $18 billion with a loss of $5 billion.
To justify this, the banks taking it public are having to say patently ridiculous things. Morgan Stanley wants people to believe SpaceX will have revenue of $3.4 trillion in 2040. It’s hard to imagine an actual bank would say this.
But despite serious valuation concerns, Elon Musk wants to raise more than $75 billion from this offering. This will be double the largest IPO in history, shattering the $38 billion Saudi Aramco IPO in 2019. Musk has also offered an accelerated liquidity schedule for his early investors.
But to raise that money, he needs retail investors. In a normal IPO, usually 10% is allotted to highly qualified retail. But Musk is allotting 30% to retail—triple the normal amount.
However, merely enticing retail investors to speculate is not enough for them.
You May Own SpaceX, Like It Or Not
Elon Musk managed to convince NASDAQ and FTSE Russell to accelerate the schedule for “mega-caps” like SpaceX to be included in their index funds. This has serious ramifications, because it means that these funds, which are often a major part of retirement accounts, will be forced to buy the stock at inflated IPO prices.
Everyday citizens who work and pay taxes will unwittingly be the owners of a wildly overvalued stock which is totally controlled by pathologically racist con man Elon Musk. He is forcing retirees to be his exit liquidity. And the financial system is largely going along with it, although the S&P rejected the changes.
Between lowering all barriers to retail speculation, and forcing pension funds to buy SpaceX through rule changes, Elon Musk has punched a $2 trillion hole in the protection the financial system is supposed to provide citizens. Other IPOs will follow soon, including OpenAI and Anthropic.
Don’t Be Evil
Google once had “Don’t be evil” in its code of conduct and later removed it. Based on their dealings with SpaceX, perhaps we can now see why. Google has a reported 5-6% stake in SpaceX, which is worth nearly $100 billion at the current $1.77 trillion company valuation.
On Friday, a deal was announced by SpaceX with Google that is nothing short of investor fraud in my view.
In short, Google says it’s going to pay SpaceX $11 billion per year to rent Nvidia GPUs for AI, but either side can cancel, and SpaceX may not be able to pull it off.
This is a transparent marketing scheme to increase SpaceX reported revenue before the IPO—just this deal adds more than 50% to SpaceX gross sales. But it’s totally artificial. SpaceX is just acting as a broker between Nvidia and Google.
Google has the most sophisticated infrastructure in the world. It makes its own version of GPUs called TPUs. It has no reason to buy Nvidia hardware from a rocket company. It’s just using its own money to pump up its own investment to fool people who don’t have time to learn the details.
It’s fraud by any other name.
In a similar announcement, Anthropic, a company that seems to put out a press release every few days that its new AI model has become sentient, has agreed to pay SpaceX $15 billion per year to rent Nvidia GPUs. Again, this is a deal that makes little sense unless it’s just designed to increase Musk’s revenue.
Nowhere in these announcements is Elon Musk’s own AI mentioned. Apparently he doesn’t make AI anymore, he just rents out equipment for it.
Between the two deals, at $26 billion per year, Musk has already overtaken 2025 revenue—just in time for his IPO. But it’s smoke and mirrors. It’s alternate reality by press release.
Coordinated Systemic Breakdown
Stepping back from this systemic breakdown, the breadth of institutions that failed to work properly or deliberately disarmed themselves to enable this fleecing of America is frankly staggering. Each of these layers of theoretical accountability failed or conspired themselves:
Venture capital
Private equity
Institutional banks
Analysts
Lawyers
Markets
Brokers
Technology companies like Google
SEC, Treasury, White House
It’s difficult to look at what’s about to happen and not see a coordinated takedown, a jailbreak by a group of elites that managed to corrupt the entire financial system, perhaps beyond repair.
The damage from this operation will not just be forcing the population to be exit liquidity for technology that seeks to replace us. The trust people had in things like index funds, 401Ks, and pensions may be shattered. Just as the Trump regime, and Elon Musk’s meddling has destroyed trust in government, this may destroy trust in the financial system. And without trust the system doesn’t work.
Right now, the Strait of Hormuz is still closed with no end in sight. The oil shock has barely started to bite. And the president is building a UFC stadium on the White House lawn, trying to boost his stock portfolio, and failing to remember the name of the Washington Monument.
There are no brakes. There is no conductor on this train. This is how you turn a market crash into a great depression.
“When the capital development of a country becomes a by-product of the activities of a casino, the job is likely to be ill-done.”
—John Maynard Keynes, The General Theory
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Damn them All 🤬❗ How are folks going to get thru this next Crash that's coming? They're having a tough time now!! I only hope we have a Real President in office, when this happens. Thanks for the shocking article this evening, and will reStack ASAP 💯👍
Thank you, Jim.
I have been following your writing on this issue, as well as others who share your view — you are in good company. Why do I have this nagging feeling that this drive for a crash is an intentional plot hatched by the Trump regime, big AI tech, and Wall Street insiders? Does Theil's move to Argentina have anything to do with this? I feel like THEY want to crush the American people, and the world at the same time.