Of Two Minds

In the real-world, the costs are all we know for sure and profits remain elusive and contingent.
No one knows how the flood of AI products will play out, but we do know it’s unleashed a corporate frenzy to “get our own AI up and running.”

One Deep State is bad enough, but a renegade, predatory private-sector Deep State is intolerable. In 2007, well before the term Deep State entered the common lexicon, I sketched the interconnected public-private pieces of the Deep State, which I termed the elite maintaining and extending global dominance.

We can all pretend to be fantastic until the floor collapses beneath us. At that point, complacency / denial gives way to panic, but it’s too late to effect any realistic reversal of fortune.

Now that the overlapping crises are upon us and the banquet of consequences is being served, we’ll see just who our elites and leadership really are. The erosion of trust doesn’t require intent, it only requires the blind pursuit of self-interest above all else.

The Fed has trained the trading-rats all too well, and there is no way to avoid the unintended consequences of the Fed’s large-scale human behavioral experiment.

When this bubble bursts, there will be no fourth or fifth bubble, there will only be rubble.
The US economy and its financial system operate under the implicit belief that the Federal Reserve controls the direction of the economy and finance.