If you are intrigued by watching the political and economic condition of the US, it’s wise to pay more attention to the fundamentals than to the daily flux of events. The latter is largely aimed at getting a reaction that herds the masses. The fundamentals tell you what’s actually going on.
For example, the AI market. Compare it against the GDP. You can look up the numbers for yourself, but it goes like this: The US as a whole spends about a half-trillion dollars each year on software that is commercially available. That’s just the software for context.
The investment funds committed to AI already amount to several trillions of dollars. In order to merely break even on the existing bonds, AI would have to sell their services to the tune of several trillions each year. They are assuming the demand for their services is that big. Is that even possible? No.
This means that AI is what we call an investment bubble. Already, the market as a whole is waking up to that fact. They realize that the past exuberance shoveling investment money into the AI was a vast mistake, because a return on investment is not even possible. And if AI bonds start selling off, every firm involved in AI will see a loss of value on the stock market.
The price of a company’s stock controls how much money they can invest in their own internal operations toward growth. Without growth, companies have to cut employees and operations. If lots of companies are doing this at the same time, it means a substantial rise in unemployment. That puts a drag on the economy as a whole.
This, in turn, contributes to political changes. If the party in power has mismanaged the economy, then the other party wins the next election. That’s about two weeks away.
But we can’t be certain what a Blue wave next month will bring. It appears that the globalist “old guard” are not so firmly in charge now. The Democratic Socialists of America (DSA) have a different agenda, and they are fielding an awful lot of candidates under the Blue flag. It remains to be seen who will be steering the party in the future, but I’m expecting a very ugly, dirty fight that may not remain hidden.
The threat of Zionist censorship for blogs like this one will not go away. However, the DSA is loaded with pro-Palestinian activists, and they aren’t friendly to the our message, either. Perhaps the real battle will no longer be Red vs. Blue, but Zionist versus Palestinian sympathies. Both of them are hostile to our message. The only difference is what kind of oppression will be dished out.
We’ll look at that in a later post.
