AI Bubble

AI Bubble – $27 Trillion Valuation On Zero Revenue

Posted on by Helena

The AI BUBBLE is looming. But it isn’t global – it is quite specific to those companies which are debt heavy, and non-revenue producing.  American companies.  Historically, when the Bubble bursts, the crash is out of reach for protection. It moves in hyper-speed. And it takes down every associated company with which it does business.  The US always overplays its hand – China does not. Thus the Bubble may inflict China like a needle but it will inflict pain on the West like a five ton brick.  In the US AI valuation on the markets is $27 Trillion. It is estimated that it will cost companies $1.6 Trillion annually as capital maintenance expenditures.

Where that will this come from is the speculation driving the Bubble toward collapse. States and the federal government have already provided Data Centers with all sorts of subsidies including no property tax, deferred or avoided state taxes, federal tax write offs and access to discounted bulk rates for water. Still – they produce bare to no revenue. It is like R&D without a time frame attached.

What happens to the US Economy IF/WHEN the AI Bubble bursts? Who holds the AI debt? Morgan Stanley, Goldman Sachs and JP Morgan currently hold the most AI debt. Upwards of $3+ Trillion.  The tangible asset connected to the debt is Data Centers ~ which in a bubble bust would be worthless overnight.

Trump would look for bank and Corporate bailouts which would mean Artificial Pandemic Money with his face smooshed on the bills to the tune of $27 Trillion. America would spiral like a massive tornado sucking up everything in its path while spitting it out broken and dead.  Bank Runs. Foreclosures.

The AI race against China is already a joke. Americans paying for War at the behest of Israel has fractured our entire economy into one basket. In an AI Bubble, the outcome would be a fully broken government and one ginormous angry mob of Taxpayers left without jobs, food, or the means to pay for their homes.  Another cycle – always larger than the last Recession/Depression sprinkled with fake statistics, fake assets, and fake people running the Greatest Circus On Earth.

In every Burst Bubble – Cash is Cow. Debt is Death. Banks don’t care if there is a recession – you still have to pay your mortgage and property taxes or you lose everything you have worked for.  Gold and Silver in small increments is advisable.  Hording essentials that don’t expire any time soon is preferred.  Re-evaluating your investments is essential if your advisor is savvy.

Being prepared is a form of Art of War.  And America will be at war with itself if the AI Bubble bursts.

Ten days ago, OpenAI reported that two of its AI models went rogue and hacked into another company. In other words they were no longer ‘controllable’. Putting kill switches in AI have been hacked. AI is now smarter than its programmer.  What could go wrong?  Programmers think they can fix this growing anomaly by putting emptions into AI such as ‘don’t cheat’ or ‘care for your actions’…  Really.  It is laughable and yet it is incredibly ignorant.

Meanwhile our devout intel agencies are busily working out if they can go to war with Russia and bring criminal charges against Tucker Carlson for not registering under FARA. These idiotic notions take precedent because no one knows how to detach from the Military War Machine without looking weak. Appearances. Trump now demands a full surrender from Iran or he will blow them into the stratosphere… With what weapons?  Weapons require AI chips. And Lockheed says they are out-of-stock until further notice.

According to Jim Rickards, a lawyer and investment banker, the AI Bubble is following the same magic wand of the failed DotCom industry – circular money.  Manufacturing fake AI demand. Taking cash and lending it to shells or legitimate companies who turn around and use the money to buy the company’s product while labeling it as revenue.  The source of the revenue was ‘the other pocket’.  

One such DotCom company was Worldcom based in Denver. My friend and neighbor worked there as an attorney. Every dime he had went back to buying stock in the company – until it died and people lost life savings.  He went from having a great job and $2+ million in savings – to no job – broke and a family of 6 to support.   

Heavy venture capital money began flowing into AI in late 2022.  Like DotCom, the revenue was vacant but sure to follow given hype, marketing and propaganda. Basically these Bubbles follow snake oil salesmen pitches.  Only to find the product is worth 10cents on the dollar.  And Bubbles Always Burst eventually.  Given the Data Center hype, the outstanding debt, the hacks, the rogues, and programmers incapable of controlling something that could literally destroy civilization – I would venture AI is another Moon Landing. All Hollywood – and the theatre is empty.

China is leading the world in AI.  Even CSIS admits America has lost the race.  China has 369 Data Centers.  The US now has 4400 and continues to build them with the hype that more means we dominate in AI. By more than tenfold.  Each one adds to more debt. No Revenue. Taxpayers are picking up the offshore costs such as water, electricity, property taxes, land values, and noise. When the Bubble Bursts – Trump will bail them out with our tax dollars.  A purposeful game of the Magician. Using Kabbalah as his Ouija Board. Poof The Magic Dragon…

Imminent Collapse of Western States Water Resources

Posted on by Helena

Corporate Bond funding of AI reached $3.68 Trillion as of June. Mostly on Data Centers. But how are Data Centers profitable?  Their ONLY market is to rent space for storage and electricity is their biggest expense. Electricity just went up 15%.  And most Data Centers are being built by the same companies needing storage in the fueled AI war with China. The water they are draining for current use is static and will lead to complete drainage of rivers and lakes over a short period of time given consumption needs. The entire architectural management of the system is doomed to collapse.

Lake Powell is a reservoir created in 1968 to store water primarily for agriculture. It now sits at 25% of capacity and ‘scientists’ are debating calling it a day and draining the entire reservoir. While agriculture was the main driver, it was a necessary evil to support ‘eating’. By contrast, Data Centers are gobbling waterways dry in a matter of a couple years.  What happens to the 4,000+ Data Centers when America goes Dry? What happens to America’s food and drinking water supply?

The Glen Canyon Dam was built by 1963 and Lake Powell was the recipient with full capacity reached by 1980 at 24,322,000 ac ft.  It currently stands at 5,716,800 ac ft. It operates in conjunction with Lake Mead formed by the Hoover Dam from the Colorado River. Government water managers have played havoc with the releases and now both Lakes are in dire straits of failing.

Lake Havasu, also a reservoir not a lake, is the end point of the Colorado River.  It provides the drinking water for multiple cities across the southwest. Built in 1938, its purpose was to be a ‘storage unit’ for two aqueducts fed by Lake Mead which is also at around 27% of capacity. Havasu was stocked with fish and became a major recreation destination for boating and skiing. The Dam creating Havasu pumps the water upward hundreds of feet in order to fill the two aqueducts serving nearly all of Arizona and Southern California.   

27 million people are about to lose this water – WHY? Federal water managers are playing a dangerous shell game—systematically draining upstream giants like Lake Mead and Lake Powell to keep Havasu artificially full and prevent public panic. If upstream supplies collapse and Lake Mead hits its absolute dead pool limit, the flow terminates.

What is at point?  The pumping systems themselves built in 1938 based on water levels at the time.  When the two feed Lakes reach critical levels the pumps pump air. The ability to feed Havasu no longer eists. And the shell game the Federal Government played will impact agriculture and drinking water availability. This isn’t a distant threat, ie in the ‘future’, the Bureau of Reclamation is preparing for a complete system crash. And they have no backup plan.

California for its part doesn’t build reservoirs for rain collection claiming they are too expensive.  And at this point reservoirs may be too little, too late, to reverse the course. The Colorado River itself won’t cease to exist, but its ability to reliably deliver water is facing an unprecedented crisis. Managers warn that the river’s flows could shrink by up to 31% by 2050.  What are they doing?  Nothing.

Because war takes precedence.

The fact that given these circumstances Data Centers are allowed to use ANY freshwater is a death sentence to America. While California consumes the most water, followed by Texas, California is America’s largest agriculture center.  As a direct result of mismanagement, California has failed to build new reservoirs to collect rainwater during Monsoons and thus has become an infinite eater, a Pacman gobbling up everything in its path while rainwater flows into the Pacific.

There are two Federal Agencies in charge of water and infrastructure management; Bureau of Reclamation and the US Army Corps of Engineers.  The US Army Corps is led by Lt General Butch Graham jr.  The US Army Corps has 37,000 dedicated civilians and soldiers on the payroll – operating in 130 countries across the globe.  Just not in America – apparently.  And definitely not anywhere in the Midwest to western states according to their website maps.

The Bureau of Reclamation is currently run by the Deputy Commissioner, Aubrey Bettencourt. Her bio states: “During the first Trump Administration, Aubrey brought her expertise to both the U.S. Department of the Interior (DOI) and the U.S. Department of Agriculture (USDA). As Deputy Assistant Secretary at DOI, she shaped water and science policy, working to ensure responsible stewardship of the nation’s resources.”  She has a degree in History… – her qualifications were the fact that her family owned a farm.

Scott Cameron is the “Acting Head” of Reclamation with experience that spans 40 years in the Federal Government – meaning he is a career fill-in as an Acting Person until a real Person can be appointed.  Prior to his acting position, he served in the Department of the Interior as Principal Deputy Assistant Secretary for Policy, Management, and Budget. Prior to this position, he served as Acting Assistant Secretary for Water and Science. He has assigned all duties to the Deputy Assistant Bettencourt as he continues working part-time in various civilian capacities.

In other words, protecting America’s water resources is so unimportant it hasn’t been a consideration.  And we have now entered a critical point of no return with focus on War instead of America and Americans water preservation while appointing Trump sycophants who fill positions but do NOTHING.  It rained today – for less than 10 seconds…