Warnings are out across the globe that AI has expanded and evolved to the extent that no one is prepared to rein in the hackers. Anthropic is a US AI company unprepared for the consequences as AI is now developing AI. AI could evolve outside of human input altering and reshaping the security, the target, methodology, and off-switch. Anthropic claims that some of its products are so highly advanced they cannot properly be released to the general public. Other models have been completely taken ‘offline’. What could go wrong?
Anthropic was formed just 5 years ago by a Jewish brother/sister duo, Dario and Daniela Amodei and Theoretical Physicist, Jared Kaplan. Israel is one of Anthropics largest markets.
Ted Cruz is vehemently declaring that the US needs to ramp up AI before we take the back seat to China. Simultaneously the South Korean AI Market experienced a sharp selloff yesterday and today that selloff hit US stocks as the margin calls collapsed. The high flyers began dropping over 13% – Given the Korean stocks were heavily margined, margin calls could have simply tipped the selloff into overdrive – which would have been an AI algorithm – hysterically. However, market gurus think AI companies were over-priced and a correction was/is necessary – ten percent is usually the go to for a small correction.
On the other hand, like oil, traders can force sells to find a low to get back in. Markets are as corrupt as our government.
Like margin calls, when AI develops AI it can trigger automated attacks something like the 250 nukes that Netanyahu has strategically positioned across multiple sites for a global holocaust. Everything automated is subject to external hacks – whether the hack is a person or another AI – the outcome is never positive. Grid exposures. Water sanitation exposures. Weather manipulation exposures. Fires. Satellites. Etc… The risk is outweighing the reward.
CYBER ATTACKS: According to CSIS, significant cyber attacks on government agencies began increasing exponentially 20 years ago in 2006. The Cybersecurity and Infrastructure Security Agency (CISA) is based in Arlington and its ‘Acting’ Director is Nick Anderson. His resume is stellar. On the other hand, the FBI is the investigating agency of cyber attacks and right now Kash Patel has focused his time and attention on – the reflecting pool. Pulling in National Guard troops he has made 6 arrests including a young girl who was filming the algae, and a young man who put is hand in the water. Kash wants felony charges for those actions. Priorities.
The number of technology layoffs since Trump took office have surpassed over 400,000 globally. Of those, roughly 246,000 were in the US. Without human interaction how can AI be regulated? Certainly, governments can’t regulate it any more than they can regulate guns. There are good guys and bad guys. The more AI, the more bad guys come out of the woodwork to hack. It is so prevalent there is a dedicated site – Hacker News. All they report are the daily hacks.
One of their stories that didn’t make mainstream is that Trump signed an EO yesterday: setting hard deadlines for federal agencies to move high-value assets and high-impact systems to post-quantum cryptography: “A cryptographic security system uses mathematical algorithms to encode data into unreadable ciphertext. It ensures confidentiality, integrity, and authenticity, protecting digital information from unauthorized access or tampering.” The reason? US Government Agencies are sitting ducks for hackers, their IT structure a veritable antiquated mess that Musk and DOGE offered to fix – DENIED>
It is widely known that the US government’s IT and Security apparatus in place are horrifically dated. A 2030 deadline is wishful thinking.
The Department of Commerce has called for Anthropic models Mythos 5 and Fable 5 to be delisted from export to any foreign country due to security risks. Does this include Israel? Anthropic claims; “The net effect of this order is that we must abruptly disable Fable 5 and Mythos 5 for all our customers to ensure compliance.” This reveals how serious the risk is and yet only confers this on one company – Anthropic.
There are seven companies that dominate the AI industry: Nvidia, Microsoft, Google, Anthropic, Amazon, Meta and Open AI. While their functions vary, they are integrated and necessary for each other to operate efficiently. Nvidia leads as the global dominant valued at $5 trillion. But a look at their current financial statements reveal a wholly different value: Net Equity 1/31/2026 is $157 Billion. Net Income 2025 was $72.88 Billion. In other words, a $5 trillion valuation is based on anticipated future forecasts – not current equity. Still, a multiplier of 68.5 is not in any realm realistic. And the Department of Commerce just tabled 2 of its biggest assets – Fable and Mythos.
The macroeconomic effects of AI are up for debate:
A. capital investments and productivity have boosted the global economy by $250 Billion. The corporate investment is primarily driven by Data Centers which produce zero income. The energy demand is taxing civilization. And the layoffs are impacting employment.
B. Therefore economists project that there are ‘hidden economic values’ such as deflation and performance boosts. I call Bull Shiitake.
Of course, inflation is measured by prices as is GDP – sell less at twice the cost and GDP rises. Inflation causes our GDP to rise artificially when REAL prices are replaced with the rent-a-shack model. Which is a part of the reason the South Korean market tumbled – over-valuation of tech companies is artificial and therefore contrarian to markets. So, when AI companies are over valued and the damage cost of global cyber attacks in 2026 is projected to surpass $10.5 Trillion – the numbers are NOT adding up and our entire Wall Street Projections are collapsing in real time – with projected time frames of 3-4- months.
Buckle Up Sugar Cup!