America financed AI with debt its buyers cannot service and chips it can switch off, so Europe should run open-weight models under European law.
America financed AI with debt its buyers cannot service and chips it can switch off, so Europe should run open-weight models under European law.
Scott Ortkiese traces how cheaper AI, fixed payment obligations, and tightening credit transmit losses to lenders, jobs, and taxpayers in his forecast.
Bond losses and private-credit contraction will expose AI’s funding gaps, trigger payment demands, and send losses back through banks and insurers.
Trump hosts Xi on September 24 with the AI executives as scenery, and the polling behind the growth claim is the worst ever recorded for any president.
The five largest American cloud companies will spend $770bn in 2026 on equipment with a 3 year life, serving a $64bn market, against a $40tn national debt.
Treasury drafted a voluntary AI safety rule, Zuckerberg, Musk, and Sacks killed it by phone, and two Oval Office signing ceremonies were called off.
One Treasury weaponizes the dollar system against Iran and the Chinese banks that clear its oil. The other suppresses the memo warning the AI bubble could take that same dollar system down. They share a Secretary.
AI risk grows when an imperfect target is joined to autonomous action, self-financing capability, shared infrastructure and physical power.
In ten days in August 2026 the 30 year Treasury hit its 2007 high, Treasury paid 85.6 billion dollars of interest in one day, and Bessent doubled the buyback. This is the mechanism.
A wealth pump engineered in public transfers labor’s savings to the top through asset appreciation, pension buyouts, private credit, life insurer capture, and state guaranty funds. The remedy is antimonopoly plus a wealth tax.