Our image of China is a fully manufactured one created by media and politicians with an axe to grind. China is a rival to the US and they've been winning on a lot of fronts recently causing frustration and anger from silicon valley to Washington as they attempt to keep their tiny minds from exploding.
Recently, Chinese AI technology blew the doors off of our own, extremely expensive AI product Chat GPT which has been relegated to 2nd place based on all performance metrics. The amazing thing about the success of DeepSeek AI is that it was accomplished on a shoe-string budget by an adolescent, unknown Chinese techie (Liang Wenfeng)! This was too much success from a competitor so we will now extract punishment through Tariff's to show those upstart Chinese not to mess with 'Merika by doing things that made 'Merika great to begin with; Hard work and innovation!
Their real crime was this though:
"It’s now common knowledge that DeepSeek’s development was not a product of Silicon Valley labs showered with billions of dollars of research funds. Liang Wenfeng himself revealed it: “I won’t lie, our AI was created on the basis of Soviet developments – the OGAS system of Academician Glushkov.”
Whoa, wait. What?? The Chinese are using old Russian tech to run circles around us?
"The wonders of History: a Soviet marvel auctioned off for a pittance, $15,000 in 1995 possibly because it was considered worthless, is now the backbone of China’s new digital revolution."
There's way more to unpack about China's evolution from a US manufacturing hub to a global technology and weapons player so I won't do that now. Let's just say there's going to be more "surprises" for those not paying attention.
Talk about surprises, I did not have the Leader of Ukraine getting bitch-slapped in the Oval Office on my bingo card. That was quite entertaining to watch but I guess knowing what we already know about Jim Cramer, this should have given us pause:
As the truth bombs keep dropping and prices keep rising these seemingly shocking developments will become commonplace. That is, I suggest we all get used to disruptive change imposed by external conditions and prepare ourselves for a steady stream of "surprises". Spoiler alert, you heard it all here first!
"My running theory has always been that once the house of cards came crashing down and the truth was revealed to the wider public, a whole lot of skeptics that used to call us “fringe crazies” and “tinfoil hatters” would suddenly claim they “saw it coming all along”. Yes, the conspiracy theorists were right, about EVERYTHING. The truth is coming to light in a big way, but what does this mean for the future?"
Can America Handle The Truth?
"The recent dismantling of USAID and the open investigations into numerous federal agencies has opened a Pandora’s Box; the covert funding that these institutions are involved in (including millions in pay-offs to various news media outlets and propaganda platforms) is, I believe, just the tip of a massive iceberg that could very well sink the US system faster than the Titanic."
There were plenty of survivors from the Titanic, we're going to be ok.
Here are some of the links I followed last week:
"A massive wave of strong fundamentals, spearheaded by a structurally weak U.S. dollar, unsolvable debt, unsolvable deficit, hidden inflation and under-reported consumer price increases – these are the forces driving gold’s price higher. Just as they always have."
"DOGE will fire up the citizens of every country, and they all will demand their “fucking money back.” In every country. Every single country, this will grow and grow and grow. Within five years, ten at the outside, the entire world will be a different place."
Have a great week, call me if you want working capital for your business or just to chat and bitch about how life is treating you!
