Latest / IndieNewsNow LIVE! Clips / AI Will Collapse The Economy - We're In the Middle of a Massive Bubble

Transcript

AI Will Collapse The Economy - We're In the Middle of a Massive Bubble · IndieNewsNow LIVE! Clips

• 0:00
  [music]
• 0:05
  SPEAKER_01: Who are these people?
• 0:09
  SPEAKER_00: I'm going to talk about this AI thing and I have two videos and a tweet to bring on this one.
• 0:16
  SPEAKER_00: So we all know that data centers are unsustainable.
• 0:21
  SPEAKER_00: Well, at least we believe they're unsustainable.
• 0:23
  SPEAKER_00: I actually saw somebody try to make the case today that like,
• 0:27
  SPEAKER_00: well, yeah, they may be, but a lot of people actually do want AI and data centers.
• 0:33
  SPEAKER_00: Maybe they like AI until they hear just about some of the nightmare stories
• 0:38
  SPEAKER_00: that it's inflicting on the people that have data centers go in their towns.
• 0:43
  SPEAKER_00: How it's eliminating tens of thousands of jobs and being used as an excuse
• 0:50
  SPEAKER_00: to justify laying off tens of thousands more.
• 0:54
  SPEAKER_00: But I want to bring this thing about AI companies.
• 1:00
  SPEAKER_00: And we've been talking about this bubble.
• 1:03
  SPEAKER_00: We talked about the SpaceX IPO.
• 1:06
  SPEAKER_00: Anthropic is planning on going public later on this year still.
• 1:09
  SPEAKER_00: They're going to raise a whole lot of money and a whole lot of energy
• 1:12
  SPEAKER_00: and excitement is going to be put into that.
• 1:15
  SPEAKER_00: But there's one thing.
• 1:16
  SPEAKER_00: They still don't make any money.
• 1:18
  SPEAKER_00: They still have no path to profitability.
• 1:21
  SPEAKER_00: So let's watch these couple of videos and then we'll talk about it.
• 1:26
  SPEAKER_00: So here's the first one.
• 1:31
  SPEAKER_02: The bank of international settlements just gave a public warning of what's happening.
• 1:39
  SPEAKER_02: This is the central bank of central banks that even the federal reserve has to report to.
• 1:44
  SPEAKER_02: Now they used a term called shadow borrowing to describe this collapse.
• 1:48
  SPEAKER_02: Now I've been trading for 10 years and I have never seen anything like this.
• 1:51
  SPEAKER_02: So I decided to spend hours digging through government filings and reports.
• 1:55
  SPEAKER_02: And what I found was pretty crazy.
• 1:56
  SPEAKER_02: We all know big tech is spending a ton of money on AI, but here's the thing.
• 2:00
  SPEAKER_02: They're not actually spending it because they're not using cash.
• 2:04
  SPEAKER_02: They're using debt.
• 2:05
  SPEAKER_02: But if they put this amount of debt on their own books,
• 2:07
  SPEAKER_02: their credit rating would get cut and their stock would crash overnight.
• 2:10
  SPEAKER_02: So they partner with something called private credit funds and the fund puts up
• 2:14
  SPEAKER_02: the money, but big tech signs a promise to pay them back.
• 2:17
  SPEAKER_02: If the deal blows up, so the debt comes off their books, but the risk doesn't.
• 2:21
  SPEAKER_02: So let's take Meta for an example.
• 2:23
  SPEAKER_02: They filed a deal with the SEC for a $27 billion data center in Louisiana.
• 2:28
  SPEAKER_02: Now in the first SEC filing that mentioned this, they named their partner as Blue Owl Capital.
• 2:32
  SPEAKER_02: Blue Owl is a private credit firm.
• 2:34
  SPEAKER_02: So where do all these private credit funds get this money?
• 2:37
  SPEAKER_02: Simple.
• 2:38
  SPEAKER_02: They get it from the average American person's pension,
• 2:40
  SPEAKER_02: their insurance, and even banks that hold their savings.
• 2:43
  SPEAKER_02: Now this is the exact same scenario from 2008.
• 2:45
  SPEAKER_02: Citigroup had $80 billion of shadow The elite used debt for mortgages last time,
• 2:49
  SPEAKER_02: but this time it's AI.
• 2:49
  SPEAKER_02: Same trick, different decade, different asset.
• 2:51
  SPEAKER_02: The government's going to bail them out and you're going to pay.
• 2:53
  SPEAKER_02: Isn't that nice?
• 3:12
  SPEAKER_00: So similar conditions to 2008 are what's happening because specifically,
• 3:18
  SPEAKER_00: like this guy said,
• 3:21
  SPEAKER_00: the companies that are building the data centers are doing it on debt.
• 3:25
  SPEAKER_00: And if they put the debt on their own books, their stock price goes down.
• 3:29
  SPEAKER_00: So it's not us that's funding the data center.
• 3:33
  SPEAKER_00: It's this capital company.
• 3:35
  SPEAKER_00: Yeah, sure.
• 3:37
  SPEAKER_00: Yeah.
• 3:39
  SPEAKER_00: But they're the ones that will stand to benefit in the end.
• 3:42
  SPEAKER_00: It's a shadow.
• 3:44
  SPEAKER_00: And because of it,
• 3:46
  SPEAKER_00: when they start not being able to make their numbers,
• 3:51
  SPEAKER_00: these debts will not be fulfilled.
• 3:53
  SPEAKER_00: That's what's going to happen here.
• 3:55
  SPEAKER_00: So let's get into the SVP of brands.
• 3:59
  SPEAKER_00: I like this guy.
• 4:00
  SPEAKER_00: Very funny.
• 4:01
  SPEAKER_00: SVP of global brands.
• 4:04
  SPEAKER_00: Crazy person talking about all this stuff.
• 4:07
  SPEAKER_03: What do you mean?
• 4:08
  SPEAKER_03: It's like everybody can see that there's no way spending trillions of dollars on all
• 4:13
  SPEAKER_03: of these data centers and infrastructure with no feasible way
• 4:17
  SPEAKER_03: to return enough money isn't going to collapse.
• 4:20
  SPEAKER_03: It's kind of crazy.
• 4:21
  SPEAKER_03: It's kind of like knowing about the subprime mortgage collapse before it happens.
• 4:27
  SPEAKER_03: Imagine that.
• 4:28
  SPEAKER_03: Everybody, I just realized what's going on here with these subprime mortgages.
• 4:33
  SPEAKER_03: What do you mean?
• 4:34
  SPEAKER_03: Well,
• 4:34
  SPEAKER_03: lenders are just giving out riskier and riskier loans to people who don't qualify
• 4:39
  SPEAKER_03: and they're not going to be able to pay them back and then the mortgages are going
• 4:42
  SPEAKER_03: to adjust up after two to three years and all these people are going
• 4:45
  SPEAKER_03: to be foreclosed on.
• 4:46
  SPEAKER_03: It is kind of wild.
• 4:49
  SPEAKER_03: It's like knowing about the collapse of Enron before it happens.
• 4:52
  SPEAKER_03: Imagine that.
• 4:53
  SPEAKER_03: Hey, have you seen the financial numbers coming out of Enron?
• 4:57
  SPEAKER_03: This doesn't make sense.
• 4:59
  SPEAKER_03: What are you talking about?
• 5:00
  SPEAKER_03: Well, their profits just keep going.
• 5:02
  SPEAKER_03: What do you mean?
• 5:03
  SPEAKER_03: Right?
• 5:04
  SPEAKER_03: So, yeah.
• 5:04
  SPEAKER_03: If you knew it was coming...
• 5:26
  SPEAKER_00: Amazing.
• 5:28
  SPEAKER_00: You know, again, so the third thing is talking about specifically that fund.
• 5:36
  SPEAKER_00: All right.
• 5:36
  SPEAKER_00: This thing here that he's talking about, this bubble.
• 5:38
  SPEAKER_00: All right.
• 5:39
  SPEAKER_00: This how AI will collapse the economy, the shadow fund financing.
• 5:45
  SPEAKER_00: This is a scene from the big short.
• 5:46
  SPEAKER_00: Yeah, there's a bubble.
• 5:48
  SPEAKER_00: Okay.
• 5:49
  SPEAKER_00: Yep.
• 5:49
  SPEAKER_00: The largest company on earth needs to borrow $500 billion.
• 5:53
  SPEAKER_00: That's right.
• 5:54
  SPEAKER_00: A $5 trillion company needs the largest financing deal in Wall Street history to fund itself.
• 6:01
  SPEAKER_00: The whole thing smells like dog shit.
• 6:03
  SPEAKER_00: It's over.
• 6:04
  SPEAKER_00: All of it.
• 6:06
  SPEAKER_00: And so again,
• 6:08
  SPEAKER_00: a consortium of private equity firms are putting together a deal
• 6:11
  SPEAKER_00: to lend NVIDIA $500 billion.
• 6:17
  SPEAKER_00: And it's all the worst people you know.
• 6:18
  SPEAKER_00: Apollo, Blackstone,
• 6:20
  SPEAKER_00: BlackRock,
• 6:21
  SPEAKER_00: Brookfield,
• 6:22
  SPEAKER_00: Goldman, and KKR are all involved in the largest financing deal ever on Wall Street.
• 6:32
  SPEAKER_00: That's Nothing to see here, folks.
• 6:36
  SPEAKER_00: Nothing to worry about.
• 6:38
  SPEAKER_00: Everything's fine.
• 6:41
  SPEAKER_00: All right.
• 6:45
  SPEAKER_00: Oh, AI is going to kill us all.
• 6:48
  SPEAKER_00: I know.
• 6:49
  SPEAKER_00: There you go.
• 6:50
  SPEAKER_00: Polymarket set itself up to facilitate insider trading with the help of Trump Jr.
• 6:56
  SPEAKER_00: and his corrupt administration, right?
• 6:57
  SPEAKER_00: All right.
• 6:58
  SPEAKER_00: Then everyone who spoke up about it would investigate it.
• 7:01
  SPEAKER_00: We're gone.
• 7:02
  SPEAKER_00: What a shock.
• 7:03
  SPEAKER_00: Then $7 billion and perfectly timed trades happen.
• 7:08
  SPEAKER_00: Amazing.
• 7:09
  SPEAKER_00: I could not imagine that scenario happening.
• 7:12
  SPEAKER_00: No.
• 7:14
  What?
• 7:17
  SPEAKER_00: All right.
• 7:18
  SPEAKER_00: So support independent media because we don't have trillions of dollars
• 7:22
  SPEAKER_00: and we are not shadow financing.
• 7:25
  SPEAKER_00: We have you guys.
• 7:27
  SPEAKER_00: Cash app, dollar sign, Indie News Network.
• 7:30
  SPEAKER_00: Code-fee.com slash Indie News Network.
• 7:33
  SPEAKER_00: IndieNewsNow.com.
• 7:34
  SPEAKER_00: That's our website where we aggregate news and you can leave a tip.
• 7:38
  SPEAKER_00: Over at Substack, IndieMediaToday.com.
• 7:41
  SPEAKER_00: We're live there now.
• 7:42
  SPEAKER_00: Hi to everybody watching.
• 7:43
  SPEAKER_00: INN Newsletter is our other Substack.
• 7:46
  SPEAKER_00: And you can subscribe over there and get a weekly update.
• 7:49
  SPEAKER_00: INN News, which will be live and back tomorrow night at 9 Eastern.
• 7:53
  SPEAKER_00: American Tradition with Jesse Jett also is over there.
• 7:57
  SPEAKER_00: And Boat Smashing and other boats we do every Sunday night for some goofy React stuff.
• 8:02
  SPEAKER_03: Support Independent Media because we
• 8:03
  SPEAKER_00: need it more than ever.
• 8:06
  SPEAKER_00: There we go.
• 8:07
  SPEAKER_00: I love you all and I'll see you next Tuesday night.
• 8:11
  SPEAKER_01: No!
• 8:12
  SPEAKER_01: We just fucking lost the stream!
• 8:16
  SPEAKER_01: I guess this isn't such an awful place It's not what you want me
• 8:21
  SPEAKER_01: to say You prove it's possible to sleep for days
• 8:28
  SPEAKER_01: And I still think you're right here awake The cost of living isn't much to make,
• 8:35
  SPEAKER_01: but God, it's so hard to save.
• 8:39
  SPEAKER_01: And when they told you everything, we're safe.
• 8:44
  SPEAKER_01: Were you safe?
• 8:47
  Were you safe?