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Ripple Effect

AI’s Infinite Money Glitch

Loading ...Addison Wiggin

September 24, 2025 • 1 minute, 7 second read


AIAI bubble

AI’s Infinite Money Glitch

Late into the dotcom era, companies realized they could create profits without having to actually have cash change hands.

Rather, they could announce a massive deal that would take years to play out. And rather than spread out the costs, it could be booked as revenues in the quarter of the announcement.

Not profits, but revenue all the same. That accounting trend was a hallmark of the boom… and the bust… of tech shares 1998-2000.

Today, we’re seeing the beginnings of that trend in AI – this time at scale.

On Monday, Nvidia shares popped nearly 4% on news that they would invest up to $100 billion in OpenAI.

That’s just part of the bizarre trend where large-cap AI names are now announcing deals with each other – and seeing an immediate boost to their company’s valuation – well before any money changes hands.

Turn Your Images On

Today’s major AI players are essentially a closed-loop economy (Source: Kakashii via X)

We know Nvidia’s need to sell chips is crucial for keeping its earnings engine going. The “investment” in OpenAI will allow OpenAI to buy Nvidia chips. And Oracle software and services – which in turn increases demand from Nvidia’s chips.

Round and round it goes.

You’re free to draw your conclusions. Just keep mind, in 2000 the jig ended badly for a whole class of  “dotcom” stocks.

~ Addison


Gold Goes Parabolic, Briefly

October 2, 2025 • Addison Wiggin

The NYSE Arca Gold Miners Index is up 123% this year, the best this century.

The last time gold ran this hot — 1979 — savers stood in lines that wrapped around city blocks, waiting hours for Krugerrands and Maple Leafs. Fathers pulled kids out of school to get in line before the shop sold out. Dealers locked their doors mid-afternoon, unable to meet the demand.

It was less of an investment than survival. Inflation made cash a wasting asset, and gold was the last refuge.

We don’t want to see that again.

Gold is best as ballast — steady, weighty, tethering a portfolio to something real. When it turns into the object of a mania, it means we’ve entered the debt crisis of which we’ve long been wary.

Gold Goes Parabolic, Briefly
Meager Pickings for Shoppers

October 2, 2025 • Addison Wiggin

The cost to ship cars, refrigerators, and Christmas toys has fallen back to numbers we last saw when the economy was on lockdown.

For these rates to rise, demand for goods needs to rise…. unlikely as President Trump’s tariff strategy is intended to reshore domestic production of these goods in the U.S.  

Until factories come online, there will be fewer goods on the shelves. Combined with declining jobs and stubborn inflation, however, that fact may go unnoticed this holiday season.

Meager Pickings for Shoppers
Here Comes Yield Control

October 1, 2025 • Mark Jeftovic

We’ve been saying for a long time that when it came time to rev up the money printer again, the Fed would do it under some other rubric than “Quantitative Easing” (QE), because by now, everybody knows what that is. YCC? Not so much.

What it means is that the Fed will buy unlimited bonds out at the long end of the yield curve in order to keep yields under some arbitrary line in the sand.

Here Comes Yield Control
Warrior Ethos

October 1, 2025 • Addison Wiggin

Let’s see, now that the government is shut down, where are we?

Pretty much where we left off: Markets surging higher, backed by the weight of AI capex and gorging on debt; A Congress unable to pay for promises forged in the 20th century’s welfare bureaucracy; A currency bleeding purchasing power with each deficit skirmish; A nation where even butter, coffee, and bandwidth become weapons of policy.

Warrior Ethos