AI – THE “NEw” Economy – its new – like the world has never seen before….
AI now controls over 440 Trillion dollars in global circulation. The goal is to keep that flow of capital – circulating – fully invested and “working” with profits AI is predicting by the minute not the hour – all new. AI trades up and down all ropes of all asset classes with bets all along the rope of short and long positions. AI hedges puts and stop loss and AI invests in day trading in any asset class to make immediate versus long term profits.
As AI gained control of global markets for the first time in human history in 2013, the idea of long term investing was allocated to the 5% of the market and shrining of human institutional traders for 95% of the 5% and less than 1% of the 5% is individuals in the market. Individuals once constituted the market but those allocations are now in ETF or AI controlled derivatives and electronically traded funds run by AI not humans.
This blog has reported the crises looming for years and the solutions for years. Greed delays anyone taking action in the near term.
The original theory rose out of the first failed AI market management into the second generation of AI:
- Real Estate – you could never lose principles ( AN AI OXYMORON ) – lets invest backbone institutional investing and nation investing into REAL ESTATE as you can never lose all your money in real assets. The goal was to keep real estate in precise trading ranges on value over time. Greed created AAA rated mortgage pools that contained pure crap – then super mortgage national pools with up to 70% pure crap still criminally rated AAA ( no credit agency has been criminally charged nor have they and their conspiracy with the brokers how profited and paid the credit agency for the FRAUD RATINGS ever taken place as a signal crime does NOT pay but BIG CRIME pays every single time. Then SUPER DUPER MORTGAGE POOLS ( STRUCTURED ASSETS OFF SHORE ) created risk tipping point in the first AI created global bubble and the market super crashed.
- After the total Real Estate Super Crash trillions in profits resided in cash increasingly moving to AI controlled money pools where all investors sought out the best AI. This consolidated 1.5 million super money pools into less than 10,000 by 2013. Accelerated consolidation of super money pools ( another new risk so unwanted ) is continuing as you read the best AI buys the weaker AI then applies its superior AI to money management for the ne pool consolidated. All outside regulatory estate. The SUPER MONEY POOLS created a new economy with ne with new economic theory they created.
- The new theory strives to create RISK LESS – RISK. How? AI creates asset price ranges with 440 Trillion dollars the dog of economics in 2020 – manipulating price ranges of only 3 trillion in traded real assets versus side bets on which way an asset price may go in the future. The side bets in CASINO CAPITALISM the new AI has created works minute to minute to secure narrow trading ranges for asset classes.
- Price is manipulated in real time up or down based on AI perception of news bites as to a markets stability growth or cooling down with REAL TIME PUNISHMENT as never before – in new economics – for any nation or institution missing forecast outcomes by the most narrow margins that never applied at all in 2005. Enter the new economy.
- Margins – as the 440 trillion is leveraged on margins never seen in the old economy largely placed in side bets or speculations in CASINO AI ECONOMICS – versus real stake holder investing – it no longer matters a what Buffet and his small tribe do say or think because they are locked in an old economy that is gone. The AI new economy in global uniform down turns unforeseen in only October – Downturns in the EU since October – down turns in Asia since October – downturns in Africa and South America and America too all since October create a first EVENT for AI – total selling no buying. We warned you all about the EVENT. AI sells to protect profit and preclude loss at volumes never known in the old economy in time frames never seen in the new economy both up and down. Volatility ( instability ) at volume levels outside any old economic history. NEW. JUST entirely new. As the AI EVENT THRESHOLD IS CROSSED on the down side – all assets decoupled from old theory – all asset values crashing – AI triggers massive margin calls. AI either sells and sells into the margin value destruction or it shifts and adjusts to 1000 point rise as we all saw in only HOURS a never before event in the new economy. The largest crash since 1929 – the largest avoid margin calls at any cost rise in HOURS ever recorded in history. A new economy.
Now the problem is complex. If the second generation of AI “sees”s instability in markets created solely by the Federal Reserve Board using old economics in a new economy rapidly evolving new set of box top rules to which the FED have not READ which makes us all dead….why? System core stability is threatened due to SUPER DEBT BUBBLES the Fed created and over which the new economy requires TIME to work out these debts the Fed lacking new economic theory and experience applies economic killer failed policies of the old economics into the new economy reaching a tipping point this October. Now every old economic tool that the out of context Fed applies can trigger a fatal system collapse far worse than 1929. In such a collapse would PUTIN reform the Soviet Union and use super sonic weapoms for RUSSIA economic global domination? Your mind says it could never happen? My mind says the EVENT and such unthinkable outcomes may occur in 2019 depending on the on going mismanagement of new economimcs.
So this Monday we triggered Massive Margin calls not effected by Christmas Holidays. Weds we see massive 1000 point market gain in hours tipping above massive margin calls. IT was all so close. Volumes normally muted in the Holidays were AI massive outside any historic box another new economy reality.
If events in the world – Jamie Diamonds STUFF triggers AI sell off’s to trigger massive margin calls AI must sell ever more assets as ever higher margin debt exposure requires liquidations. In this new AI CASINO CAPITALISM lacking any global regulatory oversight as old systems of old economy regulation no longer apply to the new economy at all or in any way. Law makers have let AI economics get out of control of nations or central banks all obsolete ideas in the new economy and so dangerous. Central banks compressing the asset of TIME to work out of SUPER DEBT BUBBLES of 2019 globally – create panic selling why? SInce 2015 this blog has told you YOUR why?
- The Obsolete Fed raises interest rates too rapidly killing the new economy dead.
The Fed raises interest to fast in frequency.
The fed raises too high each rise.
The fed fails to normalize over ten years versus ten months as failed policy.
- The Fed shrinks market liquidity by soaring dollar cost and massive Fed selling
- The Fed requires US tax payers selling record debt into the markets to pay soaring interest cost.
- The central bank too rapid turn on a dime turn off for economic accommodations shifted into massive money lake shore reductions in the water level and the water is all being taken from AI into the central Bank or Fed bank account – by the trillions moving foreword. The Fed is creating a global recession or depression and a blood bath in financial loss and market values for no reason but old economic tools into a new economic environment the Fed fails to understand at all.
THE NEW ECONOMY IS UNFORGIVING FOR FED MISTAKES & BLUNDEERS
Moving forward which of the Jamie Diamond STUFF OUT THERE will combine with Fed breach of fiduciary mandate – to keep global markets stable – will trigger a SUPER DEBT MARKET CASCADE MARGIN CALL SPIRAL – until LED or Liquidity Evaporation Day the worst possible form of contagion and the one and only item the Fed should be managing.
But folks…they are not so we ride the entirely new economics of the 2019 AI roller Coaster – fasten your seat belts and keep your arms and legs inside the coach.
Berny Dohrmann – watching the roller coaster as it picks up new momentum and volatility never known before……