Is the Fed Intervening Because An AI-Induced Depression is Just Around the Corner?
Something doesn’t add up.
We are told that the economy is doing great. Indeed, the official metrics from the Fed suggest that U.S. GDP is currently clocking in at an annualized rate of 4%.
And yet… despite this, the Fed is already cutting rates AND printing $40 billion per month and using the money to buy U.S. debt. To put those actions into perspective, the Fed usually does this during recessions to cushion the economic fallout.
Why is the Fed doing this? If the economy is so great, why does the Fed need to intervene as if we’re already in a recession?
The CEO of Microsoft’s AI division, Mustafa Suleyman, seems to have an answer…
“I think we’re going to have a human-level performance on most, if not all, professional tasks – so white collar where you’re sitting down at a computer, either being a lawyer, accountant, or project manager, or marketing person – most of the tasks will be fully automated by an AI within the next 12 to 18 months”
~ Mustafa Suleyman on the potential of Artificial general intelligence or AGI.
This raises the question…
Is the Fed intervening because an AI-induced depression is just around the corner?
Think about it.
The U.S. is already in a K-shaped economy in which the top 10% of Americans are the ONLY reason the economy hasn’t already rolled over. This category of incomes accounts for 45%-50% of consumer spending, which translates to roughly a THIRD of GDP.
Put simply, if you remove this category of incomes from the U.S. economy, and things quickly become horrific.
And these are precisely the people who AI will replace according to the CEOs in charge of the AI-buildouts.
So again, I ask, is the Fed intervening because an AI-induced depression is just around the corner? Does the Trump administration secretly know that in order to win the AI-arms race between the U.S. and China it’s going to eradicate hundreds of thousands of high paying jobs?
And are the markets starting to figure this out?
To answer this, I rely on a proprietary indicator that has triggered before every major meltdown in the last 50 years. This signal caught the 1987 crash, the Tech Crash, the Great Financial Crisis and more.
We detail this trigger, how it works, and what it’s saying about the markets today in How to Predict a Crash.
Normally we’d sell this report for $499, but in light of its recent warning, we’re making 99 copies available to the investing public.
To pick up one of the last copies…
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research