AI’s Initial Public Corruption

Artificial Intelligence company OpenAI’s application for an Initial Public Offering (IPO) on Wall Street was supposed to be confidential, and “secret”.  However, Ubermensch Sam Altman decided to “leak” the IPO announcement, because based on his superior intellect, Altman was certain that the IPO announcement would be leaked anyway. The wunderbar wonder boy stated that, “We expect it to leak, so we’re just announcing it”.  Welcome to the Trumpian Bessent world where intelligence is truly defined by artifice.

OpenAI was originally setup in 2015 as a 501(c)(3) nonprofit organization – sometimes called “a charity”. Note many 501(c)(3) tax exempt operations are scam entities, and do not benefit the public, as I’ve written about on Novus Confidential  (wordpress) for many years.

Since a non-profit tax exempt operation relies on donations, both public and private, the wonder boy OpenAI Israel Firster — Sam Altman — determined that what’s all about the shekels must be all about the shekels. That is, to build an effective Artificial Intelligence platform, like OpenAI, no “charity” may be involved.

It’s interesting that despite such superior intellect, Altman cannot code or program software, and Altman has no college degree. Altman made his initial multi-millions by convincing the acquirer of his first company, Loopt, that Loopt had 50K subscribers when in fact the company had only 500. “Smart, such smart folks is Sam..!”

Now on the AI bandwagon with nothing more than scandalously smart business sense — and no technical ability at all — Altman intends to challenge his Afrikaner H1B arch-foe Elon, in the Wall Street scam (known for decades) as the Initial Public Offering game.

It’s the game where company bosses invite Wall Street Whales (whether institutional or private) to play, boosting the shares to unholy levels, so that the issue may reasonably correct after the general public are allowed in to play, later on.

It’s a Wall Street con more simply known as “Pump-and-Dump”, supremely profitable for Wall Street brokers, banks, traders, market makers and institutions (like BlackRock, Vanguard, and State Street), who after all, are very very smart people. It’s an Initial Public Offering game played for many decades where Pavlov’s dogs (ie the Punter Public) never seem to learn… ie to learn that they’re on the short end of the schtick.

As I’ve written about on The Duran site recently, the true question is how the dollar US may maintain its “100” standing on the Dollar Index (which compares the US dollar to a basket of other major currencies) when the Treasury is forced to create trillions via the Fed “Desk”, or some other leveraged heretofore unknown ploy, to play.

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In other words, the Treasury Blade’s conjuring trick must maintain the dollar’s international standing  in terms of perceived valuation versus other major currencies, when an exponential increase in public debt creation must occur in an event such as now,  when private capital cannot fit the AI “hyperscale” due bill.

The late Great (and always missed) Andrew Gause once stated that the US dollar index may be characterized “like a race to the bottom, where the first one to win shoots himself in the head”. (NB: metaphor) What this means, is that when the dollar continually loses value (as it has since 1898, except during the financial depression of the 1930’s) all other major currencies must lock-step lose similar value via inflation, or thereabout, to maintain the US dollar’s standing.

We must assume that (mainly) US currency will inflate AI shares on Wall Street, substantially, as created by the Fed-Treasury through government debt issuance. Because if the Fed-Treasury cannot create the public funds, then high-valuation IPO outcomes at such projected obscene levels of anticipation are, in my opinion, doomed to fail. Since major currencies are more or less pegged to the $ US, this means that rampant inflation impacting the US economy will be exported all over the world, to support the stutteringly smart Tech Bro whiz kids, and their “datacenters in space”.

SpaceX

An Initial Public Offering is on the cards this Friday, June 12th, for another major AI-related issue, namely SpaceX. Recall that IPO’s are not truly public since only invited entities may participate. And consider IPO “lockup times”; that is, how long newly issued shares must be held before they may be sold. Lockup times are usually restrictive, but like all else inside The Empire, rules have been massaged so that SpaceX IPO “investors” may sell their shares early. The wisdom of the foregoing is somewhat suspect, but seems based on the stutteringly brilliant brilliance of the Afrikaner H1b Musk’s trillionaire whim.

But here is what’s interesting: Via the Trump regime’s duplicitous dealing and mishandling of just about everything (in tandem with the US/Israeli war on Iran spinning out of control) and Trump’s cage fight just two days subsequent to the SpaceX IPO, there is a potential for the issue to be a massive flop.[1]

For example, consider Musk’s haltingly vague public mumbling about the future of AI being based on building datacenters in space – presumably funded by federal government contracts with SpaceX. Datacenters in space is an admission by Musk that AI has no future on earth — and no future like that which he is promising.

How AI datacenters in space may be funded, much less maintained and operated, is a real question that Musk vaguely defers to the realm of negativity. And based on what return on investment? The US economy is in no position to fund the same bloat that it did during the dot com fiasco. Indeed, the resources required to support data centers in space will exponentially exceed the resources required by the dot come bubble, where the dot com bubble was driven primarily by the major banks for their own benefit. There is no such analogy regarding AI. After all, which self-respecting financial institution fiduciary in its right mind will rely on datacenters in outer space? The H1B Emperor truly wears no clothes.

And the Trump regime – massively corrupt and incompetent – is unlikely to prevail much longer, based on an electorate betrayed — perhaps even more betrayed than by Biden’s own corrupt rule. The former United States has had sixty- plus years of truly debilitating and inflationary leadership. So even if Trump does survive in office for another two years, there is little doubt that the US electorate will bray for change – very real and overdue positive change – in 2028, perhaps represented even by a third party candidate.

Briefly, Trump’s corrupt Imperial reign cannot last forever. With only two years to run, after that, then unqualified handouts to the Tech Bros will be more than questionable – especially when the former United States is already virtually bankrupt.  Via the rapid decline the US is experiencing, Trumpian grift and graft is most likely to be put on hold – even on Wall Street by 2028. Why? Because the former United States is a failing bankrupt hegemon, by its own hand, with decline progressing so rapidly.  Two years from now the dollar US will be more debased than ever, more reviled than ever; with proof in the sanctions pudding that its performance in comparison to other major currencies may be broken by a challenger to the US dollar’s Imperial-century long reign.

That is to ask: Is the entire western world bent on destroying itself by war, duplicity, fraud, corruption, inflation, and usury in tandem with rapid US decline? With the former United States leading the way, all other nations must fall into the US financial / economic abyss that it appears to be destined for?

Putting aside such broad language, let’s see what happens with the SpaceX public share offering on June 12th. Yes, the phony dollar US still reigns supreme. Wall Street still rules the waves. And the Scam States can still carry off its scams, and wars. But one day, inevitably, this time it will be different…

[1]  A SpaceX share issue fiasco may be just as unlikely based on the fraud and corruption intrinsic to, and at the heart of, Wall Street’s very existence.

Steve Brown