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‘AI’ hype and panic funding will affect your pension pot. First understand that ‘AI’ is only a ‘Large Language Model’ (LLM). This is important. [Normal Part 2 service will be resumed next week]
Protect & SurviveThe Financial Jigsaw Part 2 (Episode 97-issue 1): There is a diversion this week to examine AI because the global financial system is on life support. You and your pension pot are at risk of losing everything. The stock markets (especially SP 500), is nearing all-time highs, with 440 of its 500 companies down more than 20% from their 52-week highs. Rather than a stock market, we have a concentrated minority of tech monopoly powers holding the rest of the broken pack together with techy duct tape and memes of this time is different with AI. These ‘hyper-scalers’ get 70% of their AI revenues from just two players, Anthropic and OpenAI, two profitless companies whose costs are billions greater than their revenues!
First, let’s examine the context of this innovative technology. The words “Agentic” and Autonomous” are often mistakenly used inter-changeably. These two words must be well understood to grasp exactly what ‘Artificial Intelligence’ is all about. The word “agentic” is derived from the noun “agent,” which means “one that exerts power” or “something that can produce an effect”; it refers to the ability to act independently. In an autonomous state individuals perceive themselves as responsible for their own actions and act according to their own principles and values; they feel a sense of personal control. (Extracts from BOOM Economics)
Agentic Artificial Intelligence to Control Human Agentic “Robots”? – Was Covid a Milgram Experiment ? – Agentic AI versus Autonomous AI – Yuri Bezmenov’s Advice – Tears for Argentina and Venezuela – Is Agentic AI Sinister …https://boomfinanceandeconomics.sub...tm_medium=web&embedding_publication_id=762792
The developers of Agentic AI are aiming to create a true Artificial Intelligence from their existing Large Language Models (LLMs). The goal is to create an “intelligence” that follows orders to create the Agentic State which will drive all human activity including governments. This is the Technocrats’ utopian dream. Here is an estimated time-line:
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- 2026–2035: LLM’s will increasingly handle procurement, paperwork, tax administration, citizen-service cases, scheduling, regulatory analysis, infrastructure monitoring, and routine decision making processes. It’s happening now.
- 2035–2045: If Agentic AI is achieved, it may manage governments, companies, and banking etc. if it becomes technically feasible. Agents might be able to detect problems, propose policies, allocate resources, execute approved programmes, monitor outcomes, and escalate unusual cases through a Clearing House.
The problem is scale and the law of large numbers: An Agent being 99.9% reliable at executing government decisions sounds extraordinarily good, but a government making 100 million decisions each day would produce roughly 100,000 errors. Furthermore, governments don’t only optimise objectives.
Governments and businesses also resolve conflicts between values such as; economic growth vs. environmental protection, security vs. privacy, and equality vs. efficiency. These are human moral issues that no machine, however ‘intelligent’ can match. In other words, an Agent could optimise a set of rules extremely well. It cannot legitimately decide who gets to choose the rules merely by being intelligent. LLMs could be capable of assisting in systems management by 2030, but will humans allow Agentic AI to actually govern them? This could take decades or never happen at all.
What’s really behind the AI panic? The LLM raison d’être is, as usual, a society ordered under expert, technocratic management; their expertise, their management. We’ve all seen this cinema show before, with global warming, then Bitcoin mining (causing more global warming), and now AI exterminating humanity.
The common line is that the “problem” is some unfalsifiable calamity that could happen someday and for which the only logical response is to put a bunch of globalist technocrats in charge of…well, everything. What people might not understand is that the problem isn’t really about ‘a problem’.
It has been reported on many occasions that AI would make personal choice and individual liberty things of the past, because letting people think for themselves would be “too dangerous” for the problem at hand. Global warming meant personal carbon quotas, limits on travel, even living space, according to some “de-growth” advocates.
The problem that politicians and aspiring technocrats recognise about AI is that it grants the rabble cognitive superpowers; more specifically, open-source AI does this and it scares them rigid. But it’s the open-source software movement that is the unfiltered Promethean agent. It will soon become apparent what the ultimate target of this ‘AI Doom cult ‘really is: open-source LLMs.
This is why the ‘frontier labs’ are gleefully courting government oversight, not because their own products are “too dangerous” (if so, then why are they going public?), but because oversight instantly creates an AI oligopoly; a cartel, namely Anthropic, OpenAI, and xAI, on the inside, with everything else, effectively outlawed, at least that would be the preferred outcome. Make a point to download the latest open-weight (i.e. open source) models, like DeepSeek which, ironically are all Chinese! I wonder why this is the case?
Any of these models could be used to start iterating software, weights, and the next generation of more powerful open-source LLMs. In other words, it’s over for the incumbent ruling Techy caste because they know this, and viscerally realise that the entire edifice of Industrial Age institutions is ripe for existential disruption. We’re transitioning from a linear, top-down world to a network-shaped, decentralised one.
So the best thing ‘they’ can do; they can’t put the genie back in the bottle, is to convince the masses that AI is bad, and rogue AIs are going to literally exterminate humanity.
Hence the AI doom PsyOp (with another wave breaking out right now around swarms of rogue AIs), and, of course, this has become a political issue. Now, the same people who were wearing N95 masks in 2025, adding pronouns to their names, putting the Ukrainian flag in their bio, keying Teslas, and stomping around in “No Kings” parades are now protesting data centres.
They want you scared, stupid and subservient, instead of spending time creating software, building out your personal business empires, not to mention analysing public data and proof-reading all these hypothetical models they use as a justification for incessantly changing their rules. What they really need are legions of frightened and stupid voters, not cognitively supercharged and wildly entrepreneurial or creative cybernauts. AI Doom vs AI Boom is a choice, and the choice is yours. This is how it works.
The AI giants are lining up to sell. The buyer at the end of the line is your pension fund! Ask why would the most capital-hungry companies in the history of capitalism, the ones that have never made a profit, suddenly be in such a tearing hurry to sell you a piece of themselves?
In June, SpaceX became public at $1.77 trillion. The largest ‘Initial Public Offering’ (IPO) ever floated. By the close it was worth about $2.1 trillion. And now Anthropic, a company that spent $2.75 for every one dollar of revenue it booked last year, is lining up to list an IPO north of $2 trillion. You are meant to read that as strength. The future, arriving. Get in before the bell. It’s actually the opposite. And once you see why, you will not be able to un-see it.
THE END OF THE LINE. Every company that ever listed travelled the same road. It starts with a founder and an idea. Then friends and family. Then angels, who buy cheap and early because they are the ones taking the real risk. Then venture capital. Then the big institutional money that comes in late and large. And then, at the very end of that chain, when there is nobody clever or richer left to sell to, it gets packaged up, wrapped in a ticker, and sold to the public. To retail. To your pension fund!
In the trade this has a name: ‘Exit liquidity’ and you are the exit. That is not a slur. It is the mechanism. The early money does not get paid until the late money shows up to take the shares off its hands. And the latest money of all, the money of last resort, is the guy with a 401(k) who never chose any of this and the pension trustee who is mandated to track an index. There is a name for this and it begins with a ‘P’.
When the private well runs dry, when a company has raised at valuations so eye-watering that even the late-stage institutions baulk, there is exactly one pool of capital deep enough to cash everyone out – the public funds.
THE TELL IS IN THE PROSPECTUS. Anthropic’s own filing tells the story, if you can stomach the numbers. Revenue of $4.6 billion last year, growing twelvefold, which sounds marvellous until you notice the company spent roughly $2.75 for every $1 of that revenue, with compute alone eating $1.59 of each dollar. The operating loss ran to around $8 billion, up from $3 billion last year.
However, the headline screamed $42 billion. Most of that…some $34 billion…is a non-cash accounting charge: the paper value of earlier financing, that may convert into shares, simply went up. They did not set fire to $42 billion in a single year. But do not let the accountants comfort you either. Sitting underneath it all is $518 billion of compute commitments stretching out over the next decade, roughly 80% of which cannot be cancelled. They owe that whether a single new customer ever shows up or not.
Something that pays you is an asset. Something that reaches into your back pocket, year after year, whether you use it or not, that’s called a liability. The only question that matters is who ends up holding the liability. And that is where this stops being a story about artificial intelligence and becomes a story about your retirement funds.
Look at how the SpaceX float was actually put together, because the architecture gives the game away. 70% of the deal went to institutions, 30% to retail. Only about 5% of the whole company was floated at all, so tiny that it needed a regulatory waiver to pass the legals. So, raise the cash, hand the late crowd a thin slice, and keep control. Classic textbook action.
However, here is the part that should set your hair on fire. You need not have bought a single share of this company for it to be your problem. Because almost nobody actually chooses shares any more. The market is no longer a place where people assess a company’s prospects and make a decision. It is a machine. Money flows into index funds and Exchange Traded Funds (ETFs); investing into your workplace pension, your target-date fund, so the machine buys whatever is biggest, because it is weighted by size – automatically.
The bigger a thing gets, the more the machine is forced to buy, which makes it bigger, which means it buys still more. Nobody is making a decision. The system feeds on itself. So the moment these companies list an IPO and ride into the index, you own them. Not because you believe in them. Because you were indexed. In other words, the exit liquidity is being collected from you automatically, by direct debit, while you sleep. They play the flows game, not the valuation game. And the flows game can run a very long way past common sense. But it does eventually end. It always ends.
Why does the bill always land on us and not on them? Because of the story they are already telling. You have heard it: “AI is dangerous. AI is a matter of national security. We must win the race against China. We need guardrails, oversight, a seat for the government at the table.”
We have seen this comic strip before. Remove the Skynet dressing and the thing they are describing is a very good, very fast library – an LLM. A database that writes nicely. A remarkable tool, genuinely. The fear is not a property of the technology. It’s manufactured, the same way fear was manufactured not so long ago, and it does two jobs at the same time.
First, it builds a moat. Regulate a thing in the name of safety and you pull the ladder up behind the incumbents. The small competitor who might have built it cheaper; or the next bunch of nerds in a garage, can no longer get funded or licensed. What gets sold to your pension fund as oversight is an oligopoly with a permission slip.
Second, and this is the one that matters for your money, it writes the script for the rescue. When something is declared “too important to fail,” the failure is never allowed to stay on the shareholders’ doorstep. It becomes everyone’s problem. And through all of this nobody has stopped to answer the only question worth asking. We have to win the AI race…to win what, exactly?
‘CYPRUS REDUX’. Here is how it goes, and you can mark it at page 20 in my book, The Financial Jigsaw. I saw this in 2013 when a client of mine had €750,000 taken from his bank account when his bank went bust. I wrote about the whole sad story in my book, The Financial Jigsaw Part 1. His company went bust the next day, and my fees never arrived.
BUT the IPO listings go through. The public and the pension funds take the shares at the top. Then the cycle turns, as cycles always do, and these cash-incineration machines meet an interest-rate environment that no longer forgives companies with no earnings. The thing wobbles. And at precisely that moment, not a day before, the word “safety” arrives. It is for your protection. We cannot allow a disorderly collapse. We are stepping in.
And when the state, Fed, ECB, EU et al steps in to backstop a mess this size, somebody pays for it. It does not arrive as a polite letter saying we are taking your money. It arrives as a mandate. A new rule about what your pension fund is now required to hold. A quiet conversion. A haircut dressed up as a rescue, and you wake up with cents on the dollar.
If that sounds far-fetched, it is only because you were not in Cyprus in 2013. One weekend the banks simply did not open, and depositors with more than one hundred thousand euros at the Bank of Cyprus watched 47.5% of it converted into equity; worthless shares in a bank that was insolvent. Overnight. By decree. Framed, naturally, as a rescue. That is the template. Not confiscation at gunpoint. A mandate, for your safety, that quietly puts your capital in the ship they need you sitting in before it sinks.
Where the clever money actually is may be found elsewhere. Now set all that noise aside and discover what the people who move real money are quietly doing. They are not queuing for the shiny new listings. Look at where capital is actually flooding: into US Treasury bills, the very front end of the curve, at the fastest pace on record. Cayman-based shadow banks and hedge funds loading up on short paper as though it is going out of fashion. Not Nvidia. Not thirty-year bonds or T-Notes; but T-Bills: liquid, short-term, boring, and ready to move the instant the fog clears.
That is what conviction looks like once you strip the story away. The smart money wants to be liquid and it wants optionality. It is standing near the exit, not queuing at the entrance. So there are two trades laid out in front of you, side by side. One is being marketed to you with trillion-dollar fanfare and a countdown clock. The other is being done quietly, in size, by people who do this for a living. Make up your mind at which table you would rather sit.
What the billionaire Technocrats have missed is the agency of the human being. Thus the consent of the individual human person, within his or her rightful domain, is the fundamental unit of moral concern in any society; there are many others, but this is where it begins. Trespassing on the person, property, or liberty of others is not acceptable if peaceful cooperation is to be achieved. Only war is the other option. Sources
- Edited extracts from https://bombthrower.com/whats-really-behind-the-ai-panic/?
- OK, comrade: The American AI dream sounds a lot like digital communism. Why the current neoliberal dystopia in America was entirely predictable and deliberately created https://off-guardian.org/2026/02/07/the-monopoly-stage-of-human-misery/
- AI Authoritarianism: “The Real Danger of Automating Government” – https://www.globalresearch.ca/ai-authoritarianism-government-constitutional-without-brakes/5943017
- Edited extracts from:
- The overarching goal of AI is to create dumbed-down useless eaters and mark them for an exit: Leo’s Newsletter. AI’s war on Independent media, creativity and the human spirit: It’s all by design, https://leohohmann.substack.com/p/ais-war-on-independent-media-creativity?
WARTIME SUMMARY UPDATE
Developments in October 2026 shows a clear picture of late-stage imperial disorder:
- In Washington, Donald Trump tells rally crowds that losing Los Angeles is an acceptable price to pay for a manufactured conflict in the Persian Gulf.
- In Ukraine, the locomotive fleet has burned, the steel mills are silent, data centres are in ruins, and the Rada prepares to abandon its constitutional commitment to NATO
- Russia Truth – The Urban Breach: Russian Forces Secure Southern Dobropillya, https://russiatruthdotcom.substack.com/p/the-urban-breach-russian-forces-secure?
- In Berlin and London, politicians demand that their youth prepare for conscription while security agencies invent fairy tales about shadow fleets and Finnish bathrooms.
The unipolar project is coming to an end. The architects of the Atlanticist proxy wars stand in the ruins by their own design. And in Iran the US fleet has retreated more than 1,000 km from its borders, leaving no American warships in the Strait of Hormuz or surrounding waters. “It’s a difficult period; the country is at war. But does it mean Iran is being degraded to the point of capitulation? Not even in the slightest: Iran can and will easily outlast the US,” says Simplicius
LATEST DAILY UPDATED SUMMARY – [Hat Tip to No1 saving me valuable editorial space]
(Saturday 10/10/26) “Washington licensed Russian diesel through April 2027 while Ukraine’s negotiators were in Miami. The IRGC declared that ships on “unauthorized” routes will be hunted anywhere in the region, then set an LPG tanker on fire to show it meant it. The Houthis shut Riyadh’s airport again (a Saudi captain is among the dead), Isaias came ashore with about 72% of US Gulf oil already off-line, and Bessent hired gold-bond advocate Judy Shelton. The rest is continuation: the 10Y is stuck above 5.2%, AI credit is wobbling, and the S&P is at records on the back of ten stocks.”
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