John Robb

"Companies have been deploying AI rather than hire, and now we’re going to layer on a stagflationary energy shock on top of that. It doesn’t take a rocket scientist to realize a company, when faced with margin compression from $95 oil and needs to cut costs, will replace employees wherever possible with AI tools. It won’t be about an innovation initiative, it will be survival. AI adoption is going to accelerate into the downturn because it becomes the obvious cost-cutting move. The cruel paradox is that this works beautifully for individual companies while destroying aggregate demand. It’s going to eliminate the income those workers would have spent from the economy, which has effects I’m not sure about for creditors who previously thought they were gold plated investments. Or about the effect it will have on their peers who won’t feel certain in their own prospects and will instead cut unnecessary spending, especially as increased energy inputs drive up costs of goods. So I’m not going to be surprised if we get prices rising from the energy shock while employment deteriorates faster than any historical model would predict because AI displacement is compounding the cyclical downturn."

🚨🇮🇷 Iran has officially monetized the Strait of Hormuz. $2 million per voyage. Accepted in cash, crypto, or barter. 3,200 ships and 40,000 sailors are waiting on the other side of that price tag. Source: Al Jazeera

Abu Musa

Velina, do you see Kharg Island being occupied by the US within the next few weeks? I can see it