patrick damico

1956 Republican National platform.

Buckle up

Scott Galloway just explained why China doesn’t need to build better AI than America. It only needs to make American AI worthless. Galloway: “I think China is beginning to engage in what I’ll call AI dumping.” Not competing. Dumping. It’s the term economists use for flooding a foreign market with below-cost goods until the domestic industry collapses. Galloway: “They’re going to have a series of open-weight models. About a third of corporations now are supposedly using Chinese lightweight open-weight models that are cheaper.” Not better. Cheaper. A third of corporations. Already. China isn’t trying to out-innovate Silicon Valley. It’s trying to collapse the economics beneath it. Price warfare at the infrastructure layer. Galloway: “If I were Xi, I would just dump cheap AI into the US market.” This playbook is old. China ran it with steel. Ran it with solar. Ran it with semiconductors. Flood a market with a cheaper version until the domestic industry can’t sustain itself. AI is next. Galloway: “The moment large corporations start announcing they’re disengaging these multi-million dollar site licenses with Anthropic or OpenAI, they’re using these inexpensive Chinese models…” One CFO after another decides the Chinese model at a fraction of the cost is good enough. Not better. Good enough. “Good enough” at a lower price has killed more market leaders than any superior product ever has. Galloway: “…and the market realizes that there’s no way they can justify these incredible valuations, I think the US market crashes.” Not because the technology failed. Because the business model did. American AI companies are valued on the assumption that corporations will pay premium prices for premium models. China’s whole strategy is to make that assumption false. Galloway: “40% of the S&P now is directly or tangentially related to this giant bet America’s making on AI.” 40% of the S&P. Tied to one sector. Galloway: “The majority of GDP growth over the last two years has come from AI CapEx.” The majority of GDP growth. From one source. America didn’t diversify its future. It concentrated everything into a single bet, then left that bet undefended. Galloway: “If that slows down, we are immediately in a recession.” Immediately. Not gradually. Not over quarters. The distance between AI boom and American recession is one procurement decision. America built the most advanced AI on Earth and forgot to build an economy that survives someone selling it cheaper. The threat to American AI was never that China would build something smarter. It was that China would build something cheaper, and American corporations would choose the price. China’s real weapon isn’t Chinese technology. It’s American capitalism. The same rational self-interest that built the AI industry will dismantle it the moment a cheaper alternative appears. The market has no patriotism. Only price sensitivity. The technology race was never the real race. The real race was always whether America could turn its AI dominance into something that survives being undercut. America hasn’t even started running it. China already has.

BREAKING: Marco Rubio’s odds to be the 2028 Republican nominee hit 31% — a record high.

Obviously this little freak could go volunteer to fight the war himself, but of course he won’t. He’s got no interest in making any kind of personal sacrifice. None of them do. Israel’s finance minister bragged the other day that having American soldiers fight Netanyahu’s wars “is the best for us.” Smotrich doesn’t want to die for Israel. Neither does Ben Shapiro. Dying for Israel is your job. You’ve got to wonder how people like this — liars without honor, wisdom or loyalty to the United States — wound up in positions of such profound influence throughout our society. How did Mark Levin get the president’s cell phone number? Why is Adm. Brad Cooper, the man in charge of the Iran war, secretly taking strategic advice from crazed Israel shill Mark Dubowitz? It’s all so nuts, and ultimately suicidal. Future generations will struggle to understand it. In the meantime, Trump will likely obey Ben Shapiro, as he has consistently for months. We can predict the results, because every neocon “victory” is identical: huge numbers of innocent people killed, disproportionately Christians, economic destruction, famine, mass migration and deepening authoritarianism at home. That’s what they’re demanding because that’s what they want. What can we do to stop it? Apparently not much. But we can remember what happened and why, so that history records the truth. Otherwise, when the war ends in disaster, as it inevitably will, Ben Shapiro will be able to blame you for it.