Friday gave us a line in the sand ahead of Nvidia earnings

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Today’s Links

Is the AI phenomenon the emperor with no clothes or set for a massive further rally?
Carole Cadwalladr posted a sizzling criticism of the AI bubble and linked it not only with the “broligarchy”, but even Jeffrey Epstein. A tour de force, with particularly choice criticism for OpenAI and its business model and not least, Sam Altman. Also see her TED talk in which she says “this it the digital coup” and calls Altman a “data rapist”. She also refers to a Bloomberg article that I hope I linked to when it was new, but one that certainly deserves a re-read to remind ourselves how everything (all the huge, networked companies in the circular AI spending setup and even the wider stock market and even economy) can all go down all at once. Most curiously, Bloomberg deleted the drawing that it posted in the original article that Cadwalladr retrieved using a web archive retrieval tool. Contrarians will say that we have all gotten too bearish and the latest Economist cover (How markets could topple the economy.) is one of those iconic signs that it is time to get bullish because there is far too much worry out there, so plenty of upside potential ahead. There are lots of great articles out there on the magazine cover indicator - for example this one.

Denmark providing a model for defusing the hard right, by basically making hard-right a consensus, centrist policy, but….there is always “leakage”.
I ranted a bit on the podcast about a Bloomberg article getting things wrong about the Danish center co-opting the tough-on-immigration policies desired by the “far right”, but it was actually a Telegraph article my friend sent me and a very similar Bloomberg article actually gets most of it right indeed. And it is worth noting that Denmark has kept a policy of making it easy for foreign professionals to come, although I also have heard second hand of stories of nail salon workers getting paid a pittance (when my wife showed up for a nail appointment and the place was completely abandoned) probably as they were in the country illegally or using the “student visa” scams referred to in the article - where they are enrolled at universities and then never show up at class, apparently disappearing somewhere into the illegal economy as long as their visa lasts. I have first hand knowledge of this as a family relationship is directly involved with foreign student approval processes on the front-line.

Who of my generation…uh, somewhere in my 50’s…would have thought we would ever hear about the ascendence of Chinese luxury. It seems to be coming!

Chart of the Day - Dollar Index

The US dollar is on tilt - but not yet polished off - also a pivotal week for the US dollar here. The 100 level and the 200-day moving average were tested to the upside without breaking, and so far the 99 area is holding with a threat to 98 or lower on a failure, while further back the 96 break attempt by the bears was likewise rejected. It’s been tough for USD traders with sluggish action since the July lows in the bear market.