AI's Simple Jack CCO/CLO Model: BOOM!
2000+2008=2026. Throw in unemployment numbers. Japan. 2 unwinnable wars. SPR under 300M barrels. Social chaos growing everywhere...And the lurking Taiwan takeover.
I think we are all heading towards a good hard fucking by the Global Parasitic Epstein Class. Or maybe, a prolonged golden shower in the GOLDEN AGE, without soap, just white and yellow lies! People like Christian Zionist Joel Berry pitch making your own bread to support MAGA or MIGA! This while POTUS 47’s son-in-law and the brother of the son-in-law are cutting 10 & 11-figure deals for European resorts on islands and LA Lakers. Kushners, are all of the tribe, and converted Trump to a Chabad Lubavitch way of thinking.
But that’s not the main subject of this post. The subject is the replay - over and over and over - of international financial malfeasance and investment crimes to lock in The Great Reset’s REAL INTENT:
The AI - Datacenter Investment Model (Simple Jack’s) is well beyond anything else encountered in recent financial memory, regarding the enormous monetary capital scope, infrastructure hustles and AI chips and installs for compute and surveillance technology. This is tilting at windmills (to fight China (while they can just dump AI models (Kimi) on the market for peanuts)! or compute problems we don’t have, or wouldn’t solve with these investments, even if we did have a compute problem).
No, this hustle is to produce generational, Controligarchic, AI windfalls that will finally bankrupt the United States, putting us back decades, while the BRICS+ likely survive on, much better off. Unless: Netanyahu and his neocon buddies in Miami, Tel Aviv, London and DC (including Trump) do unthinkable acts of destruction that puts all humanity (but for the elite bunker plans ongoing) back to like 1500. The Malthusian overlords are not really fighting for their national tribes. They are fighting for pathological dominance and in-class superiority.
Watch George Gammon explain AI’s Simple Jack CCO/CLO Model:
This too - a long post - but a deeper and thoughtful explanation about it:
Foundational quote from Groundbreaker:
The market is pricing AI as a technology cycle when its actual anatomy is that of a credit-driven real estate cycle - which is precisely why the 2008 mechanics apply - and the two break for entirely different reasons.
Technology cycles are driven by innovation and adoption; their risks are obsolescence and competition; they live or die on whether the product is wanted, and they can de-rate slowly as the future is repriced.
Real estate cycles are mechanical: leverage, hard assets, occupancy - debt-financed construction at scale, commercial leases disguised as take-or-pay contracts, and long construction lags that guarantee supply arrives after demand has turned. Walk down the AI build-out and every feature is a property development in disguise: a data center on entitled land, financed with debt against the structure and leased to tenants on take-or-pay terms. This is not a software business that happens to own servers. It is a real estate business that happens to compute.
Real estate cycles break the same way every single time. Not when demand collapses - it rarely does - but when the rate of demand growth decelerates against the fixed supply the boom has just finished building. The second derivative again, in the one asset class where it has been studied for a century.
And the credit machine does not de-rate gently. It refinances or it seizes. The instruments that seize - take-or-pay leases, GPU-collateralized term loans, asset-backed notes - are each negatively convex. Within this machine, the financing mechanics diverge: the pure-play neoclouds borrow non-recourse debt against a specific tenant’s take-or-pay and collapse into seizure when the tenant can’t pay. The hyperscalers fund with corporate bonds and operating cash flow; for them, a tenant default means impairment and margin compression, not seizure. Oracle sits between them: corporate-funded but dangerously concentrated.
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