James Rickards: Markets Are Blind To This Massive New Risk

The downside of A.I.

The markets continue to surge to all-time record highs, driven in no small part by expectations of a massive productivity boom enabled by artificial intelligence, otherwise known as A.I..

Corporate America and Wall Street are clearly shrugging off the warnings that science fiction gave us about AI taking command of the world's technology to eradicate humans.

But...there are some skeptics, like today's guest expert, who do think AI is a serious threat to the global financial order and to national security.

A threat that could cause chaos to ripple through the world's systems at lightning speed.

In this new book MoneyGPT: AI & The Threat To The Global Economy, Wall Street veteran and former advisor to the Department of Defense James Rickards lays out the specific risks of AI we need to remain vigilant to, and the steps we can take to make the Age of AI safer for both our national interests as well as those of our species as a whole.

For a fascinating discussion on this topic, click here or on the video below:

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Adam’s Notes: Jim Rickards (recorded 11.11.24)

EXECUTIVE SUMMARY:

• The stock market is experiencing all-time highs, largely due to the anticipated productivity boost from AI technologies. Corporate America and Wall Street seem unfazed by science-fiction-style warnings about AI taking control. However, James emphasizes that AI presents serious risks to global financial stability and national security. These risks, he suggests, could lead to sudden and catastrophic disruptions across economic systems.

• AI’s role in markets may worsen volatility, as it mimics and amplifies human behavior during panics. James references the March 2020 stock market crash, where prices fell 30% in one month, as an example of how quickly markets can plunge. With AI in control, such crashes could happen even faster and on a larger scale, as AI systems could intensify human panic by reacting at unprecedented speeds.

• AI-driven tech stocks like Nvidia, Microsoft, and Apple are currently responsible for much of the market’s upward momentum, with the S&P 500 showing a disproportionate reliance on a small group of companies. James warns that