The Rate Hikes Are Coming

Persistent inflation and rising oil prices, currently exceeding $100 per barrel, are driving a significant transfer of wealth from diesel-dependent consumers to energy producers and landowners. The U.S. faces a precarious fiscal future, with national debt surpassing $40 trillion and interest payments now exceeding defense spending. Meanwhile, the AI sector faces intense scrutiny regarding its existential risks and massive capital expenditures. While companies like Anthropic and OpenAI command high valuations, their lack of clear profitability and reliance on hyperbolic claims about civilizational threats raise concerns about potential market bubbles. Apple’s introduction of a $2,000 foldable iPhone signals a strategic shift under new CEO John Ternus, though the product’s long-term impact remains uncertain compared to the company's historical success as a refined market follower.