samraja v0.1.0: AI Collapse, War with Iran, and Collapse of the American Empire
Once the AI bubble bursts it will lead to a fall in assets and severe drop in Trump’s popularity. With the significant drop in asset values there will be an attempt to save face and the elites of the left will join with Trump to boost the economy. Unfortunately, the GPU assets will largely be worthless meaning there is going to be nothing to truly salvage unlike in previous bubbles. With this the baby boomers will demand that they be made whole in terms of their safety nets including Social Security and Medicare and the end result of this will be the creation of a distraction which will be to invade Iran.
The outcome of this is already known: America can’t win in Iran. The mountainous topology of Iran makes it impossible to win and America is largely setup for desert warfare. This war in the short term will boost the economy in terms of spending, lifting up stocks especially industrials, but overtime the US will ultimately not be able to pay off its debts and won't be able to afford the war.
Even if this war doesn't happen the US is already overextended and some form of pull back will happen.
The US will have to depart from the Middle East, Europe, Africa and Japan as it won’t have the money to defend those places. For example, as of this week the US has left NATO all but in name. This exodus of American power will create a power vacuum.
The collapse of the American Empire is going to destroy the global economy and any country that has bet on the US dollar: China, Pakistan, Japan, Europe. It is out of this chaos that a new hegemon is born: Israel.