*The feedback loop is simple:

Markets rise → Public confidence holds → Political risk premiums fall → Markets rise again.

…for a while I thought that the stock market was just ignoring politics. But it isn’t! It is politics now, a political actor that can grant or withhold legitimacy. Artificial intelligence fuels valuations, those valuations stabilize public confidence, that confidence grants the administration power, and the administration protects the system that sustains it.

…Viktor Shvets sees a cycle - tech is ripping apart society (apparently a good investment) so people are buying gold as a “hedge against destruction”.

…AI is extraordinarily expensive but still searching for demand: Training frontier models will likely cost billions of dollars. But only a small fraction of people pay for these services.

…AI was sold as the end of slop but what it delivered was more slop. The market rewards attention, not utility, and both AI and politics has adapted to that logic.

…The equity market believes the AI story overrides everything else. The gold market believes something is fundamentally breaking. They’re both reacting to the same underlying reality, but they just have different theories about what happens next.

…Gold trades on fear of the system. AI trades on faith in the story.*

AI Is the Market, and the Market Is the Government, Kyla Scanlon