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πŸ’₯ Global Credit Crisis Hits WW2 Levels, AI Fails, Espionage Economy πŸ“‰

Author
Neeta Bidwai
Published
Thu 29 May 2025
Episode Link
https://shows.acast.com/good-revenue/episodes/84-us-credit-downgrade-trade-crime-chaos-ai-hype-bust-the-un

Moody's downgrades US credit rating from AAA to AA1 for the first time in history as global debt crisis reaches World War II levels, University of Chicago study reveals AI investments deliver statistically zero economic returns despite billions invested, Treasury investigates $75 million in venture capital flowing to China-linked AI startups, and how trade uncertainty triggers systematic fraud epidemics across industries.


🎯 WHAT YOU'LL LEARN:

Why America lost its AAA credit rating and what it means for the economy | How the University of Chicago study exposes AI investment reality | The connection between trade wars and rising white-collar crime | Why Treasury is investigating venture capital flows to Chinese AI companies


πŸ“Š TIMESTAMPS:

00:00 Market Overview

00:20 US Credit Rating Downgrade - Historic First

02:12 Trade Wars and Corporate Fraud Epidemic

05:01 AI Investment Returns - University Study Results

07:48 National Security and Venture Capital Investigation

10:35 Economic Outlook and Strategic Analysis


πŸ“ˆ KEY ECONOMIC INDICATORS:β†’ Global AAA debt drops from 60% (2008) to 8% today - 87% declineβ†’ IMF warns debt levels approach World War II crisis levelsβ†’ University of Chicago study of 25,000 workers shows AI investments have statistically zero economic impactβ†’ $75 million US venture capital under Treasury investigation for China AI connectionsβ†’ Tourism from tariffed countries declines double-digitsβ†’ Trade uncertainty drives systematic fraud across multiple sectors


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πŸ’¬ What's your take on these economic developments? Share your thoughts below.


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πŸ“š SOURCES & DEEP DIVES:

β€’ U.S. credit downgraded: https://www.moodys.com/web/en/us/about-us/usrating.html

β€’ Sovereign debt reaches record highs: https://www.spglobal.com/ratings/en/research/articles/250304-sovereign-debt-2025-commercial-debt-will-reach-a-new-record-high-of-77-trillion-13427943

β€’ IMF warns of WW2 level debt: https://www.imf.org/en/Blogs/Articles/2025/04/23/rising-global-debt-requires-countries-to-put-their-fiscal-house-in-order

β€’ Trivago: Tariffed tourists avoid US: https://www.theguardian.com/business/2025/may/27/tourists-from-countries-badly-hit-by-trump-tariffs-are-staying-away-from-us

β€’ Trade wars cause crime: https://www.nytimes.com/2025/05/27/business/economy/trump-tariffs-trade-crime.html

β€’ ITA: EU & Asian tourists avoid US: https://youtu.be/AAPd9U1jn-M

β€’ AI economic impact study: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=5219933

β€’ Copyright office AI report: https://www.copyright.gov/ai/Copyright-and-Artificial-Intelligence-Part-3-Generative-AI-Training-Report-Pre-Publication-Version.pdf

β€’ U.S. Treasury looking into Benchmark's China ties: https://www.semafor.com/article/05/09/2025/us-treasury-examining-benchmark-capitals-ties-to-chinese-startup-manus-ai

β€’ CCP spying on Stanford: https://stanfordreview.org/investigation-uncovering-chinese-academic-espionage-at-stanford/

β€’ FT: New restrictions on chips design exports to China: https://www.ft.com/content/2c0db765-03ac-4820-8a02-806469848bee

β€’ Steve Blank on US R&D: https://www.nature.com/articles/d41586-025-01146-4


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