The AI Bubble, The Coming Crisis & What The Left Must Do
This will be yet another crisis the Left will squander if we do not begin to make serious calculations and moves.
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I won’t sugar coat it, the coming crisis should be better prepared for, but sadly the American Left is yet again still seriously behind and unable to deal with this issue properly.
Decades of the older comrades repeatedly trying to warn the rest of this movement to get it together and look at this strategically instead of just reacting in the moment, the constant ignoring of building the infrastructure that should have been further ahead by now, that would have prepared us for this and other crisis’s.
I am going to cover the depth of how serious this crisis is, how it could have been mitigated once it happens, and what the Left needed to do and still needs to do, regardless if it upsets their purity politics or self righteousness.
The AI Bubble & Coming Economic Crisis:
There is an AI bubble in the US right now which is being propped up with over a trillion dollars in funding and maintaining. It’s 17 times larger than the dot com bubble of 1995-2000, and 4 times larger than the 2008 mortgage crisis.
The AI bubble is currently making up for 92% of our US GPD growth in H1 this year, and tech stocks make up 40-55% of the S&P 500. This means the entire growth engine of the US economy is now AI dependent, and when the bubble pops it will absolutely decimate the US economy.
Multiple international institutions are warning of the bubble and the alarms are ringing on the global economy. The IMF & Bank of England has issued a joint statement on it, the Oxford Economics has sounded the alarm, the Deutsche Bank (who warned us of the 2008 crash) has also warned of the bubble and how it will destroy the US economy when it pops.
The crazier thing is people are coming to the conclusion that they think the tech leaders want the bubble to pop, and honestly that make sense, since the wealthy get richer during crisis due to government subsidies and bail outs and profiting off the panic and desperation of people to survive. It’s controlled nation-wide theft.
-What Will Happen After the Crash:
When the AI bubble pops, which may be starting soon because of China expanding export restrictions of materials to maintain and build AI further, it will cause a tremendous crash for tech & the US economy. If the bubble pops, it will be disastrous, I’m talking about worse than anything we saw from the dot com or 2008 crash; mass bankruptcies, businesses closing, etc. Of course, as always, the US government will fix this for the major corporations, while leaving the masses to suffer and die.
Now, there is 5 stages of an economic bubble forming and crashing, for the context of AI, they are:
Stage 1: Rational Excitement
Description: Innovation sparks legitimate growth. Fundamentals support rising valuations.
Signals: Early adoption, modest gains, optimism grounded in reality.
Stage 2: Euphoria Begins
Description: Valuations detach from fundamentals. Circular funding, over-leveraged bets, and inflated projections dominate.
Signals: AI firms valued on future dreams, not present earnings. Gold spikes. Credit scores fall.
Stage 3: Froth & Fragility ← We’re here
Description: Valuations detach from fundamentals. Circular funding, over-leveraged bets, and inflated projections dominate.
Signals: AI firms valued on future dreams, not present earnings. Gold spikes. Credit scores fall.
Stage 4: Cracks Appear
Description: Disappointments trigger re-evaluation. Liquidity dries up.
Signals: Missed earnings, failed adoption, sudden sell-offs.
Stage 5: Collapse & Reckoning
Description: Bubble bursts. Assets reprice. Panic spreads.
Signals: Margin calls, bankruptcies, systemic contagion.
IMF Chief Georgieva’s warning “Buckle up: uncertainty is the new normal” paired with BOE’s concern about “disappointing AI capability/adoption progress”, signals that we’re deep in Stage 3, where sentiment is fragile and any shock could trigger a cascade.
Once the bubble pops, and mass selling off happens, the market bottoms - the US will begin recovery through stimulus checks, bails outs, and other methods to fix everything. This is why, after almost every crash, the stock market begins to surge again, despite millions are suffering financially.
When the government begins recovery, the tech companies will begin to surge and fix their bottom line, and the masses who are desperate will begin buying out of need, which will make other companies take advantage of that desperation and begin increasing prices to profit off panic driven demand. And this will be life until the US is able to stabilize the economy, which their idea of stable can take a year or longer. At least until the next crisis comes.
-Why Are They Doing This?:
AI? Because we’ve been in an AI race with China, similar to the space race with the Soviets. Do you think the US is dumping this much into AI because they think its cool? No, they’re doing it because China builds & uses AI as much as we do except they don’t cut corners and heavily regulate it unlike us, because we’re only focused on the quick profit and will harm whatever to obtain it. This has been true with us and everything we do for centuries. China heavily regulates AI and they make sure they have the electric grid and recycling capabilities to make it’s use and management less impactful.
What’s worse is the US has recruited the worse faction to make this happen. People like Peter Thiel, a lunatic technocrat with dark enlightenment beliefs and the idea that AI is the entity to save them and make them untouchable gods (Astaghfirullah) under it. A man who stumbled over his words and hesitated when asked “Should the human race endure/survive?” A man accompanied by other similar lunatics with the same belief like Elon Musk of Telsa, the CEO of Nvidia Jensen Huang, and the many other tech billionaires.
These technocrats joined in with an unholy alliance with the Trump Administration, many of which have dark enlightenment sympathizers like JD Vance (the Vice President), Steve Bannon (Senior Counselor to Trump), Michael Anton (33rd Director of Policy Planning), and Trump himself.
This means AI for China is one as an extension of the user and to advance society; while in the US it’s used to replace workers, abandon liberal democratic practices for authoritarian policies, oppose egalitarianism, promotes technocratic monarchist nation-state building, advance the self-interests of the wealthy, and destroy the environment from no regulations and cutting corners. For China, AI is to advance the people - for the US, AI + it’s current technocrats, is to create a fascist version of cyberpunk 2077. The dark enlightenment believes societal collapse brings the opportunity to build a post-human, elite dominated future, which might be why the US is going the route it’s currently going. This means its literally socialism or fascism, and our actions now will show which path we go.
Even of the many positive use cases of US based AI, the end goal of it for the US isn’t for the masses, even if it can help us in some situations. That said, it’s important to understand the distinction and not swear off AI as a whole, like many moralists and liberals are, instead to use it where necessary, and especially use the AI’s of the opposing side (China).
Pushing the bubble to pop? Because they do this all the time; they overwhelm an industry with billions or trillions of dollars to boost their profits, and once the excitement dies down because the ROI (return on investment) wasn’t to the extent they wanted, the millions of investors panic sell and backout of the project, the bubble pops and forces the government to bail them out and stimulate the economy where the masses (especially the poor) buy things out of need, and the corporations get richer. It’s nation-wide gambling at the cost of people’s stability and lives. It’s nation-wide theft from everyone, including the government, because the rich mapped out how to do this while everyone else hasn’t studied any economics to see what they’re doing.
What We Should Have Done & Need To Do:
I won’t overwhelm this piece with my harsh criticisms, I’ll make that a separate piece after this one. I will simply cover what should have been done and what needs to be done for when this bubble pops and after.
First and most simply, there is nothing we can do to stop the crash, but we can mitigate it with necessary collaboration and program building, which should have already been done but better now than never.
The most important thing for this movement and the groups within it is funding, which is about to get 10 times harder with the crisis. Cut off finances and labor and a movement dies, it can’t be propped up with ideas alone.
1: Streams of Funding
If those in the Left truly want to position themselves in a way to fight, it means needing to deal with the lack to do so which is caused primarily from lacking funds.
For The Record: I don’t care about the purity politics on the following list of methods, nor do I care about the opposition some of these ideas gets by (most) people who clearly never do anything except rant online with no experience in the real world. Socialists/Communists shouldn’t sell things? Not only does markets exist under every system including socialism, but when it comes to the sharpening conditions and need to act, purity dies in the background of those who act with a desire to push forward. You take what you get to get what you need. Either we take the fight seriously and progress it by ALL means necessary, or we become traitors and let it die while we watch.
The following list is methods we should use as a means to build up funds for the organizations, programs, and efforts we have in the country. Better done as a group, as individualism has already been one of our other biggest hindrances. Regardless, begin the process of building income streams to finance the movement. I will be listing this in accordance to most effective to least:
Ecommerce & Online Content
Online Stores: If built correctly and promoted ruthlessly, a person can make a serious amount of money from ecommerce. I’m not telling you to dropship or anything, I also don’t care if you do those things. You can make money from selling your own designs, from selling ebooks and guides, providing your consulting and services on very specific topics, things that are your own personal work turned into easy to sell products or services without laboring as much. There is a number of ways to use ecommerce to our advantage.
Fake Store Fronts: This is just a suggestion, but one thing I saw that was intelligent, was students in DC selling Trump merchandise to Trump rally goers to use the money in paying off their debt. They didn’t care about Trump, they just wanted to profit off his followers. For us, we shouldn’t find anything wrong with taking advantage of the enemy to fund their opposition.
Affiliate Marketing: It’s not consistent, at least it isn’t if you don’t have a big platform to market to, but it is still a useful option to use to bring random income in from promoting it on a webpage, social media content, etc.
Consulting & Services: I know of a lot of socialist & communist people in this movement who know graphic design, video editing, technology, music, social media, economics, and various other things. There is a rich variety of talent in this movement, and it can be used to finance this movement through providing consulting to teach others and paid services to groups and people.
Digital Products: Like I said earlier, digital products like ebooks, software, guides, courses, etc. these products can be made once and sold multiple times. Ebooks & guides for examples is one of the most profitable products on the internet. People will and do pay for information.
Livestreaming: Hasan does this best and honestly he is one of the few who is doing it, but hosting a livestream to spread beliefs while playing games, covering geopolitical events, teaching history, etc. is one of the best ways to not only spread our ideals but get paid doing it. Twitch has some tight moderation and only a few really get a decent following, same with TikTok but I feel TikTok is a bit easier to get traffic. Rumble & Kick are the only places I’ve seen where there is less moderation but you really have to put the hours in to build an audience, along with spreading the content online.
Reminder: If you don’t make use of something, the far-right will, and currently for ecommerce, they are. They’re enriching themselves so they can better fight and kill you. You have no excuses not to act for this movement.
Stocks
Stocks are Difficult: Don’t let anyone tell you otherwise. You have to study them extensively and know what you’re doing, plus have a decent amount of money to put in. You only get a serious amount of money from stocks if you do daytrading, which is extremely risky & requires both knowledge and strategy, or invest a lot of money for a long enough time period. It’s also not something where you’ll get paid immediately, it’ll take time, but if you do it right the payout is massive. A lot of these politicians made their multi-millions off the stock market, which is why a lot of people have resorted to just following their stock plays with apps like autopilot.
Stocks Shouldn’t be Relied on: However, it benefits to know when to use them or have them as a backup to funding the movement.
AI Crash & Stocks: With the current AI bubble happening, it will benefit to make use of the surge that will take place after the pop. IF you aim to take advantage of this coming surge, here are the things to watch out for to know when the stock market will surge after it crashes:
If the FED Reserve pivots from tightening to easing
Congress approves stimulus checks, infrastructure spending, and/or bailouts
News outlets shift from “crisis” to “opportunity” that means the stock market is about to spike
Stocks like Microsoft, Nvidia, Amazon, Palantir, S&P 500, and others involved with AI will surge after the above 3 points begin to happen
Crowdfunding, Community Outreach, and Networking
Crowdfunding: This is the most common within the Left, not that that’s a bad thing, but it’s heavily relied on. Crowdfunding is when a group or person is collecting donations from those within their group or from the movement and those aligned. This is one of our biggest sources of funding and it’s simply not enough, ask anyone within a group, they’ll say the same thing.
Community Outreach: Getting a group of people together to go into a neighborhood, downtown area, community garden, industrial area, etc. with the specific purpose to collect donations and promote your group and ideas. Even hosting a table in random city centers or colleges to promote your group can be combined with this. Not enough people do this, and I promise you from experience, you’d make just as much if not more from it than crowdfunding. Even leaving business cards with donation links and a brief explanation of your group at random high traffic spots fall under this concept of community outreach.
Networking: Similar to community outreach, but more specific and targeted, networking is another powerful measure to build connections between supporters, organizations, and even yourself that can make donations to what you, or those you’re involved with, are working on. The wider the net from networking, the better the connections and additional donations to causes you’re fighting for. In all honesty, the entire left should be networking to find those aligned with us, be them people or groups, be them within the left or non-political. A wider list of connections also means more collaboration on projects and educational content for the masses to consume.
If at least half of this movement was to build out different income streams and devote half their income to the organizations and programs within this movement, the issue of funding wouldn’t exist. I knew old communists who’ve been in the movement for decades who was giving 70% of their income (after bills) to organizations and programs, what’s your excuse to not try? To not increase funding to this movement? Do you want to see capitalism end or not?! I’m not asking you to give everything, but we must work together to fund what we can to fight. We can fight, but we can’t do it without funds.
See this as life or death, because it is. This is not a polite suggestion, this is survival.
2: Mass Coalition Building
Like I said at the end of my piece “Charlie Kirk Aftermath, Right-Wing Crashing Out: A Million H*tlers? We’ll Make a Million St*lins!”
“Today starts the day of mass left-wing organizing, training and community defense, and coalition building. Anyone arguing against this at this point is doing traitor’s work.”
I fully meant this, and still do. There is dozens of big left-wing organizations in this country, along with probably over a hundred smaller ones - half of them share 80% of the same beliefs, with some others that are too strong of an ideological difference that keeps them from collaborating.
I want to make this pretty clear because many of you seem to be forgetting it:
We live under an ever increasing right-wing government with a rapidly expanding far-right movement, and ever worsening conditions. Do I have to repeat that?
If you think people will just magically come to your side after things get worse enough, or expect other left-wing ideologies to just magically disappear after enough time has passed, or anything similar to the sort; as someone whose been in the Left for over 15+ years, I can tell you, that you live in a fantasy world and need to wake up to the reality of our situation. Analyze the conditions like you say we should.
The reality is most of the Socialists and Communists can and should work together either on most things or specific things. The more we ignore pluralism and give into sectarian or contrarian lifestyles, the more we keep shooting ourselves in the foot. The same way militaries and soldiers take 70-80% of the information on something and execute an action, we need to find those we agree 70-80% with and work together in some capacity. Of course it has to be a two way street, it can’t be one sided.
Most of the Socialist & Communist groups should be working together in united fronts on union labor, anti-imperialism, anti-Zionism (which most have, and has been our most successful united front as of late), and anti-fascism. Anything else can differ, that’s fine. But our most common unifying values can unite us in limited causes that can help win powerful victories for the working class and raise class consciousness.
We won’t, and will never, get to revolution tomorrow off idealist thinking that people will magically change to our side. However through mass collaboration and reaching people in various fights, we can guarantee that capitalism will end in revolution if we care more about liberation rather than which party leads it. I’d rather see capitalism end and some level of socialism come to rise than my specific party being the head of it all and wasting time fighting the majority of people that can be worked with as capitalism continues to worsen to fascism, and people die around me for decades. Would I like to see the Marxist-Leninists lead? Yes, but that will happen by itself if we actually do the work, and at the end of the day if we don’t fight as one we’ll be picked off and destroyed as one.
This is also exactly why I said on my website “I work with anyone who cares more about liberation than ego” because at the end of the day the comrades who came from poverty like me don’t care about the sectarian infighting anymore. Yes I have my harsh criticisms on anarchists, on SocDems, on Hoxhaists, etc. but I’d rather have one of them helping me fight anti-union efforts, fascist violence, or police crackdowns than a liberal who’s going to run away or turn me over to the police (because I’ve had this happen to me before).
Get out of your ego and go help your people.
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