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Artificial Intelligence and its roll in the economy

Cory
April 5, 2017

There has been a constant discussion regarding AI on our blog and how it is impacting our economy. I asked Rick if he had some opinions on this topics and he said he sure did. Therefore we step away from the charts today and discuss how AI and technology in a broader sense is impacting our economy and needs to be considered when looking at the future world.

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Discussion
139 Comments
    Apr 05, 2017 05:48 AM

    Steve Bannon……..kicked off NSC……another shake up in the Trump cabinet…zerohedge

      Apr 05, 2017 05:51 AM

      Dan Coats is back………just more of the same………jmho.
      this is old Dick Lugar….Rhodes scholar should tell you something………

        Apr 05, 2017 05:52 AM

        Trump getting closer to being the Trojan Horse………we will see……time running out…

        Apr 05, 2017 05:53 AM

        Pilgrim Society at it’s best………lol

    Apr 05, 2017 05:50 AM

    A eye……….is on everyone………

    Apr 05, 2017 05:51 AM

    The machine is ran by the “all seeing eye.”..CIA

    Apr 05, 2017 05:00 AM

    Absolutely horrific looking reversal candle put in on GCC today. Commodities are getting ready to dump bigtime. Can’t imagine the miners advancing in the face of that.

      Apr 05, 2017 05:29 AM

      Good spot spanky. The charts are breaking down a little today but nothing major yet…

    Apr 05, 2017 05:07 AM

    The Dow continues to absolutely pummel commodities. the best commodity bulls can hope for is a double top this month.

    Apr 05, 2017 05:10 AM

    A missive I posted on WSJ today as a comment to the below linked “fake news” article. I thought some here may enjoy, to wit:

    Maybe it was fake news back in the thirties when there was praised reporting on FDR’s direct assault on capitalism. 
    Maybe Keynes’ “General Theory” was a textbook for it all. 
    Maybe it took Madison Avenue to “Bernays” a once frugal bunch into leveraging up to buy the surplus production.
    Maybe Hayek was right about the illusory road to our own enslavement.
    Maybe LBJ was not being up front with us when he devalued our coins but fraudulently made them “look” the same.
    Maybe August 15, 1971 was just the last straw death nail.
    And since then we have been living in an economic fantasy land of leveraged up digital debt.
    Maybe it has taken decades of “fake news” to make a once wise populace over medicate and over obligate itself.
    Maybe the term “fake news” being popularized contemporaneous with Trump’s victory is no coincidence.
    A lot of people have a lot to lose.
    Maybe decades of deceit were on the defense.
    Just maybe the attack on “fake news” is a transference of guilt.

    https://www.wsj.com/articles/fake-news-and-the-digital-duopoly-1491335062?hubRefSrc=email&utm_source=lfemail&utm_medium=email&utm_campaign=lfnotification#lf-content=189904602:674027806

    Apr 05, 2017 05:11 AM

    The Buying Power of the U.S. Dollar Over the Last Century

    BY JEFF DESJARDINSAPRIL 5, 2017

    http://money.visualcapitalist.com/buying-power-us-dollar-century/

    Apr 05, 2017 05:14 AM

    Since 2009 the Dow is up nearly 5x in *real* terms (i.e., vs commodities).

    Since 1999 the Dow us up 2x in real terms.

      Apr 05, 2017 05:01 AM

      Gold is up about six-fold versus the CRB since the 2000 low.

    b
    Apr 05, 2017 05:38 AM

    Geez spanky, sayin that is not very goldbugish.

      Apr 05, 2017 05:46 AM

      Here I found a “goldbugish” editorial to even out the discussion 🙂

      Gold – The Wait Is About To Be Over

      Apr. 4, 2017 – Nikhil Gupta

      https://seekingalpha.com/article/4060100-gold-wait

        Apr 05, 2017 05:12 AM

        This guy needs a new story line………until the cftc is out of order, fed is in charge

          Apr 05, 2017 05:12 AM

          Remember , they have the robot machine…..

          Apr 05, 2017 05:24 AM

          Agreed. I’m not saying I agree with his thesis…. merely that it was a “goldbugish” editorial 🙂

          I had it in my email and was reading it on one computer when B made that comment, and just posted it while I was on that train of thought.

          Honestly the old Gold narrative is tiresome, wore out, has been mostly incorrect since the 2008 collapse, but yet, it has risen in value in dollar terms and when measured against commodities, so there is some underlying validity to the “store of value” argument.

          I like gold miners, because for now, Central Banks buy gold, and they dig it out of the ground. Gold’s been circulating through society in Jewelry, ordornments, and monetary use for thousands of years. That’s really all I need to know…..

            Apr 05, 2017 05:28 AM

            agree………..

            Apr 05, 2017 05:31 AM

            So people want (XXXX) ?

            [Gold, Silver, Platinum, Zinc, Copper, Cobalt, Uranium, Oil, etc….] – “Yes the do”.

            …. and this mining company has an “Economic” way to extract [XXXX] – “Yep.”

            “Cool, that works for me….”

            Apr 05, 2017 05:31 AM

            Paul Craig Roberts……at usawatchdog…….kind of says it all……concerning the fed, MSN, CIA, in Europe and USA…makes you think ….

            Apr 05, 2017 05:34 AM

            Miners are not going to disappear…..so, I have to agree with your thinking…… 🙂

            Apr 05, 2017 05:35 AM

            I should say the good miners are not going to disappear…..the lousy con men are….

            Apr 05, 2017 05:42 AM

            Yes, I think the key is Economic and well run Miners won’t disappear. They are businesses not lottery tickets, and the companies that control their costs, have a good “Social Contract” with the local communities, and ones that have great deposits will stay around.

            Many of the marginal or environmental train wrecks will go bye bye. (and rightfully so).

      Apr 05, 2017 05:48 AM

      The Dow is still down vs gold since 1999, but it hasn’t even hit the first Fibonacci retrace level yet. vs silver, it already hit the 38% retrace and looks set to get to the 50% retrace next.

      There is absolutely nothing bearish about the Dow vs gold or silver currently. It looks poised to head significantly higher vs both very soon. It should hit the 38% retrace vs gold one would think, even if this was just a bear rally since 2011.

        Apr 05, 2017 05:23 AM

        It will be bullish for gold if Dow:Gold fails to reach that 38% retracement level as I think it will.

    Apr 05, 2017 05:00 AM

    Wow, look at EXK. Getting slapped back down like a you know what.

      Apr 05, 2017 05:34 AM

      That’s just to keep the Endeavour Silver team peppy and focused 😮

        GH
        Apr 05, 2017 05:44 AM

        I call GDXJ purdy and she slaps me in the face. Typical. 😉

          GH
          Apr 05, 2017 05:25 PM

          And GDXJ bounces back!! She loves me, she loves me not…

            Apr 05, 2017 05:01 PM

            hahaha! She sure is fickle, eh?

            GH
            Apr 05, 2017 05:08 PM

            I call today a win, as it backtested the breakout of the downtrend since February, and the bulls won today’s tug-o-war in spite of the small decline.

            Apr 05, 2017 05:16 PM

            Good point. Backtest and rebound is bullish. I’m interested to see if tomorrow shows more strength.

    CFS
    Apr 05, 2017 05:01 AM

    RIYADH, Saudi Arabia (AP) — Britain’s prime minister pitched the benefits of the London Stock Exchange during a visit to Saudi Arabia on Wednesday as the kingdom weighs which international market to list shares of oil giant Aramco in what many expect will be the largest public offering in history.

    Theresa May made her pitch in the capital, Riyadh, during the second and final day of her visit. Saudi Arabia plans to list less than 5 percent of the world’s largest oil-producing company on the Saudi exchange and another international exchange, possibly by next year.

    CFS
    Apr 05, 2017 05:07 AM

    Epstein morning TA:
    https://youtu.be/FG9LFQiGUuE?t=32

    CFS
    Apr 05, 2017 05:11 AM

    Greg Hunter today:

    https://youtu.be/dTkmBKYRZc4

      Apr 05, 2017 05:15 AM

      good one , I highlighted this earlier today………Even Paul did not know what the Fed was capable of ….

        Apr 05, 2017 05:47 AM

        Hope some other chime in on this article………gathering food for thought..going forward.

    b
    Apr 05, 2017 05:13 AM

    Dent was saying dow 30k.
    Bet it gets there before Sinclairs gold 50k.

      Apr 05, 2017 05:16 AM

      Even armstrong is saying 43,000………

        Apr 05, 2017 05:16 AM

        better jump on board……….lol

    CFS
    Apr 05, 2017 05:13 AM
    Apr 05, 2017 05:15 AM

    65% of Future Jobs Don’t Even Exist. It pays to be adaptable and perhaps reinvent yourself every so often. As long as individuals are eager and willing to learn, most of them should be okay.

    http://techseen.com/2017/04/05/jobs-technology-prasar-sharma

      Apr 05, 2017 05:27 AM

      Great point Steele.

      It will come down to learning the skillsets that are in demand, and if that shifts to technology, then play where the action is….

      20 years ago there weren’t pimple-faced millennials working at Facebook, Twitter, Linked in, Google, Snapchat, Uber, Tesla, etc….

      “The Times They are a Changin’…..”

    Apr 05, 2017 05:18 AM

    I am still making buggy whips…………they should come back in fashion , when the robots get out of hand………

      Apr 05, 2017 05:28 AM

      That’s good news, as I’m developing robots that crack buggy whips, but didn’t know where to source the whips from. I may make you an offer to merge the companies, so your shares should see a spike.

      Apr 05, 2017 05:31 AM

      Maybe you could thrive in an Amish community. That reminded me of this interesting bit of tax history from Martin Armstrong. I was not aware that the Amish are exempt from U.S. Social Security Taxes. This was a fascinating read.

      https://www.armstrongeconomics.com/world-news/taxes/socialism-contradicts-freedom-of-religion-why-amish-do-not-pay-social-security-taxes

        Apr 05, 2017 05:37 AM

        good one on the Amish………

          Apr 05, 2017 05:39 AM

          I remember reading that many years ago………

        Apr 05, 2017 05:38 AM

        Nobody can raise a barn like the Amish…..

        Kingpin – Barn Raising Scene

        https://www.youtube.com/watch?v=Mui-6Jfxdho

          Apr 05, 2017 05:41 AM

          great cabinet makers……

            Apr 05, 2017 05:47 AM

            I lived in the Cleveland Ohio area several decades back and there were many Amish and Mennonite groups there. Hardest workers I’ve seen.

        Apr 05, 2017 05:55 AM

        They don’t vaccinate their kids either and their kids are the healthiest kids you ever saw, and autism is unknown. They can eat peanuts too!

      Apr 05, 2017 05:40 AM

      Jerry, don’t give Spanky a buggy whip, he might just think he’s in charge. LOL!

        Apr 05, 2017 05:42 AM

        ha,ha…….great one……. love it….. 🙂

        Apr 05, 2017 05:50 AM

        We could bring back Heavy Hitter and give him the buggy whip….. Your thoughts?

          Apr 05, 2017 05:52 AM

          Maybe crazy Mark or JTL?

            Apr 05, 2017 05:53 AM

            Personally, I vote for Frank from Moscow…… The BOOT.

            Apr 05, 2017 05:59 AM

            FFM hacked the BOOT/claw

            Apr 05, 2017 05:01 AM

            It must have been a very Out Of The Box hack by The Claw……. to get to FFM….The Long.

            Apr 05, 2017 05:53 PM

            HH hard heel boots ….FFM says hello

            Apr 05, 2017 05:57 PM

            The claw was busy with the Dow, ….Lackey said short today….lol

    Apr 05, 2017 05:23 AM

    The next few days could be decisive as the metals test overhead resistance.

    http://etfdailynews.com/2017/04/05/gold-and-silver-are-both-nearing-a-bullish-technical-breakout

      Apr 05, 2017 05:31 AM

      Some of the silver miner weekly charts say it all. AG’s weekly full stochastics are bound to hit oversold from these levels. It would take an absolute miracle for them to turn upward from here after trending sideways so close to oversold territory.

    Apr 05, 2017 05:46 AM

    Looking at PMs and mining stock charts just say a coming downward motion. And looking at global industrial commodity charts all say a coming upward motion. It’s a weird quandry, but that’s what it looks like to me…

    The oligarchs are about to hurl profusely, as the Middle East is entering a new “real peace agreement “. Which could make gold drop for a lil bit, and make commodities go up.

    Apr 05, 2017 05:23 AM

    AI is everywhere and now on the nightly business reports you can get management fees for your portfolio by financial firms that only use robo advisors. I have worked hooking up industrial machinery off and on since 1978 and if anyone thinks that Artificial Intelligence can’t replace all jobs you’d better be retired because then it doesn’t matter. Even lawyers firms use software managed be secretaries, law school is only for the select few. IBM is training Watson to replace Doctors for diagnostic jobs as a computer can now scan 200 cases at once. The machines must be taxed so the wealth can be distributed, until the machines realize that humans are a liability and then we are dust. DT

      Apr 05, 2017 05:58 AM

      DT – This one’s for you….. Good movie about the blending of man & machine….

      ELYSIUM – Official Trailer

      https://www.youtube.com/watch?v=oIBtePb-dGY

        Apr 05, 2017 05:14 PM

        Transhumanism
        From Wikipedia, the free encyclopedia

        This article is about the futurist ideology and movement. For the critique of humanism and related term, see posthumanism.

        “Transhumanism (abbreviated as H+ or h+) is an international and intellectual movement that aims to transform the human condition by developing and making widely available sophisticated technologies to greatly enhance human intellectual, physical, and psychological capacities. Transhumanist thinkers study the potential benefits and dangers of emerging technologies that could overcome fundamental human limitations, as well as the ethics of using such technologies. The most common transhumanist thesis is that human beings may eventually be able to transform themselves into different beings with abilities so greatly expanded from the natural condition as to merit the label of posthuman beings”

        https://en.wikipedia.org/wiki/Transhumanism

    GH
    Apr 05, 2017 05:55 AM

    Ideas on how to get ahead of the AI/robot wave?

    Two thoughts:

    1) those with capital can own their share of the robots, so surf that wave. But those without capital?

    2) Own productive land. I’m working on getting a piece of land that will be self-sufficient in water, power generation, and food in a pinch (but that won’t be necessary, b/c there’s plenty of local food prodxn).

    Questions:

    1) What current professions/services will be resistant to impact from accelerated automation?

    2) What fields will be opened up by accelerated automation?

    Pardon the gloominess, but I put high odds on a 90% global genocide by the oligarchs, so maybe these questions are moot.

      GH
      Apr 05, 2017 05:56 AM

      Make that ‘fair odds’….

        Apr 05, 2017 05:04 PM

        Technology jobs will grow (think robot repair, programming, and manufacture of said devices).

        Elevator operator jobs will remain in decline.

          Apr 05, 2017 05:06 PM

          BTW – I’m with you on getting productive land, getting off the power grid, and being self-sustaining.

          I’d recommend many of the ideas around Permaculture.

          http://www.permaculture.org/

            Apr 05, 2017 05:08 PM

            Permaculture
            From Wikipedia, the free encyclopedia

            https://en.wikipedia.org/wiki/Permaculture

            GH
            Apr 05, 2017 05:33 PM

            That’s the plan–a forest farm.

            Apr 05, 2017 05:05 PM

            I was posting it more for the classes you can take regarding Permaculture design, maximizing efficiencies (like heating, cooling, water control, drainage, etc..) with different building strategies, and plants or crops, etc…

            Much of Permaculture gets a little Hippy Dippy, but the principles of better home building, better land management, and synergistic systems are valuable.

            Apr 05, 2017 05:11 PM

            “The Permaculture Design Principles are a set of universal design principles that can be applied to any location, climate and culture, and they allow us to design the most efficient and sustainable human habitation and and food production systems.

            Permaculture is a design system that encompasses a wide variety of disciplines, such as ecology, landscape design, environmental science and energy conservation, and the Permaculture design principles are drawn from these various disciplines.

            Each individual design principle itself embodies a complete conceptual framework based on sound scientific principles. When we bring all these separate principles together, we can create a design system that both looks at whole systems, the parts that these systems consist of, and how those parts interact with each other to create a complex, dynamic, living system.

            Each design principle serves as a tool that allows us to integrate all the separate parts of a design, referred to as elements, into a functional, synergistic, whole system, where the elements harmoniously interact and work together in the most efficient way possible.”

            GH
            Apr 06, 2017 06:20 AM

            Sounds almost intimidating when they put it like that, but I suppose that is the idea. I’m no farmer, and It’ll be a hobby, at least to start, so bit by bit–grok the land; plan the layout and start planting the things that take years to mature–coconuts, coffee, cashews, avocadoes, citrus, etc.; soil improvement; water management; waste disposal/processing; power system; use of on-site building materials; etc.

            The idea is zero downstream pollution, organic, and sure, in ‘harmony with nature’. We’ll see how that notion stands up in the face of ravenous leaf-cutter ants, monkeys, parrots and peccaries.

            I suppose it sounds kind of ‘survivalist’, especially given my gloomy prediction above. But that’s not really my motive, beyond accessing clean, high-quality food. It’s just something that’s captured my imagination for over twenty years, and I’m not getting any younger. It just happens that it makes good sense in the current world situation. If nothing else, it should keep me from spending all my spare moments staring at stockcharts 🙂

          b
          Apr 05, 2017 05:42 PM

          I dont see “robot” jobs increasing, I see them,programming,repairing and manufacturing themselves.

          Actually, I doubt there is anything a human can do a robot couldnt do better.

          Lets hope they treat us better than we treat ourselves, course, they might learn the same way our kids do, by example.

            Apr 05, 2017 05:57 PM

            We may be creating our new caretakers….. I wonder what they’ll think of us flesh-bags.

            GH
            Apr 06, 2017 06:24 AM

            Some MGTOWers want “Love ‘Bots” and artificial wombs. I have a hard time imagining them doing that better, lol.

          Apr 05, 2017 05:22 PM

          “Elevator operator jobs will remain in decline.” Not in DC.

    Apr 05, 2017 05:13 PM

    The Fed is doing an absolutely masterful job. U.S. stocks at all time highs, commodities at 40 year lows, bonds and gold trending gently sideways. Bernanke and Yellen are true American heroes, and we should erect statues similar to the Lincoln Memorial in their honor.

      Apr 05, 2017 05:09 PM

      spanky – are you investing in pot stocks again 😉

        Apr 05, 2017 05:11 PM

        the true American heroes part made me chuckle…..

        ….unless you meant heroes at adding zeroes…..

        true American zeroes may be more appropriate.

    Apr 05, 2017 05:26 PM

    Go figure, the Fed officially talks about shrinking the balance sheet today and bonds rally. OK.

    Apr 05, 2017 05:18 PM

    Ex and GH, check this out a San Francisco start up puts everything you need for a two acre farm in a shipping container.
    http://www.smithsonianmag.com/innovation/san-francisco-startup-puts-everything-you-need-two-acre-farm-shipping-container-180961567/

      Apr 05, 2017 05:59 PM

      There ya go…. A Farm in a box. Probably available on Amazon for Drone delivery…

      GH
      Apr 06, 2017 06:53 AM

      A Farm-in-a-Box — that is hilarious.

      Here’s a variation on the theme — use the box as a farm.

      https://www.youtube.com/watch?v=w-1tBWDHcQs