AI Cash Cows Just Became Cash Vacuums... This Breaks the Bond Market

In 1914 the Fed ran on 40 people and no computers. Today it takes 23,000. Fire them all and let AI do it... it can't do any worse.Tonight’s episode is sponsored by Rockwell Automation. Download their 11th Annual State of Smart Manufacturing Report at https://rok.auto/sosmThis episode is also sponsored by Ethos. Protect your family with life insurance from Ethos. Get up to $3 million in coverage in as little as 10 minutes at https://ethos.com/gold. Application times may vary. Rates may vary.Kevin Warsh delivered his first congressional testimony as Fed Chair, and Peter Schiff breaks down a hearing where everyone discussed inflation while misdefining the term and ignoring their own role in causing it. June CPI came in at -0.4% versus the expected -0.1%, dropping year-over-year inflation to 3.5% — but the entire decline came from a temporary oil price drop that is already reversing as the Iran war reignites and oil climbs back 20% in July. Bond yields tell the real story: the 30-year is back near 5.1% and the 10-year near 4.6%, erasing nearly the entire post-CPI rally.Schiff's biggest revelation from the hearing: the Fed employs 23,000 people to do a job that required just 40 when it opened in 1914 — with no computers — and argues the entire institution could be replaced by a single AI or abolished outright. He dismantles Warsh's claim of "regime change" at the Fed as being as fake as regime change in Iran, exposes the redefinition of "price stability" to mean prices that rise just slowly enough that people stop complaining, and shows how the 2% target was always a lie invented to justify inflation. He covers Warsh admitting inflation is a tax while planning to keep levying it, the court throwing out Trump's self-negotiated IRS settlement that granted his family immunity, and the AI CapEx bubble turning tech's biggest cash generators into massive borrowers that will break the bond market.Chapters:00:00 AI Spending Arms Race01:08 Markets Brace for CPI06:07 CPI Surprise and Gold Whipsaw07:34 Oil Driven Inflation Mirage11:40 What Inflation Really Means14:11 Congress and Fed Share Blame17:58 Fed Headcount Shock22:32 Two Percent Target Myth27:05 Regime Change and Price Stability33:40 Day One Recap Continues34:09 Grow My X Account35:13 Congress Inflation Theater36:06 Trump Grift Claims37:30 IRS Settlement Outrage39:51 Rates Versus Balance Sheet41:08 Who Wins Low Rates43:46 Fed And Black Workers49:09 AI Bubble Warning51:15 Hyperscalers Debt Spiral55:38 Bond Market Breaking Point58:16 Strategy Stock Dilution01:00:30 Bitcoin Levels And Regrets01:01:30 Subscribe And Sign OffFollow @peterschiffX: https://twitter.com/peterschiffInstagram: https://instagram.com/peterschiffTikTok: https://tiktok.com/@peterschiffofficialFacebook: https://facebook.com/peterschiff#PeterSchiffShow #FederalReserve #AIBubbleOur Sponsors:* Check out Blinds.com and use my code GOLD for a great deal: https://www.blinds.com* Check out Chilipad and use my code GOLD for $255 off: https://sleep.me* Check out Factor and use my code gold50off for a great deal: https://www.factor75.com* Check out Fast Growing Trees and use my code GOLD for a great deal: https://www.fast-growing-trees.com* Check out Plaud AI and use my code GOLD for a great deal: https://www.plaud.ai* Check out Quince and use my code quince.com/GOLD for a great deal: https://www.quince.com* Check out TruDiagnostic and use my code GOLD for a great deal: https://www.trudiagnostic.comPrivacy & Opt-Out: https://redcircle.com/privacy