Financial, Economic and Social Mood Update (October 1, 2025)
The labor market is facing lethal headwinds not just due to the impending deflationary collapse (like the “Great Depression” from 1929 although it will be much more severe this time around) but due to the rise of “Artificial Intelligence” (AI). Here is a video with a chilling message – forecasting global unemployment of not merely 10 percent but of a staggering 99 percent: https://www.instagram.com/reel/DOK9DmVAFxC/?igsh=MTliNGVuOHB6NWV6Yg%3D%3D.
As I said in my September 2025 monthly blog, the so-called “Big Beautiful Bill” is a terrible mistake. Many people who voted for both of the two major American political parties feel this way – this is not strictly a political issue. Ideally the entire bill should be overturned, the tax cuts especially for corporations rescinded and the cuts in social programs restored to their previous levels. The majority of the population depends upon the major entitlement programs for their basis sustenance and here I refer to the likes of Social Security, Medicare, Medicaid, the Affordable Healthcare Act (“Obamacare”) and SNAP (“Food Stamps”). We are still at a point where the cost of living is rising and purchasing power is falling, so we are not yet at a point where these programs can be cut. Furthermore it is a huge mistake to increase the military budget to USD $1 TRILLION – this should be cut by at least 90 percent. We simply cannot afford this madness.
Artificial Intelligence (AI) is no longer a fantasy. It is real and it is already in the process of permanently displacing millions, tens of millions, hundreds of millions and eventually billions of workers all over the planet. It is also helping to make the centi-billionaire, the deca-billionaire, the billionaire, centi-millionaire and deca-millionaire class ever wealthier and more powerful. These are the people “benefiting” financially and economically from the nominal global stock markets and the investment banks, high-technology firms, defense contractors and big pharmaceutical companies publicly listed on the global stock exchanges. With his new Tesla pay plan (compensation package) Elon Musk stands on the threshold of becoming the world’s first official “trillionaire” – joining the likes of powerful banking families behind the global political facades such as the Rothschild, the Rockefeller and Wallenberg families.
It is high time for political parties – and not merely the communist, Marxist and socialist parties of the political left – to embrace the idea of a separate and much higher rate of confiscation of both income and assets of the ultra-rich and ultra-powerful classes at the top of the global human pyramid.
The fiscal predicament of the US federal government is continuing to deteriorate. Tax receipts are collapsing due to the collapsing level of economic activity. The monthly deficit in August 2025 when annualized to twelve full months now equals a staggering USD $4.14 TRILLION = 59 percent of federal spending thus comprised of “printed money” (actually credit created out of thin air) – money which we do not have and money which does not exist.
One of my alert subscribers pointed out that even the global equity market (i.e., the stock market) is not that great considering the “real” value of our money, i.e., factoring in inflation or the Consumer Price Index (CPI) – or better yet, the stock market valued in gold bullion. She is absolutely correct! In fact, the Dow Jones Industrial Index has made no “real” progress since May 1929 when valued in gold – since before the “Great Depression” which supposedly commenced on Black Friday in October of 1929 – almost 96 long years ago – almost one full century ago. That is reality and that is one very sobering thought for us to ponder.
Nicholas Gerli of “Reventure Consulting” (I strongly recommend him – I am one of his many satisfied clients) says that the mortgage default rate in the USA is now 12 percent and rising. This means that the entire banking system which works on very thin margins is already illiquid for all intents and purposes.
We are on a sinking ship. It is high time that we cease attacking each other, fighting each other and calling each other bad names – our language is powerful and we should stop using it in the wrong way. We need to find common ground for our common good and work together to salvage what we can and to fix this mess in which we find ourselves. Because of not, when we sink we will all sink and drown together.
