Bill’s Commentary:
“Do they plan on blaming an AI hack for a financial system meltdown?”
Bank of England chief warns new AI models threaten global financial stability
The growing threat posed by advanced artificial intelligence models could trigger a disorderly correction in global financial markets, according to Bank of England Governor Andrew Bailey.
In a two-page letter published Monday to G20 finance ministers and central bank governors, Bailey said the emergence of so-called frontier AI models is showing “increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities.”
Writing in his capacity as chair of the Financial Stability Board, an international body that coordinates policy and makes recommendations to national authorities, Bailey identified the potential impact of frontier AI — which refers to the most advanced AI models — on cyber risk as “the most immediate concern” for the financial system.
Bill’s Commentary:
“Read the title as ‘Bond prices are crashing’… you do understand that bonds are the foundation to the entire global financial system?”
Global bond yields soar to multi-decade highs as Middle East turmoil reignites inflation fears
Government bond yields jumped across major markets Tuesday, with borrowing costs in Japan and the U.K. touching multi-decade highs, and U.S. Treasury yields surging, as renewed Middle East hostilities reignite inflation concerns.
The key U.S. 10-year Treasury note yield moved to a 20-month high, rising 3 basis points to trade at 4.7880%.
Japan’s benchmark 10-year bond yield jumped more than 6 basis points, moving to 3% for the first time since 1996. Japan’s short-term 2-year government bond yield also touched a 31-year high of 1.81%.
Bill’s Commentary:
“Paper is extremely expensive, real stuff is stupid cheap. The only problem is that paper can be printed at will while real stuff… well, must be produced and actually has a scarcity factor. Paper derivatives have caused this over many years, a derivative unwind will undo it in a very compressed timeframe. Translation; real stuff is about to get much more expensive…”
The Mother Of All Mean Reversions: Commodities Have Never Been This Cheap Versus Stocks
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