When Sovereign Risk Becomes More Worrisome Than the AI Bubble - GoldBroker.com
When Sovereign Risk Becomes More Worrisome Than the AI Bubble - GoldBroker.com
Source: GoldBroker.com
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DW NOTE
The AI bubble is a valuation problem. Sovereign risk is a solvency problem. The US borrowed $1.8 trillion in ten months while running 3.4% inflation and closing the Strait of Hormuz knocked 4.3 million barrels off global supply without breaking $82 oil. Markets have priced in miracles on both ends — that governments can keep borrowing and that supply shocks don't matter when the choke point stays shut.