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Dan Oliver: AI debt failure will prompt another wave of Fed bailouts
12:30p ET Friday, August 14, 2026
Dear Friend of GATA and Gold:
Myrmikan Capital's Daniel Oliver argues today that artificial intelligence isn't likely ever to pay for itself but that this won't be figured out until the huge debt undertaken by technology companies proves unpayable and collapses the financial system.
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Oliver sees the result this way:
Then the stock market will crash, the boomer nest egg will crack, the AI-backed bonds will implode, pension funds will start drowning along with endowments and foundations and sovereign wealth funds. Insurance companies will face runs and dump assets until the government quasi-nationalizes the industry, freezes policies, blames the free market, and demands the Fed fund the bailout. [Federal Reserve Chairman Kevin] Warsh will have to engage in extraordinary interventions to keep the bubble alive: 'Interest rates should be the dominant means through which we make monetary policy. If we're in a crisis, there could be a different set of rules.'
There is actually only one rule: Print or die.
Republicans will get the blame and the populist impulse that has been fueling President Trump will energize the radical socialists that run the Democratic Party. Private equity titans, who issued but are not exposed to the toxic debt, will buy the surviving assets at pennies on the dollar, and societal wealth will concentrate further. For the rest, gold may not be the only safe haven, but it is certainly the clearest and the simplest and the best.
Oliver's analysis is headlined "AI Debt Failure Will Prompt Another Wave of Fed Bailouts" and is posted in PDF format at the Myrmikan site here:
https://www.myrmikan.com/pub/Myrmikan_Research_2026_08_14.pdf
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
CPowell@GATA.org
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