China's AI vs US Stocks: A Deep Dive into the Capital Game | Finance Hacked
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Deep Seek from China has emerged, and the ripple effect on the US stock market is undeniable. Is this a planned play, and what does it signify for the global economic landscape and the future of finance?
This video breaks down the complex relationship between the rise of China's AI capabilities, the recent volatility in American technology stocks, and the underlying dynamics of the capital market. We explore how nations earn value in the modern era, the significance of trade deficits, and the historical context of industrial revolutions shaping global economic power.
Could the emergence of advanced AI like Deep Seek challenge the long-held dominance of US financial assets? What role do major tech giants and investors play in this evolving game?
Join Finance Hacked as we analyze these critical questions and provide insights into protecting your investments and potentially growing your wealth in these turbulent times. Don't miss out on understanding the forces at play in the global economy.
Subscribe to Finance Hacked for more valuable information on finance, investing, and achieving financial freedom!
#DeepSeek #AI #USTechStocks #StockMarket #ChinaTech #ArtificialIntelligence #Finance #Investing #Economy #Capitalism #IndustrialRevolution #FinancialFreedom #StockMarketCrash #FinanceHacked
----------------------------
FINANCE HACKED team would like to thank the audience for their interest and support of the Channel in the past time. We hope that the content of FINANCE HACKED will bring long-term value to the audience.
All contributions to support the development of the Channel, dear viewers can send to:
- PayPal: https://paypal.me/FinanceHacked
- Wise: https://wise.com/pay/me/hongnguyenphuongd
All ideas or feedback to the Channel, our dear friends can send to:
- Gmail: financehacked@gmail.com.
----------------------------
Deep Seek from China has emerged, and the ripple effect on the US stock market is undeniable. Is this a planned play, and what does it signify for the global economic landscape and the future of finance?
This video breaks down the complex relationship between the rise of China's AI capabilities, the recent volatility in American technology stocks, and the underlying dynamics of the capital market. We explore how nations earn value in the modern era, the significance of trade deficits, and the historical context of industrial revolutions shaping global economic power.
Could the emergence of advanced AI like Deep Seek challenge the long-held dominance of US financial assets? What role do major tech giants and investors play in this evolving game?
Join Finance Hacked as we analyze these critical questions and provide insights into protecting your investments and potentially growing your wealth in these turbulent times. Don't miss out on understanding the forces at play in the global economy.
Subscribe to Finance Hacked for more valuable information on finance, investing, and achieving financial freedom!
#DeepSeek #AI #USTechStocks #StockMarket #ChinaTech #ArtificialIntelligence #Finance #Investing #Economy #Capitalism #IndustrialRevolution #FinancialFreedom #StockMarketCrash #FinanceHacked
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LearningTranscript
00:00Deep Seek from China has defeated the United States stock market.
00:06This play was ultimately staged exactly as planned.
00:10The only difference is that the bloodstained knife comes from China.
00:15What does this mean when Trump is back in power?
00:19Sure enough, a black swan called Deep Seek has emerged.
00:24After a year of dizzying growth, American technology stocks unexpectedly turned into
00:29a sea of blood overnight, vaporizing an extra $1,000 billion.
00:36So what does this mean and imagine that every year the amount of money the U.S. owes, just
00:42in interest alone, has reached $1,000 billion.
00:47Meanwhile, the current U.S. Treasury holds only about $700 billion.
00:54In other words, the money in the Treasury isn't even enough to pay the interest.
00:59And now, American stocks have disappeared overnight by another $1,000 billion.
01:07This is equivalent to the entire amount of interest that the U.S. is unable to pay.
01:14So what does vaporized mean here?
01:16It means that the money simply vanishes without a trace.
01:20Where has this money gone?
01:24When U.S. stocks drop sharply and then show signs of recovery, is this an opportunity to
01:30buy and profit?
01:32Or is it merely the beginning of a collapse?
01:36Finance Hacked warmly greets you and our dear friends.
01:41So what game is the world playing?
01:44Is this about trading?
01:47Just imagine, today I use two pieces of paper to exchange for your Ferrari.
01:53In that case, I drive while you lose, right, of course, we don't directly exchange two pieces
02:00of paper for a Ferrari.
02:02Instead, I sell those two pieces of paper for $1,000,000 and then use that money to buy your
02:09Ferrari.
02:11In other words, a nation is essentially no different from an exporting company.
02:17The more goods it sells, the more valuable it becomes, and consequently the more it can
02:23buy.
02:25But the problem is that last year the United States ran a trade deficit of nearly $1,000
02:30billion, meaning that the U.S. spent far more buying goods from other nations than it
02:36earned from selling goods.
02:39Doesn't that suggest that the U.S. has always done business at a loss?
02:44If you applied economic logic, you might conclude that America is a poor country because
02:49it spends more than it earns each year, if you have never been there.
02:55Yet in reality, that isn't the case.
02:58The U.S. remains the world's largest economy.
03:03Why?
03:04Because the U.S. does not sell goods or products, it sells two pieces of paper.
03:10What does that mean?
03:1250 years ago, more than 20% of U.S. income came from manufacturing.
03:20For example, among the $100 billion the U.S. earned, at least $20 billion came from selling
03:26airplanes, cars, and other products to other nations.
03:32That is money earned through hard labor.
03:35But by last year?
03:37The manufacturing sector accounted for only about 10% of the U.S. GDP, meaning that the
03:45U.S. no longer earns money from manual labor.
03:48The factories have all closed.
03:51Why?
03:53Because whether you are a company or a nation, the actual amount of money earned or spent is
03:59not as important as the calculations behind it.
04:02For instance, when considering Elon Musk's assets, we don't look at the amount of money
04:08he has earned, but at the value of the Tesla shares he holds.
04:13If he were to sell them, how much would those shares be worth?
04:18Similarly, when we look at Musk's cash on hand, we don't base it on his company's profits
04:24but on how much money he can borrow.
04:26Therefore, does the U.S. trade deficit, the fact that it spends more than it earns, really
04:34matter?
04:36Not necessarily, because what the U.S. sells are not goods but two pieces of paper, one
04:42is U.S. stocks and the other is U.S. government bonds.
04:47This is finance.
04:48For example, even though NVIDIA's profit last year did not reach $100 billion, its stock
04:56price increased ninefold over the past two years, creating a value of $3,000 billion.
05:04So, may I ask, what kind of goods could the U.S. sell to earn $3,000 billion in just two
05:12years?
05:13Meanwhile, the U.S. Treasury is short on money to pay interest.
05:18Yet the U.S. has borrowed $36,000 billion from around the world.
05:26How much tax revenue would it take to cover such an enormous sum?
05:31A few years ago, when the U.S. raised interest rates, funds from around the globe flowed into
05:37the U.S.
05:39But now, U.S. government bonds can no longer be sold, while U.S. stocks continue to rise.
05:46What does this imply?
05:49It means that in the end, even if money flows into the U.S. stock market, it only goes into
05:55the pockets of the capitalists, not into the U.S. governments.
06:00What does this reflect?
06:03This time, the surge led by American technology stocks has led many to say that the cause is
06:09China's invention of deep seek, people have begun to worry that China's pace in developing
06:14AI could match or even surpass the U.S.
06:19But the fact is that deep seek has been announced since May of last year.
06:23So why is it only being talked about now?
06:28Moreover, what grabs our attention isn't because we watch TikTok or Facebook, but because major
06:34American tech giants like Mark Zuckerberg and various U.S. media all bring up this issue at
06:40the same time.
06:41What does that mean?
06:45Most importantly, individuals like Warren Buffett, Bill Gates, Mark Zuckerberg and other major
06:52figures have quietly been selling their stocks since last year.
06:56What did they really see?
06:59If you want to protect the money you have painstakingly earned over the years and not become a pawn or
07:05victim in this game, even wanting to use the opportunity to let your money grow beyond financial limits,
07:12you can follow my channel.
07:15I will provide you with more information in the near future.
07:19If you're worried that you might forget once you hear it, which would waste your time,
07:25you can like this video.
07:27It will automatically be saved to your playlist so you can re-watch it and follow along.
07:34First of all, you will see how major U.S. tech giants evaluate deep seek.
07:40They claim that deep seek is a knockoff, that its quality is merely a copy and its production
07:46cost could never be so low.
07:49But you will notice that, essentially, they do not deny the capabilities of deep seek.
07:56What does that mean?
07:58In the consumer market, when we see a branded bag that's been counterfeited and is sold very
08:04cheaply, it only proves that it is a fake.
08:08As consumers, we might boycott fakes.
08:12But this is the capital market where investors do not care about whether something is genuine
08:17or fake, what they care about is whether you can tell me that the AI technology developed
08:23by China is advanced and capable enough to catch up with the U.S.
08:28And these tech giants do not deny that.
08:31In fact, some even praise deep seek when it first emerged.
08:35So why have American stocks been growing over the long term?
08:42Why did U.S. stocks get sold off so drastically last year only to then surge?
08:48In the past, our ancestors were mostly farmers, plowing fields daily, growing vegetables and
08:57gathering manure for fertilizer.
09:00Meanwhile, the British invented and popularized the steam engine throughout the West.
09:06Thanks to that, Westerners shifted from farming to factory work.
09:12In simple terms, previously people relied on their physical labor, but once the steam engine
09:18was invented, they were able to create giant machines and use mechanical work to perform tasks.
09:26This was the first industrial revolution.
09:30Because the British monopolized steam engine technology, they implemented many colonial policies
09:36in other countries, becoming the world's overlords.
09:41While you were still riding horses, the British had already taken trains and steamships.
09:46Just imagine, if war broke out, how could you win?
09:52Later, the U.S. and Germany began the second industrial revolution, popularizing electricity and oil.
10:01Before the invention of the light bulb, people only worked during the day, but after its advent,
10:07we began to enjoy life at night.
10:10More importantly, we started using household appliances, automobiles, and telegraphs for communication.
10:20Consequently, the U.S. and Germany quickly surpassed Britain.
10:25Then, the U.S. led the third industrial revolution by inventing the computer and creating the internet,
10:32officially becoming the overlord of the world.
10:34Do you see it now, the nation that completes an industrial revolution first monopolizes that technology
10:42and transforms its economy accordingly?
10:46In the past, people worked on the farmland, then in factories, and now in offices.
10:53If in your country the majority of people still work in the fields,
10:58while we have moved to offices, your economy will fall far behind ours.
11:02The same applies to military and education.
11:08For this reason, why can American stocks grow in the long term?
11:13It is because the U.S., through its industrial revolutions,
11:17has essentially monopolized military technology.
11:21Finance and education
11:23Today, if you are a capitalist, will you pour money into the U.S. or into Africa?
11:30Therefore, the U.S. only needs to sell its bonds or company stocks to the entire world in order to make money.
11:39This is the logic behind the U.S.'s ability to sell two pieces of paper, stocks and bonds,
11:46at astronomically high prices.
11:49It is also the reason why investors prefer U.S. assets for investment.
11:53Many people think that because I am not American, I should buy stocks and invest in local assets.
12:02But that isn't necessarily true.
12:05Suppose you have 100 million DAWN to invest, you can certainly choose U.S. stocks,
12:11but just because you live in Africa, must you exclusively invest in African stocks?
12:16I'm not saying you cannot invest in local stocks because you might be more familiar with the domestic market.
12:25But I want to say that the top priority should still be U.S. stocks because they have a higher chance of success.
12:33In many cases, our country still doesn't allow investment in U.S. stocks,
12:38so you have to choose domestic stocks.
12:42However, this technology could still catch up.
12:45For instance, England used to be called the empire on which the sun never sets
12:51because its territory spanned the globe, always basking in sunlight somewhere.
12:58But that overlord position was transferred to the U.S.
13:01because America completed its industrial revolution first.
13:06Today, the U.S. is no exception.
13:10If one day China completes the fourth industrial revolution before us,
13:15then U.S. stocks and bonds would be difficult to sell because by then,
13:19capital would prioritize investing in China.
13:23Therefore, if the U.S. wants to continue selling bonds and stocks, they must repackage them.
13:30Specifically, the U.S. needs to launch the fourth industrial revolution of AI
13:36and build a moat to protect its AI industry.
13:38What does this mean?
13:42You will see that the world is now saying that within the next 5 to 10 years
13:46there will be no more drivers because everyone will drive autonomously.
13:52Or later, when we get sick, robots will be the ones treating us.
13:58In short, many jobs in the future will be replaced by robots or AI.
14:03What does that mean?
14:05It means that if the AI revolution succeeds,
14:09it will be like the transition from farming to factory work,
14:13completely overturning the global economic structure.
14:17Imagine, if there is a war in the future,
14:20I will use robots to fight you while you use humans.
14:25If the robots are destroyed, I won't have to pay compensation, right?
14:30Are you scared?
14:32Do you want to develop AI?
14:36Therefore, this is how they are brainwashing you into believing that the fourth industrial revolution
14:41is indeed the AI revolution.
14:44Then they continue to tell you that it is very likely the U.S. will complete this AI revolution
14:50because the U.S. has a very strong protective moat.
14:54You will notice that the most advanced AI models or algorithms are currently in the U.S.,
15:01such as those from OpenAI and Google.
15:04If you want to develop these models, you might not have enough data or necessary documentation,
15:10and most importantly, the graphics cards.
15:13Because no matter how much data or documentation you have,
15:18you still need graphics cards to process them,
15:21and right now, these cards are held by NVIDIA and AMD, American companies.
15:29So, if you want to do AI today, first of all, whether you succeed or not,
15:34you have to invest money because you need to buy graphics cards,
15:39develop models, and pay exorbitant electricity bills.
15:42Only a few large companies in the world, such as Microsoft or Facebook from the U.S.,
15:50have enough money, resources, and personnel to do these money-burning models.
15:56However, AI is not something that you can just throw money at and get it done.
16:02For example, if China wants to develop AI but the graphics cards are held by the U.S.,
16:08then the U.S. can certainly restrict the export of advanced chips and graphics cards to China,
16:15thereby slowing down China's development.
16:18This is exactly what a protective moat is.
16:22Hence, until now, only the U.S. and China have been capable of developing AI,
16:28and everyone believes that in the field of AI, the U.S. is at least 5 to 10 years ahead of China.
16:36So why are people willing to pour money into American AI?
16:41You will see that in recent years the U.S. has dumped enormous amounts of money into AI,
16:47yet in reality, these AI companies lose huge sums every year.
16:52For example, last year you invested 100 billion and lost 80 billion.
16:58This year, not only do you have to invest another 100 billion,
17:03but it has to increase to 150 billion, and then you lose another 130 billion.
17:10But you still have to keep investing.
17:14Why is that?
17:15Because if you stop investing, the money you invested previously will truly vanish.
17:23In other words, once you enter this game, it is very difficult to get out.
17:29Many say that OpenAI is a great invention,
17:32and that is true because it cooperated with American capital to stage a play,
17:37telling the world that the U.S. is the nation most capable of completing the AI revolution.
17:42As a result, cash from all over the world flowed into the U.S.,
17:49helping top U.S. companies easily raise capital.
17:53They can attract global investors' money at very low costs
17:57and then use that money to develop AI.
18:00And what is most important in developing AI?
18:04It is the graphics cards and chips.
18:07Therefore, most of the investment money around the world is used to buy graphics cards.
18:15For this reason, NVIDIA and AMD stocks have soared uncontrollably.
18:20This is similar to how, in the old days, people flocked to the mountains to mine for gold.
18:27Whether those gold miners actually found gold is another matter,
18:31but the sellers of mining equipment certainly became rich.
18:34Similarly, because everyone believes that the U.S. is the nation most capable of completing the AI revolution,
18:43money is pouring into the U.S.
18:46Whether the U.S. truly completes the AI revolution, we do not know,
18:51but those who sell graphics cards have surely made a fortune.
18:56This is the game of capital.
18:57In this game, we small investors can only view things from the perspective of events that have already happened.
19:07Because the information we have is always limited, we are always left behind.
19:13In fact, this is exactly what the major players want us to see.
19:17Today, you will notice that major American tech giants are appearing one after another,
19:24dismantling their protective moats.
19:27They all tell you that due to the emergence of DeepSeek,
19:31the U.S.'s AI development is now only three to five months ahead of China.
19:37Why is that?
19:39Here is the key point.
19:41Now there are many people online telling you what DeepSeek is.
19:47I won't bore you with the technical details,
19:50but we'll focus only on what is useful for making money.
19:54Simply put, DeepSeek is similar to ChatGPT,
19:58but developed by China without needing many graphics cards or chips.
20:02If it takes the U.S. $1,000 billion to develop GPT,
20:09China may only need $50 billion, just one twentieth,
20:13to create a model with equivalent performance.
20:17What everyone cares most about now is that DeepSeek has been made public and is completely free.
20:24What does that mean?
20:27Think about it, when the U.S. developed GPT,
20:30they burned through enormous amounts of money to develop the models and algorithms.
20:37That was once the protective moat of American AI.
20:41But now, China's DeepSeek is almost equivalent in performance
20:45and they have released the entire source code for DeepSeek for free use.
20:51What does this imply?
20:52Now, anyone wanting to develop AI no longer needs to spend money hiring talent or buying graphics cards,
21:01just copy DeepSeek's source code to create a model.
21:06Moreover, you don't need a massive database,
21:09you only need to purchase a couple of relatively inexpensive graphics cards
21:13to run the DeepSeek source code and the most advanced AI systems.
21:18Meanwhile, the commercial version of GPT initially charged $200 a month,
21:25but with similar functionalities, DeepSeek is virtually free for you to use.
21:30If you still don't understand.
21:35Look at it this way, when GPT was developed,
21:38it consumed an enormous amount of money,
21:41so when it was completed, they would never tell you how they developed it, right?
21:47Moreover, if you want to use their most advanced version,
21:50you definitely have to pay a fee.
21:53But now, with DeepSeek, development doesn't cost nearly as much money,
21:59so they can sell the product at a very low price.
22:03They even disclose all the secrets of their development,
22:06you just take it and use it.
22:09Now, you only need to pay a very small amount to run this model.
22:15This means that the actions of DeepSeek have directly lowered the threshold
22:19for developing AI to a very low level.
22:23What does that really mean?
22:25It's like you spent all your savings to buy a ring.
22:30Preparing to propose to the one you love,
22:33and just as you kneel down,
22:34someone else appears handing out identical rings for free to everyone passing by.
22:41What does that mean?
22:43It means you spent all your savings to buy something that ends up being free.
22:48Similarly, the whole world has poured a lot of money into American AI,
22:54but now they tell you that you don't need to spend that much because China's DeepSeek is completely free.
23:01Isn't that just like investors who bought something that didn't cost them a penny?
23:05Therefore, American technology stocks were immediately inflated by another $1,000 billion.
23:13Now, here's where things get interesting.
23:17Think for a moment.
23:19Why are major American tech giants proactively bringing this issue up all at once?
23:24Don't you know, I know, that they don't want anyone to know that once this matter is made public,
23:32American stocks will plummet immediately.
23:35Online, no one is saying that DeepSeek wasn't just released this year,
23:40but has actually been announced since last year.
23:42So how capable is it, and what impact does it have?
23:48Could it be that major American tech experts, who study these issues every day,
23:54are only now learning about it?
23:56In reality, if these major tech giants hadn't mentioned it,
24:01we wouldn't know or care about it.
24:05But why, then, did no one mention it before,
24:09and why do they suddenly want to expose it now?
24:12Look into it.
24:14Last year, Zuckerberg, Bill Gates, Jensen Huang, Bezos, Buffett,
24:20and other major figures all did the same thing.
24:23They sold their stocks.
24:26Do you understand the issue now?
24:29Under normal circumstances, if I were the owner of a company
24:33and a competitor was about to catch up,
24:35would I proactively tell the world that my company is about to fail,
24:39that a competitor is about to overtake me,
24:42and that the money you invested in me could vanish?
24:46You would only do that in two cases,
24:48either you've lost your mind or everything has been prearranged.
24:53If you know in advance that stock prices will fall,
24:56but you sold your stocks at the peak,
24:59then is a price drop good news or bad news for you?
25:03If you sell your stock today at $100 and it drops to $80 and you buy it back,
25:10haven't you made $20?
25:13And that's only the tip of the iceberg.
25:16Think a little deeper.
25:18If today I turn deep-seek into a presumed enemy,
25:21global investors will pour even more money into the US.
25:25Just pull out all your money.
25:29It's like waiting for a regular bus,
25:32you only need to wait 5 minutes and the bus will arrive.
25:36But now you've waited 8 minutes and still no bus.
25:41Would you continue to wait or switch to another mode of transport?
25:46I tell you, human nature is such that you will usually continue to wait
25:50because you think,
25:51I've already waited 8 minutes,
25:54what if I leave now and the bus comes right after?
25:58Maybe it's only 1 or 2 more minutes, right?
26:02It's similar now.
26:05You've already invested so much into American AI.
26:09Perhaps just a little more investment will complete the AI revolution.
26:14If you pull out now,
26:16wouldn't all the money you invested earlier be wasted?
26:19And what is the most important point?
26:23The deep-seek issue only indicates that China's pace in developing AI is faster,
26:29it may be only 3 to 5 months slower than the US.
26:34But has Chinese AI technology surpassed that of the US?
26:39Not yet.
26:41Whether China can overtake the US is still uncertain.
26:45Therefore, this is not a reason for capital to withdraw.
26:50On the contrary, investors might put even more money into the US,
26:55extending the development gap between the two countries.
26:59This means that although this issue might cause fluctuations in American stocks,
27:04it could simultaneously attract even more capital into the US market.
27:09When the world faces a presumed enemy,
27:13that can unite the strength of allies to jointly punish China
27:16and accelerate the development of American AI.
27:20Therefore, I don't believe the emergence of deep-seek will burst the American bubble.
27:26On the contrary,
27:27If the US does not lower its interest rates and even raises them again,
27:33the likelihood of a breakthrough in US stocks will be even greater.
27:38If you want to know more, please leave a comment.
27:43So, with the US Federal Reserve stopping the reduction of interest rates
27:47and the difficulty in selling US goods,
27:50how will they resolve these issues?
27:52How will the stock market develop in the near future?
27:58Due to time constraints, I will stop here.
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28:34Goodbye and see you next time.
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