BREAKING: Confidence in America

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GM and BRRR. Markets continue to be confused by the barrage of factors affecting the economy and prices.

Leading the news today is the CPI report out of Europe. The report indicates that inflation continues to cool, with May CPI landing at 6.1% vs 6.4% expected and vs 7.0% in last month’s report.

Equities are mixed overall, but we continue see a major bifurcation between big tech and everything else.

The S&P 500 price was completely flat during the month of May despite major gains in big tech. We saw major gains across GOOG (+14%), MSFT (+7%), META (+9%), AMZN (+13%), NVDA (+40%), AAPL (+5%), but the S&P overall couldn’t climb higher because the rest of the index dragged it down.

For today’s deep dives, we’ve zoomed out from the minutia of the day’s events to cover some bigger topics.

Here’s what we’ve BRRR’d:

• Debt Ceiling Deal Inconvenient Truths

• NVDA CEO: Leverage AI Or Risk Irrelevance

Debt Ceiling Deal Inconvenient Truths

• Surrender Jeopardizes Financial Stability: Speaker Kevin McCarthy's decision to retreat on the debt ceiling negotiations has put the nation's financial stability at risk. Failure to do so could have dire consequences for the economy and future generations.

• Impending Disaster: The GOP's failure to seize the opportunity to address the impending fiscal disaster highlights their lack of strategic planning. With projected deficits of $20.3 trillion over the next 10 years, the compromise deal falls short in making significant spending cuts and reforms. This inaction exacerbates the nation's unsustainable fiscal trajectory.

• Fails to Address Crisis: The compromise deal reached by the GOP falls short in addressing the growing entitlement crisis. Despite entitlements and mandatories accounting for 89% of built-in spending, the deal leaves them largely untouched. This failure to enact substantial reforms puts the nation's fiscal health at risk and undermines long-term sustainability.

• A Missed Opportunity: The lack of meaningful cuts to entitlements and subsidies undermines efforts to rein in spending. With projections of a de facto public debt of $55 trillion by the early 2030s, the deal fails to address the long-term structural fiscal challenges facing the nation.

• Capitulation Raises Concerns: The GOP's decision to abandon efforts to cancel generous tax credits for inefficient green energy investments raises concerns about their commitment to fiscal conservatism. With estimates of these subsidies costing more than $1 trillion over the next decade, the failure to address them contributes to an unsustainable fiscal path. This undermines efforts to promote efficiency and responsible use of taxpayer dollars.

  David Stockman via ZeroHedge

Nvidia CEO to Graduates: Prepare for AI

• Impending AI Revolution in the Workplace: Nvidia's CEO, Jensen Huang, delivered a commencement speech at National Taiwan University, warning students that Artificial Intelligence (AI) is set to revolutionize the workplace. He compared the incoming technological shift to surpass even the internet, personal computers, and smartphones in significance, asserting that AI is reinventing computing fundamentally, which he sees as a rebirth of the computer industry.

• Emergence of New AI-Specific Professions: Huang underscored that while AI will render certain jobs obsolete, it will concurrently create new professions such as data engineering, AI factory operations, AI safety engineers, and prompt engineering. He introduced an AI platform named DGX GH200 at the COMPUTEX Taipei conference, capable of generating code from natural language prompts.

• AI Supercharging: Businesses and individuals must utilize A.I. to supercharge performance, with A.I. copilots augmenting human work and potentially automating the innovation process itself.

• Adaptability and Success: Huang urges students to prioritize adaptability in the face of the global technological revolution, emphasizing the need to embrace change and strategic retreat to achieve success.

  Fortune via YahooFinance

AI ART OF THE DAY

Today’s AI Art of the Day features Elizabeth Warren as a crypto YouTuber, pump and dumping memecoins.

The BRRR’s Portfolio

Sweet greens, we’re leaving the portfolio as-is

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The BRRR is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.