SELL EVERYTHING (Including Your Dollars), PPI God Candle, Lee Jae Myung Says "We Must Live"

The hosts spend much of the episode on the market’s reaction to Anthropic’s investor day, arguing that the company’s annualized $67.2 billion run rate is impressive but still below the sky-high expectations priced into the AI trade. They say the bigger issue is not the headline revenue number but the spread of distillation, which they estimate is taking 5% to 7% of revenue and forcing frontier labs to spend heavily on defense. That leads into a broader debate about whether frontier status now means being actively copied and whether open-weight competitors like Meta face the same risks.

From there, the conversation turns into a broader macro riff on the “sell everything” mood, especially around inflation. The hosts describe a hot PPI print, then use a “CPI reserve” lens to compare luxury assets, private-school-adjacent status goods, and legal fees to ordinary inflation. The point is that elite consumption categories have inflated far faster than the official basket, reinforcing their view that real assets and prestige goods remain a different economy from the one measured in CPI.

The back half of the segment moves into AI labor-market distortions, corporate capex, and interpretability. The hosts discuss AI-generated job applications, AI screening, and Bank of America hiring contractors to patch software flaws exposed by AI systems. They end on a more optimistic note, highlighting Nick Camarada’s claim that neural networks may be far more legible than expected, which would make interpretability and alignment much more tractable than many researchers assumed.