James Rickards Warns: AI Won’t Malfunction, It Will Work Too Well

Dear Reader,

James Rickards is a longtime friend and a guy I respect immensely. He joined me to discuss his latest book, Money GPT. It’s a book that couldn’t be more relevant. AI is dominating headlines, from ChatGPT to deep learning to predictive systems. And yet, no one is talking about what Jim has uncovered: the seismic impact AI is having—and could have—on the financial markets, banking, and even national security. Money GPT isn’t just a read; it’s a warning wrapped in plain English, crafted for people who care about their financial future.

• AI Meets Financial Markets: AI is revolutionizing finance, but it’s not all rosy. The problem isn’t that AI will malfunction but that it will work too well, amplifying market risks by removing human instincts like common sense.

• The Banking System Warning: AI’s impact on banking could be catastrophic, accelerating panics at unprecedented speeds. Regulators can’t keep up, and past bailouts for the wealthy won’t protect average investors next time.

• A Survival Guide: “Money GPT” isn’t about doom and gloom. It’s a tactical guide for protecting your wealth in a world where AI and human nature clash, written by someone who’s advised the highest levels of government.

When Jim sent me an advanced reader’s copy, also known as an ARC, I was hooked. I ripped through it, marked it up like a crazed student, and preached about it to anyone who would listen. Honestly, I think some of my friends are ready to ban me from talking about it. But when you’ve got a book this important, you share the gospel.

Jim is always full of insight, and this conversation was no exception. Right off the bat, he acknowledged how marked up my copy was. We laughed about how some people say they “read” a book, but you can tell who really did. I did. Because Money GPT isn’t a book you skim. It’s dense. It’s thorough. But most importantly, it’s timely.

Jim laid out his motivation for writing it. The release of GPT-4 in the fall of 2022 was a game changer. AI suddenly wasn’t just a tech playground for geeks; it had real-world implications. But Jim doesn’t go off into the weeds about AI’s ability to cure diseases or create art. He stays in his lane, which is why I listen to him. He’s a master of capital markets, banking systems, and national security, and he connects the dots in a way no one else does.

He made a critical point: AI is dangerous not because it malfunctions but because it works too well. That’s right—too well. And that’s the problem. Human nature—things like gut instinct, common sense, and emotional intelligence—can’t be programmed. Computers don’t feel fear or panic. They don’t have a “wait and see” setting. When a crisis hits, they execute commands flawlessly and relentlessly, amplifying the chaos.

Take March 2020. The market plunged 30% in one month. Humans, being human, freaked out. Some sold everything and went to cash. A few contrarians, with steel nerves, jumped back in at the right time. But imagine if AI controlled the entire market. No hesitation, no contrarian instincts. Just mass execution of sell orders, with no one dipping their toes back in. That’s what Jim warns us about: the perfect storm of human nature clashing with AI’s ruthless efficiency.

Jim peeled back another layer that most people miss. He explained how even our beloved financial advisors aren’t giving personalized advice. They’re plugging numbers into algorithms and spitting out pre-packaged strategies. So, when you think you’re getting expert guidance, you’re really just getting a script from a computer. And as more financial decisions get automated, we lose the flexibility to adapt in a panic. AI doesn’t consider gut instinct. It does exactly what it’s told, and that’s where the danger lies.

Then, he shifted to an even scarier topic: banking collapses. We all know about stock market crashes. They’re loud, they’re visible, and they’re all over the news. But bank runs? Those are the silent killers. Jim painted a vivid picture of how bank runs have evolved. Gone are the days of lining up outside a bank in the rain. Now, you just tap your phone, and boom—your money is gone. It happens in seconds, and AI will only speed that process up.

Take Silicon Valley Bank as an example. Jim explained how 97% of deposits there were uninsured. When the bank faltered, the FDIC stepped in to save the billionaires, not regular folks. It was an eye-opener. The system is so fragile that even the regulators can’t keep up. And Jim warns: the next banking panic is coming, and AI won’t slow it down; it’ll accelerate it.

Jim didn’t stop there. He talked about national security and AI’s role in nuclear strategy. This part gave me chills. He recalled historical moments when nuclear disaster was avoided because human officers disobeyed orders. It was gut instinct that saved the world. Machines don’t have that. AI will follow its programming, even if that leads us up the “escalatory ladder” to nuclear annihilation. It’s not about AI failing; it’s about it doing exactly what it was programmed to do, with no common sense to intervene.

This isn’t sci-fi. This is today’s world. Jim talked about how AI can even fake press conferences. Imagine a world where a deepfake of the Federal Reserve chair announces a rate hike, causing market panic. This isn’t a future threat; it’s already possible. Jim’s book lays it all out, and it’s a sobering reality.

By the end of our conversation, I was more convinced than ever that this book needs a broader audience. At Rich Dad, we’re planning a study group. A hundred people, digging into Money GPT, analyzing its warnings and advice. Jim even agreed to join us via Zoom for a Q&A. If you want to be prepared, this is your chance. Most people are sleepwalking into financial disaster, but we’ll be wide awake, ready to profit from or at least survive the chaos.

Jim Rickards isn’t just a financial expert. He’s a firehose of crucial information. And he’s been right before. If you care about your money, your future, or just understanding how this brave new world of AI affects you, Money GPT is a must-read. If you want to be part of the 1% who’s prepared while the 99% panic, you need to read this book.

This isn’t just a book review. It’s a call to action. The world is changing fast, and Jim’s book gives you a playbook for what’s coming.

Kiyosaki Uncensored