The root cause lies in the obsolescence of the West's foundational infrastructure.
Because the industrial bedrock is too far behind, Western industries cannot survive without a foundation capable of preventing collapse.
The state of power transmission lines proves that the US, UK, and the West have already lost the industrial race. Transmitting power over a distance of 3,500 km—compared to Japan's 2,000 km—is unfeasible using standard methods; alternating current (AC) suffers from high losses (around 40%), whereas direct current (DC) loses only about 5%. Furthermore, enabling transmission at the necessary scale—where cables would otherwise melt—requires the creation of entirely new technologies: transmission methods, cooling systems, and systems to convert power back to AC at the destination. The West lacks the necessary high-voltage infrastructure, AI systems, and monitoring capabilities. Developing and implementing these would take over a decade and cost two to four times more—prohibitively expensive amidst current inflation. Relying on costly US AI for the grid makes the project impossible from the start. Since Western grids are almost exclusively AC-based, they lack the architecture to distinguish between centralized power sources and end-user distribution networks.
The standard model is local generation, local consumption, and AC grids. China initially experienced failures—such as blackouts and excessive heat—in its high-voltage DC transmission projects due to errors in the AI calculations of the time. However, by continuously verifying the system under the assumption that the initial AI calculations were flawed, they realized that the heat generation would be even higher than predicted. This allowed them to make timely improvements to the cooling systems. By successfully synchronizing cooling systems and AI controls to handle conditions that would otherwise melt copper wiring—and by optimizing equipment specifications, material ratios, and aluminum usage—China established a 3,500 km DC transmission network. This achievement enabled an extraordinary surplus of electricity and realized remarkably low industrial costs. US companies are already utilizing China's "DeepSeek" (specifically the K3 version)—a safe, low-cost AI that allows for internal data security—at a fraction of the cost (one-fifth to one-tenth) of American counterparts like Claude or GPT. This disparity explains why US AI stocks are failing to rise and why a de facto collapse is already underway in the Japanese and South Korean AI semiconductor sectors; it also drives the US need for financial countermeasures regarding the yen-dollar exchange rate. Collapse has already begun in Europe, Japan, and South Korea, leading to a sell-off of US bonds to cover losses. However, because a rise in US bond yields would trigger the collapse of these smaller markets (which rely on the aforementioned low-cost AI), the US took emergency coordinated action—such as buying yen—to halt the Japanese sell-off of US Treasuries and effectively abandon Europe. US authorities took these measures with full awareness that the collapse had already started.
The "weekend war" narrative—often a fabricated story used by Wall Street to manipulate stock prices and futures—actually signals an economic and financial situation so perilous that the military cannot be mobilized.
An actual outbreak of hostilities during the week would cause a catastrophic spike in crude oil prices, driving demand for US Treasuries while triggering an immediate crash in stocks, particularly those of US AI companies.
Furthermore, surging inflation can no longer be concealed. This leads to the collapse of industries in energy-poor nations like Japan and South Korea. It also highlights a fundamental principle: Western stock prices soar only when profit margins become abnormally high—often reaching 70–85%. In contrast, if a Chinese product enters the market with a profit margin of only 10–15%, Western competitors face immediate defeat and a stock market crash. This is precisely why major investors are withdrawing their capital from US stocks.