Currencies, Prediction Markets and (of course) AI, with Rebecca Patterson (Episode 22)

Rebecca Patterson, senior fellow at the Council on Foreign Relations and former chief investment strategist at Bridgewater Associates, joins John Ellis to explain why the U.S. and Japan intervened jointly to support the yen, and why Treasury Secretary Scott Bessent is so focused on keeping U.S. yields under control. Patterson traces the risks from currency weakness, Treasury selling, and financial contagion, while arguing that today’s conditions are far from a repeat of the Asian financial crisis. The conversation then turns to prediction markets, where Patterson sees both useful forecasting signals and growing evidence of gambling-style behavior among younger users. Finally, Ellis and Patterson examine how AI could reshape finance, employment, and corporate costs, with open-source models, especially cheaper Chinese alternatives, putting pressure on the economics of the current AI boom. The result is a wide-ranging discussion of currencies, markets, political incentives, and the next phase of artificial intelligence over the coming two years. News-Items.com Hosted by John Ellis Produced by Dale Eisinger