Elon Musk’s $1 Quadrillion AI IPO
Biggest IPO In History
Have you heard of Elon Musk’s $1 quadrillion IPO?
And you could claim a stake today...
Before the company goes public…
Starting with just $500.
You see, this IPO is a key part of Elon Musk’s secret AI masterplan…
A plan that I believe will unlock the full power of artificial intelligence…
Unleashing what Elon Musk is predicting will be…
A $1 quadrillion new wealth wave.
Just to put that into perspective…
That would be enough to send a check for $2.8 million to every man, woman, and child in America.
That’s how big this opportunity is.
Friday, May 29, 2026
How Barrels Turn Into Inflation
Eight held firm. Four pushed back. The pressure is in the minutes.
Iran declared the Strait of Hormuz open on April 17. Three tankers have passed through since. Oil is still roughly 50% above pre-conflict levels.
The Fed held rates on April 29. The vote split 8 to 4. That was the most divided the Federal Open Market Committee has been since 1992.
The closure may be ending. But something it set in motion is still moving. The question is not what happened at the strait. It is what the strait put into the machine.
The Big Idea
The Dallas Fed published a working paper that maps a mechanical chain. Barrels lost per day convert to points on PCE inflation. PCE is the price measure the Fed watches most closely. Each quarter the strait stays shut and turns a measured dial on consumer prices. That dial is what's boxing the Fed into holding rates right now.
200 People. 1 Seat. (The Gold Market "Math Glitch")
Imagine an airline sold the same seat to 200 different passengers... and just prayed 199 of them wouldn't show up at the gate.
That is the exact "math glitch" currently sitting at the heart of the global gold market.
According to recent data, there are now 200 paper claims for every 1 physical ounce of gold left in the vaults.
For 55 years, the bankers got away with it…
But on May 29th, a 90-year-old law effectively "calls the bluff."
When those 200 people show up for that 1 seat, the price of the "seat" (physical gold) doesn't just go up - it teleports.
I've identified one company sitting on $431 Billion worth of metal that "fixes" this glitch for investors.
While the stock trades for a fraction of that value today, the May 29th deadline changes everything.
Ten Million Barrels a Day
The Strait of Hormuz carries about one-fifth of the world's oil trade. When Iran closed it in late March, six Gulf producers went offline. They shut in 10.5 million barrels of crude per day. The International Energy Agency called it the largest supply disruption in global oil market history.
Brent crude hit $138 a barrel on April 7. Even now, with the strait technically open, Brent sits near $98. Oil prices are up nearly 80% since January, per the Treasury Borrowing Advisory Committee.
That is the size of what entered the system. Every link downstream depends on this input.
Observation: 10.5 million barrels per day were shut in. One-fifth of world’s oil trade stopped flowing.
Interpretation: The input to the inflation chain was large enough to move every link downstream.
The Dial
The Dallas Fed built a model that converts closure duration into inflation. Think of it like a dial. Each quarter the strait stays shut, turning it one click further.
One quarter of closure: oil peaks near $110. Headline PCE rises 0.6 percentage points. Core PCE rises 0.2 points.
Three quarters of closure: oil peaks near $167. Headline PCE rises 1.8 points. Core rises half a point.
This is not a forecast. It is a conversion rate. Duration in, inflation out. The researchers also found that long-run expectations stayed anchored. This is an energy shock, not a structural shift. But it moves through the system at a measurable rate.
Observation: The Dallas Fed's model converts each quarter of closure into roughly half a percentage point of core PCE.
Interpretation: Duration of the disruption, not headlines about it, determines how far inflation moves.
Already Transmitting
March data shows the dial turning. Headline PCE printed at 3.5%. Core hit 3.2%. Energy goods surged 11.6% in a single month. The model's first-quarter predictions and the actual data are running close. The Philadelphia Fed's Survey of Professional Forecasters projects Q2 headline PCE at 4.5%.
The main counterweight is emergency oil reserves. The IEA coordinated a release of 400 million barrels. The U.S. provided 172 million from the Strategic Petroleum Reserve. That covers about 15% of the lost supply. It buys weeks, not quarters. Brookings framed it as a race between buffers running out and traffic coming back.
Observation: March headline PCE printed 3.5% with energy goods up 11.6%, tracking the Dallas Fed's one-quarter scenario.
Interpretation: The chain is transmitting now. The buffer covers only a fraction of the gap.
The Box Around the Fed
The chain ends at Fed policy. The April FOMC statement cited "elevated" inflation "reflecting the recent increase in global energy prices." It held rates at 3.5% to 3.75%.
The 8-to-4 vote tells you the pressure inside the room. The minutes flagged that "policy firming" could become appropriate if inflation persists. Several members pushed to remove language suggesting future cuts.
The bond market already repriced the path ahead. One-year inflation swaps jumped 75 basis points, per the TBAC. The 10-year Treasury yield sits at 4.62%. Before the crisis, markets expected rates to be flat or lower by year-end. Now, futures price a 40% chance of a December hike.
The Fed did not choose to hold. The chain held them there.
Observation: The FOMC held rates 8-4 while inflation expectations rose 75 basis points and December hike odds reached 40%.
Interpretation: Oil turned into measured price pressure. That pressure reached the rate-setting mechanism and narrowed the Fed's options.
Quick Hits
Iran declared the Strait of Hormuz open on April 17, but only three tankers have passed through so far.
Six Gulf producers shut in 10.5 million barrels per day during the closure.
The Dallas Fed's model shows each quarter of closure adds roughly half a point to core PCE.
March headline PCE printed at 3.5%, with energy goods up 11.6%.
Professional forecasters project Q2 headline PCE at 4.5%.
The SPR release covers about 15% of the lost supply. Enough for weeks, not quarters.
Futures now price a 40% chance of a December rate hike, up from near zero before the crisis.
What the Next Two PCE Prints Will Tell You
The strait is technically open. But the oil that did not flow for weeks already entered the inflation pipeline. It showed up in March. It will show up in April and May too.
The Dallas Fed's model gives you a way to track this yourself. If traffic returns to normal and oil keeps falling, the energy component eases. The dial stops turning. The Fed's constraint loosens.
If traffic stays thin and oil holds here, the longer scenarios kick in. Core PCE drifts higher. The box around the Fed gets tighter. That December hike probability rises.
The signal to watch is not the strait. It is the next two PCE releases. They tell you whether the clock stopped or kept running. The machine does not process headlines. It processes barrels.
The Map So Far
The Hormuz closure built a chain from lost barrels to higher inflation to constrained Fed policy. The next two PCE prints show whether that chain is winding down or still building.
Until next time,
The Navigator
