The David Lin Report · Friday, September 25, 2026
Keith McCullough identifies that current US growth is significantly augmented by AI spending, describing it as a "debt-financed bubble." He contrasts this with other countries experiencing stagflation due to a lack of similar growth components.
“So that's growth accelerating. If you want to look at our GDP now cast, which again, the Atlanta Fed tends to, you know, chase us a bit on a lag, uh, but we're both between three and a half and 4% growth. I mean, that that's one of the best sequential quarters of GDP growth, you know, since the pandemic. So, you know, it is a rate of change of growth acceleration. It is a rate of change of growth acceleration that is certainly augmented by a lot of AI spending. But we don't like back out the AI spending. You know, that that is actually happening. It is a bubble, by the way, that's a big, uh, big point of ours that we continue to make. If it wasn't a bubble, it wouldn't keep going up and the spending wouldn't either.”
“But that's its debt finance bubble. There's a lot of growth that, uh, I guess growth bears have had wrong. Eventually, you're right. Now, countries that don't have, uh, don't have the AI, you know, growth component that we have, are in stagflation to your point.”