The Street Wall Journal - Einstein Explains topics that matter

Einstein Explains:

GOOGLE

GOOGLE is the global leader in harvesting internet search, smartphone, email and demographic data.

Google search, through commercial partnerships has a 93% market share (16 billion daily searches); YouTube has over 2 billion active users (a 98% share); Google's Android phone system has 4 billion users (a 73 share); Google maps has over 2 billion active monthly users (a 67% share); Gmail has over 2 billion active users (a 30% share); and WAZE, its drive sharing system has 180 million users (a 8% share).

If you are on the internet Google knows more about you than does your mother, father, spouse, partner or your children.

Fortunately for us, their motto is, "Do the right thing"

--------------------------------------

Einstein Explains:

Gas Prices

Gas prices go up, when the price of oil goes up, because the price is based on replacement cost, and when the price of oil goes down, the price of gas stays high, because the price at the pump is based on what the gas stations paid for the gas.

So the consumer cannot win.

BUT Google Explains

Gas prices change so much because they are directly tied to crude oil, a globally traded commodity whose price fluctuates constantly based on global supply and demand, geopolitical conflicts, and seasonal regulations. Unlike a retail store selling clothing or electronics, gas stations operate on razor-thin profit margins (often only 5% to 10%) and must immediately adjust their pump prices to reflect the "replacement cost" of their next fuel delivery to stay solvent.

The Global Price of Crude Oil

Primary Driver: Crude oil accounts for 50% to 60% of the final price you pay at the pump. Constant Volatility: Oil is traded in real-time on global markets, meaning its price changes by the second based on economic data and market speculation.

Geopolitical Shocks: War, political instability, and disruptions in major oil-producing regions instantly spike prices. For instance, global energy markets react heavily to supply route blockages—such as the vital Strait of Hormuz—or geopolitical conflicts involving oil-rich nations.

--------------------------------------

Einstein Explains:

Bitcoin

Imagine is potentially the ultimate vaporware, as this so-called decentralized digital quasi-currency is not only of unstable value, but it only truly exists when purchased, sold or traded, and its acquisition process, of 'mining,' roughly mirrors the total monthly electricity consumption of mid-sized countries like Thailand or Poland.

Initially, limited interest was shown in this unorthodox 2009 sub-penny-stock currency that had a bizarre hard-coded limit of 21 million 'coins.' It was not until around 2015 that investment companies started the ball rolling by pumping the coin, and, as a result, a single Bitcoin became worth $126,000. (a capitalization of $2.5 trillion), during October 2025, before 'dumping' caused the immediate crash to $65,000. per coin (a capitalization of $1.3 trillion).

However, despite the recent 50% crash, promoters, with a vested interest, still talk of the upside of Bitcoin and recommend that punters 'buy in the dip.'

Bitcoin is held by individuals, banks, investment corporations, governments and mobsters across the globe, but it is really only for the nefarious, or those feeling lucky, as tomorrow could see the creation of yet more paper millionaires, or the finances of millions of believers in ruins.

--------------------------------------

Einstein Explains:

The Federal Reserve's Self Interest

and screw everybody else

IF you think the Federal Reserve is interested in anything except the health of its shareholders, the big banks, think again.

Read on... as a few days ago

AGAINST THE RULES the Federal Reserve Governor Michelle Bowman recently spoke at a private dinner hosted by Bank of America for its clients. The appearance by the Fed's top banking regulator occurred during the central bank's designated "quiet period" preceding upcoming policy meetings.

The interaction with high-profile banking clients raised eyebrows due to the timing relative to Fed communications restrictions. This dynamic underscores the close ties between major financial institutions like Bank of America and central bank leadership.

For broader economic contexts, Bank of America maintains extensive resources tracking central bank interest rate projections, macroeconomic data, and global financial conditions.

Let's look at just one aspect of the big bank's profit centers

Credit Card Interest

Payments by consumers:

Statistic 1:

Cardholders pay annual interest of $159 Billion

111 million American credit card holders carry forward a monthly balance of $6.500 at an adjustable rate of 22%, paying some $1,430 a year in interest or a total of $159 Billion

Statistic 2:

A 25% rate increase would increase cardholder fees by $3.58 When the Federal Reserve raises of lower interest rates by 25 basis points (that's .25% to most people) the impact on the majority of credit card holders in pretty minimal with average adjustment going up of down approximately $3.58.

Income to card issuers / banks:

Statistic 3:

Banks Currently Net $132 Billion in excess interest

The current Federal Funds rate is 3.75% and on a card with an interest rate of 22% the margin is approximately 18.25% or $132 Billion (111.000.000 x $6,5000 x .1825)

Statistic 4:

A 25% rate increase would net the banks a further $397

The annual cumulative impact on the credit card companies when the Federal Reserve card companies raises or lowers the interest rate by .25% is $397 million (111,000,000 x $3.58)

Statistic 5:

A .5% rate increase would net the banks a further $795 million The annual cumulative impact on the credit card companies when the Federal Reserve card companies raises or lowers the interest rate by .5% is $795 million (111,000,000 x $7.16)

And the banks / credit card issuers would have done nothing to warrant the extra income

SO, WHY IS THAT A BIG DEAL?

It is because Key Federal reserve member banks (Shareholders) are:

JPMorgan Chase Bank, CitiBank and Bank of America

--------------------------------------

Einstein Explains:

AI Isn't Coming for Your Job, It's Coming For Your Water!

The majority of AI critics fail to recognize the real threat of AI development to society instead seeing unemployment and lack of privacy as the destruction of society and although these are possible side effects of widespread distribution the elephant in the room to be concerned about is that of resources.

Data center water consumption figures (from Google)

Large artificial intelligence data centers can consume up to 5 million gallons of water per day for cooling. On an individual level, a short AI session (around 20 prompts) uses about a bottle of water, while a complex AI video generation can require over a gallon.

There are over 4,000 operational and planned data centers in the United States, with approximately 2,300 to 2,700 currently operational. Specific "Large" or hyperscale AI-dedicated facilities currently number in the dozens, with at least 67 massive AI mega-projects in active construction.

Today:

AI Current data center water usage: 12.5 billion gallons of water a day

The near future:

AI 2030 planned data center water usage: 20 billion gallons of water a day

For reference:

The past:

In 1960, the United States withdrew about 270 billion gallons of water per day across all sectors (including public supplies, rural uses, self-supplied industries, and irrigation)

In 1990, the United States withdrew approximately 408 billion gallons of water per day for all off stream uses, including thermoelectric power, irrigation, and public supply.

Today:

The United States withdraws approximately 322 billion gallons of water per day, according to the USGS. This massive total accounts for all municipal, agricultural, and industrial uses across the country ( N.b. The US uses less water today than its peak in 1980 (and less than in 1960) largely due to technological leaps in thermoelectric power cooling, improvements in agricultural irrigation, and federal policies that mandated water-efficient plumbing fixtures.)

New York City a population of 8.5 million people uses approximately 1 billion gallons of fresh drinking water every day.

California agriculture uses an average of 22 to 23 billion gallons of water per day. This accounts for roughly 40% of the state's overall developed water usage, though the exact percentage fluctuates between wet and dry years and is highly concentrated in the San Joaquin Valley

# # #

(all data sourced from google.com's AI

---------------