Technological innovation is driving good deflation, which reduces costs and increases productivity, contrasting with bad deflationary pressures. In the electric vehicle space, the deflation rate is 28% for every cumulative doubling in the number of units produced, and we're currently at 2.2 million units of electric vehicles.

Deflationary forces are emerging in the global economy, countering the belief that monetary policy easing will ignite inflation.

Lowering interest rates could potentially lead to inflation; however, technology, particularly AI, is deflationary and may allow for interest rate reductions without triggering significant inflation.

The current deflationary forces are powerful and will likely cause confusion in the market, affecting the velocity of money, which is the rate at which money circulates in the economy.

In the defense sector, many companies have become less innovative due to consolidation, creating opportunities for new entrants to disrupt the market.

Disruptive innovations like electric vehicles, DNA sequencing, robotics, artificial intelligence, and blockchain technology are causing creative destruction in traditional industries.

Innovation can be dangerous; while it can lead to great ideas, it can also risk the company's survival during transitions.

Creative destruction is essential for companies; if you don't keep your technology current, you risk being outpaced by competitors.

Instead of competing on being faster, better, or cheaper, focus on what makes your product disruptive, discontinuous, and defensible.