The AI and Robotics technological breakthroughs in 2024 set the stage for 2025 as outlined in my previous post: Review of Economic Events for 2024.

The chart below shows exponential growth but not the kind we like to see. In fact, it’s the kind that can result in the outright debasement of a national currency and a collapse in its bond markets. U.S. national debt-to-GDP now stands at 123%. The U.S. government is already running a cumulative fiscal deficit for fiscal year 2025 (starting October 1) of $622 billion. Current forecasts for fiscal year 2025 exceed $2 trillion.

U.S. National Debt Outstanding 1900–2024 | Source: U.S. Treasury

When the fiscal irresponsibility of any government reaches this level, there are usually only two choices to address the problem: Austerity, which is the least politically desirable. Reductions in spending and entitlements always have a degree of economic impact and certainly don’t make voters happy. Devalue the national currency. This is obviously what has been taking place. About 27% of U.S. national debt has been created in the last four years. Money “printing” always results in the devaluation of U.S. dollars and reduced purchasing power.

JEFF BROWN (BROWNSTONE RESEARCH) SUGGESTS THERE IS A BETTER WAY OUT OF THIS MESS

A large productivity boom would accelerate economic growth, lessen the impact of the current debt load, help reduce interest rates, and – if done right – could result in a fiscal surplus.

The USA is on the cusp of the greatest productivity boom in history. And it will be entirely technology-driven. Artificial intelligence (AI), robotics, and automation technologies will be the underlying productivity drivers. With cheap energy, the USA will compete with China as robotics beats cheap labour. Robots operate 24 hours a day 7 days a week: no time off, sickies, or holidays, and do not make mistakes.

With Trump at the helm, the U.S. regulatory environment will shift quickly in support of technological innovation, investment, onshoring of manufacturing, blockchain technology as the next generation of payment and settlement rails, and energy production to support economic growth.

The Department of Government Efficiency (DOGE) will materially reduce the fiscal year 2025 deficit by at least $250 billion, and by more than $1 trillion by fiscal year 2026 under the leadership of Vivek Ramaswamy and Elon Musk.

The Centers for Disease Control, the Department of Health and Human Services, the National Institutes of Health, and the Food and Drug Administration will return to evidence-based medicine practices and streamline the clinical trials process with higher standards for drug approvals, driven by the leadership of Robert F. Kennedy Jr. and Jay Bhattacharya. This will be a net benefit for the biotech industry.

Interest rates will decline mostly in the second half of the year by another 50–75 basis points. It will take some for the fiscal and economic policy changes to tame inflation. The larger cuts will come in 2026, an even better year for the economy and the markets.

Not surprisingly, AI will continue to be the hottest growth trend in 2025. Hundreds of billions will continue to be spent on the hyperscale “AI factories” being built to train AI foundation models. Jeff believes that we’ll see at least one company develop an artificial general intelligence (AGI) by the end of 2026. We’ll see the equivalent of genius-level IQs from the foundational models of OpenAI, Anthropic, Meta (Llama), Alphabet (Gemini), and xAI (Grok). And the outlier – the big surprise in 2025 will be from Elon Musk and his team at xAI. The entire industry has discounted xAI because it was a bit late to the game of building a foundation model for AI. That’s a mistake, for two reasons. Within a few months, xAI will have the largest training cluster of GPUs, at least 200,000 GPUs developing Grok 3.0. xAI is also developing a “maximum truth-seeking AI.” When training an AI, the quality and accuracy of a model’s outputs depend heavily upon the quality and accuracy of the inputs. Other companies trying to program their foundational models with clear bias and/or political narrative actually slow down their own technological development. Doing so adds complexity. xAI is avoiding that trap by designing, building, and performance training. This is a large competitive advantage that will catch the rest of the industry off guard. xAI’s Grok will outperform the rest of the industry.

2025 will also be the year when we experience Level 5 autonomous transport without any geofencing, entirely driven by vision models. This is different than Waymo, Cruise, or others that are heavily dependent upon LIDAR and require very precise maps allowing them only to operate in geofenced areas. And there is only one company capable of this technology – Tesla.

This year will be the first year when we experience unsupervised full self-driving technology. Unsupervised means that no one will have to sit in the front seat and monitor the full self-driving software for safety. Tesla will succeed in “turning on” this technology in at least one U.S. state this year. This will also enable Tesla to launch a robotaxi network, enabling Tesla owners to opt their Teslas into the network, enabling their electric vehicles to earn income. This will change the entire dynamic of the automotive industry, as Teslas will become affordable to an even larger percentage of the market. And it will, of course, be bullish for Tesla as the only EV company capable of this technology.

Humanoid Robots Overtake Offices & Factories

We’ll also see impressive advancements in AI in the manifested form of humanoid robots. Again, Tesla will lead here with its forthcoming release of Optimus Gen 3, which will be capable of autonomous operations in both industrial and consumer settings. While I don’t expect Tesla to start external sales of Optimus until 2026, it will widely use its production of Optimus in both its own office and factory settings. Optimus will set the standard for humanoid robot productivity, and investment will increase dramatically in other major players in this field. 1X Technologies, Agility, and Boston Dynamics will work hard to catch up to Tesla’s technology.

LLM’s (Large Language Models): The Year of Agentic AI

Let’s define agentic AI. Unlike traditional AI, which linearly executes commands, agentic AI systems interact with tools and databases autonomously and in logical order to achieve more reliable and robust results. If you were to query an agentic AI system with a multi-step problem, it would parse your request in the most logical order instead of moving from the top down.

These Agentic AI agents will be capable of reasoning and solving tasks that require multiple steps to complete. Agentic AI will be capable of transacting on behalf of anyone. The technology will be able to interface with the internet and fill out fields to complete assigned tasks. This technology will extend even further to the blockchain industry, where AI agents will be capable of managing smart contracts and engaging in self-directed economic activity. Blockchain technology is particularly conducive to agentic AI technology because of the ease of transacting with digital assets and the construction of smart contracts using blockchain technology. Which brings us to the digital assets industry.

The Year of Digital Asset Revitalization

The Trump win means pro-crypto, pro-innovation, and a plan to put clear regulations in place for digital assets. Fortunately for the digital assets industry, we’re already seeing a complete revitalization of the blockchain industry concerning investment in the U.S. 2025 will be a big year for crypto.

New regulations will be put in place, providing clarity and clear guidance on industry rules. And the enforcement of baseless and antagonistic actions against the leaders in the industry will come to an end. This will be bullish for high-quality cryptocurrencies. We should expect to see a lot of speculation in the industry, as well.

Jeff has relaunched his Neural Net Profits research service. It is powered by a sophisticated neural network that Jeff’s team developed at a cost of more than $1 million, called The Perceptron. It picks up on short-term trading signals in cryptocurrencies. Additionally, we’ll see U.S. dollar stablecoin projects thrive this year, as more and more financial transactions happen and settle on blockchain technology.

Lift Off for the Space Economy

Jeff expects that Boom Supersonic will succeed in flying its one-third-scale aircraft supersonic in the first half of this year. Boom is the most advanced aerospace company in building a supersonic commercial aircraft capable of traveling at Mach 1.7 with 64-80 passengers. It is an answer to what comes next after the Concorde.

The Trump/Musk partnership will also put NASA back on track for its return to the moon program – Artemis – by 2026. SpaceX will launch at least 15 Starships this year, as it refines the technology of the largest rocket and spacecraft in history.

Radical Shifts in Defense Spending

The U.S. will stop the absurd spending and funding of overseas wars and focus instead on rebuilding a technologically advanced defensive capability for the U.S. military… a peacekeeping military. Representative companies will be Anduril and perhaps General Atomics. The key will be uncrewed, autonomous drones and aircraft. Given the advancements in artificial intelligence and autonomous technology, the nature of warfare has dramatically changed. The use of autonomous drones and uncrewed aircraft will be an explosive trend in 2025, as will the development of intelligent cybersecurity agents to protect against nation-state attacks – most notably those of China on U.S. infrastructure that has commanded an alarming number of headlines in 2024.

Investment will accelerate in advanced technologies in the defense sector, as opposed to the more traditional technological approaches. Western adversaries are using unconventional weapons to infiltrate and fight, and the industry must adjust. We’ll also see an increase in spending on defense as it applies to the U.S. Space Force. The progress with hypersonic technology in 2024 will make space-based defense systems and communications that much more critical as a deterrent to war.

Nuclear’s Next-Generation Renaissance

Energy policy will also become a cornerstone development in 2025 for the new administration. The “pause” that we witnessed in natural gas production in the last four years will be lifted and the industry will start to invest heavily again in natural gas. Energy produced from coal will drop, just as it did during the first Trump administration. There will also be a major policy push to bring both oil prices, and thus gasoline prices, down. The last four years seriously depleted the U.S.’s strategic petroleum reserves – to levels that we haven’t seen since the early ‘80s. Lower prices will be critical to refill those strategic reserves and to ensure energy security for the U.S. economy.

In parallel, there will be strong regulatory support for the recommissioning of nuclear reactors in the U.S., as well as for the commissioning of new fourth-generation small modular reactors (SMRs) to address the shortages in energy production. Nuclear energy will experience a rebirth in 2025. That will be true for both nuclear fission as well as nuclear fusion technology.

Front runners in the nuclear fusion race are General Fusion, Helion, Zap Energy, Commonwealth Fusion, and China-based private company ENN. There may even be a national laboratory in South Korea, China, Japan, Germany, or the U.K. that may make the claim. Jeff predicts record levels of investment in nuclear fusion companies in 2025… precisely because the path is so clear toward net energy production. Institutional capital can now see a path toward commercialization – and ultimately returns – on their invested capital.

The solar power industry will continue to thrive. Investment will continue in solar in markets where it makes sense. And as interest rates come down, solar will benefit from improved project financing.

Energy production from wind, however, will suffer, as it should. Wind power is not economical and environmentally destructive. The carbon footprint of wind turbines is terrible when considering all the minerals that need to be mined, and petroleum needed to keep the wind turbines turning. Not to mention the short lifespans and the fact that turbine blades cannot be recycled. They simply end up in a dump.

AI WILL DRIVE A BIOTECH RESURGENCE

Novel therapies will be developed in a fraction of the time and for a fraction of the cost of the traditional drug discovery process. The use of AI will also reduce toxicity and improve the safety of drugs. When we couple the positive impact of AI on the drug discovery process with the cleanup and streamlining of the relevant health agencies in the U.S., we will naturally see an increase in investment in the biotech sector.

Jeff is confident that 2025 is the year when the government will step back from destructive policies, restore trust, and push ahead on pro-energy, pro-growth, and pro-innovation policies.

How does all of the above fit into Biblical end-times prophecies? It doesn’t, Biblical end-times prophecies is Middle-East centric with Satan’s focus still on destroying Israel. The next major battle is given in Daniel 8, the goat (Yvan) Sunni Turkey putting down (Persia) Shia Iran in an attempt to re-establish a Neo-Ottoman Empire. Watch for it and use it to prove the Bible is God’s word. We know how this ends.

Next on God’s agenda for planet Earth is Jesus’ Millennial Kingdom – http://www.millennialkingdom.net