MARKET PERSPECTIVE
By J Mulraj
JULY 12-18, 2025
239th Blog for AsiaConverge
Political myopia is the only impediment to a bright futureword Grok is a verb, first used by sci-fi author Richard Heinlein to mean an intuitive understanding. It is capable od deductive logic. Radio host Glenn Beck says GROK 4, which has a better understanding of any topic than any PhD, could change everything. It will excel in material sciences, helping create new materials. Such as a new alloy lighter than aluminium but stronger than steel, which would be the future of transportation. Or a new chemical compound that would do carbon capture, healing the ozone layer.
Jensen Huang, the CEO of Nvidia, the only company in the world to have a $ 4 trillion market cap, heaps praise on Elon Musk, in this video. Nvidia lost $ 8 billion sale of chips to China, in Q2, due to sanctions imposed by Trump, but made up for it because of the demand for AI inference chips, such as those used in GROK. By 2027 Tesla will make humanoid robots, which, Huang feels, would be the next multi trillion dollar industry.
Grok, which is far ahead of competition in inference, will be able to develop solutions, and will be able to create new materials/alloys, to solve problems of environment, infrastructure, energy, food, productivity and others. Almost like a genie out of a magic lamp. Musk foresees that the future will have not only a UBI, or Universal Basic Income, but will generate such surplus that it will lead to a Universal High Income!
Which is why it seems inexplicable that Trump may be willing to forgo all the advantages that would ensue to America from a future with Musk, and be threatening to deport him, simply because of Musk’s opposing the Big Beautiful Bill. Musk feels that the Bill would further increase US debt, already unsustainable.
Thus far global capital markets have funded the rollover of debt, as and when they fall due for redemption. Global capital markets hold $ 450 trillion in liquid assets, equity and debt, and $ 365 trillion in illiquid assets, land, buildings, machinery. Global GDP is around $ 105 trillion, so the global liquid assets are more than 4 times global income.
Leaders like Trump feel confident of obtaining rollover funds from the global capital markets to pass a Big Beautiful Bill, which can, likely will, raise the debt level. Musk is, rightly, concerned about the ruinous consequences of continuing to borrow.
Even worse is that much of the debt is incurred to fund perpetual wars in which USA is not a warring party.
China is wisely refraining from actual conflicts (though it’s wolf warrior diplomacy threatens others) and has, instead, spent it’s money on technology, infrastructure and defense.
Trump should revert to warring with the MIC, Military Industrial Complex, not with innovative geniuses like Musk.
Last week the BSE Sensex closed at 81757 for a weekly loss of 743 points.
Looking to the fast development of new, disruptive, technologies, the economic future is bright. And thus the outlook for stock markets. The impediment is petulant, and myopic political leadership whose vanity clouds their judgement.
Trump may consider reading Jane Austin’s ‘Pride and Prejudice’
Comments may be sent to jmulraj@asiaconverge.com
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