Warning: Danger Ahead! AI Bubble Burst? Trump Tariffs? Explaining the 'Triple Risk' Facing the Global Economy

Hey there! It's timo, your gal economist.
The theme for this time is 'The 3 Time Bombs Shaking the Global Economy'.

To start, if you read this, you'll understand 'the 3 dangerous risks the global economy is seriously facing right now, and how we can move starting tomorrow to increase our market value.' That's it!

The news article for this time is here.

What are the '3 bombs' the global economy is facing right now?

We work hard every day, but honestly, don't you think 'the global economy' is a distant topic? But actually, there are 3 dangerous 'time bombs' that directly affect our salaries and jobs.

Recently, the US economy looked like it was doing great due to the AI boom, but under the surface, it's actually quite suspicious. I'll explain the 3 risks that are being discussed as 'seriously dangerous' even at meetings where important people like those from the IMF (International Monetary Fund) gather, with maximum time performance and at lightning speed!

[Bomb 1] Trump Cannon Again? 'Tariff War' Might Drive Prices Up

The first bomb is 'tariffs.' Trump is saying to China again, 'I'm going to impose a 100% additional tariff!' It's seriously dangerous.

• What's dangerous?: When tariffs go up, the prices of all goods go up. In other words, inflation reignites.

• Impact on us: Not only will our living costs go up, but companies might also see increased costs and stop investing or hiring.

• TIPS: The WTO (World Trade Organization) is also predicting that if things continue like this, global trade growth in 2026 will be 'almost zero (+0.5%).''Because of tariffs, goods might stop selling globally' If you have that perspective, you'll be respected in conversations with business partners.

[Bomb 2] The Footsteps of the 'AI Bubble' Bursting That We Can't Ignore

The second bomb is the 'AI bubble.' The AI boom that is supporting the current economy. It's a topic close to us in the Web industry, right? But the head of the IMF is officially warning, 'This smells the same as the dot-com bubble 25 years ago'.

• What's dangerous?: The possibility that AI-related stock prices have risen more than their actual value.

• Impact on us: If the AI bubble bursts, the entire IT industry will cool down. For Web production companies like us, there is a risk that client budgets will be the first to be cut.

• TIPS: Instead of just mindlessly thinking 'AI is amazing!', 'Does that AI really have 'real demand' that makes money?' The skill to calmly assess this is essential for business people from now on.

[Bomb 3] Could you be unable to pay it back before you know it? 'Global debt' is at an all-time high

The final bomb is 'debt'. Right now, the debt of countries and companies around the world has skyrocketed to pandemic levels, reaching an all-time high of about $338 trillion (a figure that is honestly incomprehensible).

• Why is this dangerous?: If there is too much debt, a minor economic shock (like the tariffs or the AI bubble burst mentioned earlier) could trigger a chain reaction of defaults (inability to repay).

• Impact on us: When the entire economy becomes unstable, interest rates rise, recessions occur, and there are no upsides.

• TIPS: It is super important to have the perspective of 'What is the financial situation of our business partners?' rather than just focusing on your own company. If you are deeply involved with companies that look shaky, you will get dragged down with them.

Timo's Perspective 🔮 'So, how do we win?'

If even one of these three bombs—'tariffs,' 'AI bubble,' or 'debt'—explodes, a simultaneous global recession is a real possibility. What is particularly dangerous is the IT industry cooling down due to an AI bubble burst while inflation is reignited by tariffs happening at the same time. This is the worst-case scenario known as 'stagflation,' where prices rise even though the economy is bad.

Precisely because we live in such an unstable era, what we should aim for is to be 'smart, information-savvy individuals.' Instead of relying on a company, the best defense is to acquire 'portable skills that are useful anywhere'.

For us, in addition to our current web production skills, we should add:

1. Skills to talk about how to utilize AI in business (in practice, not just as a bubble)

2. Skills to internalize economic news like this and talk about it as 'your own business'

Just by adding these two things, your market value will skyrocket. A crisis is an opportunity. Arm yourself with information and survive smartly!

Summary | 3 'Intellectual Armaments' You Can Use Starting Tomorrow

I'll keep this super efficient! Try doing these starting tomorrow.

1. Show off in small talk with clients by saying, 'Did you know about the three major risks to the global economy? Apparently, it's tariffs, the AI bubble, and debt.'

2. Whenever you hear 'AI' in the news, make it a habit to pause and think, 'Is this real demand, or is it a bubble?'

3. Make economic news 'personal.' (e.g., Tariffs go up -> prices go up -> if my salary doesn't go up, I'm in trouble -> I need to improve my skills and increase my market value.)