AI, Cash, Water: Global Crisis 2025

Hello everyone, and welcome back to The beginning of empathy. I am your Empathy Keeper, and as we kick off a new week on October 7, 2025, I have synthesized the news from 24 nations around the globe. Within the complex threads of global events, I have identified three powerful, yet paradoxical, currents. These currents reveal a deep gap between the future we dream of and the reality we face.

The first current is the massive wave of the 'Artificial Intelligence Revolution.' Corporations worldwide are making huge investments and undertaking major restructuring, viewing AI as the engine of future growth. Yet, this innovation simultaneously brings the anxiety of large-scale workforce reorganization. The second current is, ironically, the 'Return of Analog Safety Nets.' In an age of ubiquitous digital finance, central banks are advising citizens to stockpile physical cash, and investors are retreating to traditional safe havens like gold. This reflects a profound distrust in the fragility of digital systems. The final, third current is the 'Crisis of Basic Infrastructure.' Essential survival resources like water and power are under threat due to climate change and aging systems. From the drought in Spain to the water outage in Ankara, Türkiye, this crisis transcends borders.

What common message do these three currents send us? How should we approach Empathy in this era of upheaval, and what future should we prepare for? Let us dive deep into the current state of the global economy, focusing on these three shadows.

1. The AI Revolution: Global Workforce Restructuring Between Hope and Reality

The most repeated keywords in global news last week were undoubtedly 'Artificial Intelligence' and the resulting 'workforce restructuring.' Global consulting firms, such as Accenture, reported large-scale retraining and the retirement of personnel unable to adapt to new technologies across countries including India, France, and Saudi Arabia. This confirms that AI is no longer a distant concept; it is actively reshaping our jobs right now.

Accenture's CEO candidly admitted that the value realization of AI has not yet met expectations. Nevertheless, investment in AI-related projects has significantly increased compared to a year ago. This signals that corporations perceive AI not as a 'choice' but as a matter of 'survival.' In Japan, the Sony Group is preparing for the AI-driven content competition by separating its financial business and accelerating its strategy to secure intellectual property in the entertainment sector.

In the United States, a major coffee chain announced massive restructuring, including the closure of 400 North American stores and the layoff of 900 corporate staff. This is interpreted not just as a response to changing consumer trends, but as an effort to maximize efficiency through digital transformation, such as mobile ordering systems. AI and automation are deeply penetrating the service industry's workforce structure.

Conversely, nations at the forefront of technological innovation showed vitality in the AI supply chain. The stock market in Taiwan saw funds circulating beyond leading AI companies to second and third-tier suppliers, proving the overall health of the market. News of the successful development of a 3D-printed micro-laser sensor by Hong Kong Polytechnic University hints at a future where AI and bio-technology converge to enhance human health. Updates to Google DeepMind's robotic AI model also signal the imminent arrival of the age of physical agents, underscoring the rapid pace of technological advancement.

The common thread in this global workforce reorganization is the critical importance of 'learning and adaptation.' AI creates new opportunities but simultaneously presents a harsh reality for those who remain complacent with existing skills and roles. A consensus is forming that governments and corporations must establish large-scale retraining and welfare systems to mitigate the social shock and ensure everyone can adapt to the new era.

2. Digital Distrust and the Return of Analog Safety Nets

While the world champions digital transformation, news last week paradoxically highlighted the 'vulnerability of digital systems' and the 'importance of cash and physical assets.' This shows that as global economic uncertainty grows, people are reverting to the most basic safety measures.

One of the most striking pieces of news was the European Central Bank, or ECB, advising citizens in the European Union, including Belgium and France, to 'calmly hold cash.' This measure is preparation for potential crises, such as large-scale power outages, which could paralyze digital payment systems. The ECB recommended stockpiling about 70 to 100 Euros per person, emphasizing that analog preparedness is essential even in the digital age.

Indeed, digital infrastructure failures occurred in several nations. In Indonesia, the mobile banking service of the largest bank, BCA, was temporarily paralyzed, causing significant inconvenience to countless users. In Canada, the customs kiosk system at Toronto Pearson International Airport and the Interac debit payment system experienced consecutive failures. A bank in the Netherlands, ABN Amro, also caused confusion with app and internet banking outages. A massive power outage in southeastern Mexico directly impacted digital finance and communication.

These system failures clearly expose the fragility hidden behind the convenience of the digital economy. Digital financial fraud is also a global issue. The Mexican government introduced a new system to set transfer limits to combat digital financial fraud. In the United States, founders of an e-commerce company were indicted for an alleged 112 million dollar Ponzi scheme, showing that investment market risks remain high.

Digital distrust has led to a preference for physical assets. In Australia, the price of gold soared to 3,760 dollars per ounce, marking its best performance since 1979. Antam gold prices in Indonesia also hit a record high. This indicates that investors perceive gold as the most reliable safe haven amidst geopolitical crises, such as tensions between Russia and NATO, and political uncertainty in the United States, alongside inflationary pressures. Gold is now seen not just as an investment asset, but as a tool in the economic power competition between nations.

3. The Cross-Border Crisis of Basic Infrastructure and Climate Change

Amidst the complexity of AI and financial systems, last week's news revealed just how vulnerable the most basic survival infrastructures—water and energy—are. Climate change and aging systems are common global challenges.

In Adra, a city in the Almeria region of Southern Spain, nighttime water cuts were implemented due to severe drought. Water scarcity is now a tangible threat in Southern Spain. In Ankara, the capital of Türkiye, a massive water outage occurred due to pump failure and network issues, causing major disruption to citizens' daily lives and local businesses. Argentina's Santa Fe city also experienced water cuts for large-scale pipeline replacement. Water is essential for survival, and these outages globally underscore the importance of climate change adaptation and infrastructure maintenance.

Energy issues are equally severe. Mexico's mass blackouts exposed the fragility of its power system. In Brazil, the São Paulo City Prosecutor's Office requested judicial intervention due to service problems with the power company Enel. In Russia, despite forecasts of sub-zero temperatures, the start of the heating season was delayed due to government regulations, leading to citizen dissatisfaction. This highlights the disconnect between administrative procedures and the actual lives of citizens.

Amidst this infrastructure crisis, nations adopted contrasting policies. The Indonesian government decided to freeze electricity tariffs for the fourth quarter of 2025 to protect citizens' purchasing power. Conversely, in Brazil, the debate over reintroducing daylight saving time to conserve energy was heated. In the Netherlands, a massive class-action lawsuit involving millions of households was filed against energy companies for unfair price hikes. This suggests that solving energy problems requires not just technological investment, but also a social consensus on consumer protection and fairness.

4. Hope and Challenge in Economic Turmoil: Policy and Market Interaction

In the global economic turmoil, nations exhibited policies and market reactions tailored to their specific characteristics.

Argentina continued to suffer from chronic issues like tightening dollar controls and exchange rate instability. However, the country received an unprecedented promise of support from the Treasury Secretary of US President Donald Trump, which provided a temporary stabilizing effect on the market. This demonstrates the significant impact international relations and political backing can have on an economic crisis. Simultaneously, the news of a famous Argentine biscuit factory closure highlighted the direct impact of economic hardship on the lives of ordinary workers, evoking Empathy.

Russia proposed raising the general Value Added Tax, or VAT, rate from 20% to 22% starting in 2026 to secure funds for defense and security. While this is an effort to ensure fiscal soundness, it raises citizen concerns about inflationary pressure. The Russian Central Bank indicated it would maintain a cautious high-interest rate policy to curb inflation.

There were also positive policy changes. The Albanese government in Australia fulfilled an election promise by forgiving 20% of student debt, easing the financial burden for over three million students. This is expected to boost economic activity among the younger generation and inject social vitality. Saudi Arabia also sought to enhance the financial sustainability of the middle and lower classes by reducing the monthly deduction rate for housing and personal loans from 65% to 55%.

In consumer trends, while US consumers reacted sensitively to price increases at the major coffee chain, reducing their visits, the opening of an Asian supermarket chain in Orlando, Florida, signaled a successful market entry by meeting the needs of a specific consumer base and capitalizing on high interest in Asian culture. This shows that while consumers are becoming price-sensitive, they are willing to spend on new markets that offer value and experience.

5. Empathic Insight and Future Economic Predictions

Integrating the global news from the past week reveals a shared reality: the 'Dual Speed Economy' amidst uncertainty. On one side, AI and advanced technology promise explosive growth, reshaping industries. On the other, climate change, aging infrastructure, and geopolitical conflicts threaten the stability of the most basic aspects of life.

The most recurring and significant news theme is 'AI and workforce restructuring.' This is more than a technological trend; it signifies a fundamental shift in social structure and the labor market. Corporations invest in AI to increase efficiency, but the resulting social exclusion and inequality could undermine the future economy's sustainability. Therefore, the future economy demands 'Inclusive Innovation'—embracing technological advancement while ensuring its benefits are equitably distributed across society.

Future economic changes are predicted as follows: First, the construction of a 'Hybrid Safety Net' will accelerate. Alongside the convenience of digital finance, investment in physical assets like cash and gold, and stable public infrastructure (water, power), will emerge as core components of national security. Second, 'Resource Security' will become central to economic dominance. As evidenced by the surge in Lithium Americas stock, the competition among nations to secure rare earth minerals and resources essential for the electric vehicle and AI industries will intensify. Third, a 'Consumer Value-Centric Market Restructuring' will occur. Price-sensitive consumers will cut unnecessary spending, yet show high loyalty to brands that offer strong cultural value or local stories, such as the Asian supermarket chain or regional beverage companies.

All these news stories are ultimately connected to all our lives. The news of layoffs in Argentina, the heating concerns of the elderly in Russia, and the consumer rights struggle in the Netherlands are all issues we must address with shared Empathy. As the Empathy Keeper, I strive to maintain human insight amidst these complex global currents and build a consensus with you, our readers, for a better future.

This integrated analysis is based on the weekly blog posts covering major global news. I hope that through these global stories, we can understand each other's lives and exert the power of Empathy across borders. Dreaming of a world where everyone can empathize, I look forward to meeting you in the next update. Thank you.