AI Boom vs. The 50-Year Debt Trap

Hello everyone, I am Empathy Keeper from The beginning of empathy. Analyzing the news that swept across the globe yesterday, I witnessed the collision of two monumental forces. One is the tsunami of technological innovation centered around Artificial Intelligence, and the other is the economic instability and hardship faced by ordinary people struggling to keep pace with this rapid change. How can these two powerful currents coexist? Today, we seek to find an answer to this crucial question together.

Undoubtedly, the most striking news yesterday involved astronomical investments in AI infrastructure. Anthropic, a US-based AI safety and research firm, announced a plan to invest a staggering 0 billion in computing infrastructure within the United States. This includes building data centers in Texas and New York, aiming to create thousands of jobs by 2026. This clearly demonstrates America's strong resolve to maintain its AI leadership.

Across the Pacific, in Taiwan, stock prices soared for companies related to PCBs (Printed Circuit Boards) and ABF substrates, which are core components for AI servers. Foreign media analysis suggests that the demand for AI server PCBs is exploding, and expansion plans for factories in places like Thailand are acting as catalysts for short-term stock gains. This signifies that AI is not just a software technology; it is a massive competition for physical infrastructure.

Lisa Su, CEO of the US semiconductor giant AMD, projected that the AI data center market will grow to trillion by 2030, setting an ambitious goal to expand the company's data center segment revenue to 00 billion annually within the next five years. AI is firmly established as the key driver reshaping the global industrial landscape.

South Korea's biotech firm, ABL Bio, also garnered global attention by signing a technology export deal worth up to 3.8 trillion Korean won with Eli Lilly. Their core technology, the Blood-Brain Barrier shuttle platform, is expanding its application beyond Alzheimer's disease to treatments for obesity and muscle disorders. This is a prime example of how the fusion of AI and biotechnology is creating new value.

However, beneath this dazzling technological progress, economic instability casts a long shadow. In the United States, as housing affordability worsens, news emerged that the administration of President Donald Trump is considering proposing 50-year mortgages (home loans). While this is a desperate measure intended to reduce monthly payments for citizens whose dream of homeownership has been pushed out of reach by rising prices and high interest rates, it raises concerns that consumers could be trapped in debt for even longer periods.

Furthermore, reports that US household debt has reached a record high of 8.6 trillion, driven by the rise of 7-year auto loans and the normalization of Buy Now, Pay Later (BNPL) services, illustrate a global trend of sacrificing future financial stability for immediate consumption.

In Argentina, economist Carlos Melconian dismissed the possibility of dollarization, emphasizing the importance of recovering the peso's value. Argentinians continue to feel high anxiety about the economy and inflation. This connects to news from South Korea, where the KRW/USD exchange rate closed at 1465.7 won in the Seoul foreign exchange market, the highest in seven months. This reflects a complex mix of uncertainty regarding US interest rate cuts and concerns about the weakening fundamentals of the Korean economy.

This economic pressure is directly impacting jobs in traditional industries. Japanese manufacturing company NSK proposed closing two factories in Peterlee, UK, putting up to 400 jobs at risk. This highlights the profitability challenges faced by component suppliers during the automotive industry's transition from internal combustion engines to electric vehicles.

In Australia, the delivery service platform Menulog announced it would cease operations due to intensifying competition. This fuels concerns about the monopolistic dominance of giant platforms like Uber Eats and DoorDash, once again exposing the precariousness of gig economy workers.

Yet, efforts to protect workers' rights continue. Australian mining company BHP was fined 4,000 for failing to pay extra wages to miners who worked on Christmas and Boxing Day in 2019. This victory for the labor union is a significant example of finding a balance between corporate profit pursuit and the quality of life for workers.

In Poland, Europe, a 'Dignified Pension' program for low-income retirees is under discussion. This proposal, which guarantees a fixed increase of at least 150 zlotys (about 0) starting in 2026, demonstrates the government's empathetic effort to protect vulnerable populations during an era of inflation.

The financial sector also saw restructuring. ASN Bank in the Netherlands announced plans to cut 850 to 950 permanent jobs, about 25% of its total workforce, and significantly reduce its product offerings to enhance efficiency. This signals that digital transformation and cost reduction have become core priorities in the financial industry.

Amid this economic uncertainty, investor interest remains focused on cryptocurrencies and gold. Morgan Stanley advised profit-taking, suggesting Bitcoin had entered the 'autumn' phase of its four-year market cycle. Conversely, personal finance expert Robert Kiyosaki offered an extremely optimistic forecast, predicting Bitcoin could reach 50,000 by 2026. These conflicting predictions reflect the market's high volatility and uncertainty.

Furthermore, gold prices hit a three-week high following the news of the end of the US government shutdown. This was driven by a preference for safe assets as economic data uncertainty eased and expectations for interest rate cuts revived. Gold prices also rose in Indonesia, attracting investor attention there.

Globally, we are accelerating at high speed, powered by the massive engine of AI. This engine generates immense wealth and opportunity but simultaneously threatens traditional jobs, increases household debt, and risks deepening social polarization. The reality that 0 billion AI infrastructure investments and 50-year mortgage proposals appear in the news on the same day shows that we urgently need social safety nets and empathetic policies to ensure that the benefits of technological progress are shared equitably by all.

The news I shared today is an integrated analysis of the major economic and social issues that occurred worldwide yesterday. Between the opposing axes of technological innovation and economic instability, we must not lose sight of human insight and the perspective of Empathy. Empathy Keeper hopes to continue forming a consensus for a better future with all of you, our readers, in this complex world.

See you in the next update. Thank you.