High Debt Pressure and AI Bubble Dance as the Global Economy Teeters on the Edge

In the years of navigating the crypto world, I’ve been observing various prophecies and forecasts. Recently, one name has been appearing frequently—Jim Rogers and his assertions about a financial crisis in 2026. Honestly, when I first saw it, I was quite shocked. It’s not the crisis prediction itself that’s frightening, but the logic he presents and the risk signals we see daily in on-chain data—they align perfectly.

**Veteran’s Wake-up Call**

At the end of last year, Rogers dropped a bomb during a conversation with Japanese entrepreneur Miki Watanabe: a global financial crisis will occur in 2026, the "most severe" in his lifetime. Pay attention to this wording—"most severe." Not just comparable to the 2008 subprime mortgage crisis, but even more brutal. Possibly worse than the Great Depression of 1929.

This seasoned investor previously predicted the 1987 stock market crash and the 2008 financial tsunami with precision. His track record is there for all to see. More importantly, he has already put his money where his mouth is—liquidating his US stock positions and shifting into safe-haven assets like gold and silver. Such actions are more convincing than any report.

**Two Triggers for the Crisis**

Rogers isn’t speaking off the cuff; he points out two clear logical lines.

First is the global debt bomb. The US national debt has already surpassed $34 trillion. Annual interest payments alone approach $1 trillion, even surpassing the entire annual defense budget. To put it another way, for every $100 the government collects, $20 goes just to pay interest. How terrifying is that?

The problem is that this debt snowball keeps rolling. US debt grows daily. Interest costs are rising sharply. Once interest rates change, the entire chain could break. The current system has been operating under high interest rates for some time now, and the pressure is mounting.

Second is the AI bubble. In recent years, AI concepts have become extremely hot, with giants pouring astronomical amounts of capital in. But truly cash-flow-generating applications are still few. This resembles the early symptoms of the internet bubble and the real estate bubble—investment frenzy and actual returns are seriously disconnected. Once investor sentiment shifts, this could collapse.

**Why This Time Is Different**

Historically, financial crises are usually triggered by problems in a specific sector causing a chain reaction. This time is different. Debt and AI bubbles coexist. High debt means weak economic resilience, and if the AI bubble bursts—causing a sharp decline in tech stocks—it could directly impact global markets.

For crypto holders, what does this mean? During severe market volatility, crypto markets often also fluctuate. But from another perspective, during a crisis, long-term confidence in on-chain assets might actually strengthen—some will reassess the value of decentralized assets.

**What to Do Now**

Rogers has already taken action. What about us? Not to follow blindly and clear all assets, but to seriously consider our asset allocation. In an environment of high debt and high bubbles, risks are indeed accumulating. Properly allocating safe assets, controlling leverage, and paying attention to macroeconomic data are fundamental.

Opportunities in the crypto market always exist, but only if we are alive to see them.