21 December 2025

Convergence of Crisis

As we stand on the precipice of 2026, the global landscape is increasingly defined by a polycrisis—a simultaneous tangling of economic, technological, and geopolitical shifts that threaten to overwhelm traditional safety nets. While every new year brings uncertainty, 2026 feels uniquely volatile. It is the year when the experimental policies of the mid-2020s will meet their inevitable reckoning, and when the rapid acceleration of artificial intelligence will move from a novelty to a disruptive force in the labor market. Bracing for the worst is not an exercise in pessimism, but a necessary strategy for resilience in a world where the old rules no longer apply.

Economically, the sturdy growth projected by some financial institutions masks a deepening fragility. High-interest rates and sticky inflation have already hollowed out the purchasing power of the middle and lower classes. In 2026, we face the very real risk of a bond-market crisis as wealthy nations continue to live beyond their means, accumulating debt that may soon become unsustainable. Furthermore, the global trade war—defined by aggressive tariffs and the weaponization of supply chains—is expected to reach a fever pitch. As the U.S. and China further decouple, the resulting Donroe Doctrine or Trump Corollary to foreign policy may leave global markets fractured, raising the cost of basic goods and slowing the movement of essential technologies.

Technologically, 2026 may be the year the AI bubble finally faces a reality check. Immense investment in hardware and software has yet to produce the massive productivity gains promised to investors. If tech companies fail to monetize these tools effectively, a market correction could trigger a recession led by the very sector that has driven growth for a decade. More concerning is the transition from AI as a tool of augmentation to AI as a tool of displacement. White-collar junior and mid-level roles are at peak risk, creating a social friction point as workers find their skills obsolete in a market that is not yet ready to retrain them.

The geopolitical order is similarly unmoored. As the U.S. shifts toward a more transactional, spheres of influence diplomacy, long-standing alliances like NATO face existential strain. This geopolitical drift invites grey-zone provocations from rival powers in the South China Sea, the Arctic, and cyberspace. Domestically, particularly in the United States, the 250th anniversary of the nation’s founding in 2026 will likely serve as a flashpoint for irreconcilable narratives. Rather than a moment of unity, the milestone risks becoming a stage for deep-seated polarization, fueled by AI-driven misinformation and a sense of betrayal by the political class.

Bracing for 2026 requires more than just financial caution; it requires a mental shift. We are entering an era where institutional stability can no longer be taken for granted. Whether it is the potential for a digital domino effect from cyberattacks or the sudden eruption of localized conflicts in a deregulated global order, the margin for error has disappeared. To survive the coming year, individuals and organizations must prioritize flexibility over rigid planning, recognizing that the only certainty in 2026 will be the arrival of the unexpected.