More seriously, I think we are beginning to see the result of a strong bias in human nature, manifested in both politics and markets, not to plan for medium-term problems? Even (especially) when the problems are forecast well in advance, and are effectively a no-brainer.
I have in mind the fact that serious economists (Jerome will correct me if these economists were flippant) can state, last year IIRC, that the population of China and India can and will achieve the living standards and consumption levels of the USA. Pure insanity, in my book.
Regarding the economists' claims about China and India, I don't doubt that the living standards are likely to (approzimately) equalize, but we'll probably meet in the middle. $15,000 per capita PPP does not seem patently absurd.
I really need to learn macroeconomics. guaranteed to evoke a violent reaction from police is to challenge their right to "define the situation." --- David Graeber citing Marc Cooper
IIRC (again) the part of the claims i found absurd was the consumption side - ie per capita levels of resource use in a general sense equal to current US levels. No need to recap the peak oil objection to this cornucopian scenario, I suspect this achievement for food alone is beyond the productive capacity of the globe's ecosystems, particularly the freshwater demand.
More so given the obvious potential 'clusterfuck' as I think our cousins would call the phenomenon observed by Jerome. For example, food production will probably become more expensive, and total capacity be reduced, as other resources such as energy become scarcer and more costly due to all the people who need the food. Wash rinse repeat.
Kaboom indeed. The sound of a dominant macroeconomic theory imploding?
I very much share the concern that the powers-that-curently-be are now in urgent need of a distraction. And suddenly here's this conveniently badly-run middle-eastern country looming large in the news agenda.
