Monday, January 14, 2013

World Economic Forum Releases Top Risks List

The World Economic Forum is fearful of an imminent risk of major systemic economic failure.

"...high in the rankings of nail-biting concerns were also risks related to climate change, both rising greenhouse gas emissions and the failure of governments and businesses to mitigate or adapt to these changes.

"At the report’s launch, John Drzik, the CEO of the risk and insurance services group Oliver Wyman, said, 'We see two big risks coming together, one is an environmental storm and the other is an economic storm, and we see them on a collision course.'

"He pointed out that governments like the US have been acting as insurers of last resort, bearing an increasing burden of providing relief in the aftermath of natural disasters.

"'It’s creating rising expectations in the public for government to step in and provide relief after disasters,' he said, 'but this is where it hits the economic storm because the government now has less ability to respond.'"

He is, of course, absolutely right; the United States government has become the insurer of last resort for many Americans who can no longer get private flood or hurricane insurance.   Many of these same Americans will furiously denounce socialism but then leap at the chance for what is a purely socialist benefit package.   The United States has arrived at a stage of incipient chaos.   At least as a nation they're far from alone.

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