“Randy Wray has described the current state of the commodities market as the biggest speculative bubble of all time, but the carbon bubble is even greater. In order to avoid catastrophic global warming, the Carbon Tracker Initiative found, we need to keep 80 percent of known carbon reserves buried in the ground.”
That’s from a Think Progress piece about the world’s concerning carbon bubble. The piece focuses on an interview with Fullerton, who started his career as an oil and gas banker for JP Morgan. Check it out.
If you’re not going to check out the full piece though,.. or even if you are, I think this is my favorite section of the interview:
The central premise of our work is that there is a fundamental disconnect between the world of economics and finance which sees the economy largely as a monetary phenomenon and the physical aspect of the economy which is a material phenomenon. Historically, when the economy was relatively small we could convert the physical into money and let the market price inputs and outputs. It worked in a nice theoretical abstraction. Limits to growth force physical reality onto the abstraction.
Exactamente (aka exactly).