From 2025, this is a GREAT summary explaining how economics-as-usual has, for a long time, been based on assumptions of agricultural abundance. The author argues that economic reports and forecasts are still failing to adequately factor in long term climate risk, much as they failed to factor in financial risk leading to the 2008 “great recession”.
*Food system instability exposes markets to cascading shocks: inflation, trade disruption, insurance losses and sovereign credit stress. Yet these risks remain largely unaccounted for in core financial systems. Despite mounting exposure to climate-driven volatility, financial systems, from asset pricing models to fiscal and monetary policy frameworks, still treat food risk as peripheral. This disconnect is no longer sustainable. As climate extremes intensify, the next financial crisis may not come from housing or tech, but from a climate-driven breakdown in the global food system.*
It’s written for the lay audience, and well worth a read. The author concludes calling for
*To avoid another crash born of ignored risk, finance and policy leaders must treat food systems as financially material, not a background variable. That means revising credit and insurance models, investing in soil and water resilience, and funding diversified food systems that can withstand disruption.*
Bjbttmbird on
it’s amazing how many people i talk to about this just look at me like im the most insane negative pessimistic cuckoo person ever!
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From 2025, this is a GREAT summary explaining how economics-as-usual has, for a long time, been based on assumptions of agricultural abundance. The author argues that economic reports and forecasts are still failing to adequately factor in long term climate risk, much as they failed to factor in financial risk leading to the 2008 “great recession”.
*Food system instability exposes markets to cascading shocks: inflation, trade disruption, insurance losses and sovereign credit stress. Yet these risks remain largely unaccounted for in core financial systems. Despite mounting exposure to climate-driven volatility, financial systems, from asset pricing models to fiscal and monetary policy frameworks, still treat food risk as peripheral. This disconnect is no longer sustainable. As climate extremes intensify, the next financial crisis may not come from housing or tech, but from a climate-driven breakdown in the global food system.*
It’s written for the lay audience, and well worth a read. The author concludes calling for
*To avoid another crash born of ignored risk, finance and policy leaders must treat food systems as financially material, not a background variable. That means revising credit and insurance models, investing in soil and water resilience, and funding diversified food systems that can withstand disruption.*
it’s amazing how many people i talk to about this just look at me like im the most insane negative pessimistic cuckoo person ever!