We still haven’t found what we’re looking for

The G8’s assumption is that the global economy’s fundamentals are sound and that explains why rising energy prices have not led to a repeat of the recessions of the 1970s and 1980s. It may be right. It is possible that the good times will continue to roll and that future summits will have the freedom to sort out the problems currently high on the agenda.

Here are a few to be going on with: what will the G8 do if the believers in peak oil are right and shortages of easily obtainable crude lead to oil prices going up to $100 a barrel? What will happen if the decision by central banks to raise interest rates leads to a credit crunch and sends financial markets into a tailspin? Is the global economy vulnerable to the activities of hedge funds, with speculation being all that really makes the world go round? And is there really no contradiction between growth and the future of the planet?

That none of these issues came up this week is only to be expected of an institution that is by turns smug, complacent and self-interested.

guardian