Re: The Most Serious [x] Problem We Face Today
In another thread I suggested that a particular economic condition that is receiving some attention in the news may not even be as big a problem as it's made out to be, and whatever kind of problem it is, it's not one of the ten most serious ones we face. Naturally I was then challenged to name my top ten...

! *
OK, so for a "serious" problem, I'm going to suggest two components:
severity and
likelihood. Collision of the earth with a giant comet would be extremely severe and highly unlikely; a flu epidemic would be highly likely and probably not severe enough to crack the top ten.
I don't have a formula, I'm scoring on gut reaction. Also, I reserve the right to change my list whenever I see a good suggestion from someone else...

after all, if you steal from one person it's plagiarism, if you steal from ten people, it's research!
So, my
# 1 most serious problem is a bit abstruse and yet both fairly likely and highly severe:
the paucity of capital around the world relative to the commitments it is called upon to honor (in other words, the international financial crisis, described in functional terms).
Premise A: world-wide, peoples' well-being is highly dependent on international trade (the parts to everything we use come from different places, people!)
Premise B: international trade is highly dependent upon the international financial system (people need to get paid!)
Objective fact: the international financial system is founded upon capital reserves.
Sounds pretty abstract....the entire international financial system is based upon a concept called fractional reserve banking. In other words, because most of the time a significant amount of the world's money supply is in circulation, financial institutions are required to back the totality of their "book" of obligations with only a fraction of that amount in reserve capital (it's this structure that makes a "run on the bank" so lethal). Typically, the ratio is around 20:3 or maybe 4:1.
So if the value of the world's capital held in reserves is reduced by 0.5%, the cumulative amount of commitments "backstopped" by that reserve capital is reduced by 2.0%. Most of the time, because most problems have been local, there's been enough resilience world-wide that we could ride through rough patches (also, and not so long ago, the proportion of the entire supply of capital commited to reserves was lower than the the proportion of the entire supply of capital committed to reserves today. if more reserves were needed, and the "price" offered was high enough, additional capital would step forward to "beef up" the reserves: see Buffet's investment in Goldman in the middle of the crisis). Set aside the math for a moment,and think of a pantograph: a small motion in one part becomes a substantially larger motion in another part (okay, maybe that's too obscure, too...<shrug>)
Anyway, the LIBOR "scandal" merely means that banks in 2007-2008 were uneasy about the solvency of other banks, which suggests that the source of their uneasiness might be inside knowledge of how close they themselves came to the brink...
This problem has receded but by no means is solved. The situation is exacerbated by the politics: all markets want to do is settle on a price. As long as politicians keep proposing gimmicks, then accurate pricing becomes well-nigh impossible, because politicians, from the markets' perspective, by their nature are irrational and unpredictible.
This has the potential to be severe, and the likelihood is scarily high.
Fortunately,
this problem can be solved with honesty and resolute willpower: provide stability and accurate information, step out of the way, allow markets to price the results appropriately, and move on from there.
* which means one of my most serious problems right now is my tendency toward hyperbole when I get passionate, and the respondant tendency of others to then take me literally and challenge me to support my assertion....