The Butterfly Defect: How Globalization Creates Systemic Risks, and What to Do About It Blog Intro: The world is in the grip of an economic malaise. Brexit, the election of Donald Trump, slowing growth in China, and increasing support for populist policies are just a few visible signs that globalization may have run its course. But what if the problem goes deeper? What if the very structure of our globalized economy is flawed and currently driving us towards a systemic crisis? In this blog post I suggest that we are suffering from what I call the butterfly defect.