“We should be much further ahead than we are!” says David Letterman, who welcomed to his show Elon Musk, Chairman of Tesla Motors. Letterman’s voice is cracking and raspy, almost losing his voice,but he manages some great questions of his guest. Letterman seems excited about the development of electric vehicles, but around the 8min 15sec mark he mentions his chief concern: that “it would magnetize my nuts.”

It’s not hard to find evidence to support Tom Friedman’s ‘Flat Earth‘ theory, especially these days. The U.S. subprime meltdown went through the global economic bloodstream like a virus, infecting economies big and small- poor Iceland is still in intensive care. Speaking of viruses, the World Heath Organization says the Swine Flu pandemic is imminent, classifying it as a Phase 5 outbreak. Chrysler announced yesterday it would file for Chapter 11 bankruptcy and merge with European carmaker Fiat. The pitfalls of globalization are everywhere you look, but they also stand as a reminder of the speed at which change can arrive- for worse, clearly, but also for the better.

When it comes to green innovation, we’re often left daunted by the challenges. Can we act fast enough to stave off climate disasters? Won’t it take years to integrate these new green products/technologies into the mainstream? And as long as China is building coal plants at a rate of once a week, aren’t we putting our own economic interests at risk by setting strict emissions standards?

While it’s true we lag behind on a lot of green thinking, the US is still the flagship in the fleet of trends. If we can go green, the world will follow. If we can invest in cost-effective, energy-efficient smart grids, plug-in hybrid technologies, electric vehicle infrastructure like the kind Shai Agassi at Better Place is developing, the world will buy it.

Am I suggesting the current world crises could have been avoided with a little more “green thinking?” Pretty much, yeah. Chrysler? I’m sure there are lots of factors (labor costs, stiff foreign competition, yadda yadda), but, c’mon, have you seen these cars? Do they look like the cars of tomorrow? Is the Sebring exciting you? The Chrysler Aspen Hybrid? Really? That’s what you’ve got?

Some are already seeing the Swine Flu outbreak as a result of factory farming. “When the CDC and the USDA conduct their investigation in Mexico,” writes Sarah Fobes, “they will start with the industrial scale pig farms that have been growing in numbers over the last decade…[noting that many] American pig companies have been opening up pig factories in Mexico, where the outbreak started.”

And, while it was probably greed and a lack of oversight and personal responsibility that helped create the conditions for the subprime meltdown, green innovation might help create the conditions for recovery. Just yesterday, the Metropolitan Transit Authority said it will save $200,000 annually just from having changed to compact fluorescent lightbulbs at Grand Central Terminal.

With our tongue firmly in our cheeks, we say, yes, of course “going green” will solve the world’s problems!