Reminds me of that great quote I heard about Rhodes Scholars:

  A Rhodes Scholar: someone with a great future behind him.

The same type of lax logic can be observed in the world's infatuation with the dramatic rise of Japan in the 80s, dubbed the "Japanese Miracle". This logic can be seen, repeatedly, throughout human history, with more recent examples being Communism in the 60s, the "Asian Tigers" of the 90s, and the "New Economy" babble of pretty much every single human period. Indeed, I'm seeing the same kind of statements about China and India as the "New World Powers".

Here's the reasoning (if you want to call it that):

Look at that growth rate! If this keeps up - sooner or later they'll be stronger than America!

  Sigh

Start low enough (19 year olds anyone?), and any growth will look enormous (startups; this applies to you too). If they kept at the growth rate you claim we'd end up with India and China being greater in size and scope than the entire universe.

Look everyone! This kid got into MIT at 14 years old! Extrapolate that out a few years - he'll clearly be too awesome for us mere mortals to even comprehend!

I mean really, that's honestly how people think. They never check back on said prodigy 10 years later, who has become, just as one would expect, a moderately accomplished human being (reversion to the mean). Indeed many just plain flame out and disappear from sight (a sad fact).

Woo extrapolation! It works right? Come on, I mean it's not like these systems are complex at all!

  Statistics guy just shakes his head in complete disgust