All across the world whats the whats the gambit go ahead. Well thank you yeah the timing the gambit of the gambit as well as a separate thing all this turmoil and black swans concurrently happening around the world really kind of begs certain geo political questions in my opinion you have coronavirus more or less announced really kind of command saying on new years eve and then the rollout is fairly rapid and. In a sense the attention being kind of collapsing of as you said already low Energy Demand but as a demand especially within chinas collapsing then you have the announcement of the pandemic and the timing then of opec really saudi arabia and to a certain extent now u. A. E. You know just insisting on the pullback which would in turn affect the desired medium term desired from russia to capture more of the Global Market share within the energy space and at some point there was a budding of heads russia i sensed saw through you know a certain coordination issues you had unofficial
Since 1980 sevens a black monday crash caused by investor fears over handling of the 1000 crisis. Taylor is here next hour with the latest updates but 1st. Prices are battering the world economy. Ways and the issues next day with. Hello and welcome to cross talk were all things are considered im Peter Lavelle with the coronavirus now officially declared a pandemic the world faces the additional burden of an Oil Market Collapse this comes at a time when demand for crude was already low some are calling this the ultimate perfect storm. Ends is anyones guess. Crude carnage im joined by my guess was me in beirut hes a professor of economics and International Affairs in irvine we have pai and he is an independent economic and political analyst as well as a former commodities trader and in toronto we Cross Alexandre Bruno he is an analyst at gulf state analytics sorry gentlemen crosslike rules in effect that means you can jump in anytime you want and i always appreciate pilot may go to you 1
Washington and we the people. Im going to get right into the idea of revolution. You say in the book america has been through divisive. Before, some worse than the ones were iwe are in today with the hindsight of history can see them as Inflection Points, the transitional period between the old system that is broken down and a new one so largely. Are we in an Inflection Point . Guest absolutely. We are in the middle. The best example is in 2016 in the republican primaries there was a real civil war that the Establishment Republicans represented by jeb bush and others didnt get the nomination, didnt get the support of the American People. It was the revolutionary donald trump. The democrats are going through the same thing right now they are having a civil war in their party but is it going to be the traditional democrats, is it going to be some outsider, is it going to be a socialist but that is indicative of the fact washington doesnt work. It hasnt kept up with the country and i gues
America has been through viciously divisive periods before far worse than what we live through today with the hindsight of history we can see that as the Inflection Point between an old system that is broken down and a new one sorry at the Inflection Point . Absolutely right in the middle of it the best example is that in 2016 with the republican primary there was a real civil war and the Republican Party the establishment representatives like jeb bush and others didnt get the nomination or the support of the American People it was donald trump the democrats are going to the same thing right now they are having a civil war in their party is it going to be a traditional democrat or the outsider or socialist and then to govern the people but after a long period of thoughtfulness to go through the divisive periods we are a dynamic country geographically economically we are costly reinventing ourselves as individuals and as a nation and government by our very nature and then they get stuck
Their homework and they sense that they can write out a price war much better than the very over leveraged you know 50000000000. 00. Budget constraint to saudi arabia that needs 83. 00 a barrel of oil in order to balance its budgets as well as fund its longer term visions of getting off of oil and expanding its economy under the vision of mohamed bin solomon so its really people have to look at this as a sense of it these are not just necessarily coincidences in my point of view because the ruble was strengthening last year russia has been on a d. Dollarization platform in order to diversify away from dollar reliance in part to fight sanctions thrown against it as well as its partners but also to strengthen its own ambitions to have its currency the currency of its allies really rival if not travel. Its the 47 year old petro Dollar Standard which is the effective monopoly globally with regard to oil or gas pricing so theres a lot of you know its a game of chicken really behind the scen