The crisis in the Middle East can cause another explosive rise in the price of oil, the Nobel Prize-winning economist said Joseph Stiglitz, who spoke to ERT and Apostolos Maggiriadis. The economics professor at Columbia University argues that the crisis in the Middle East “may lead to situations similar to the 70s, when we had an increase in the price of oil. The power of the countries of Iran, Saudi Arabia and Iraq is that they control much of the world’s oil supply. If they close the cannula, we might see again explosive rise in the price of oil. This can be a serious problem, like in the 70s.”
Mr. Stiglitz also argues that if Donald Trump is re-elected in 2024, Europe will have to forget about the USA and its aid, while it will also endanger American democracy. “The first of the consequences will be that it will endanger American democracy. With no doubt. Some say, “Don’t worry about it, in 30-40 years your democracy will recover.” That’s a long time. It will be disastrous for the global economy. You remember during the Trump presidency he broke international rules at will. He does not believe in the rule of law within the US and thus violates international law as well. It will create a more turbulent world. He also likes to have relations with dictators. This is not good for global democracy.
So, in every way, it will be disastrous. What will be clear for Europe is that you will not be able to rely on the US for Defense issues. Europe should have a European defense force. Necessary. You have Russia on your border. The “big bear” that wants to “swallow” you.”
In terms climate change, argues that it will cause serious effects on the economy as well, since it will also change the valuation of real estate and other assets. “We saw it coming, but our big mistake was that we didn’t realize how quickly it would come and that we didn’t see how bad the situation would be, in terms of the extremes we’re dealing with. It was clear he was coming. So at some point, I can’t tell you when there will be a change in the pricing of investment goods. If it happens late, we will manage it. But maybe one day the market will wake up, as it sometimes does, and say “Climate change is a fact” and we haven’t thought about how it affects the value of our goods.
Source: News Beast
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