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tv   Doc Film  Deutsche Welle  March 18, 2019 6:15am-7:00am CET

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that. earth a home for saving google and do just tell stories of creative people and innovative projects around the world ideas to protect the climate and boost green energy solutions by global ideas be in by a series of global fritos and on d w and online the floods have taken everything they own now despair is a god left leg climate refugees flood to. they seek shelter. but even if. the waters keep rising. the floods are coming. starts march twentieth to double. the mood.
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there was a time when the automobile is a symbol of freedom the carefree days when a full tank of gas could be had for a pittance but then came the first oil crisis when the price of crude oil so much. black and gold for oil producing countries it became a political weapon and a potent tuneful blackmail and threats. to. our dependence on oil cost us dealing the day when the world's oil reserves will run dry and now appears with the insight that this was just the start. of. the oil crisis did not foresee the events that up. the door to the
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exploitation of the new resource shale oil and i'm president and boom propelled the united states into the ranks of the world's largest oil producers. if. consumers benefited from cheaper prices this time it was the oil producing countries that bore the brunt of the price of oil collapsed between june twenty fourth chain and january twenty sixth in the price of a barrel of crude declined by seventy percent. just three major producers the united states russia and saudi arabia continue to buy for power and control shifting strategies and alliances helped turn the global economic and geopolitical order on its head.
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at the same time a global transition to renewable energy is underway oil is still king but is its room now drawing to a close. here in the heart of paris the kepler company keeps a sharp eye on the global oil economy. so you have. alexandra and lawyer is an oil market analyst. have to release numbers showing saudi arabia's exports are rising a bit and venezuela is still falling. about one hundred thousand barrels a month so i'd say that's having an impact right now. in september twenty twelve early in his career and lawyer published a study that predict. a major drop in the price of oil many experts disagree made.
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the loser put in twenty twelve the price of oil was one hundred dollars a barrel there was some thought he could only go up to two hundred dollars a barrel when i said all the prices would collapse they thought i was crazy and yet he could he be taller and he should jump twenty fourth. in january twenty fourth chain until his predictions began making headlines. with facing a technological revolution that could change the world as we know it today. black gold a recurring theme in the modern american dream the country's oil taps seemed endless and oil exports to. the industrial revolution helped make the united states
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a world power but to maintain a standing new sources of oil would need to be found. a row of saudi arabia. in february nine hundred forty five the americans and the saudis meet on board the u.s.s. quincy to discuss oil. have a new a factor security miter a sickle socrates issue there was a bilateral security pact which is what the saudis called. they said to the americans loserville we have an ocean of oil and will assure that you have a secure supply news of it in return we ask you to ensure our security coups yes you'll be able to security. i don't do so as
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a long way but understanding each other brings east and west together all of. the friendship would soon proved to be a rocky one in nine hundred sixty the oil exports of the middle east joined with venezuela to form a cartel that would defend their interests and stabilize prices. from that point on the organization of petroleum exporting countries opec would be a powerful force. somewhat on the madeleine get. a bit. worried about its own oil supply the united states halted its exports.
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the carefree years when a tank of fuel costs next to nothing had ended had become a political weapon. get over this with the film about the ninety's we've forgotten that oil crisis people were euphoric. dollars. they thought everything would be fine that we had the geopolitical situation under control and that we would retain a firm grip on the middle east the trees take about them it later we realized that wasn't the case but at the time that's what people believed book when we see. the terror attack on september eleventh two thousand and one was a profound shock to the u.s. government and its people.
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fifteen of the nineteen hijackers were saudi nationals. after september eleventh we saw the close relationship between saudi arabia and the united states began to disintegrate somewhat. but the us was very dependent on oil imports from the middle east including saudi arabia. we began to see american companies such as exxon mobil chevron and texaco shift from saudi arabia to africa which at the time was still relatively untapped. they focused on angola nigeria and the other countries along the gulf of guinea must. be there was doing. in the wake of nine eleven the u.s. began to pursue a new oil supply strategy in africa was just the beginning was that. saddam hussein and his sons must leave iraq within forty eight hours
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iraq held nearly ten percent of the world's oil reserves like the u.s. had taken another step in the direction of reducing its dependence on saudi oil nationals in any conflict your fate will depend on your actions. do not destroy wells a source of wealth that belongs to the iraqi people the americans would prove to have a keen interest in iraq's oil fields the weapons of mass destruction supposedly possessed by saddam hussein were little but a pretext in two thousand and three oil cost thirty dollars a barrel. the wolves of wall street got into the act the big american banks had the scent of black gold which had become an attractive commodity on the global market.
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my personal trading experience is in the oil but at morgan stanley at the time on my trading floor we traded all commodities so it included agriculture metals freight shipping natural gas power all commodities. an entire commodities market was booming and demand was fantastic for oil worldwide in china and particular in asia were growing a lot so very very positive did you make a lot of money yes a lot of money was made and because we had new market players and so then that creates more opportunity. over the next three years the process of oil more than doubled to concerts is due to this development of this banking business originated with american investment banks we need to ask are these two actually banks or are they perhaps financial institutions that engage in trading for most of the kids
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into goldman sachs and morgan stanley became major players. there were years when goldman sachs and over a billion dollars from commodities trading bubble. the commodities. falling and sears. the banks the speculators realized that oil especially crude oil was a fungible good. kind of substitute for money if you will. the most fungible good is money which is traded around the world but why don't you next come crude oil petroleum gasoline out of but it's also bought and sold all over the world the banks used oil as a way to engage in speculation. this because if. the financial industry had free rein they traded in future is legally binding contracts without ever seeing so much as
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a drop of oil. in the oil price is directly related to speculation it has nothing to do with the actual product anymore because it when the time when the crude oil is extracted and when it arrives at the refinery its price will have tripled. about thirty intermediaries will have all taken their cut it's completely crazy for me as a poor industrialist this is the key point fortunes have been made without any product behind it simply by means of trading the point really is some promoted typically. the rise in oil prices was not only due to speculation global demand from the merging of threshold countries and from china was also a driving force. it was very exciting because it was a new world and asia was developing so much that was. just very
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exciting that the entire world was growing it was wonderful but in two thousand and eight the price of oil hitting a new record. there was no oil price even went above one hundred dollars it was crazy hey it was so exciting as you know it when up and then it went straight down again and then it went higher again. so it was very exciting but still we had buyers so so long as someone wants to buy the oil it's ok. meanwhile american engineers and entrepreneurs were hatching a new plan to exploit the immense oil and gas reserves in shale and other rock formations while conventional oil deposits are for the most part easily accessible shale oil is trapped in rock so dense that it must be fractured to extract it the process is expensive but at a price of over one hundred dollars a barrel it becomes profitable.
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with the start of shale extraction extraction from unconventional reserves in the us sensed an opportunity to. live is unique you merely years explain you as was an oil exporter and the later they became an importer and signed agreements with the gulf countries some of us with here but now they thought maybe we could escape the clutches of those bothersome countries in the middle east to suit the more you know your dog in the mail. the permian basin in the heart of texas contains an immense oil reserve estimated at some thirty five bingeing barrels the first oil rigs went up here in the early one nine hundred twenty s. in the city of midland the childhood home of george w. bush oil is king.
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the development of the technology for frack and in the bill is a get it out that the permian basin was fabia ready if for any other reasons our say the eagle ford shale there was no is not a new big development and barnett shale but the shale play here we have so many advance individuals i hear and as for geologists and engineering groups they were already there could well write a sort of sort of play right here we have in some areas over twenty different pace that are stacked on top of one another this resource here is enormous the sake of the size of the permian basin it's it's it's meger in the state of alabama that's how big it is.
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alexander came in twenty fourteen the shale oil revolution was at its peak and. you can. use it to. court about it it was in full swing. during the first half of the united price it was at one hundred dollars a barrel drilling rigs were everywhere. everyone was euphoric there was a real estate boom years it was a true oil rush but that was structurally speaking shale oil extraction is a completely new and different industries talk about all this with just five million dollars you can start extracting oil within three to six months and or reserves elsewhere in the world it takes several hundred million dollars and a much longer time between two hundred four years was that it was very surprising how quickly things went teeth and how little money was needed for all.
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the shale oil windfall and now the americans to come to school imports as a result global demand story. so there was a glass on the market for one hundred million barrels of oil with no buyout. accident at those elevated it will show that fourteen oil crisis wasn't triggered by the americans it was triggered by the saudis it had a political dimension the u.s. had long been an ally of the saudi monarchy. she said yeah and as a tool. they had an understanding with the saudis own that they would turn the tap on and off in order to regulate market forces. but the saudis had no plans to throttle production instead they continued flooding the market hoping to push prices down at under seventy dollars
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a barrel they assumed the american fracking industry would fall to boil went into frame. made all of. the high stakes game of poker began in the first round saudi arabia urged its opec partners the all powerful cartel of oil producing countries to maintain their production though oil prices were crucial to their strategies. the old if she did in the summer of two thousand and fourteen the saudis decided to send oil prices plummeting to use high costs to push wreckers and other producers
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out of the market. we were surprised and started to scoop maybe they know the shale industry is on or about it. she stopped to crystal really hard. after a five hour negotiation opec conceded the saudi position they agree to flood the market and drown out the american produces oil prices continue to fall in. russia the world's second largest oil exporter stood back and watched. the country is not a member of opec and it had a somewhat different take on the american shall revolution. young what was the technology that permitted the development of shale oil and gas extraction was developed in the schlumberger in the bar a tree located in the city of najaf a c.b.s.
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company. that are in the development of this technology took place on russian territory but border if you combine into but we didn't think fracking would be implemented on such a large scale. ship that was. intense you know but it didn't surprise us because the united states and canada have significant hydrocarbon. so certain other was a.q. . unlike the united states russia doesn't extract its shale oil but even though russia was not surprised by the us fracking revolution moscow did not anticipate the collapse of oil prices. which early issued in your trip to the store in twenty fourteen all the russian officials and the oil and gas analysts believe the prices would not fall below eighty dollars a barrel. with two thousand years of really didn't think the saudis would risk that since it would make it difficult to maintain a balanced budget the more looks
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a bit was all it's old of are even the russian president said that the world economy would collapse if prices dipped below the eighty dollar mark foursomes dollar for the world crushing it over a couple. but the price kept dropping. as the holiday season approached moscow grew worried that the plummeting price of oil could send the country into a deep recession. the downward plunge continued. i. the major players in the us fracking industry working on a strategy to come up the saudi gamble with no end in sight to the drop in prices who would fold first. level
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your last shot but although shock the saudi decision unleashed a shock wave i commend it had an almost immediate impact on the shale industry difficult to understand there were massive layoffs in the united states. everyone cut losses cool the price you rock bottom at twenty six dollars a barrel. but if you. haven't so they're all set up for twenty six dollars was in a serious crisis some major factors continue to into every battle that's coming up us to flush out the financial resources to withstand the lower prices which they figured would last only a few more weeks or months dogs are going to they were right it is also said that. i don't think anybody was asked to panic and don't the tan actually you know working ourselves back up and everybody was still watching the price of the all you know met watch in a pretty close and i forget what the exact price was. her. last
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. every oil producing country was affected by the crisis but norway had an advantage. western europe's largest oil producer was observing the poker game from a safe distance and preparing to the future. no darwin award stored in tact for many years much of norway's revenue came from oil and gas exports to countries in the region. then before the crisis hit our government had already decided to diversify the norwegian economy. we needed a broader basis which would make us stronger at concentrating all our growth in one single source of revenue would make us too vulnerable what it would be on.
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the plummeting price of oil also had an impact on public perception. among mortar saw. rock fall in a certain sense it had a positive effect at least here in norway although it helped us move forward in the discussion about climate change and the oil companies grow a bit more open to alternative solutions i'll get a silver. or a more and more citizens or politicians realized that perhaps we shouldn't believe what the oil companies were say so every resource is finite even if they try to launch all these crazy projects like this all that helped trigger a shift toward what it was. so the scope the needle it. boil extraction began in norway in one thousand nine hundred seventy one and ninety nine hundred the country established an oil fund to invest its petroleum revenues this
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offer in wealth fund which has more than one trillion dollars in assets helps finance social expenditures in nov twenty seventeen the fundamentalist was considering divest in from or oil and gas saying the country already had enough exposure to this high risk industry but so far no decisions being made. but it's good they are to see it all when our time in the demand has peaked at all while one is worth anything anymore rich saying we don't know. or it could be a compromise one might go back up but it could also go down with. a working on a strategy to prepare. for the future. in another sign of the times the norwegian oil company stock oil decided to remain brand it's been renamed ecuador to signal its shift to a broad based energy company. for several years in
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our projections and scenarios we predicted a peak in both the man's and oil production around the year twenty thirty. but this is all very uncertain and for this reason we believe that renewable energies will play a role in the future. because up to the all. the norwegian company plans to invest two hundred million dollars in renewable energy by twenty twenty two ecuador develop the world's first commercial floating wind farm off the coast of scotland. the high wind is linked to a bunch of the storage system. but norway has not abandoned to oil and continues to issue exploration licenses.
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the oil market remains mired in crisis climate change has become an increasingly important issue on the global agenda. will go south but the six show. i thought. thank god since then president donald trump has announced his own energy policy i say are pursuing american energy they are going to stand by their. end of this year we will be totally self-sufficient we will be major x. four years of energy we will take it massive amounts of body we will start off by twenty three hours and then.
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the americans remain steadfast and withstood the price long. the us fracking industry had proven itself surprisingly resilient alan gilman is a leading strategist in the texas shale oil industry. so how in the world has it as the breakeven prize for an able to drop so much during that time frame i think that it was the the magic question that no one figured out when they made the decisions to not support the price or the production of oil so i think that it's. against changed the production of shale is very strong in the united states you know starting around forty dollars a barrel and going up and it gets better every year but right now if we're forty five to fifty five dollars a barrel we're going to produce we're going to continue to produce more oil you're
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over for. us produces a still drilling for oil engaging in launched our fracking and raking in the profits. of. saudi arabia had underestimated the american fracking industry the kingdom decided to shift strategies. behind the scenes at the ministry of energy ibrahim al mohan had long sent as an advisor to saudi oil minister as i would. put it. better than he had with the fees and at the federal both the drop in
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price and twenty fourteen and t.j. and twenty fifteen was the result of several factors when i was the audit and to have first was the increase in oil production outside opec mainly american shale oil. and i am going to stand the second factor was a slowdown in growth that we had and the global demand for oil sadhu that it will and with that it's. in the door of one to get any third of the opec countries didn't respond quickly enough we saw a drop in oil prices. they did not do what was necessary for the market to regain stability it was english. the entire saudi economy was affected by the collapse in oil prices. for the first time in its history the kingdom faced a record budget deficit of ninety eight billion dollars. in europe fuel prices were decreasing but in saudi arabia they increased by fifty
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percent. the saudi economy is now in the hands of crown prince mohammed bin cell man who wants to modernize the kingdom the billion dollars vision twenty thirty project seeks to prepare the country first future without oil. because that was so nothing to saudi arabia is far too dependent on oil that is dangerous and the demand. for the money. but that the authorities have started to change their strategy which depended on oil revenue enough in order to diversify our economy would be my summer . but without any of unfortunately the reforms are not being accepted the man the same me know what it wants to turn their backs on the energy sector but that's for
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ten years the kingdom has been trying to prompt a shift in people's mentality which must happen for this new direction to succeed but most of the population has not reached that point yet. where them all to me yeah my. last. the woman come sit in washington as the cute in love but. you couldn't cut it could be you know but the effort continues to live as a part of vision twenty thirty the kingdom launched the neon initiative a new mega city run entirely under a new label any g.l.d. see who are going for it what a little bird with a cut you were just to. take
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impact on a fresh round of poca saudi arabia had hoped to force the u.s. to capitulate to no avail now the member states urgently needed to come up with a new strategy to raise will prices. on the right but i think it is if the fact is that at the vienna masing opec was determined to maintain its credibility. and we had really a battle then for market share. in a sense you could make the argument that opec blinked first. because in some ways they might have been better. to allow prices to stay lower for longer
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because that really would have put a squeeze on non opec supply and us shale and in particular as it was financial pressures became too great for them. in what was called an historic agreement the opec countries pledged to cut for. option to help raise prices nigeria and libya were exempt to the cot gto unrest in their countries set up. in the main time the us had resumed its oil exports opec's production cuts allowed the us to get a new market share. at
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the next round in vienna in twenty seventeen opec hope to woo nonmember russia further into its corner and tipped the balance against american shale oil. the russian minister of energy alexander not back attending the meeting. but. until that point russia had never collaboration with opec many wondered whether they would reach a deal with the saudis russia is also an ally of iran a rival of saudi arabia in the syrian conflict the geo political chaos had reached its high point. we see and then you want to try to recoup the yorkshire has a natural alignment with oconee economically and diplomatically the committee there
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are very strong rivalries in the opec world especially between the sunni's and the shia m a tween saudi arabia and qatar although qatar has now left opec. that's left room for someone to step in. russia was a natural in that role. so for now they have good relations with various opec countries. including arch enemies iran and saudi arabia. is your idea is just a little like this given the conflicts in the region moscow is increasingly assuming the role of mediator. because the united states has extracted itself over more what is it isn't it that. i. was sure our model for the first time
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russia and opec have arrived at an agreement to stabilize the market and exports do it all this is a first into was and still believe that we expect that these good relations between saudi arabia russia the opec and other countries will continue such as kazakhstan azerbaijan and oman was yet will be in and of accord what do what it also does that stand out to be jan all much. oil and politics have always gone hand in hand russia had ambitions that went well beyond the new opec plus agreement. doesn't it we shouldn't exaggerate the importance of more than a chant political sphere party politicians and diplomats must cooperate with one
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another on other important questions to know there are other more forthright it's a much more oil and gas strategies play a major role in global politics there's no doubt about that but for it that is the the base not putin is head of the presidential commission of the energy sector of russia and we should put the people in that if school works for us. the oil crisis has reconfigured the g.o.p. it. the landscape resulting in surprising new alliances in one nine hundred forty five brought king even the son out of president franklin roosevelt together this time king solomon of saudi arabia traveled to russia to meet with president clinton . i. think she is the shoe store she look at or even russia there are political forces that support the opec plus agreement with the government and the president leading the way but as you. rice there are other forces that are categorically
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opposed to opec plus for us at the not especially our oil and gas companies which have an enormous production capacity when you are growing for them so that our state is currently controlled by the president and the government so the companies can't do anything now or in the near future by the company. in a small. opec went into the next round but it seemed the game was drawing to a close. earlier analyst alexander and lo yet had returned from texas and predicted an up evil in the oil market is full cost proved correct and the geo political landscape of oil was turned on its head. slumps where the order of seven needed care i mean american shale revolution has transformed the market by the end of twenty nineteen of the of the us will be producing nearly twelve million barrels
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a day the good part of this will be i to i or saudi arabia and russia other need for services that has an impact not only on the energy sector but on the entire global economy shake alone if you know i. both pick has turned a new page the future of the oil cartel and of russia and now closely into trying to. elicit back the more like the old we don't know how the world's energy demand will evolve. but over the next twenty years we'll need to examine our dependence on oil to put regardless of what trump might say for the result history book unleashing. since the dawn of the industrial revolution crude oil has made the world what it is today but how long will fossil fuel continue to became.
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the example of norway is a good illustration of how the global energy market might be transformed in the face of climate change. that's certainly. no way my to a man and major oil and gas supplier us but we want to meet the two degrees celcius coal or toward others we instituted important interventions to reduce c o two emissions imagery that our extraction on the norwegian continental shelf is quite environmentally friendly dog i don't believe any other country can match us here took this in a one on their lawn so mileage. nearest us first or so we're slowly beginning to grasp that we have too much fossil fuel
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not too little. that is a challenge because it means that humanity will have to set limits routes for the new lands this is the great challenge of our time the biggest thing of. all watergate story we must leave valuable resources that we would like to exploit which have brought us a great deal of affluence where they are so that we can protect our climate and the environment and the lives of future generations. the titans of oil have begun in a new ground under the watchful eye of a new play out china is now the world's largest oil investor and has become a renewable energy client because of being shuffled for the next round of oil.
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tomorrow today looks if at fifty two. we look down from high above the air. and here far out into space. what are the images we find tell us about are fine it and the people that live on it. join us on an interesting case. to borrow today. minutes for d w.
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first student school in the. first clueless of. gore's grand moment arrives join the arena tango on her journey to freedom in the morning to return to dora entering into and returns home. five days in the midst of venezuela's crisis in a fight to get aid to enter the country with the convoy of kong i don't support us and exclusive d.w. report alongside venezuelan journalist says about. a closer look at the country's catastrophic conditions on the way to colombia a showdown. starts march eighteenth.
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good. law. abiding. this is deja vu news live from berlin new zealand is said to tighten gun control laws in the wake of the christ church mosque shootings and the prime minister tells the nation it must face up to some hard truths. which have to be lived to the fact that there are those who do not share our values of arguments of diversity of compassion. and it's something we're going to have to confront as a nation go live to.


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