Macron is picking up and Europe is Beginning to wake up now we are now Seeing cracks forming in the Western Alliance and when macron visited the Netherlands he doubled down on his Comments about France staying neutral on The Taiwan issue he's also calling for European sovereignty but he made one Statement that Unleashed a wave of Outrage and he said being an ally does Not mean being a vessel doesn't mean That we don't have the right to think For ourselves and this reveals a lot but Crone understands how much power the U.S Has over the continent and this is why He's pushing for strategic autonomy in Europe right essentially he doesn't want Europe to become vessel States caught Between the U.S and China conflict and Background went even further targeting The U.S dollar he called for Europe to Reduce their dependence on the dollar System seeing how it can force European Companies to forego business with third Countries or reach sanctions violations And remember this is not Russia this is Not China making this statement it's France a NATO member a country that's Part of the G7 itself and there is cause For concern back in 2014 the French Bank BNP Parabola was fined almost 9 billion Dollars by the United States and the Reason for the fine financing exports From Cuba Sudan and Iran from their
Branch in New York and these were Countries on the American sanction list And it was such a big find that the Former French foreign minister called it An unfair and unilateral decision so France is looking back and realizing how Much risk there is being caught in the Crossfire they know their economy is Suffering from all the sanctions and the Protests are getting worse they burn Down macron's favorite Cafe and now they Just stormed the headquarters of lvmh The HQ of Louis Vuitton was under siege And this total chaos on the streets of Paris so macron's sudden shift towards China and autonomy is all about Preserving the French economy he cannot Allow the economy to fall the longer the War drags out the biggest losers will be The Euro Zone and it's very simple to See the the Damage Done to Europe the IMF they have revised their GDP Projections and the Eurozone is slated To be the worst performing economy in The world the US is projected to grow by 1.6 this year but just take a look at Europe only 0.8 percent growth Germany And the UK are expected to contract into A recession with negative growth France Is also next on a chopping block at only 0.7 percent but here's the interesting Part countries like China India and Saudi Arabia are going to experience Very decent growth in 2023 they are
Countries that retain independent Thinking they didn't blindly follow the G7 sanctions on Russia in fact countries Like India and Saudi Arabia they made Masterful moves and this allowed them to Get a hit and use the conflict to their Advantage and this is the reality that Europe is being confronted with every Day they are asking one question with Greater urgency did we choose wrong did We miscalculate and it seems that all of Russia's allies and their friends are Thriving and only we we are suffering And we are beginning to see this doubt Creep into the upper ranks of the European leadership it's no longer just Macron thinking of strategic autonomy we Have Charles Michelle the EU council Boss warming up the micron's view on Europe pushing away from the United States and it's very important we Analyze the statements on the issue of The relationship with the U.S I think Quite a few leaders really think like Emmanuel macron and he goes on to add But if this alliance with the U.S would Support that we blindly follow the Position of the United States on all Issues no and this is important because It shows the world that the EU is Regaining some independent thought Because ascensions aren't just affecting Russia European companies European Countries are also affected and just
Recently the U.S they sanctioned a Russian control back in Hungary causing The country to abandon it but take note Of what prime minister Victor Orban said About the sanctions the U.S had not Given up on its plan to squeeze everyone Into a War Alliance a step that he said Hungary would resist and I think this Tells us the state of Europe today they Are getting tired of secondary sanctions Being slapped onto their companies and It discontinues we are going to see more And more countries calling for Independence more leaders are going to Start flying to Beijing to cut more Trade deals and this is the big dilemma That Eurozone is facing following our Traditional Ally the United States is Bankrupting us but America hates China So trying to go East is also a very big Problem now macron said something big During his trip to the Netherlands he's Calling for Europe that's less dependent On foreign powers listen to this Defending sovereignty doesn't mean to Shy away from our allies it means we Must be able to choose our partners and Ship our own destiny and it's clear what Macron is saying he wants to work with Countries in the East especially China Because that's where all the money all The opportunities are you see China has Managed to get into a power position When dealing with Europe it is not just
The world's biggest Factory but also the Gateway to cheap and Limitless energy Now Putin is obviously flooding Beijing With cheap Russian oil and gas plus we Have the Saudis and the Middle East all Sunning long-term deals to supply China With energy and let's just look at France biggest company lvmh yes that's The company selling all those LV bags And luxury stuff they just broke into The world's top 10 with a market cap of Nearly half a trillion dollars 500 Billion dollars and guess what it's Feeling it's rice the Chinese market but Not announced is now the richest man on Earth thanks to Chinese consumers buying All his perfumes and Handbags and According to routers lvmh the world's Largest Luxury company reported a 17 Rise in first quarter sales more than Double analysts expectations as China Rebounded sharply after the lockdowns And this is just one example of why Europe is having such a big dilemma do We stick with our traditional alliance With the US and bleed out in the sun or Do we head east and work with Asia to Save our economies and to us this seems Like a real no-brainer all right but we Got to realize that after World War II Europe has seen the us as the big Brother and tried to break away isn't Simple but if they don't then Europe is Going to face the industrialization
Their economy is going to be in big Trouble and I need to re-emphasize how Important macron statements are it shows That G7 Unity is starting to crack and Let's understand Russia's plan their Plan is to drag out the conflict for as Long as possible they want to inflict as Much economic pain and long-term Inflation on the west especially Europe And because of the sanctions Europe has Essentially restricted itself from the Majority of Russian oil and gas and what Does this mean they need to go out to The open market to buy energy and that Means higher prices but here's the funny Part Putin's oil sales are doing just Fine Russian oil exports have hit Pre-war levels as China and India buy 90 Of moscow's crude and this is a very Important piece of information which Tells us two things now firstly the Sanctions on Russian aren't working very Well Putin is still selling his oil and He isn't losing volume in the first Quarter Russia's could all export total 3.5 million barrels per day versus 3.35 Million Barrels in a year ago quarter And this is quite shocking Russia is Selling even more oil today than before The conflict started and if we look at The price of Euros it is now trading Above the G7 price cap of 60 dollars yes Russian revenues are down per barrel Compared to a year ago but Putin is
Making up for the margin loss with Volume money still flowing and a Russian War chest isn't running dry anytime soon But a second Revelation is more Disturbing for Europe China and India Now account for roughly 90 percent of Russia's oil each country snapping up an Average of 1.5 million barrels per day And guess what that's enough to absorb The shipments that no longer head to European nations and this means Russia Has proven that their oil markets can Survive without Europe as a customer Right Russians to as many friends in the Global South that will keep its economy Afloat sanctions from the West was just A big roller coaster ride back to the Starting point they're back at square One and the only effect was more Inflation for the entire world Especially for the Eurozone and then Wants to record the embedded leverage Europe has with Russian energy and this Is very important just how dependent is Europe on cheap energy and this is where We need to return to Zoltan posa's Research on Germany's leverage on Russian gas and is alarming that two Trillion dollars of German manufacturing Value relies only on 30 billion dollars Of Russian gas and a similar ratio Likely applies to the rest of the Eurozone and that is some incredible Leverage that Europe has lost so just
Imagine a future where India and China Keeps getting cheap Russian energy while Europe pays the full sticker price on The open markets and we can see the Price difference between the Russian Euros and brand crude has flown up since The start of the sanctions Russian oil Is still trading at an incredible 20 a Discount versus Brad crude and if you Look at the charts India and China they Enjoy over 12 months of cheap Russian Oil with discounts reaching almost 40 Dollars and whatever Advantage Europe Had in the past has now flowed to Asia And this is why Europe is sweating and Beginning to question themselves because If we zoom out and look at the Big Joe Political picture it's essentially one Grand battle we have a battle between Two economic blocks that's the G7 the World's richest countries on the left And China plus Russia on the right but What's freaking Europe out is the amount Of support the China Russian block is Getting from the global South especially From Saudi Arabia and let's recall two Big moves that just happened the first Was a coordinated move by OPEC plus to Cut oil production yes the main reason Was to protect revenues but it's also Showing the G7 that the Middle East is Standing with Russia they are Coordinating oil policy together and the Second is arguably even more frightening
For Europe and that is Saudi aramco the Kingdom's National oil company building Two refineries in China and because of This deal China is guaranteeing an Additional 700 000 barrels of oil supply From the Saudis so Europe has lost their Source of cheap Russian energy and China Is now capturing even more Supply from The Middle East essentially the G7 is Caught in a short squeeze in oil the Supply is Flowing to Asia so whatever Oil they need will be bought at an even Higher prices that's why we're starting To see Unity starting to break Especially in the energy markets the First bombshell was Japan buying Russian Oil above the price cap now this is big It's a G7 member breaking away from the Rest of the agenda to protect their own Economy now of course Japan has received Commission from the U.S to buy oil from Russia and they got it America has no Choice but to agree or it will fragment The G7 even further and this is very big News because if other G7 countries need To access Putin's oil and gas it's now Very hard to say no we could very well See France Germany and even Italy import Cheap energy in the future Now France is Already starting to break away from the Petrol dollar Legacy they imported 65 000 tons of LNG from the UAE and then Sold it to a Chinese oil company in Chinese Yuan we need to break this down
This means a French company was willing To accept the Chinese Yuan as payment And this means they are going to do even More business with Chinese companies They are going to use the Yuan to import Chinese goods and energy down the road And for China this is a win as well they Have effectively bypassed the US dollar And save on the exchange rate they can Now hold fewer US dollars for their Trade China and France have effectively Done a bilateral deal using local Currencies and this is very bad optics For the US dollar and it won't be the Last if China keeps up their demands for Oil and gas at favorable terms we will See more countries transact away from The reserve currency and here's the Interesting thing the G7 they have not Revised the price kept on Russian oil Remember it is set at 60 dollars today And we have three EU members looking to Revise the cap Estonia Lithuania and Poland wants the G7 to cut the price cap Down to 52 dollars but we are now in April and there hasn't been any revision Yet and this tells us that the price Caps just don't work it will just jack Up the price of oil for the West even Further Europe will be paying even more While Asia will be enjoying greater Discounts other countries like Hungary Are still also buying Russian energy They just extended their deal for more
Russian oil and gas the foreign minister Himself flew to Moscow to seal the deal So the Breakaway has already begun in The EU and within the G7 itself so what Does this mean it means that we are Reaching a new normal where individual Countries are making more decisions for Themselves they are breaking away from Block politics that dictate what you can Buy or what you can't buy and it's just A matter of time before we see more and More EU Nations Breakaway to deal with China and even in Russia and this is why I like to return back to how smart India Is they decided to keep dealing with the Russians and they are winning because of All their cheap energy Imports and Staying neutral India is going to emerge As the fastest growing economy in the World and I want to end this video with An important statement from the Austrian Foreign minister about how Russia will Remain important for Europe Dostoyevsky And Tchaikovsky remains a part of European culture whether we like it or Not Russia will continue to be our Biggest neighbor it will stay the second Largest nuclear power in the world so Let me know what you think in the Comments below will more countries in a G7 Breakaway and who is truly winning The economic War let me know in the Comments below stay safe be sure to Smash the like button and subscribe as
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