Russia Issues Economic Ultimatum, China Drops Stimulus Bombshell To Counter G7 Threats

Russia Issues Economic Ultimatum, China Drops Stimulus Bombshell To Counter G7 Threats

all right guys so Russia just issued a
very daily ultimatum It’s the final
warning to the West not to cross the
line not to cross the financial Rubicon
but just like the 61 billion to Ukraine
there’s a big risk of the unthinkable
happening lawmakers in the US they have
approved the a to Ukraine more money is
coming to fight the Russians and the
breakdown is really wow 61 billion for
Ukraine and to replenish us weapon stock
bounds in other words helping to grow
the military industrial complex a ton of
money is heading to the US defense
industry 26 billion is heading to Israel
4 billion of which is to replenish their
missile defense systems and of course 8
billion is year marked for the Indo
Pacific specifically to counter China a
lot of money is once again used to
replenish the weapon stock pounds it
doesn’t take a genius to see who’s
really benefiting from this bill is the
exact industry Eisenhower was warning
about but what made Russia angry was a
provision with within the bill that
allowed Ukraine to use funds from the
frozen assets we are on the brink of a
massive confiscation spree between
Russia and the West in response a top
Russian lawmaker is urging the Kremlin
to confiscate Western assets to take a
preemptive strike before the Frozen
reserves gets taken away mosow has also
given an ultimatum to Europe if you take
our assets we have a response that were
hurt if the EU moves ahead they will
lose more than Russia and we must
realize that this isn’t an empty threat
Putin has seized Western companies
before on Russian soil the most recent
was the seizure of Farmland from a US
controlled company they took around
600,000 acres of land back to the state
away from private investors now there
are two causes of action they could
pursue the first is seizing Western
companies and any physical assets on
Russian soil that’s the most direct way
the second is legal action against the
US itself and the goal of course is to
cause an international to remind the
world of us overreach Kremlin voun legal
action against the US bill on seizing
Russian assets the trial will be very
complex it’ll be very messy but it could
cause severe damage to US economic
interest if the bill passes if we dig
under the surface a little it’s clear
what Russia’s agenda is it’s not just a
simple t for Tech confiscation it’s
about trying to break the dollar system
by telling the world that counterparty
risk in the west is real according to
best SC if the bill passes many
investors will think 10 times before
making any investments in the American
economy or storing their assets there is
the legal front that could potentially
cause the most damage Russia’s going to
hammer this gong wherever they go in
their meetings with the Chinese all the
way to Africa and doing their trips to
the Middle East confiscating the Russian
assets will provide Putin with a new
railing cry he will push for
dollarization everywhere he goes ESP
especially in the upcoming brick Summit
in October and that Summit will be held
in Russia itself now it’s important to
note there are many voices in the west
pushing back against the confiscation
the head of the ECB Christine lagard is
warning against this that the plan to
use the Russian assets carries a ton of
legal risk she knows the song and dance
the US is doing and if this passes it
could undermine the Integrity of the
Western Financial system moving from
freezing the assets to confiscating them
through dispos of dam is something that
needs to be looked at very carefully it
could untila breaking the international
order that you want to protect it’s a
simple domino effect the majority of
Russian money is trapped in Europe and
if the confiscation happens Europe will
be affected the most the US will be
insulated from the worst effects because
they still hold the reserve currency and
just like how the war screwed Europe
over when it came to energy Supply this
confiscation will hurt the Euro Zone
more the warning is coming from the East
CCB itself you’re talking about 6
billion in the US and 260 billion in the
Euro Zone and that puts the partners in
a slightly different position in other
words Europe will be screwed worse than
the US now lagard also admits that the
dollar gives the US a powerful Shield
compared to Europe America can always
hide behind the US dollar I think the
issue of international currency is also
asymmetric in some ways and that needs
to be taken into account so if a
confiscation happens the Euro will be
damag Dage much more than a dollar the
biggest threat to the West isn’t really
Putin’s counter seizure yes there’s
around $200 billion trap in MCO
somewhere but the destruction of trust
will hurt even more let’s focus on the
bond market to fight the Russians Europe
and the US will be spending a lot of
money and where is that money going to
come from you’ll be borrowed into
existence Global bonds are falling on
winning demand for Havens and sales
deluche the us is going to sell over 180
billion in treasury bonds
Germany and the EU are also issuing a
ton of debt as well the West is boring
so much that investors just can’t keep
up and this is starting to push up bond
yields across the board borrowing CS are
flying to the moon since December last
year bond yields in Germany and the US
have been rising the US ten year has
gone from 3.8% to
4.6% the German BN has also reasen by
over 50 basis points as well and all
these are big moves that make borrowing
extremely expensive it makes the US debt
crisis even worse it could force Europe
to break their own borrowing limits as
well and just imagine if the
confiscation happened money especially
from the global South will be hesitant
to buy Western bonds the seizure will
remind the world of counterparty risk
and this will keep borrowing cost higher
in the years to come it’s really
counterproductive if I put myself in
Europe shoes if I was the West taking
$300 billion today to sacrifice my bond
market is wor it why would I cut my
future capacity to borrow 1 trillion 5
trillion or1 trillion down the road and
let’s not forget the rearmament race as
well to counter China and Russia the G7
is looking at $10 trillion of spending
over the next decade that is a lot of
money to be borrowed trying to
confiscate Russia’s assets today will
make the cost of raising Capital more
painful tomorrow and this is the true
ultimatum Russia is giving it goes
beyond just seizing the Western asset is
more about breaking off the bond market
but as scary as that sounds it’s nothing
compared to the economic war between the
US and China Russia is just the
appetizer a bigger storm is coming now
over the past few months the US and the
EU they have been confronting Beijing
and the main grip they have is China’s
overc capacity how China is flooding the
world the global economy with cheap
exports like EVs and this one chart
shows it all between Europe and China
Chinese exports of cars are catching up
fast in just three years China’s exports
have gone from $2 billion to nearly 20
billion is an exponential increase
conversely Europe’s car exports are
starting to fall and it won’t be long
before China takes the lead most likely
in 2024 it’s important to understand the
economic war between the US and China
China has pledged to grow their
manufacturing the shift from Real Estate
to Industries is working in renewable
Industries they they are leading the
world Beijing has pought nearly $700
billion here they are world leaders and
this allows them to CH out high-tech
products that cost less without
compromising on quality this is key even
the US and the Euro Zone combined they
fall short of the Chinese investment and
this is why the West is afraid they have
lost the industrial base of the future
the Gap today is simply too big to feel
and that’s why they are moving to
contain China that’s why they’re moving
towards containment that’s the main
strategy the US is trying to shut down
China’s industrial growth and the only
Avenue they have is to cut Beijing away
from consumer markets star them out make
it difficult or impossible for China to
access big consumer bases like the US
and the EU now a great example of this
is Mexico pushing away China’s biggest
EV maker byd from Reuters Mexico’s
federal government is keeping Chinese
automakers away thanks to pressure from
the US in incentives given to other EV
companies including lowcost land and tax
cards won’t apply to Chinese companies
the US doesn’t want China to manufacture
lowc cost EVS in Mexico and then sell
their vehicles in the US without tariffs
in other words Biden doesn’t want us
companies to compete with China’s
industry I think it’s getting rather
obvious now and the repercussions are
big free trade is over guys it’s all
about block politics now China’s exports
are going to face a big Western Wall of
restriction
exporting Goods to the West is going to
get quite difficult Beijing isn’t stupid
and they know this and that’s why
China’s hitting back condemning the US
overc capacity claim just before
blinken’s visit it’s very rare for the
Chinese to do such a thing they are very
famous for just hanging back and seeing
how things go but this preemptive
statement is very important it’s a
declaration that China isn’t blind they
say that the US has a malicious
intention of Curbing and suppressing
China’s Industrial devel velopment it’s
economic coercion and bullying and as
you’ll see Beijing is taking steps to
counter the West the real battle between
China and the US is economic it’s all
about sanctions and trade restrictions
and this brings us to China’s stimulus
plan now if sanctions are coming and
exporting to the West gets difficult
there’s only one solution left and
that’s building up your domestic Market
China has reviewed more details about
their stimulus plan and this revolves
around trading in their old cars and
appliances
the plan here is to boost domestic
consumption in China remember president
she’s objective 5% growth for China this
year in 2024 now q1 came in at 5.3% but
to sustain this momentum Beijing just
can’t rely on exports Global consumption
is slowing down and the West is
targeting Chinese EVS to survive China
has to build up their own domestic
consumption base and to do that Beijing
is planning a big stimulus push it’s
really massive this is essentially a
tradein subsidy program the government
will give subsidies to people swapping
their old cars appliances and equipment
and this applies to companies looking to
upgrade their machines as well and in
total Gman expects this to generate at
least $110 billion of new demand and the
biggest winner would be the Chinese EV
industry it’s not just about blindly
throwing money at people it’s very
different from the US stimulus checks
four years back and we kind of know a
ton of do to spend on Jung like luxury
BS Beijing doesn’t really want to do
that they are focusing this stimulus on
the industries that matter to them the
future drivers of the Chinese economy
they want to get people spending in the
right Industries now this is a very
useful chart we can see China’s economy
is being driven by industrial production
is growing above the previous Trend but
retail sales are lagging behind and a
big part of that is the wealth effect
from the property collapse because
property prices are crashing people are
rather cautious with their spending and
this is what the stimulus program is all
about Beijing wants to Boost Retail
Sales to drive consumption higher for
Chinese Industries they want local
Chinese money to grow China itself to
grow their EV and smartphone companies
further is basically capital
reallocation on a massive scale and the
trade in program is the trigger for it
stop buying Western Products and start
buying Chinese technology instead now
will this work we have to wait and see
it depends on how much the government is
willing to subsidize at the end of the
day Goldman expects this will grow
China’s GDP by at least
0.6% it’s a huge increase considering
the size of the economy the majority of
which will come from households spending
on cars so we are seeing the early
Rumblings of the shift towards domestic
consumption if the West continues to
hammer Chinese exports this is the only
option left the only option left is to
go domestic this helps them meet their
GDP goals sanction proof themselves and
grow their Industries all at the same
time and this is a consequence of all
the decoupling talk going down all the
decoupling that they risking manifesting
in real time it’s really important to
understand who’s the biggest loser here
the government subsidies will apply to
Chinese products obviously for example
EV subsidies will be for Brands like byd
and as more Chinese people buy local
cars these will hurt Western exports to
Beijing it’s simple cause and effect
Germany’s big automakers depend on China
to survive this sell a third of their
cars into the Chinese market Brands like
Volkswagen and Mercedes-Benz rely on
Chinese money to stay afloat if the West
keeps hammering Chinese exports China
could very well subsidize their domestic
Market further and squeeze away Western
Brands and The Biggest Loser here will
be Germany and if they lose the Chinese
consumer the only Avenues left will be
Europe and the US now granted those
markets are big but they won’t be
growing as fast as China so this trade
war is going to hurt everyone and here’s
the kicker China exports only a small
share of their car production only 16%
of their production is sent abroad
conversely Germany exports three
quarters of their production to the
world and if push to a corner China’s
domestic consumption can cover its
industrial base but for exporters like
Germany they have to rely on the World
to buy their products and if a third of
their Market vanishes it will end badly
we are talking about massive drop in
profits and of course terrible job
losses around going after China and
Russia won’t end very well the global
economy is just too complex confiscating
the frozen assets will backfire on the
Western Financial system restricting
Chinese trade will Boomerang back on
Western exports as well so you can kind
of see how things are getting worse it’s
not getting worse every year every month
or even every week is getting worse
every single day this economic war is
going to escalate even further but let
me know what you think will the Weare
seize the frozen assets and will China
stimulus plan really work let me know in
the comments below stay safe be sure to
smash the like button and subscribe as
we navigate through these crazy times

In response to the US passing a bill to seize the frozen assets, Russia has issued an ultimatum to the West. It has threatened the US and Europe with counter-seizure and a response that will hurt the Western financial system. Meanwhile, China is moving ahead to accelerate their industrial growth. To accomplish this, they are about to unleash a massive stimulus wave to build up their economy and consumer base.

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✅ Timestamps & Chapters:
0:00 Russia Issues Financial Ultimatum
3:06 ECB Rejects Asset Seizure
6:33 US Moves To Contain China’s Industries
9:42 China’s Big Stimulus Plan
12:37 Europe Will Lose Big Again

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