The G7 summit shows that the West has exhausted effective sanctions for Russia. The economic and geopolitical importance of the G7 is gradually declining
Western leaders can no longer do without building alliances across the world.
They are no longer the leaders of the world, but the leaders of one of the world’s blocs.
The war in Ukraine illustrates this. The West must be able to negotiate alliances with countries like India or Indonesia. But that assumes at least two things.
First, that it can regain economic strength and therefore respect in the world. If he is over-aged and over-indebted, masking his troubles by printing money, he will not gain respect.
It must return to work, to the creation of values, not just to live on its history and essence, which its “progessive” part of the population often spits on.
They must stop laziness in the web of social security and all sorts of demands.
But the West will also have to return to realpolitik. It will be able to instill its values in the world only if it is economically strong. After all, who would want values that lead to economic and geopolitical weakness?
Italy, though still a member of the G7, is simply no longer the world’s economic leader.
It is an outdated and over-indebted economy, with a debt of around 150 percent of GDP, which is protected from bankruptcy by the printing of trillions of euros and the manipulation of interest by the European Central Bank, one of the sources of current inflation not only in the eurozone, but also in the Czech Republic.
Italian debts are also repaid by Czechs, although they do not pay with the euro.
The Czech Republic imports about 60 percent of inflation, including from the euro area, which is the largest trading partner of the Czech Republic.
Therefore, if the euro area were to fight inflation more agilely, inflation in the Czech Republic would be lower.
But an agile eurozone fight against inflation would bring Italy closer to bankruptcy.
The ban on Russian gold exports negotiated by Western leaders at the G7 summit is just PR. They want to send a signal that they are still doing something against Russia.
But until there is a significant reduction in Russian gas and oil exports, this is a slap in the face. Gold before the pandemic and war, in 2019, accounted for only 1.6% of Russian exports (see chart below). Not much.
The leaders of the G7 will try to figure out a way to limit the export of Russian oil. The United States is proposing to cap its prices.