Lets analyze the following questions.
- What the financial artery which feeds the Madrassas in India?
- What is the financial artery using which Russia created India’s biggest enemy-communist China?
- What is the financial artery which feeds the terrorists in Yemen, Lebanon and many others?
The answer in one word: OIL.
Had there been no Oil monopoly of the cartel named OPEC+ (led by Saudi and Russia), then the communists and Jihadists would have never raised head.
The OPEC+ controls more than 50% of global oil supplies and about 90% of proven oil reserves. And there is no viable alternative to Oil today.
Before going to the topic, lets understand how the Oil Cartel operates in a very dishonest and unethical manner.
The oil producing countries led by Saudi and Russia have formed a closed group who manipulate prices by imposing production quotas on all members. They determine the price by controlling the amount they produce. There by there is no competition in the Oil market and hence the rules of business (price is determined by demand-supply graph) doesn’t apply there.
Due to this precise reason, the OPEC+ members make windfall profits. The average profit margin in most other business is roughly in range of 10%-40%.
Lets look at the profit margins on Oil. Now a days, it costs $20 to produce 1 barrel of Oil. Today Oil is selling at $80. Around 2008, it had reached $147. In nutshell, the OPEC operates at a profit margin of 400%-500%-700%.
And the windfall profits are hence used by gulf nations to sponsor Jihadism, or funding madrassas. And Russia has used it for sponsoring dictatorial regimes.
Coming to our Original question, How the G7 Oil price cap on Russian oil will break the backbone of the Jihadi-Communist nexus in long term?
Just as the OPEC+ as a cartel has exploited rest of world, many always wanted to create a buyers’ cartel which will collectively by from that country which sells oil at the asked price. For e.g. the new Italian PM wanted pressed EU and US to form a buyer’s cartel.
The Ukraine war has united the developed nations and many developing nations are also against Russia.
The EU and Other G7 nations agreeing for the price cap means the power will slip from Oil producers to Oil purchasers which will benefit countries like India and China in long term by breaking the Cartel.
The price cap is today on Russia, tomorrow it could be imposed on Saudi. And hence OPEC as a group is very displeased with this.
And once the Oil cartel crumbles, the prices of Oil will fall drastically. It is no surprise that after the imposition of the cat, the Oil prices are already down. This will means less money to spare for Jihadi, terrorism and Madrassas.
Hence, the decision taken by G7 + EU is going to help and strengthen Hinduism.
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