France's Emmanuel Macron says Europe needs to avoid following the United States into war with China and move away from the US dollar.

 

President Xi of China (right) and Emmanuel Macron of France. Politico/AFP.

The President of France, Emmanuel Macron, says that Europe needs to forge their own path on the Taiwan issue and move away from the US dollar. Politico. Macron said that Europe needed to be a "third superpower" and needed "strategic autonomy". Macron also said that Europe risked getting dragged into conflicts that are not theirs. He also warned against accelerating conflict in Taiwan by following the lead of China or the United States. Macron had just visited President Xi and contrasted the US approach to Taiwan. House Speaker Kevin McCarthy announced he was visiting Taiwan recently. More importantly, Macron said that overdependence on the US dollar could reduce Europe to mere vassals if a major war were to break out.

My Comment:

First of all, it's rather rich of Macron to be making these statements considering the situation. France would not be the leader of a supposed third superpower, especially considering the fact that he can't keep his home in order. France has been rioting and protesting for weeks now due to his own end run around his legislature.  

That being said, I do think that he has a point. A war between the United States and China over Taiwan would not be something Europe should get involved in. They would have nothing to gain and a whole lot to lose if they got involved in the war. Keeping out of it would mean they could play both sides and wouldn't have to worry about their own military power degraded. 

Of course France might not have much of a choice. They are obligated by NATO treaties to defend America if China attacks them. It wouldn't count if America got into a war of choice with China but that might not be how things go down. If China shoots first then France might be forced to join the war. And if that happens and they refuse? Well, NATO would be destroyed which means there would be a lot less deterrence against Russia. 

There is something to be said for France taking a middle route between China and the United States. Both are taking a hardline stance, which is not something that prevents wars. Doing so has a small chance of providing a solution that all sides can live with. The chances are not good but it's possible. 

I do think that Politico was burying the lede a bit. France moving away from the US dollar is a huge deal for the United States. Already many other countries are moving away from the dollar for oil purchases and it could have a major effect on the American economy. Doing so means we might have difficulty in getting new loans and paying down our debt, which means we would have to print money instead. That could lead to hyper inflation. The fact that France is discussing this as well does not bode well...