The passage you quoted was immediately preceded by this:

And the question is, how can you bring democracy to Europe? It hasn’t really been democratic in the sense of the United States meddling since World War II. For 80 years, the United States has been financing the political right wing. You’ve all seen the story of the Gladio terrorist operation in Italy that the United States staged to oppose the left-wing Prime Minister Moro, ending with Moro’s assassination by a CIA front. The United States has said, we’re going to treat Western Europe in the same way we treated Chile under Allende. If Europe votes for somebody like Allende, we’re going to put in a European Pinochet and a man like Macron, who’s completely anti-labor and doesn’t represent his constituency, or leaders like Angelina Baerbock, the Green leader in Germany, pro-military leader Olaf Scholz, the Christian Democrat leader. They’re going to put in leaders who reflect the U.S. neoliberal doctrine.

And the real fight is, are you going to somehow make all of continental Europe thatcherized and Reaganized and financialized to privatize its public infrastructure along the lines that have occurred in England, in the United States, and in Chile under Pinochet? This is the great question.

It is clear he meant that this has always been the case for Europe, and hence the US will no doubt succeed in its goals.

I think in part his point is that enlightened self-interest in Europe would have it align with China, but NATO will whip up the war frenzy just like the Third Reich did and ensure the working class is divided amongst itself in their individual bids to stay on the safe side of the military hegemon.

Pretty sure he means democracy as in European sovereignty