Financing national ambitions

A critical aspect of financing national ambitions and global strategies is ensuring that lenders have the capacity to repay loans. The decisions made by the Obama and Biden administrations regarding Ukraine provide a case study in the complexities of such financing. They banked heavily on Ukraine, underestimating Russia's readiness to secure resources in the South and East of Ukraine. The Western part of Ukraine, which remains under Ukrainian control, holds less economic value compared to the resource-rich areas now part of Russian Federation.

This miscalculation can cost us big. How can a nation navigate its financial commitments in the volatile world of international politics and conflict? One extreme option is to default on debts, which, while offering a temporary reprieve, is a strategy fraught with long-term consequences. Defaulting on debt can only realistically be done once, as it severely damages a country's creditworthiness and international standing. Biden’s admin, having put sanctions on Russia, a key member of BRICS, has shot itself in the foot. We’ve showed the whole world our cards and no one wants to play any more.

In essence, the situation highlights the need for careful, strategic planning in geopolitical investments and the lousy display on behalf of Democrats when it comes to geopolitics. It serves as a reminder that in the high-stakes game of international finance and politics, bets are costly, and the outcomes can have far-reaching consequences for a nation's economic health. Get your own shit in order, so to speak.