Tuesday, March 15, 2022

Lack of Chinese Support May Impact Russia's Plans

Everyone is talking about Russia and Ukraine. An interesting development is the signaling by China that it doesn't want to get involved and that support will likely be muted. You can read more about an analysis of the financial considerations of China in 'China can see the limits of bailing out Russia's economy'  and the difficulties that may impact China. It should be noted that much of the world is supporting Ukraine and if China becomes substantially involved there would be a subtle but noticeable and sustained impact on China's long term economic prospects as alternative business partners are sought (This is something that might benefit the U.S. as a preferred long-term trading partner. As soon as we get our political leadership to focus on solutions. There is some indication that just like in MI. our national leaders are also starting to work together through good kharma bi-partisanship. Old Dogs with New Tricks I guess.🤔 )

Lack of China's support, international backlash, Russian economic decline, and bogged down operations in Ukraine were not likely part of the initial scenario. What we also see without Chinese support is that Russian antiwar (and likely anti-Putin as the seen cause of the war.) social divisions and oligarch press (Desiring a return to normalcy so they can continue to make billions is going to create problems of sustainability.) Few choices because increased brutality to win the war will lead to increased global disdain and economic punishment but a lack of clear victory will undermine public faith in the war and those who are leading it. 

Let us just wait and see what happens.....its one possible outcome.....of many possible outcomes (Some of which are pretty ugly.).  This is where you are likely going to see desperation of Russian leadership rising and behaviors that are more symbolic to maintain a status of winning as people scramble for whatever Game Plan B was (This might end up being a historical lesson in the risks of "yes" man/woman surrounding a strong personality, diminishing institutional checks & balances,  not looking at all of the alternatives and scenarios, and always using the same "hammer everything" approach that comes from a personal outlook on life. I don't know...its possible....one scenario out of many.🤷)

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