Monday, May 29, 2023

Russia and Belarus Giving Away Nukes: How the Business Climate Changes

As we think about the supply chain interruptions that have occurred the past few years we begin to see this split continue to grow around geopolitical issues. Russia has transferred nuclear weapons to Belarus and that is a sign of escalation. As expected, it is condemned. The business climate will change because of these escalatory situations that create new business risks. For the most part, this is expected.

Personally, I think we should be reducing these nuclear stocks across the globe. Spreading them out to other countries creates inherent risks for management. The article below indicates that these weapons are being traded for loyalty (At least that is what I understand.). Its a concerning gesture and if life has taught man anything loyalty that is bought is fleeting. 

It looks like an unwarranted and political based escalation because it is Russia that invaded Ukraine and not the other way around. Everyone seems to have respected Russian territory thus far so there is no threat of this magnitude to justify nuclear dissemination. Perhaps this conflict creates an excuse to redraw the red curtain. 

We as American people will need to think about our competitive capacity and make the changes needed to ensure we maintain a top advanced position. It is more about defensive capability and economic health. We maximize our options when we are in our most competitive state. Whether these situations eventually subside or not, it makes sense to get involved in self-growth.

What kind of business impact might we expect?

1. Supply chain issues between pro communism and pro capitalism.

2. Data theft and hacking will increase.

3. As U.S. adjusts we might see industry strategy changes.

4. Some materials might be more difficult to get forcing either new product designs and/or new mineral sourcing.

5. Defense industry will get a boost. That would include suppliers.

6. In the U.S. we probably would see more collaboration as more important issues take precedence. 

7. Some investment adjustments are likely to occur.

When these things happen and it appears hazardous then it is expected nations will become concerned and adjust.

A scary article....

Lukashenko offers nuclear weapons to nations willing ‘to join the Union State of Russia and Belarus’


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