Who loses and who makes money in the war in Ukraine

Those who make money on wars are unlikely to be on Forbes’ richest list. Their money is real but elusive to an observer’s eye. Most of us will feel the pain of paying for that war.

Congress is midway through approving the next chunk of funds for the Ukrainian cause. With a lot of yelling and screaming several days ago, the U.S. Senate approved the funding. The House is more divided on this issue, so the outcome of the arm-twisting expected next week is still uncertain. The media bombard the public with conflicting messages. Who lies, who tells the truth?

Before touching on arguments for and against, it is worth examining how money factors into the war business.

War is the best business possible, but not for those on the front lines

When the foundations of the modern financial system began shaping in the 18th century, the rich realized that lending money to governments, at that time often kings or local rulers, was much more profitable than lending to individuals. Nothing has changed since then.

Earning interest on money lent to individuals is risky and troublesome. A million things may happen, making a person insolvent. Collecting debt can be costly. Also, to make meaningful money, one needs to manage many…