Tonio, you blame Daniel's diplomacy too much, when your diplomacy amounts to attempts to guilt your opponents into either fighting your idea of an honorable war, or giving you extremely nice peace terms

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To define your idea of an honorable war, it seems to be one where your enemy is very likely to pay a cost 4-5 times higher than yourself, while you face almost no possibility of actually losing land. Unless your foe ends up making a herculean effort to beat you, in which case it's only honorable to make small peace terms

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And this tactic has been overused already. What else? Lets see, displaying your battle ratios and cost ratios, ussually with an evilly grinning smiley

. Making everyone who's fought with you want to kill you!

I suppose if you WANT that so you can make us all lose more money trying(in honorable wars of course

), that makes some sense, but since you've also been losing land occasionally, this might not be the best tack.
Besides that, hmmm, you've somehow lost support from Spain, Austria's natural ally. Failed attempts(or failed to make attempts?) at getting support from Poland and Venice, and perhaps just as importantly, forced those who did support you like Brandenburg to waste unnecessary resources fighting wars that always last way too long, making them less willing to support you again.
I don't think Daniel's done such a bad job on the other hand. He sent you the minimal amount of gold necessary for you to keep fighting us for decades. Why should he care if you lose a prov or two?

You were still dogheaded enough to make Damo lose a few thousand ducats, and me over ten thousand ducats in a couple wars. I would call that good assessment skills. It seems he understood how far you were willing to go, and gave the minimum financial support to help you go that far. If Austria's in worse financial shape because of that, it's only to his benefit as well, because it makes you more dependent on him, or possibly England, in which case he doesn't have to pay a thing for the same service

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As far as France is concerned, his judgement was less accurate, but economically, he's still better off for the decisions he made. Not unleashing Farnese on Damocles could yet turn out to be a wise decision. France no longer has claims on Spain, I'm pretty sure, which should mean that unless Daniel is hellbent on revenge, there should be nothing standing between friendship for the two countries. I think Daniel saw this possibility early, thinking that Fred would eventually become the main enemy. And indeed, Fred's already grown more powerful than either. If Daniel had fought some tough wars with France early, think of how much more lopsided the balance would be between England and Spa-Fra!