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Author Topic: War save economy here is how  (Read 209 times)
CaVO32
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March 06, 2022, 07:02:59 PM
 #21

I'm a bit confused where OP is leading here but I don't think war is any good for any economy (besides whatever tech might be invented in the process). It'll take years to repay those loans and to build back to the same prosperity as the pre-war version of the country.

As for old money, don't know why you mentioned them but they are more likely than us to survive wars. Even if their assets are destroyed or taken away, you can bet they still got enough hidden to rebuild again.

I don't know where the OP is also coming from, but war is bad at all angles. Yes, they can borrow money to rebuild but it will come maybe a small interest from the lender. But in time, country will always recover. They have their own strategies on how to rise up after this. It will be slow, but they can always rebuild. But for now, we are all hoping that this war will stop. There are so many civilians that are sacrificing their lives for nothing.
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March 06, 2022, 09:16:04 PM
 #22

We know old money is done.
The war can devastete destroy some countires economy and then those countries can borrow money from banks or imf.
We was brink of to choose recression but war can make countries and even fed to do little more quantive easing means we all gona borrow even more money.

The war is always last meassure to save markets and economy markets and economy need fuel and fuel is money but to produce or create money someone need to borrow money but now when the old money is finished quickly and we are at the few steps away from recression
The war is only solution to make us to borrow even more and making ceantral banx to relax their money policy.
The war is a hit on the economy. On the global economy because of measures and countermeasures, and because of investors feeling unsure when there's lack of geopolitical stability. It's also, of course, a huge hit on the economies of the countries directly involved in the war. The war doesn't save markets, it crashes them, and the best situation for economic growth is peace. I have no idea where you're getting all this info from. But yeah, reducing monetary policies might be a necessary, even though very risky in the long-term perspective, step.
I dont talk about real life
Im talking only about what good for markets and our financial system as whole global economy and profit possibilities.
The real life sure its always different
If you're not talking about the real life, then what are you talking about? It's not good for financial system, not good in terms of profit prospects. And even you say it's different in the real life, so are we discussing, like, a fantasy world where everything's different and the war is good for economy or what?  Cheesy

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March 07, 2022, 12:26:40 PM
 #23

I'm a bit confused where OP is leading here but I don't think war is any good for any economy (besides whatever tech might be invented in the process). It'll take years to repay those loans and to build back to the same prosperity as the pre-war version of the country.

As for old money, don't know why you mentioned them but they are more likely than us to survive wars. Even if their assets are destroyed or taken away, you can bet they still got enough hidden to rebuild again.

I don't know where the OP is also coming from, but war is bad at all angles. Yes, they can borrow money to rebuild but it will come maybe a small interest from the lender. But in time, country will always recover. They have their own strategies on how to rise up after this. It will be slow, but they can always rebuild. But for now, we are all hoping that this war will stop. There are so many civilians that are sacrificing their lives for nothing.

Save for a few select industries (arms manufacturing, automobile) wars are indeed disastrous. It basically puts everything on hold and then destroys infrastructures/humans (aka assets).

By most of OPs replies here, I think he's thinking about some conspiracy theories (which we shouldn't simply brush off) that elites are are fanning these flames to be able to indebt more countries and have an excuse to print money - which as we've seen with the US these past years, is perfectly achievable even without a war.
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March 07, 2022, 08:38:04 PM
 #24

I'm a bit confused where OP is leading here but I don't think war is any good for any economy (besides whatever tech might be invented in the process). It'll take years to repay those loans and to build back to the same prosperity as the pre-war version of the country.

As for old money, don't know why you mentioned them but they are more likely than us to survive wars. Even if their assets are destroyed or taken away, you can bet they still got enough hidden to rebuild again.
Basically the idea is that war (and many other things) makes fiat world get a bit worse, and fiat devalues there, and if you are smart enough to take a loan out of it, put it on dollar, and then cash it back out, you could make a lot of profit. Consider this, you are a business person, you have a chance to get a 1 million dollar loan in Russia, but in rubles and not in dollars.

You get about what, 77 million ruble back when it was decent? So, they tell you that you need to pay back like 85 or 90 million ruble, even 100 million ruble when you want to pay that loan back.

But you do not pay it, you just hold it in dollars, now that the war happened, it is 110+ or so in the market, so you just made yourself another 30+ million ruble without doing absolutely anything. Obviously timing that would be hard, but it shows you how war and devalued fiat could help you with money.

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