The Ukraine Teaches us that Wars Stabilize your Currency

The other day someone told me that if I wanted to have a good laugh, I should look at the exchange rate of the US dollar and the Ukrainian hryvnia. Even though I was expecting some bullshit, I was nonetheless baffled when I pulled up the data. Here it is:

It’s almost like the gold standard!

In financial markets, there is always some up-and-down. In academia, they tell you that they can model such movements with Brownian motion, and also that you cannot make any money because everything is already priced fairly. This belief is called the efficient-market hypothesis. I wonder, however, what academics would say if they had to explain the year-long parallel line to the x-axis in this exchange-rate chart.

Obviously, that the Ukrainian currency would remain basically perfectly stable for a year, while they are getting pummeled on the battlefield, is laughable. If this is not evidence of a grotesque level of financial manipulation I would not know what is. This also shows how easy it is to manipulate fiat currencies. With a gold standard, you could not pull this off. In that scenario, the country would have collapsed by now. Yet, thanks to financial manipulation, the powers that be can put up a ludicrous facade. I bet if you posted this on Twitter, you would have a bunch of “NAFO” faggot swarm you, telling you that you are a Russian disinformation agent. NAFO, by the way, is a deep-state front. Their memes are the lamest crap you can imagine.

3 thoughts on “The Ukraine Teaches us that Wars Stabilize your Currency

  1. I am not an economics graduate, but by reading many books about WW1, I believe wars usually push inflation and destabilise thr economy. German Reich used to issue a lot of Darlehnskassenschein, or small value notes. Germany later experienced high inflation (not the Weimar inflation).

    Sleazy what is Darlehnskassenschein? Can you break down its components in German?

    1. The title or this post is meant to be ironic. Given the state the Ukraine is in, the exchange rate of its currency versus the dollar should be in free fall. Instead, it was a straight line for about one year.

      “Darlehenskassenschein” is a composite noun. “Darlehen” means loan and “Kassenschein” is a receipt for payment; “Kasse” is the cash register and “Schein” a receipt. I hope this helps.

    2. No I grasp your sarcasm, which makes me think about data manipulation by the press. There is no way the hrivna could be stabilised under the current circumstance.

      I think wars will drive up inflation.

      Thanks for your instruction on German. Love German language and culture.

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