The market during the war: combat trench or international strategy headquarters?

Abstract

Whatever war is waged on two stages: trenches and strategy headquarters. There are those suffering the combat In the trenches but they can’t decide on it; secondly, there are those who don’t suffer in the headquarters, but they decide. Then, it is worth identifying the site where the markets in the war, for better or for worse, are directly affected by any conflict that comes to war consequences. Markets tend to react in very different ways to the fighting - or to combat rumors - so studying the relationship is relevant. It will not be strange to see how a war, oil prices rise, an inflationary trend and consumer products in short supply. Of course, none of this makes sense because wars are not necessary to reflect market reality; this is exactly where the concept of economic speculation is introduced, which it makes producers and consumers to take economic decisions based on rumors without real basis. The Exchange Market will be direct subject of fluctuations caused by war speculations. Moreover, wars will be those that set the pace of evolution of the international monetary system. However, the valuation of the currency is not the only product suffering fluctuations as product of wars; stock markets also are affected by this phenomenon, making the stock exchanges of the world react promptly to any conflict that may assist them affection. Probably the parts in combat lose their young on the battlefield, lose its manufacturing base, thousands of civilians and left with consequences for decades, war being the best way for both sides to lose. Although of course, there will be always a winner by the side of the market. That’s why if someone asks “Why there are still wars?”, the answer is very simple: because they are very profitable!