Very interesting, I wouldn't have thought that Georgia was such a beneficiary to the war. Although, I wouldn't say that Eurodollars are the exact reason for rising exchange rate against the US dollar in the past year. I would argue that USD denominated assets such as US treasuries are the main cause that paused devaluation. The greatest example of this would be Britain and Switzerland, Britain had very little US treasury holdings while switzerland had a ton. I love the snek shirt btw.
Actually it's very straight forward to explain Georgian Lari strength: there's huge demand for Lari because of all the Russians coming here with their capital... Eurodollar system is simply a tool, ledger money, but it's the crucial mechanism of the global monetary system, most credit creation takes place through it, giving these commercial banks a huge advantage
@@notaphilistphilipp3882 Yes, everyone uses Eurodollars for international trade and cheap credit. But many US denominated assets like treasuries act as hedges which prevents devaluation in their located country. In essence, if you have more treasuries then you are better off, because Georgia's currency is being strengthened, it could be due to an increase in reserve/ hedges which is caused by capital leaving Russia into Georgia. In our Eurodollar system we live in, Libor is the only exchange rate that matters and anyone having a higher currency interest rate is inflating while lower rates are deflating.
@@LagrangeMangeArrange6084 ok thanks for this explanation, I need to study more about it. What I know is that Georgia is a highly Dollarized country, so it makes sense.
I attribute this largely to the income of Russians who are moving in, raising rents and consuming more in a short space of time (with good and bad sides).
Give me feedback, was anyone interested in this type of video?
Anyone smart enough to ask Jeff snider about economics is interesting.
@@StraitShot 🤣...how do you mean?
Very interesting, I wouldn't have thought that Georgia was such a beneficiary to the war. Although, I wouldn't say that Eurodollars are the exact reason for rising exchange rate against the US dollar in the past year. I would argue that USD denominated assets such as US treasuries are the main cause that paused devaluation. The greatest example of this would be Britain and Switzerland, Britain had very little US treasury holdings while switzerland had a ton. I love the snek shirt btw.
Actually it's very straight forward to explain Georgian Lari strength: there's huge demand for Lari because of all the Russians coming here with their capital...
Eurodollar system is simply a tool, ledger money, but it's the crucial mechanism of the global monetary system, most credit creation takes place through it, giving these commercial banks a huge advantage
@@notaphilistphilipp3882 Yes, everyone uses Eurodollars for international trade and cheap credit. But many US denominated assets like treasuries act as hedges which prevents devaluation in their located country. In essence, if you have more treasuries then you are better off, because Georgia's currency is being strengthened, it could be due to an increase in reserve/ hedges which is caused by capital leaving Russia into Georgia. In our Eurodollar system we live in, Libor is the only exchange rate that matters and anyone having a higher currency interest rate is inflating while lower rates are deflating.
@@LagrangeMangeArrange6084 ok thanks for this explanation, I need to study more about it. What I know is that Georgia is a highly Dollarized country, so it makes sense.
I attribute this largely to the income of Russians who are moving in, raising rents and consuming more in a short space of time (with good and bad sides).
I would like to see a Gretchka cooking video 🙃
Ahahah, I just had Gretchka for lunch today, I made it with Curry for the first time, it was amazing;)
PERFECT"nice work!. You could easily get more people watching with 'Promo SM'.
I don't care about viewcounts :D