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Everyone's talking about Elon 'cos he bought Twitter.
He's either the saviour of the universe, or a mean man promoting hate speech.
Or anything in between.
Depends on your
How do you get around these huge Orwellian censorship efforts?
If only someone had some kind of space internet network...
We'll be able to rely on the services of one man's internet (and maybe one day, his brain implant) to protect us from censorship by the governments.
The narratives around him are always ridiculous.
Elon's an interesting guy.
Although sometimes he's uncomfortably similar to the L. Bob Rife character from Snow Crash...
L. Bob Rife [Elon] is a wealthy oil executive [carmaker/innovator] who invests in fiber optics and communications, gaining control over a good deal of the communications infrastructure before the government figures out how to regulate it.
He uses his private aircraft carrier [space rocket?] to bring boatloads of infected refugees to America and wires up a small percentage of the infected to transmit his signals [via Neuralink], allowing him to directly control millions by hijacking their brains.
It just sounds similar. I don't make the rules.
Other times he's more of an overgrown kid who just wants to do loads of fun experiments.
Anyway, he says he doesn't care about the economics of Twitter. Probably a good thing cos they suck balls 👇
Presuming it all goes ahead, the only thing I'm pretty certain he'll do is trim the fat and make a few changes in 2023.
Twitter has ~7,500 employees. According to Comparably, the average estimated annual salary, including base and bonus, at Twitter is $133,045, or $63 per hour, while the estimated median salary is $144,255, or $69 per hour. 👇
Savings can be made...
I'll add my single hot take to the bubbling cauldron. If he's serious about the town square analogy & free speech, he should limit the use of the block button.
Private > Public
What IS interesting about this takeover is the continuing shift in favour of private companies...
Taking Twitter private is another step towards a "future in which private companies have even greater importance" 👇
I can't shake the feeling that constantly increasing pressure from governments, regulators, BlackRock & ESG non-sense will mean that more companies stay private. Maybe a few will even follow Twitter's lead and ditch their listed status.
Which makes it trickier for the public to invest in them. If it continues we'll all have to invest via (privately-issued) tokens of private companies instead...
Anyway, Musk's acquisition dividing opinion between D's & R's, the blue team & the red team, is nothing new.
But those definitions of right and left DO need to be updated, as this thread from Lionel Page highlights 👇
It's not a single country issue. It's not a red vs blue issue.
There's a thread linking all of this together: The promise of "taking back control" is appealing to "the workers": They've been abandoned by the left-wing parties of the people who've become "high-education parties" instead 👇
Affluent people promote open borders or the decriminalization of drugs because it advances their social standing, not least because they know that the adoption of those policies will cost them less than others.
Advocating for open borders and drug experimentation are good ways of advertising your membership of the elite because, thanks to your wealth and social connections, they will cost you less than me.
I really don't see how Musk acquiring Twitter fixes any of these societal problems, nor how it makes them much worse. Failure of imagination or healthy cynicism?
Time will tell.
EURUSD: History doesn't repeat, but it rhymes
Well, well, well...
Interesting chart we have here.
If you're a keen central bank watcher like we are at Macrodesiac, then you'll have certain comments signposted at certain dates and prices.
The first one to take note of is Draghi's comment back in July 2012...
WHATEVER IT TAKES
This phrase is famed for 'saving' the euro back then during the sovereign debt crisis...
And we saw the euro rally from lows of ~1.20, all the way up to ~1.40 ...
But it died a death again.
More recently, we have Mdme. Lagarde's famous phrase...
WE ARE NOT HERE TO CLOSE SPREADS
This was back in March 2020 at the start of the Covid Crisis where Eurozone sovereign debt yields were widening massively (specifically Italian BTPs vs German Bunds).
Interestingly, we are seeing these spreads widening at the moment...
This puts the ECB in a bit of a conundrum, since they are most probably looking to end their asset purchase programme in June and crack on with hiking...
The problem here is that the market, we don't think, is likely to take the announcement of tightening as a BAD sign for the euro, when if you were looking at yield differentials, you might say that euro strength should come into play since you can earn greater interest on it.
We're essentially looking at the euro doing the OPPOSITE of what happened after Draghi's and Lagarde's comments at said prices.
We are therefore not unconvinced that the euro could face a similar fate as it did in the years post Draghi, where it fell from the high of ~1.40 to the low at 1.05, which in current context, could mean a fall in EURUSD to 0.90...
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