Please add a sub called "macro" or "economics" or similar \ stacker news ~meta

Please add a sub called "macro" or "economics" or similar

4547 sats \ 37 comments \ @supertestnet 2 Oct 2023 meta

Myself and many other stackers occasionally like to create posts about macroeconomics. E.g. posts about:

When I post stuff like this I'm unsure what category to put it in. If there was a sub called "macro" or "economics" that would help me and I imagine it would help these other stackers too.

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263 sats \ 2 replies \ @kepford 2 Oct 2023

Just wanna state my thoughts on new subs.

I don't think we plebs should be able to create new subs
I think we need more subs but they should be created very conservatively after there is a clear need

One of the keys to SN for is is that it has more structure and isn't a complete free of all. I like free for alls but we already have things like that. Go to Nostr if you want that experience. I don't wanna see SN lose its central focus on bitcoin. Its fine that other topics are discussed like tech, meta, and economics but I don't wanna see it become another Reddit. That's my two sats.

0 sats \ 1 reply \ @DiracDelta 2 Oct 2023

But you don't need to subscribe to All. Just like reddit

0 sats \ 0 replies \ @kepford 3 Oct 2023

That's a good point but not my issue really. I just enjoy the more focused community around bitcoin and thoughtful discussion. I'd hate to see this deluted.

2 sats \ 7 replies \ @TomK 2 Oct 2023

This would be great. Good idea. Like now would be the moment to write about the ECB buying german bunds like crazy to defend yields in the commiezone but is sacrifycing the ''commie'' (or euro) to hold the system together.

2 sats \ 6 replies \ @supertestnet OP 2 Oct 2023

the ECB [is] buying german bunds like crazy to defend yields

link?

[the ECB] is sacrifycing the ''commie'' (or euro) to hold the system together

link?

0 sats \ 5 replies \ @TomK 2 Oct 2023

Please watch yield spreads, yields of us and german gov bonds. Than you put the move of the us/ eur besides. Than You analyse their holdings on their balance sheets and You see what's happening.

10 sats \ 4 replies \ @supertestnet OP 2 Oct 2023

Please watch yield spreads, yields of us and german gov bonds

The 10 year US bond pays a rate of 4.67% The 10 year DE bond pays a rate of 2.91%

I have heard about an arbitrage play that I think involves shorting currency whose country pays a low interest rate on their bonds and longing currency whose country pays a high interest rate -- or maybe I got that backwards. Is that part of why you're drawing attention to this? If so I don't know how or why it works and I'd appreciate some insight.

Than you put the move of the us/ eur besides

The movement of the USD has risen dramatically since July, it has surged by almost 7%

Than You analyse their holdings on their balance sheets

I'd like more clarification on this part. What am I looking for? Here is the US treasury's balance sheet: https://www.fiscal.treasury.gov/reports-statements/financial-report/balance-sheets.html

It is massive and there are so many things to look at and I don't know what I'm looking for. The german treasury's balance sheet would would probably be even harder to look at because it will probably be in german.

10 sats \ 3 replies \ @supertestnet OP 2 Oct 2023

To try and intuit how bond arbitrage might work I am throwing out strings to see if they connect to anything I'm more familiar with. One possible point of connection is this: in order to arbitrage bonds, you'd have to buy and sell them, and "buying and selling bonds" is also what countries do during "quantitative easing" and "quantitative tightening." Quantitative easing involves buying bonds, which lowers their interest rate, and it weakens a currency. Quantitative tightning involves selling bonds, which raises their interest rate, and strengthens a currency.

If my intuition is right, then you could engage in bond speculation by (1) buying a country's bonds and (2) simultaneously shorting its currency. But that seems like a strange course of action to me because if you buy a country's bonds you expect to get some money back from that country later, and if you think its currency will fall in value, why would you want to receive money from it later? It won't be worth as much as it is now. So I think some part of my intuition is wrong.

10 sats \ 2 replies \ @TomK 2 Oct 2023

Come on, You are a pro! You get the stuff better than I! What You're aiming at is something like the famous Yen carry trade. Take up credit denominated in a weak currency to invest it in an appreciating currency and harvest the yield or dividend. Later you pay back the loan with the appreciated currency. But what's going on in the Eurozone is sth. different imo. The ECB needs to hold the euro stable as of rising energy inflation. Gov debt is rising fast therefore it needs to hold the bond yields down by bying this stuff. But You can't do both simultaneously meanwhile the elefant in the room (Fed) is pushing up yields like crazy and is attracting Your capital what pushes yields even higher and weakens the euro...

10 sats \ 1 reply \ @supertestnet OP 2 Oct 2023

ok cool this makes more sense to me

Take up credit denominated in a weak currency

So rather than "buy" a country's bonds you want to "sell" them.

Buying a bond isn't "taking up credit" -- it's giving it out. It's giving the country a loan. You want to take out a loan -- you want that country to give you money that you have to pay back later, once it's depreciated. If, instead of "buying" a bond from that country you sell a bond, you get some of their money right away (just like what happens in a loan), but it's not money you have to pay back later, so that's even better. Sell the bond, take the proceeds, and buy a stronger currency with it.

But this part still confuses me: doesn't the act of selling a bond increase interest rates on that country's bonds and therefore strengthen the currency that you want to fall?

0 sats \ 0 replies \ @TomK 2 Oct 2023

Yes, the ECB needs to compensate for the ongoing bond-selling by bying them up and so stabilizing the yields. But that way they are doing it with new created euro that weakens more and pushes up inflation

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2 sats \ 16 replies \ @chovyfubar 2 Oct 2023

what would be cool is if we could create or at least vote on suggestions for new categories.

823 sats \ 15 replies \ @k00b 2 Oct 2023

What'd be even cooler is creating your own categories on a whim

12 sats \ 1 reply \ @chovyfubar 2 Oct 2023

would be better off as a tag-based system them. that dropdown will get way too long.

263 sats \ 0 replies \ @k00b 2 Oct 2023

It's not that simple. We've had a lot of discussions about tags as alternatives to subs. My view is subs are the way to go. The dropdown UX is not permanent.

23 sats \ 12 replies \ @WeAreAllSatoshi 2 Oct 2023

I imagine we want to be careful about having too many subs, and therefore segregating the content too much. Just a thought, I'm sure you've done a lot more thinking about this than I have.

21 sats \ 11 replies \ @birdeye21 2 Oct 2023

I dont know if creating a lot of different subs will necessarily segregate content, immediately at least. Just because there are new subs doesn't mean we wont see content - home i imagine would still show everything being posted. Content will likely only become "segregated" as more and more users join the platform to discuss broader and broader things and it gets harder to keep up with everything, but in the short term we should still be able to see everything coming through. And on top of that we'll have more niche filtering options to find content more easily.

@k00b a question I do have: will people be able to create subs on a whim and start posting or will they have to go through some sort of approval system? Like to prevent XRP fanboy subs/ nsfw/ other nonsense you may not want appearing for example lol

42 sats \ 10 replies \ @kepford 2 Oct 2023

Yes, I don't wanna see SN become another Reddit or Twitter. One of a network's value is the quality and focus of their users.

0 sats \ 9 replies \ @birdeye21 2 Oct 2023

Absolutely. @k00b ser does SN have a mission statement?

1295 sats \ 0 replies \ @elvismercury 2 Oct 2023

An implicit answer to this is in the origin story; @k00b also provided some good perspective in this thread a couple weeks ago.

0 sats \ 7 replies \ @AR0w 2 Oct 2023

Applying some sort of user requirement to be able to create subs can fix this (Like you must stack at least 50k and have 5 cowboy hat streak to create a sub)

0 sats \ 6 replies \ @kepford 2 Oct 2023

I don't know. 5 is to low IMO but I'm not even sure this is a good idea. Both can be gamed.

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0 sats \ 0 replies \ @rosivalnonato 6 Oct 2023

It depends on when the treasury market will move forward. The reverse purchase and repurchase treasury market is an operation in which the Central Bank sells government bonds to commercial banks with the commitment to repurchase them later. This operation is used to control the liquidity of the financial system.

0 sats \ 0 replies \ @rosivalnonato 6 Oct 2023

Hyperinflation has been a topic for decades, now it does so if necessary, today it is extremely high and uncontrolled. Some notable examples were the hyperinflation in Germany during the Weimar Republic in the 1920s and the hyperinflation in Zimbabwe in the 2000s.

0 sats \ 0 replies \ @mrtali 4 Oct 2023

Would great another sub for bicoin "fan art".

0 sats \ 0 replies \ @brave 3 Oct 2023

Might just be intriguing to add one

0 sats \ 0 replies \ @fred 3 Oct 2023

New category should be added every month

0 sats \ 0 replies \ @SpaceHodler 3 Oct 2023

I like the idea. As it stands, anything like that is attacked by a small group of SN terrorists bashing it as fiat talk / fiat mindedness. Having a category for that would give those wishing to discuss it some safe space.

0 sats \ 0 replies \ @chovyfubar 2 Oct 2023

i think economy is a good candiate

0 sats \ 1 reply \ @Bitwit 2 Oct 2023

Just thinking on this, if SN is to grow (inevitable if LN adoption grows) then the current limited selection of subs will need expanding exponentially and users will need a mechanism for adding more. Thoughts @k00b ?

0 sats \ 0 replies \ @SpaceHodler 3 Oct 2023

Not necessarily exponentially. Subs that are closer to our interests - which centre around Bitcoin - have more reasons to be added than something unrelated to Bitcoin.