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Are petrodollars preventing the USA from converting to alternative energy?
Feb 24th
Oil is the largest single commodity traded on the international market. This international oil trade has always been in US dollars. These petrodollars create a high demand on the international currency market for dollars and helps support the value of the dollar.
If the USA should convert to another energy source, the international trade in oil would decline and so would the demand for dollars on the currency market. As the US international trade deficit widens, which also lowers demand for dollars, combined with a possible declining international oil trade, a situation could arise which would make the bottom fall out of the value of the dollar.
Our dependency on oil goes far beyond the need for energy. How can the USA convert to another energy source and still maintain a strong currency?
What is meant by advisor here? Does it refer to people?
Feb 23rd
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An major area of current interest in the global macro world, is how to apply some of the new mathematical models coming out of quantitative finance to global macro. So far only a few hedge funds have tried, and none have really succeeded. The only area in which success could be claimed is in commodity trading *advisors*. Any future work in this area is likely to look to involve area’s of momentum trading work that has come out of the quantification of behavioural finance.
