"Wessel replied that Japan held 552 billion in US government bonds, China 189 billion, Taiwan 65 billion, United Kingdom 45 billion, South Korea 43 and Germany 42 billion. "In all, foreigners held about $1.9 trillion in US government debt," observed Wessel. But he also noted, "US businesses, governments and banks had borrowed a whopping $8.36 trillion from foreigners." Call me a naive old hippie, but that seems like a whole lot of bread. "
"Trading online makes losing easier. Another study by Professors Odean and Barber showed that investors lost more when they traded online because more trading resulted in more mistakes and losses. When trading through a traditional broker, they were beating the market by 2%. But after they started investing with online discounters they were trailing the market by 3%. We take more risks online, and lose more as a result.
Even winning traders are losers. Trading is not the get-rich-quick scheme financial newsletters and trading-system gurus want you to believe. One study conducted in 2000 by the North American Securities Administration Association found that 77% of day traders lose money. The "winners" total take averaged a paltry $22,000 over eight months."
http://online.wsj.com/public/article/0,,SB111792616928351029,00.html?mod=sunday_journal_primary_hs
II. An Overview Of Oil Prices In Various Currencies
Oil prices are at record levels only in dollar terms, but not in other currencies. Figure 1 illustrates the trend in daily oil prices in US dollars and euros since the introduction of the latter in 1999. It shows that while oil prices in dollars are near record levels, oil prices in euro are almost 25% lower than those that prevailed in the summer of 2000. Oil prices in dollars have been increasing since November 2003, while those in euros started to increase a few months later, in February 2004. However, oil prices in dollars have increased by 54%, while those in euros have increased by only 31%.
The euro replaced most major European currencies at the end of 2001. The only major world currency to have survived the euro is the UK sterling. Figure 2 illustrates the monthly trend in oil prices in US dollars and sterling since 1973. Although oil prices in sterling are not indicative of major changes in Europe in the last three decades, the figure shows that while US oil prices are near record, the UK’s oil prices are still well below the record of 1984. The current size of the gap between oil prices in dollars and those in sterling is the first since 1982.
Oil prices in Japanese yen are still low by historical standards as shown in Figure 3. This shows that while US oil prices are near to record levels, those in Japan are less than half the prices that prevailed between 1980 and 1982. They are also less than the prices between 1982 and 1985 and equal to the 1976 oil prices.
Dollar depreciation reduces activities in upstream through different channels including increased cost, higher inflation rates, lower purchasing power, and lower return on investment. Dollar devaluation increases oil demand in countries with appreciated currencies because of an increase in purchasing power. It also increases the demand for gasoline in the US as Americans spend their summer vacations driving in the US. Large dollar devaluation reduces the supply of oil and increases the demand for oil. Therefore, oil prices will stay high for a longer period than analysts expect.
Three more conclusions are relevant to future research. Studies that focus on the elasticity of demand for oil must use oil prices denominated in national currencies, not in US dollars. Studies that focus on the relationship between energy prices and economic growth must use oil prices denominated in national currencies, not in US dollars. Finally, exchange rates may explain several issues in international energy markets that researchers have been not able to determine or agree on.
http://www.mees.com/postedarticles/oped/a47n33d01.htm