Thai baht appreciation against the $

[loverboy44]

Quite an interesting article for our fellow US boys.
I think the same by the way:

http://www.bangkokpost.com/breakingnews ... te-further

[PeteC]

Quite an interesting article for our fellow US boys.
I think the same by the way:

http://www.bangkokpost.com/breakingnews ... te-further

Oh yes, I'm prepared for the event. In the early 90's before the crash it was stable at about 25 for a long time. Back in the 70's it was 20. You were still king of the hill as everything was so much less expensive than now. In the time period of the 70's, the highest bank note issued was 100 Baht and that's what overnight company cost.

Ebb and flow, what can you do if you didn't see and prepare. Life's too short, just roll with the punches.

I'm more focused on the Pound as I'm sitting on a bunch bought at 1.84. Please tell me when it will hit higher than that again? Pete

[Jim]

The dollar touched a 14 year low against the yen this morning. Seems Mr Obama is pretty friendless at the moment.

[PeteC]

The dollar touched a 14 year low against the yen this morning. Seems Mr Obama is pretty friendless at the moment.

Yeah, he's totally focused on USA internal issues Jim, but I don't really understand how he/they can uncouple them from these external issues. I also don't see how McCain would have been any different, except for health care.

Whoever won, they had a bad ticking time bomb of an inheritance. Interesting times.

China holds a few hundred billion in Treasury notes. Perhaps if they start to cash them in they will be paid at an adjustment from 6.8 to about 4.0 where the RMB should have been for the past few years. Perhaps money and missiles flying across the Pacific? I'm going to Koh Samet, I have a bunker there. Pete

[Name Taken]

I think the Thai Baht is way too overvalued.
Thailand is still very much an underdeveloped country. I think one of the reasons why Thailand is still an underdeveloped country is because of all the laws that make it impossible for a foreign individual and/or company to own land here in Thailand.

Thailand only views foreigners here as temporary tourists and renters and walking ATM machines.

[hhfarang]

I don't think it's baht "appreciation" as much as it is dollar "depreciation". The dollar is falling against most currencies as the U.S. goes further into debt and nears the brink of financial collapse.

[The Dude]

Buy your dollars now because a year or two down the road it will be the dollar on the rise. It won't go much lower than it is now. I think that it will always be between 30 to 37baht but not always as weak to the euro

what go's around comes around!

[deepee]

Can anyone please explain the relationship between the USA and China in respect of the current financial situation.I raise this question because the Thai Baht will reflect what happens here.

As I understand it the average Chinese citizen has lost heavily as a result of their country's loans to the USA pre-crash( average savings in China were around 30pc of income) .Chinese authorities vow to reclaim this loss with interest. But China still continues to throw cash at the USA with gay abandon, but it seems inevitable that the USA is going down.
And China threatens to call in it's bond investments which would automatically bring an obvious collapse on.Why?

Seems this relationship is doomed no matter which way it plays out. China wins, the USA looses which means China looses. Or the USA defaullts and both loose.

And the Baht where will it head with either senario??

[JoeDoc]

Not sure if these videos helps to show where the dollar is heading but its certainly interesting to see why its currently so low:

Ron Paul Talks About the Economy on Morning Joe 1-27-09

Dr Ron Paul 2 Trillion Dollars

I believe this guy Jim Rogers talks a lot of sense" Currency Crisis Ahead USD watch out Jun 4 2009

[Lung Per]

It is not the Baht appreciating, it is the dollar depreciating.
I get my pension in US dollars and it has been depreciating since I retired in 2000. Gawd only knows when the fall stops. At the same time, the Baht is grossly overvalued. The Baht will, eventually, have to take a dive. If I knew when I would not have retired but a good guess is when the ailing CEO has no more birthdays and the LOS is cast into major civil unrest..

[hhfarang]

Can anyone please explain the relationship between the USA and China in respect of the current financial situation.I raise this question because the Thai Baht will reflect what happens here.

As I understand it the average Chinese citizen has lost heavily as a result of their country's loans to the USA pre-crash( average savings in China were around 30pc of income) .Chinese authorities vow to reclaim this loss with interest. But China still continues to throw cash at the USA with gay abandon, but it seems inevitable that the USA is going down.
And China threatens to call in it's bond investments which would automatically bring an obvious collapse on.Why?

Seems this relationship is doomed no matter which way it plays out. China wins, the USA looses which means China looses. Or the USA defaullts and both loose.

You are quite correct. We (U.S.A. and China) are both destined to lose. The two countries have a symbiotic relationship in that China has been the main financier of the U.S.A.'s deficit over the past decade along with some middle eastern countries and the U.S has been the main importer of Chinese goods.

Now that the U.S. government (starting with Bush's last six years) are spending much more than we take in we have borrowed from (mainly) China to cover the shortfall. China was willing to loan us money because we are the largest purchaser of Chinese goods so it was a quid pro quo relationship.

So, for seven years the U.S. government has spent money like a reckless teenager with their father's (China and the U.S. taxpayers) credit card, and it is getting worse month after month with bills being passed by congress to spend money on a socialist agenda that will bring nothing back into the treasury and only send more jobs overseas, so now China is getting worried and thinking about (some say they already are) divesting themselves from the dollar by spending their dollars on other international goods and changing their currency reserve to something other than dollars.

If they do that the dollar will continue to free fall even faster. The next step will be for the middle east and other oil producing countries to stop pricing and selling oil based on dollars. At that point you will see the total collapse of the dollar and that will hurt all the U.S. trading partners, mainly China as America stops importing due to bankruptcy of the government.

It's all very scary to me as I get paid in dollars and the only way out is for the government to stop all spending measures no matter how worthy they are, like climate initiatives, health care, bailouts of failing companies, wars and any other government subsidized activity, but that is highly unlikely of any political party, especially the Democrats who have the White House and an unblockable majority in congress at the moment.

I don't know the answer but it may be time for a third, more responsible party in the U.S. political landscape. I see the roots of a couple forming now but I don't know if they have the backing to succeed or not.

Many Americans are getting very tired of the current political system.

[hhfarang]

JoeDoc,

I totally and absolutely agree with everything Ron Paul said in both videos you posted (except for possibly very small portions towards the end of the second one). Thanks for those. I think he fried the argument of those MSNBC commentators in the first video who were trying to pin him down with stupid questions. His grasp of the financial troubles of America and their causes is dead on.

[MrPlum]

I believe this guy Jim Rogers talks a lot of sense"

Yes he does. Wish I had seen it earlier. Good speech by Paul too.

There are some major issues with the U.S. economy. Correct me if I'm wrong but if the Obama Government, the no.1 insolvent entity on earth, is stepping in to support financially, individual states, the no.2 insolvent entity on earth, by printing more money, haven't the individual states lost their independence from government? That's a very serious change to the political map in America and a huge power grab by the socialists and FED.

The FED has been supporting the Bond market by purchasing government debt using it's own offshore vehicles, giving the impression that there is support for the dollar from abroad. This is hugely inflationary and a blatant fraud. The FED is buying it's own debt. A commentator stated in June that the U.S. Gov had borrowed more in the previous 6 months, than in the last 30 years.

Personally I think the dollar is fast becoming toilet paper and the U.S. will as a result become a third world country. As Jim Rogers says, the first country to start ditching the dollar will start a stampede. I wouldn't be holding dollars right now. In fact, as a Brit, I have the same concern for my UK-derived income.

I think the baht may continue to outpace those two currencies.

[deepee]

And with so much money salted away by the elite of Thailand in the USA and the UK too, how will this large holding of $US and Pounds effect the Thai economy and the baht's value if the dollar goes down ?

[MrPlum]

And with so much money salted away by the elite of Thailand in the USA and the UK too, how will this large holding of $US and Pounds effect the Thai economy and the baht's value if the dollar goes down ?

Economies that have natural resources will survive while those that don't may struggle. Thailand has a strong agricultural sector and not the same level of debt. The UK and U.S. are now service economies. The strong move in the Gold price suggests a move towards hard assets.