Thai Economics

[PeteC]

As a guideline for those living on USD's. Year end 2006 appears that it will be about 13% more expensive to exist here than it was at year end 2005. This is based upon a baht appreciation of about 7.5% and inflation of about 5.5%. I believe about 2% of the inflation rate is due to fuel prices but, we pay for that everyday in the items we buy that need transport to where we buy them. Maybe take off 1 or 1.5% if you don't need to fuel a motor vehicle.

I think the UK Pound is doing better against the Baht, and maybe not so severe for those on Sterling. Pete

[thaikahuna]

Since this original post, the exchange rate from baht to USD has dropped radically. I saw one place today a rate of 33.4 to 1USD. If the slide doesn't slow or stop I think many ex-pats living here now will be looking at places like Cambodia and Vietnam as alternatives and many would-be ex-pats will be taking a serious look at whether or not they can still make the jump and move here.

Admittedly I am still able to maintain my standard of living here but would sure like to see the baht back up around 40-1.

Jim

[Wanderlust]

As has been noted on another thread (sorry can't be bothered to find it!), there has been a steady weakening of the US dollar against all major currencies over the last couple of years, while there has been a slight strengthening of the baht in the last couple of months. I don't believe that the dollar will get any stronger than it is now (although it is possible that the baht will weaken somewhat), as the dollar had been overvalued for quite some time, and now there is no economic reason for it to be strong any more, which is very unfortunate for those living in Thailand and relying on a US dollar income.

[JimboPSM]

Despite what you may hear from the US Government and Fox News, the US Government Finances are in very poor shape and that has been a major factor in the decline of the dollar.

Basically, for some time the US Government has been living way beyond its means, the US National Debt has increased by 50% in the last six years because tax revenues have been substantially below expenditure (to the tune of nearly 3.4 trillion dollars).

For anyone who is interested you can get the US Government accounts going back to 1995 here: http://fms.treas.gov/fr/index.html

[vincent chang]

it seems like the usa has a huge foreign trade defecit with China as almost everything you buy here at walmarts is made in China nowadays.