Denizen

Below is some good advice for those farangs in financial pain. Please consider:

http://www.wealthwire.com/news/finance/4647?r=1

The good news is the list of prudent behavior to adopt is long, and it's growing as we (here at PeakProsperity.com and related sites) work together to identify those with the most promise. This is by no means an exhaustive account, and I look forward to active discussion and additions in the Comments section below:

• Live below your means – Rather than pride yourself on what you purchase, pride yourself on what you don't. That doesn't mean you must live miserly or live in poverty. Learn the peace of mind that comes from knowing you can afford the things you do buy, and the confidence that comes from growing your savings. (Frugality is the #1 quality that all self-made millionaires share)

• Buy quality and maintain it – When you do purchase something, buy for utility and longevity. "Cry once" is a good motto: in other words, pay a premium if necessary to get what will meet your needs best over the longest time horizon (versus "crying often" and spending more $$ over the long run because you bought an inferior product that needed chronic repairs or replacement). Take good care of what you do buy to ensure it will be there as you need it when you need it.

• Take control of your income – Avoid being a wage slave for your entire life. There are innumerable reasons why your situation with your employer can change faster and more drastically than you think. Cultivate an income you "own", either full-time or on the side, so that you aren't left 100% vulnerable to a sudden change in employment. (I realize this is easier said then done, but it is doable by just about everybody. We have a guide we'll publish on this subject within the next few weeks.)

• Cultivate resiliency – Invest in your skills, your homestead, your health, and your community. These will all serve you well as economic growth slows further due to reasons outlined in the Crash Course – and for the skeptics, these are solid investments no matter which way the economy turns. For those new to resiliency, our What Should I Do? Guideis a useful resource to start with.

• Simplify – Learn that less is more. Fewer things to deal with frees you up to focus more on those that matter most. In addition to being a good philosophy to live by, it also reduces the number of things to pay for and the number of things to be taxed on. Both of which leave more money in your pocket.

• Apprentice/mentor – Learn how to do important tasks yourself instead of becoming dependent on paying someone. If you can trade labor for learning, you may be able to avoid some or all of the excessive time and $ costs of academia. If you have expertise, pass it on to others around you. In this way, we create resiliency at the community level, improving the odds that an effective local support network is in place if ever needed.

• Shop & invest locally – Keep capital inside your community to strengthen it and enable re-investment. So much is currently sent to multinational corporations and Wall Street banks – never to return – that even a small percentage redirection will make a big impact at the local level.

• Prefer hard assets to paper ones – In a world of runaway central bank money printing, paper currencies (like the U.S. dollar) are not a smart option for storing wealth. Nor are dangerously inflated paper securities like stocks and bonds. If possible, purchase physical assets you can tangibly hold and store, like precious metals, and for the rest of your investments, find a financial advisor who has a strategy that takes hard assets and depleting resources into account. (We know a few, if you're looking.)

• Consider multi-generational living – The economics of the future may force this on us, and that may not be a bad thing. But it's better to adopt this lifestyle by your own choice, on your own terms, if possible. We have moved so far away from this model of living, at great cost – both money-wise and socially. Knowledge transfer, chore sharing, child/elder care, emotional support, cost reduction, pooled purchasing power – there are many advantages to co-habitating with close family or friends.

• Get and stay fit – The benefits of good health on quality of life, longevity, and net worth are just too numerous to ignore. The modern "sick care" industry over-focuses on treating what breaks. Instead, focus on achieving and maintaining wellness. Chris did it; you can, too.

• Use your productive output as an alternative currency – Much can be acquired without $, in trade for your support or skills. Both goods and services. Learn to ask: What can I trade? before asking How much does it cost? You'll save money while at the same time increasing your perceived value to those around you.

• Pursue happiness – Learn that pleasure comes from relationships, from having purpose, from creation, and having new experiences. All of these can be enjoyed in a multitude of ways, and few require spending lots of money. If you manage to simplify your life (see above) and find pleasure in doing so, you'll be much more likely to enjoy the future, whatever it brings.

• Require awareness and accountability for the future – Hold your elected officials to the same standards you hold yourself. Vote accordingly. Participate in the democratic process. It may not work as well or as fast as we want, but boycotting will only guarantee us disappointment. In a nutshell, hope for the best but don't plan on miracles.

• Trust yourself – Always rely on your own good sense and intuition about what makes sense for you and your family in your unique situation. Do consult with those who have insight and experience to share that will help you make the most informed choices you possibly can, but remember that your present and future are your own responsibility. Do not ever fully relinquish this power to anyone else – not the government, not a family member, not a professional adviser, not even "the experts." Always, always trust yourself first and foremost.

There are other prudent behaviors to add to this list, but this is a pretty good start.

NOW you tell me!

Indeed, we've never had it so good!

(Now where have I heard that before?)

Please don't thank me. Fawning obeisance and adulation embarrasses me.

Below is some good advice for those farangs in financial pain. Please consider:

http://www.wealthwire.com/news/finance/4647?r=1

The good news is the list of prudent behavior to adopt is long, and it's growing as we (here at PeakProsperity.com and related sites) work together to identify those with the most promise. This is by no means an exhaustive account, and I look forward to active discussion and additions in the Comments section below:

• Live below your means – Rather than pride yourself on what you purchase, pride yourself on what you don't. That doesn't mean you must live miserly or live in poverty. Learn the peace of mind that comes from knowing you can afford the things you do buy, and the confidence that comes from growing your savings. (Frugality is the #1 quality that all self-made millionaires share)

• Buy quality and maintain it – When you do purchase something, buy for utility and longevity. "Cry once" is a good motto: in other words, pay a premium if necessary to get what will meet your needs best over the longest time horizon (versus "crying often" and spending more $$ over the long run because you bought an inferior product that needed chronic repairs or replacement). Take good care of what you do buy to ensure it will be there as you need it when you need it.

• Take control of your income – Avoid being a wage slave for your entire life. There are innumerable reasons why your situation with your employer can change faster and more drastically than you think. Cultivate an income you "own", either full-time or on the side, so that you aren't left 100% vulnerable to a sudden change in employment. (I realize this is easier said then done, but it is doable by just about everybody. We have a guide we'll publish on this subject within the next few weeks.)

• Cultivate resiliency – Invest in your skills, your homestead, your health, and your community. These will all serve you well as economic growth slows further due to reasons outlined in the Crash Course – and for the skeptics, these are solid investments no matter which way the economy turns. For those new to resiliency, our What Should I Do? Guideis a useful resource to start with.

• Simplify – Learn that less is more. Fewer things to deal with frees you up to focus more on those that matter most. In addition to being a good philosophy to live by, it also reduces the number of things to pay for and the number of things to be taxed on. Both of which leave more money in your pocket.

• Apprentice/mentor – Learn how to do important tasks yourself instead of becoming dependent on paying someone. If you can trade labor for learning, you may be able to avoid some or all of the excessive time and $ costs of academia. If you have expertise, pass it on to others around you. In this way, we create resiliency at the community level, improving the odds that an effective local support network is in place if ever needed.

• Shop & invest locally – Keep capital inside your community to strengthen it and enable re-investment. So much is currently sent to multinational corporations and Wall Street banks – never to return – that even a small percentage redirection will make a big impact at the local level.

• Prefer hard assets to paper ones – In a world of runaway central bank money printing, paper currencies (like the U.S. dollar) are not a smart option for storing wealth. Nor are dangerously inflated paper securities like stocks and bonds. If possible, purchase physical assets you can tangibly hold and store, like precious metals, and for the rest of your investments, find a financial advisor who has a strategy that takes hard assets and depleting resources into account. (We know a few, if you're looking.)

• Consider multi-generational living – The economics of the future may force this on us, and that may not be a bad thing. But it's better to adopt this lifestyle by your own choice, on your own terms, if possible. We have moved so far away from this model of living, at great cost – both money-wise and socially. Knowledge transfer, chore sharing, child/elder care, emotional support, cost reduction, pooled purchasing power – there are many advantages to co-habitating with close family or friends.

• Get and stay fit – The benefits of good health on quality of life, longevity, and net worth are just too numerous to ignore. The modern "sick care" industry over-focuses on treating what breaks. Instead, focus on achieving and maintaining wellness. Chris did it; you can, too.

• Use your productive output as an alternative currency – Much can be acquired without $, in trade for your support or skills. Both goods and services. Learn to ask: What can I trade? before asking How much does it cost? You'll save money while at the same time increasing your perceived value to those around you.

• Pursue happiness – Learn that pleasure comes from relationships, from having purpose, from creation, and having new experiences. All of these can be enjoyed in a multitude of ways, and few require spending lots of money. If you manage to simplify your life (see above) and find pleasure in doing so, you'll be much more likely to enjoy the future, whatever it brings.

• Require awareness and accountability for the future – Hold your elected officials to the same standards you hold yourself. Vote accordingly. Participate in the democratic process. It may not work as well or as fast as we want, but boycotting will only guarantee us disappointment. In a nutshell, hope for the best but don't plan on miracles.

• Trust yourself – Always rely on your own good sense and intuition about what makes sense for you and your family in your unique situation. Do consult with those who have insight and experience to share that will help you make the most informed choices you possibly can, but remember that your present and future are your own responsibility. Do not ever fully relinquish this power to anyone else – not the government, not a family member, not a professional adviser, not even "the experts." Always, always trust yourself first and foremost.

There are other prudent behaviors to add to this list, but this is a pretty good start.

I know of one MAJOR German manufacturer who is moving operations from Thailand to India as Thailand is no longer competitive due to the high exchange rates.

Multi nationals are whores, they will quit thailand at the drop of a hat if it starts hitting their bottom line. and it is doing that right now.

Could be the same as 1997, will the last expat out of the door please turn out the lights, but for different reasons!

Companies that relocate every time the exchange rate changes are losers. If this was a major economic rationale for business Australia would have no manufacturers at present with the exchange rate having more than doubled against USD and GBP in around 10 years.

I have seen plenty of Chinese and Russians throwing their cash around ... not all are prepaid and that will increase ..

Didn't most from the UK start on package tours all pre-paid ...

Not so much a rise in Baht but a fall in GBP & the other western currencies ...

The vikings invented package tours hundreds of years ago.

In comparison to the strength of the Thai baht I thought this presentation on ABC TV the other night about the concerns that the Indonesian Rupiah may be falling too quickly and too much was quite an interesting contrast…..

Particularly as one of the problems they cite in Indonesia is their huge bill for importation of oil. And yet I would have thought the conditions would not be dramatically different in Thailand ( particularly with the Thai government promoting more cars on the road ) where they also subsidise the cost of this to the public?

There will no doubt be more Aussies flocking to Bali again for their vacations

http://www.abc.net.au/news/2013-03-12/indonesias-rupiah-rapidly-falling/4569024

The biggest economy in SEA has a weakening currency despite double-digit economic growth year-on-year ? Could it be that someone is questioning whether the fundamentals match those numbers ? Beats me, but I will definitely search iView for the program you mentioned.

http://www.xe.com/currencycharts/?from=USD&to=IDR&view=5Y

http://www.xe.com/currencycharts/?from=EUR&to=IDR&view=5Y

http://www.xe.com/currencycharts/?from=AUD&to=IDR&view=5Y

I wouldn't be too quick to write Indonesia off - how many regional economies have 230 million consumers and an almost endless supply of cheap labor ? Potential problems - sure, but they aren't alone in that regard. Interesting times ahead.

Obviously Indonesian imports are growing faster than exports and capital inflow is not making up the difference.

Indonesia has two big disadvantages. Earth quakes and frequent floods and its traffic appears to be worse than Thailand's.

Otherwise, nice people and lots of well educated young people.

Thats the way to keep the tourist away... With the Pound the Euro and the Dollar Exchange rate No one can afford to come to Thailand on Holiday. So many other countries the rate is Much better. Thailand is hurting it's self.... Wake the F&*% up!!!!!!!

Cheap farang tourists who spend little are not what Thailand needs. The cheap tourists will be replaced by Chinese and Eastern European nationals who aren't as parsimonious as the UK (especially) and Western European farangs.

Bring it on!

Do you have hard evidence that Chinese in Thailand are big spenders? And who exactly do you mean by East European nationals? If you mean Russians and you are suggesting that they are big spenders then clearly you haven't heard the Thais complain about their frugality?

China and Russia [especially] have very high growth rates for inbound Thai tourism whereas UK is flat. The GBP is depressing UK outbound tourism.

I have heard UK farangs complain about their frugality.

Thats the way to keep the tourist away... With the Pound the Euro and the Dollar Exchange rate No one can afford to come to Thailand on Holiday. So many other countries the rate is Much better. Thailand is hurting it's self.... Wake the F&*% up!!!!!!!

Given who the majority of tourist are

maybe not really much of a concern ?

GBP just barely made the top 10

USD & EURO did not

tourism Thailand.jpg

Also This,

>>>A study of tourism 'leakage' in Thailand estimated that 70% of all money spent by tourists ended up leaving Thailand (via foreign-owned tour operators, airlines, hotels, imported drinks and food, etc.). Estimates for other Third World countries range from 80% in the Caribbean to 40% in India.

http://www.unep.org/resourceefficiency/Business/SectoralActivities/Tourism/FactsandFiguresaboutTourism/ImpactsofTourism/EconomicImpactsofTourism/NegativeEconomicImpactsofTourism/tabid/78784/Default.aspx

The wealthiest 10% of UK farangs probably spend more in total than the other 90% in total.

In regard to leakage, a lot of it probably flowed out through the urinals.

You are having a larf the old crone was the one who sold off British manufacturing to make more profit for her cronies at the expense of the british working man who she despised.

She certainly did not despise the working classes ,but she did hate the fact most did not want to work for a fair wage and spent half the time on strike ,thats why the manufacturers left ,to go where the workforce actually worked ,she may have done much wrong ,but by God she made us proud to be British again .

The Falklands war was a huge expense to UK and the ongoing support of Falklands people and sheep is costing huge money annually. Pride has a cost.

Well when the oil starts flowing from the waters around there it will all be repaid ,anyway ,what cost protecting your own people? the Labour lot Blair and co spent far more invading a country looking for "weapons of mass destruction"

The likelihood of clouds of renewable anus gas in the House of Commons is higher than the likelihood of oil production from Falklands waters.

be careful , a Thai Bath ,too strong will be a problem for Export and Tourism , which are the 2 major currency income for the country.

+1

I don't think a Thai "Bath" [sic] is on the priority list for UK farangs. However the GBP is currently being given a bath.

In comparison to the strength of the Thai baht I thought this presentation on ABC TV the other night about the concerns that the Indonesian Rupiah may be falling too quickly and too much was quite an interesting contrast…..

Particularly as one of the problems they cite in Indonesia is their huge bill for importation of oil. And yet I would have thought the conditions would not be dramatically different in Thailand ( particularly with the Thai government promoting more cars on the road ) where they also subsidise the cost of this to the public?

There will no doubt be more Aussies flocking to Bali again for their vacations

http://www.abc.net.au/news/2013-03-12/indonesias-rupiah-rapidly-falling/4569024

If you want to live like an expat the costs are similar in most Asian countries. If you want to go cheap you have to live like a local.

You mean China's fake GDP figures ?

http://www.cnbc.com/id/48279364/Lying_Libor_Is_Nothing_Compared_to_Chinarsquos_Fake_GDP_Report

http://www.scmp.com/news/china/article/1130924/chinese-economist-questions-gdp-growth

Was it prepared by UK economists?

No actually prepared and contested by the Chinese themselves.

Wowee. you are unfrocked as a secret financial wizard. Barclays claim 7.15 percent against Chinese government published 7.6 %. The sky is falling; get out from under.

Chicken Little is a genius.

Try this one, fresh from the press

http://thediplomat.com/china-power/the-curious-case-of-chinas-gd-figures/

There are also questions about the mechanics of compiling and calculating the GDP figures, including how much inflation is accounted for. The Wall Street Journal recently quoted Standard Chartered economist Stephen Green as saying that he believes that China’s 2012 GDP was closer to 5.5%, as opposed to the official figure of 7.8%. He uses a different measure of service sector inflation, which is higher than the official deflator (the figure that subtracts inflation from growth to come up with GDP).

Have you by the way noticed how many Chinese companies have lately been suspended, are in the process of, from the US stock market for falsifying their books ?

Have you noticed how many USA companies weren't suspended. e.g. Lehman Brothers, JP Morgan Chase bank for activities of the UK genius the "White Whale". There is xenophobia and antipathy in USA toward Chinese because they don't bend over when Uncle Sam opens its zipper and because they are currently more economically successful than USA..

You mean China's fake GDP figures ?

http://www.cnbc.com/id/48279364/Lying_Libor_Is_Nothing_Compared_to_Chinarsquos_Fake_GDP_Report

http://www.scmp.com/news/china/article/1130924/chinese-economist-questions-gdp-growth

Was it prepared by UK economists?

No actually prepared and contested by the Chinese themselves.

Wowee. you are unfrocked as a secret financial wizard. Barclays claim 7.15 percent against Chinese government published 7.6 %. The sky is falling; get out from under.

Chicken Little is a genius.

o not agree,Thailand is going to get thrashed in the not too distant future. Already the Thai govt. is struggling to make up for promises on the first rice crop,never mind second and subsequent crops,the fuel subsidy is so out of kilter its hard to see how its sustained. Tourism will be down without a doubt,exports will be increasing expensive. There are other problems developing too,plus the resentment of the poor Thai population seeing the elite get the rewards when they are ground onto the floor. The 300 Baht a day is an insult

I will make the prediction the thai baht will still be strong in 5 years from now. Asian countries put in place harsh banking reforms after their crash. Except for Japan they (asian) governments did not try to spend their way out it and recovered fairly quickly and have little or no debt.

Now look at the USA and most of Europe, they took a different approach and their economies are still at the bottom of the ocean along with their currencies.

Unless those countries pay down their tremendous debts and deficits and stop printing money the thai bath will stay close to it current level for some time to come. It doesn't a super expat financial guru to figure this out...just common sense.

Thailand is going to get thrashed in the not too distant future.

Make that the most part of Asia, with China as the front leader. They got big from their exports to Europe and US, but when it get's cheaper to produce better quality at home, they will sink as fast as they rose.

USA, UK and Europe have been living beyond their means for years financed by the countries with positive trade balances. Wealth and wages have been declining in real terms for years and will continue to do so. The middle classes of USA, UK and Europe are suffering a decline of their status, home ownership, wealth and financial aspirations and are facing the reality that welfare and superannuation savings are insufficient to support them in their retirement.

Asian economies are rising as exemplified by their GDP growth rates.

Sun rises in the East and sets in the West.

You mean China's fake GDP figures ?

http://www.cnbc.com/id/48279364/Lying_Libor_Is_Nothing_Compared_to_Chinarsquos_Fake_GDP_Report

http://www.scmp.com/news/china/article/1130924/chinese-economist-questions-gdp-growth

Was it prepared by UK economists?

You are having a larf the old crone was the one who sold off British manufacturing to make more profit for her cronies at the expense of the british working man who she despised.

She certainly did not despise the working classes ,but she did hate the fact most did not want to work for a fair wage and spent half the time on strike ,thats why the manufacturers left ,to go where the workforce actually worked ,she may have done much wrong ,but by God she made us proud to be British again .

The Falklands war was a huge expense to UK and the ongoing support of Falklands people and sheep is costing huge money annually. Pride has a cost.

I will make the prediction the thai baht will still be strong in 5 years from now. Asian countries put in place harsh banking reforms after their crash. Except for Japan they (asian) governments did not try to spend their way out it and recovered fairly quickly and have little or no debt.

Now look at the USA and most of Europe, they took a different approach and their economies are still at the bottom of the ocean along with their currencies.

Unless those countries pay down their tremendous debts and deficits and stop printing money the thai bath will stay close to it current level for some time to come. It doesn't a super expat financial guru to figure this out...just common sense.

Do not agree,Thailand is going to get thrashed in the not too distant future. Already the Thai govt. is struggling to make up for promises on the first rice crop,never mind second and subsequent crops,the fuel subsidy is so out of kilter its hard to see how its sustained. Tourism will be down without a doubt,exports will be increasing expensive. There are other problems developing too,plus the resentment of the poor Thai population seeing the elite get the rewards when they are ground onto the floor. The 300 Baht a day is an insult

Thailand is going to get thrashed in the not too distant future.

Make that the most part of Asia, with China as the front leader. They got big from their exports to Europe and US, but when it get's cheaper to produce better quality at home, they will sink as fast as they rose.

USA, UK and Europe have been living beyond their means for years financed by the countries with positive trade balances. Wealth and wages have been declining in real terms for years and will continue to do so. The middle classes of USA, UK and Europe are suffering a decline of their status, home ownership, wealth and financial aspirations and are facing the reality that welfare and superannuation savings are insufficient to support them in their retirement.

Asian economies are rising as exemplified by their GDP growth rates.

Sun rises in the East and sets in the West.

For years, one of the worst insults an expat could throw at anyone was that they were so cheap they were forced to live on roti and chicken rice : the implication being that such staples put one on KSR with the backpacker crowd. I guess life has a very neat way of bringing things like that back to haunt us all - I plan to start at roti and chicken rice from 2014, and steadily work my way to panhandling on lower Suk. Investing all that leftover cash in low cap Thai stocks, I should be driving a Porsche by 2020. No pain, no gain.

The invisible hand might bring you undone:

1. Increased demand for roti and chicken rice may force up the price in GBP terms.

2. Increased competition from panhandlers could lower your revenue.

Good luck with your venture.

Its now 43. Dropped so fast. My bro a london city boy says 40 is definately on the cards

Not many 'fires' that can be stoked at the moment so Thailand is getting lots of it. I'm being told 39 - 38.5 before everyone does a runner.

I'll believe that when I see photographic/video proof. Lots of talk in this and the other threads around the whole 'abandon ship' idea, but talk is cheap. Even if you have to live on Mama Noodles and Singha for 6 months, its still going to be cheaper than relocating.

Could be 10-20 years.

Most of the posters on this BBS have a forlorn hope that the decline of the GBP is a transient event which will correct in a short time. That is just wishful thinking. Australia went through such a process in the 1980s which did not end until the 2000s. That was around 20 years.

The good thing is that the UK expats might eventually face the situation that imported British beer is cheaper than local beer. What a thought! Thirst of UK expats for British beer leads an economic recovery.

I think it'll hit 40 this month, maybe 39.

As already said, LoS is not cheap anymore, those days are long gone and LoS has cottoned on to making money from mass tourism.

People will keep coming but those living and depending on a good exchange rate are now buggered.

Two choices, stay and tough it out if you can or leave if you can.

For me, on a selfish note I want the GBP to THB to be under 40.

As I say purely selfish reasons and I reckon I'll see that by end March latest.

Can't believe these exchange rates are not hurting Pattaya. I'm sure we'll see some (farang ) bar/restaurant closures in due time. Of course the 3rd world mass package tourists will keep coming farang or no.

Western expats will give up clothes, accommodation and food in that order before they cut back on beer and women.

Assuming the THB Vs. US$ stay constant, then the Pound will be 42.6 baht by August.<br /><br />http://www.forecasts.org/pound.htm

It's been asked before, but how low can it go till expats living on imported money can no longer afford to stay? I wonder if anyone in the government has calculated the social cost if thousands of husbands have to leave their wives and children behind in LOS? Perhaps it's time to make it easier to stay, by reducing visa costs etc. They increased the costs when the ex rate was higher, so perhaps it's time to face reality and change them back.

Your hope is forlorn. The THB is on an upward trajectory at this time and over the weekend rating agencies increased Thailands rating which will portend an increase in the THB.

The Thai government does not have much control over THB other than causing adverse effects in the economy which is undesirable.

Thai government does not care about expat survival in Thailand. Nor does the UK government or the currency speculator community care about expats in Thailand..

You seem to be spectacularly missing the point here,if Thailand is one of the world's biggest exporters of rice,how much must the overbought Baht be hurting what I'm sure is one of their biggest exports and a large percentage of Thailand's GDP?

In fact,anything that Thailand exports,motorbikes,cars will be adversely affected by the strength of the Thai Baht.Thailand's account deficit as of January 2013 is USD -$2337 million,a record all time low,meaning they are exporting far more than they are importing right now

Banks trade currencies overnight,I'm sure you've heard of Overnight Interest Rates?Central Banks also use these same overnight interest rates to control currencies that are over or under bought.The benchmark interest rate in Thailand was last recorded at 2.75 percent.The Overnight Interest Rate in Thailand is reported by the Bank of Thailand,they could cut this to weaken their currency but seem unwilling to do so,following their catastrophic devaluation of the Baht that started the Asian Financial Crisis back in 1997!

It seems it's not just bar girls that are either 0% or 100% and nothing in between but the Finance Ministry also,why am I not surprised?

Rice exports are 12.37% of GDP. According to Wikipedia the 1997 crisis cause was as follows: "The crisis started in [/size]Thailand with the financial collapse of the [/size]Thai baht after the Thai government was forced to [/size]float the baht (due to lack of foreign currency to support its fixed exchange rate), cutting its [/size]peg to the [/size]U.S. dollar, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven. At the time, Thailand had acquired a burden of [/size]foreign debt that made the country effectively bankrupt even before the collapse of its currency. [/size]^[1] As the crisis spread, most of [/size]Southeast Asia and [/size]Japan saw slumping currencies,[/size]^[2] devalued stock markets and other asset prices, and a precipitous rise in [/size]private debt.[/size]^{[3]."In other words, government control of exchange rates caused the crisis. If the Baht had been free floating at that time it would have adjusted to market conditions. You are proposing that the government again control the Baht. I believe people would be frightened by the prospect of Peu Thai government attempting to control currency.} It's not going to happen. The speculators will flock to Thai Baht betting against the government.

As I said,rice is one of Thailand's biggest exports,over 12% of GDP!Also,unpegging the Baht from the USD was an effective devaluation,again,as I said!

Using interest rates to control currencies is an effective and completely natural way to weaken the Thai Baht,market forces will decide how much by,once again,as I said!

Speculators will short the Baht once interest rates ate cut,knowing it will fall and hey presto,you have a self-fulfilling prophecy!No speculators are going to buy the Baht and attempt to prop it up on the back of a cut in rates by 50 or 100 basis points,they would lose their money.

You really are very good at missing the point,aren't you?

There is a like minded guy to yourself who is running UK fiscal and monetary policy right now. Look where that got UK and the GBP.

Just had the BBC iplayer on and listening to Radio 5live and it appears Brits are just awakening to the fact that Sterling is going down the toilet. A queue of importers on all complaining about imports are now going to be expensive, especially wine. A currency trader export added his two pence and there's not enough space in this box to list them, low int rates/fear of triple dip/QE/ snow in March etc etc.

It's time for a stiffening of the upper lip and girding of the loins. Is there a country that needs to be bombed?

Assuming the THB Vs. US$ stay constant, then the Pound will be 42.6 baht by August.<br /><br />http://www.forecasts.org/pound.htm

It's been asked before, but how low can it go till expats living on imported money can no longer afford to stay? I wonder if anyone in the government has calculated the social cost if thousands of husbands have to leave their wives and children behind in LOS? Perhaps it's time to make it easier to stay, by reducing visa costs etc. They increased the costs when the ex rate was higher, so perhaps it's time to face reality and change them back.

Your hope is forlorn. The THB is on an upward trajectory at this time and over the weekend rating agencies increased Thailands rating which will portend an increase in the THB.

The Thai government does not have much control over THB other than causing adverse effects in the economy which is undesirable.

Thai government does not care about expat survival in Thailand. Nor does the UK government or the currency speculator community care about expats in Thailand..

You seem to be spectacularly missing the point here,if Thailand is one of the world's biggest exporters of rice,how much must the overbought Baht be hurting what I'm sure is one of their biggest exports and a large percentage of Thailand's GDP?

In fact,anything that Thailand exports,motorbikes,cars will be adversely affected by the strength of the Thai Baht.Thailand's account deficit as of January 2013 is USD -$2337 million,a record all time low,meaning they are exporting far more than they are importing right now

Banks trade currencies overnight,I'm sure you've heard of Overnight Interest Rates?Central Banks also use these same overnight interest rates to control currencies that are over or under bought.The benchmark interest rate in Thailand was last recorded at 2.75 percent.The Overnight Interest Rate in Thailand is reported by the Bank of Thailand,they could cut this to weaken their currency but seem unwilling to do so,following their catastrophic devaluation of the Baht that started the Asian Financial Crisis back in 1997!

It seems it's not just bar girls that are either 0% or 100% and nothing in between but the Finance Ministry also,why am I not surprised?

Rice exports are 12.37% of GDP.

According to Wikipedia the 1997 crisis cause was as follows:

"The crisis started in Thailand with the financial collapse of the Thai baht after the Thai government was forced to float the baht (due to lack of foreign currency to support its fixed exchange rate), cutting its peg to the U.S. dollar, after exhaustive efforts to support it in the face of a severe financial overextension that was in part real estate driven. At the time, Thailand had acquired a burden of foreign debt that made the country effectively bankrupt even before the collapse of its currency. ^[1] As the crisis spread, most of Southeast Asia and Japan saw slumping currencies,^[2] devalued stock markets and other asset prices, and a precipitous rise in private debt.^[3]."

^{In other words, government control of exchange rates caused the crisis. If the Baht had been free floating at that time it would have adjusted to market conditions. You are proposing that the government again control the Baht. I believe people would be frightened by the prospect of Peu Thai government attempting to control currency.}

It's not going to happen. The speculators will flock to Thai Baht betting against the government.

The government of Thailand is more interested in the welfare of the whole of Thailand not just one special interest group.

Oh, the rose-tinted glasses. In fact, the government of Thailand is precisely interested in the welfare of just one special interest group: itself.

As for the family issue, expats can work or have their wives work. Even a job as hotel maid should easily make up the difference. No need to use gov't revenues (my fees & taxes) to support some inconvenienced, irresponsible Brits who didn't take into account exchange rate fluctuations.

Work indeed! Please stop using four letter words that may be offensive to those of languid disposition and mind.

Assuming the THB Vs. US$ stay constant, then the Pound will be 42.6 baht by August.<br /><br />http://www.forecasts.org/pound.htm

It's been asked before, but how low can it go till expats living on imported money can no longer afford to stay? I wonder if anyone in the government has calculated the social cost if thousands of husbands have to leave their wives and children behind in LOS? Perhaps it's time to make it easier to stay, by reducing visa costs etc. They increased the costs when the ex rate was higher, so perhaps it's time to face reality and change them back.

Your hope is forlorn. The THB is on an upward trajectory at this time and over the weekend rating agencies increased Thailands rating which will portend an increase in the THB.

The Thai government does not have much control over THB other than causing adverse effects in the economy which is undesirable.

Thai government does not care about expat survival in Thailand. Nor does the UK government or the currency speculator community care about expats in Thailand..

I know that the Thai govt. doesn't care about expats ( the immigration system is proof of that ), but I thought they MIGHT care about thousands of THAI spouses and children that may be abandoned. It's the government's job to look after its citizens, isn't it ( or is that only in Utopia )?

The government of Thailand is more interested in the welfare of the whole of Thailand not just one special interest group. I am not aware of any Thai government welfare system that will support abandoned expat spouses and children.

I expect that deserting expats will send money to the families they deserted.

Assuming the THB Vs. US$ stay constant, then the Pound will be 42.6 baht by August.<br /><br />http://www.forecasts.org/pound.htm

It's been asked before, but how low can it go till expats living on imported money can no longer afford to stay? I wonder if anyone in the government has calculated the social cost if thousands of husbands have to leave their wives and children behind in LOS? Perhaps it's time to make it easier to stay, by reducing visa costs etc. They increased the costs when the ex rate was higher, so perhaps it's time to face reality and change them back.

Your hope is forlorn. The THB is on an upward trajectory at this time and over the weekend rating agencies increased Thailands rating which will portend an increase in the THB.

The Thai government does not have much control over THB other than causing adverse effects in the economy which is undesirable.

Thai government does not care about expat survival in Thailand. Nor does the UK government or the currency speculator community care about expats in Thailand..