The Thai Economy Is In Crisis

[cclub75]

Nasty cisor effect to come in 2008 for luxury hotel business in Bangkok...

Occupancy rate already down compare to 2006 (from 75 to 70 %)... And supply should increase by 24 % next year !

Bravo.

"We expect that overall occupancy rates for Bangkok's four- and five-star hotels will only be 70 per cent in 2007 compared to 75 per cent in 2006," said Navaphol Viriyakunkit, head of research at CB Richard Ellis Thailand.

CB Richard Ellis blamed the hotel occupancy decline on political uncertainties; New Year's Eve bombings in Bangkok last year, which killed two people and have yet to be solved; and a weak economy. "

Bangkok Post

Edited October 30, 2007 by cclub75

[palm]

This is the best thread on ThaiVisa to see which of the foreigners here really don't have a pot to piss in.

It really shows the ones who can't afford to buy property here, the ones can't afford to apply for PR, the ones who have tiny pensions being hammered by the strong Baht.

Have any of you whingers ever figured out that your personal misfortunes in Thailand are not caused by the Thais or the Thai economy, but from your own inability to understand business and economics; hence your checkout-girl incomes resulting in your hard-done-by posts.

[Mid]

This is the best thread on ThaiVisa to see which of the foreigners here really don't have a pot to piss in.

It really shows the ones who can't afford to buy property here, the ones can't afford to apply for PR, the ones who have tiny pensions being hammered by the strong Baht.

Have any of you whingers ever figured out that your personal misfortunes in Thailand are not caused by the Thais or the Thai economy, but from your own inability to understand business and economics; hence your checkout-girl incomes resulting in your hard-done-by posts.

kimrichter.com

unlike some , there are those here who care about those who are less fortunate ....................

[Maxi101]

This is the best thread on ThaiVisa to see which of the foreigners here really don't have a pot to piss in.

It really shows the ones who can't afford to buy property here, the ones can't afford to apply for PR, the ones who have tiny pensions being hammered by the strong Baht.

Have any of you whingers ever figured out that your personal misfortunes in Thailand are not caused by the Thais or the Thai economy, but from your own inability to understand business and economics; hence your checkout-girl incomes resulting in your hard-done-by posts.

Why you don't go to the next bar and spread your preteen babbeling there?!

I am fed up to smell the worried oudor of farrangs who never stop to tell me how good there position here is, only to ensure themself.

[cclub75]

The Caravan Passes and the Dog Barks...

Anyway, back to the topic and serious stuff : FDI are down compare to 2006.

"The central bank chief revealed the foreign direct investment in the first eight months of this year totaled US$5 billion, down from $8 billion in the same period last year, since no commercial banks had raised their capital in that period."

(Bangkok Post)

[highdiver]

The BOT has finally published the results of the Q3

the crisis continues

No. 53/2007

Press Release on Economic and Monetary Conditions for September 2007 and the third Quarter of 2007

Overall economy in September 2007 continued to expand at a similar pace as the previous month.

Domestic demand continued its recovery trend while export growth remained satisfactory. On the supply side, the

increase in both production and prices of major crops resulted in higher farm income. Manufacturing production

expanded well, though slowing down slightly from the previous month, whereas tourism continued to improve.

Overall economic stability remained strong with continued current account surplus and high level of international

reserves. Despite a minor acceleration of headline inflation, core inflation remained low.

In the third quarter of 2007, overall economy improved from the preceding quarter. Improvement in

domestic demand has been more notable and exports continued to expand well. This was in line with the

development in the supply side where manufacturing production accelerated from the previous quarter. Tourism

also picked up. Nonetheless, the slowdown in agricultural production and the stable agricultural prices led to a

slowdown in farm income growth.

Details of the economic conditions in September 2007 and the third quarter of 2007 are as follows:

1. Manufacturing Production. The Manufacturing Production Index (preliminary) expanded well at

the rate of 9.3 per cent year-on-year, though slowing down slightly from 10.1 per cent in the previous month.

Satisfactory growth was observed in the electronic and vehicle productions due to favorable external demand, and

petroleum production in line with domestic demand. However, production deceleration occurred in some

categories which had high stock accumulation and export activities in earlier period. These included electrical

appliance, beverages, and tobacco categories. The capacity utilization rate in September 2007 was at 77.0 per

cent, close to that of the previous month. Seasonally adjusted capacity utilization rate in September decreased slightly.

In the third quarter of 2007, the Manufacturing Production Index grew by 9.0 per cent year-onyear,

accelerating from the previous quarter. This was attributable to the production expansions in electronics,

vehicles, and electrical appliance categories. Accordingly, the capacity utilization rate increased from the

preceding quarter to 76.4 per cent.

2. Domestic Demand. Private Consumption Index (PCI) expanded by 0.3 per cent from the same

period last year, slowing down from the previous month. This corresponded to the reduction in durable-good

consumption indicators. Motorcycle sales continued to contract while passenger car sales fell slightly from the same

period last year which benefited from the launch of new car models. However, non-durable good consumption

indicators improved in line with imports of consumer goods at constant price, VAT at constant price, and household

electricity. Private Investment Index (PII) (preliminary) dropped by 0.6 per cent year-on-year, picking up from

the previous month’s decline of 2.4 per cent. This was because of the improvement in indicators in machinery and

equipment category, including the continued expansion in imports of capital goods at constant price and high

growth in commercial car sales.

In the third quarter of 2007, the Private Consumption Index improved from the previous quarter,

expanding by 0.6 per cent from the same period last year. Most indicators adjusted upward, particularly the

passenger car sales which returned to positive growth in this quarter. The Private Investment Index (preliminary)

dropped by 0.6 per cent from the same period last year, improving from the preceding quarter’s decline of 2.7 per

cent. The improvement stemmed mainly from the indicators in machinery and equipment category. Nevertheless,

the construction category remained subdued.

3. Fiscal Position. In September 2007, the government’s gross revenue collection was 138.4 billion

baht, increasing by 24.8 per cent year-on-year. Tax revenue rose by 3.2 per cent, following the income tax

expansion. Meanwhile, consumption tax declined slightly from the reduction in excise tax. This was caused by

lower tobacco tax as producers were hoarding products prior to the increase of tobacco stamp fee on August 28th.

The collection of VAT increased in line with the trend of domestic demand. Non-tax revenue escalated by 152.5 per

-2-

cent, owing mainly to the remittance of 36.9 billion baht from the closure of the Exchange Rate Equalization Fund

(EEF). However, if the remittance was excluded, the government revenue collection would reduce by 8.5 per cent

from the same period last year. The government’s cash balance registered a surplus of 63.9 billion baht, and the

treasury cash balance at the end of September was 142.8 billion baht, increasing by 74.6 billion baht from the

previous month.

In fiscal year 2007, the government’s gross revenue collection was 1,703.6 billion baht, increasing by

7.7 per cent from the previous fiscal year. However, without taking into account the remittance from EEF closure,

the gross revenue collection would increase by 5.4 per cent. The government’s cash balance registered a deficit of

94.2 billion baht, with net domestic borrowing of 140.5 billion baht and net foreign borrowing repayment of 42.1

billion baht. Consequently, the treasury cash balance increased by 4.3 billion baht to 142.8 billion baht.

4. External Sector in September 2007. The trade balance recorded a surplus of 1,927 million US

dollars. Exports value totaled 13,246 million US dollars, rising by 12.6 per cent from the same period last year. The

export growth was satisfactory, though slowing down from the previous month. Major expansion occurred in computer

and parts, vehicles and parts, and plastic product categories. Exports of labor-intensive industries also increased, mainly

from the precious stone and jewelry products. Meanwhile, imports value totaled 11,318 million US dollars, growing by

9.3 per cent from the same period last year. The minor slowdown came from lower crude oil and natural gas imports,

partly because of the overlap in report procedure. Nonetheless, imports of capital goods accelerated, resulting from the

imports of machinery, computer parts, as well as one aircraft (150 million US dollars in value). Services, income, and

transfers account registered a deficit of 116 million US dollars as it was the period for private sector’s profit and

dividend transfer. Consequently, the current account was in a surplus of 1,812 million US dollars and balance of

payments registered a surplus of 4,670 million US dollars. International reserves as of end-September 2007 stood at 80.7

billion US dollars with a net forward position of 12.9 billion US dollars.

For the third quarter of 2007, the trade balance surplus was 2,942 million US dollars. This was due

mainly to the exports which expanded satisfactorily, though slowing down slightly from the previous quarter.

Exports grew by 12.6 per cent year-on-year, equivalent to 38,790 million US dollars in value. On the other hand,

imports grew by 8.4 per cent and totaled 35,847 million US dollars in value. Imports expanded well compared with

the second quarter, corresponding to the improving trend of domestic demand. The services, transfers and income

account was in a deficit of 14 million US dollars and the current account was in a surplus of 2,928 million US

dollars. The balance of payments also registered a surplus of 5,120 million US dollars.

5. In September 2007, headline inflation was at 2.1 per cent, accelerating from the previous month.

This was mainly ascribed to the energy price increases. During this month, benzene and diesel prices rose in total by

1.60 and 2 baht, respectively. Core inflation was at 0.8 per cent, slightly up from the previous month. This was in

line with the upward adjustment in tobacco prices after the excise tax increase. The Producer Price Index (PPI)

rose by 3.1 per cent, rapidly accelerating from 0.3 per cent in the previous month. This was due mainly to

agricultural product prices which continued to increase. Some manufacturing products saw price increases,

including oil, rubber and plastic products, food, beverages, and tobacco.

For the third quarter of 2007, the headline and core inflation decelerated from the second quarter to

1.6 and 0.8 per cent, respectively.

6. Monetary Conditions. In September 2007, deposits of depository corporations1/ expanded by

3.0 per cent year-on-year, trending down from the beginning of this year. Private credits grew by 2.4 per cent,

following household credit expansion. However, credits extended to the business sector still decreased from the

same period last year.

Monetary base. At end-September 2007, the monetary base rose by 8.8 per cent while broad money

increased by 2.7 per cent from the same period last year.

1/ Depository Corporations comprises of all depository corporations excluding the Bank of Thailand, namely, domesticallyregistered

commercial banks, branches of foreign banks, international banking facilities, finance companies, specialized

banks, thrift and credit cooperatives, and money market mutual funds.

-3-

Money market interest rates. In September 2007, the 1-day repurchase rate and the overnight

interbank rate averaged at 3.25 per cent per annum, unchanged from August to October 24th. This was in line with

the MPC decision, on October 10th, 2007, to continue maintaining the policy rate.

During the third quarter of 2007, the short-term interest rates in the money market averaged lower

than that of the previous quarter. Both 1-day repurchase rate and overnight interbank rate averaged at 3.30 per

cent per annum, declining from the second quarter at 3.84 and 3.88 per cent per annum, respectively.

7. Exchange Rate and Nominal Effective Exchange Rate (NEER). In September 2007, the baht

averaged at 34.26 baht per US dollar, close to 34.20 baht per US dollar in August. This was a result of the balance

between the supply of US dollar from exporters and demand for US dollar from oil companies as well as

intervention by the Bank of Thailand. The NEER in September 2007 stood at 78.28, lower from 79.15 in the

previous month.

In the third quarter of 2007, the baht averaged at 34.06 baht per US dollar, appreciating from 34.68

baht per US dollar in the second quarter, while the NEER appreciated by approximately 0.7 per cent from the last

quarter’s average.

During 1-24 October 2007, the baht moved in narrow range, averaging at 34.20 baht per US dollar,

close to the rate in September.

Bank of Thailand

31 October 2007

Vision : A forward-looking organization with competent staff dedicated to ensuring

the resilience of the Thai economy against shock and instability

Contact person: Punpilas Ruangwisut

E-mail: [email protected]

Tel: +66 (0)-283-5648, +66 (0)-283-5639

[highdiver]

some more bad news....

Japanese Food Processors Move from China to Thailand

Japanese food processors are moving back to Thailand from China because of food quality concerns according to the Bangkok Post.

The obvious driver of the move by hundreds of Japanese food processors to move to Thailand is due to lack of Japanese consumer confidence in goods from China as the media over the last few month has been none stop in reporting such incidents.

Another key driver of the move is the recent Japan-Thai free-trade agreement that kicks in next month, which will allow Japanese food processors to take advantage of tariff gains.

[highdiver]

the BOI is reporting a very large growth in all investments sepcially from forigners..

this is for approved BOI investments.

http://www.boi.go.th/english/download/boi_...0709_app_en.pdf

[soundman]

Just to keep Diver happy.

After 6 - 7 months of abysmal sales in the pro audio market, this month has turned around like a flash flood.

Other small businesses I am dealing with report jumps in local sales as well.

Cheers.

[samran]

Thailand's Current Account Surplus Widens on Exports (Bloomberg)

Thailand's current account surplus widened to the most in six months in September as exports rose.The gap increased to $1.81 billion from a $735 million excess in August, the Bank of Thailand said today. The median estimate of 10 economists in a Bloomberg News survey was $1.54 billion.``The Thai economy continues to show signs of recovery helped by strong export growth,'' Amara Sriphayak, a Bank of Thailand official, told a press briefing. ``There are also signs of recovery in domestic consumption.'' Thailand's trade surplus widened to $1.93 billion in September from $973 million a month earlier, the central bank said today. Exports last month rose 12.6 percent from a year earlier to $13.2 billion, compared with an 18.4 percent increase in August. Imports increased 9.3 percent to $1.13 billion, following a 12.1 percent gain in the previous month.

`

Manufacturing production last month expanded by 9.3 percent from a year earlier, slowing from a 10.2 percent gain the previous month. Output was expected to increase 7.3 percent, according to Bloomberg's survey. A private consumption index, comprising electricity use, imports of consumer goods and gasoline sales, rose 0.3 percent in September, slowing from a 1.45 percent increase the previous month. Still, retail sales increased for the first time in five months, adding 1.4 percent. A gauge of business sentiment rose to 44.5 from 43.4 in August.

[Prakanong]

This is the best thread on ThaiVisa to see which of the foreigners here really don't have a pot to piss in.

It really shows the ones who can't afford to buy property here, the ones can't afford to apply for PR, the ones who have tiny pensions being hammered by the strong Baht.

Have any of you whingers ever figured out that your personal misfortunes in Thailand are not caused by the Thais or the Thai economy, but from your own inability to understand business and economics; hence your checkout-girl incomes resulting in your hard-done-by posts.

As lonmg as you are making your girlfriend happy buying her all that land you should not worry about others - altruism does not become you.

No wonder Thai girls like farangs on the rebound from farang wives with money in their pocket trying to prove they have not got a mid-life crisis and havingto prove they are still attractive - are you Johnny Briggs perchance?

Edited November 1, 2007 by Prakanong

[bingobongo]

palm, the average midlife crisis is 5 to 8 years, so not sure when you will be coming out of yours. jealous of homedebtors in thailand? i prefer gold and silver (which have done better than property), and cash

anyway, here is some interesting news....

The urge to splurge in Thailand

The Thai economy has slipped under the junta's watch, lagging behind the economic growth rates seen in several other regional economies. Meanwhile, foreign investors have openly lamented the military-appointed government's economic management since coupmakers seized power from deposed prime minister Thaksin Shinawatra in September 2006.

Private investment contracted in the third quarter, while whole segments of the local economy are in recession. Mobile telephone companies have reported for the first time ever declining usage rates.

http://www.atimes.com/atimes/Southeast_Asia/IK03Ae01.html

Edited November 3, 2007 by bingobongo

[soundman]

From Bangkok Post

Credit cards land Bangkokians in debt

Soaring inflation has forced many Bangkok residents to live in heavy debt, and their major creditors are credit card issuers, according to a report by Kasikorn Research Center.

The Kasikorn survey among 1,450 Bangkokians with monthly earnings of 15,000 baht per month or less found that most faced heavy compound interest debts arising from the use of credit cards followed by mortgages for homes, and hire-purchase buying of automobiles or motorcycles by monthly installment.

Of the total debt, the survey showed that those earning less than Bt15,000 month must pay as much as 52.6 per cent for their credit card debts, 21.1 per cent for debts outside the formal legal system, 15.8 per cent for monthly installments to buy motorcycles and 5.3 per cent for housing loans.

For Bangkok households with monthly earnings of over Bt15,000, their debts incurred from the extended use of credit cards stand as high as 40 per cent followed by 28 per cent on payment of housing loans, 24 per cent on monthly installment for the purchase of cars and 4 per cent on monthly installment to buy motorcycles.

Insufficient income, indicated by 37.2 per cent of the respondents, was the main factor forcing people living in Bangkok to live in debt, said the report. (TNA)

Not a pretty picture!

Soundman.

[midas]

From Bangkok Post

Credit cards land Bangkokians in debt

Soaring inflation has forced many Bangkok residents to live in heavy debt, and their major creditors are credit card issuers, according to a report by Kasikorn Research Center.

The Kasikorn survey among 1,450 Bangkokians with monthly earnings of 15,000 baht per month or less found that most faced heavy compound interest debts arising from the use of credit cards followed by mortgages for homes, and hire-purchase buying of automobiles or motorcycles by monthly installment.

Of the total debt, the survey showed that those earning less than Bt15,000 month must pay as much as 52.6 per cent for their credit card debts, 21.1 per cent for debts outside the formal legal system, 15.8 per cent for monthly installments to buy motorcycles and 5.3 per cent for housing loans.

For Bangkok households with monthly earnings of over Bt15,000, their debts incurred from the extended use of credit cards stand as high as 40 per cent followed by 28 per cent on payment of housing loans, 24 per cent on monthly installment for the purchase of cars and 4 per cent on monthly installment to buy motorcycles.

Insufficient income, indicated by 37.2 per cent of the respondents, was the main factor forcing people living in Bangkok to live in debt, said the report. (TNA)

Not a pretty picture!

Soundman.

Yes but our friend Palm doesnt care a bit because he has such utter contempt to anyone who doesn't even have " a pot to piss in "

[LaoPo]

From Bangkok Post

Credit cards land Bangkokians in debt

Soaring inflation has forced many Bangkok residents to live in heavy debt, and their major creditors are credit card issuers, according to a report by Kasikorn Research Center.

The Kasikorn survey among 1,450 Bangkokians with monthly earnings of 15,000 baht per month or less found that most faced heavy compound interest debts arising from the use of credit cards followed by mortgages for homes, and hire-purchase buying of automobiles or motorcycles by monthly installment.

Of the total debt, the survey showed that those earning less than Bt15,000 month must pay as much as 52.6 per cent for their credit card debts, 21.1 per cent for debts outside the formal legal system, 15.8 per cent for monthly installments to buy motorcycles and 5.3 per cent for housing loans.

For Bangkok households with monthly earnings of over Bt15,000, their debts incurred from the extended use of credit cards stand as high as 40 per cent followed by 28 per cent on payment of housing loans, 24 per cent on monthly installment for the purchase of cars and 4 per cent on monthly installment to buy motorcycles.

Insufficient income, indicated by 37.2 per cent of the respondents, was the main factor forcing people living in Bangkok to live in debt, said the report. (TNA)

Not a pretty picture!

Soundman.

Scandalous %'s !

But, both the creditcard companies and Banks as well as the CC holders are to be blamed.

The CC companies and/or banks should limit the credit to a maximum for the holders and the holders should develop self control or cut the CC card in 2 pieces...

LaoPo

[ray23]

Well it does make a one think a bit, we have seen what happened with credit in the states and europe to some extent. Makes you wonder what is around the corner here.

No doubt that the economy today here is showing a lot of good signs, but where is it coming from. Is it from something actually produced here and sold?

[midas]

Well it does make a one think a bit, we have seen what happened with credit in the states and europe to some extent. Makes you wonder what is around the corner here.

No doubt that the economy today here is showing a lot of good signs, but where is it coming from. Is it from something actually produced here and sold?

ray Thai's will spend spend spend even if they cant really afford it -unlike the Chinese who are

ardent Savers and the Indians even more so. Indians would rather keep their hundreds of thousands

of " crore " rupees in the bank than appear to be ostentatious. and if America's economy

is slowing down which it seems to be -to what extent will this impact on Thailand?

[cloudhopper]

Wonder how strong the Baht (and real estate prices) will be after it all goes TU and the banks end up owning all the bad debt - like what's happening in the US now only way worse...

[parryhandy]

thai "economy" might be doing "great" but just because an "economy" is doing well dont mean the majority of people in any given country can make ends meet .

maybe its why this has occured http://www.thaivisa.com/forum/index.php?showtopic=152192

im staying in isann having been away for 3 years ,you dont need to be einstein to see bussiness everywhere is lower than before .I always knew the last few years the world economy has being doing very well (free credit money) and thought jesus when this passes what on earth will happen here.........

Edited November 7, 2007 by parryhandy

[bingobongo]

who cares as long as there is som tham and rainbows............

Thailand: Consumer Confidence Falls to New Five-Year Low in Thailand Thai consumer confidence fell to a fresh five-year low in October as concerns over inflation and political uncertainty continued to weigh on sentiment. The University of the Thai Chamber of Commerce's consumer confidence index declined to a reading of 75.5 points in October, down from 75.8 points the month before, according to results published yesterday. A reading above 100 points indicates that those optimistic over the economy's outlook outweigh those who are pessimistic. Surging fuel prices have added to consumer uncertainty, which has been undermined the by the protracted bout of political uncertainty that has gripped the country for the past 18 months. The index has remained below the 100 point boom/bust line for 40 consecutive months.

Significance: Having been on a long downward trend prior to last autumn's military coup, consumer confidence improved for a brief three months afterwards, as hopes ran high that the interim government would eliminate high-level corruption and restore confidence in the government machine. However, a series of misguided policy decisions has since eroded confidence in the administration, while rising prices are further denting sentiment. The risk of political volatility is on the rise as elections approach, while economic growth is in the doldrums. This means there is likely to be further weakness in confidence readings before a sustainable improvement takes place sometime in 2008.

[Steely Dan]

who cares as long as there is som tham and rainbows............

Thailand: Consumer Confidence Falls to New Five-Year Low in Thailand Thai consumer confidence fell to a fresh five-year low in October as concerns over inflation and political uncertainty continued to weigh on sentiment. The University of the Thai Chamber of Commerce's consumer confidence index declined to a reading of 75.5 points in October, down from 75.8 points the month before, according to results published yesterday. A reading above 100 points indicates that those optimistic over the economy's outlook outweigh those who are pessimistic. Surging fuel prices have added to consumer uncertainty, which has been undermined the by the protracted bout of political uncertainty that has gripped the country for the past 18 months. The index has remained below the 100 point boom/bust line for 40 consecutive months.

Significance: Having been on a long downward trend prior to last autumn's military coup, consumer confidence improved for a brief three months afterwards, as hopes ran high that the interim government would eliminate high-level corruption and restore confidence in the government machine. However, a series of misguided policy decisions has since eroded confidence in the administration, while rising prices are further denting sentiment. The risk of political volatility is on the rise as elections approach, while economic growth is in the doldrums. This means there is likely to be further weakness in confidence readings before a sustainable improvement takes place sometime in 2008.

The U.S consumer confidence figures published yesterday were worse than the most gloomy projections and tell us that the fallout from the housing downturn has spread to the greater economy. The dollar is at historic lows which has caused money to flood into emerging markets as speculators take advantage of the carry trade. It won't be long before the dollar starts rising and this will be the key trigger harpooning the carry trade and causing emerging markets to fall. Thailand is not imune to this so defenders of the realm had better stock up on lollipops.

[Naam]

The dollar is at historic lows which has caused money to flood into emerging markets as speculators take advantage of the carry trade. It won't be long before the dollar starts rising and this will be the key trigger harpooning the carry trade and causing emerging markets to fall. Thailand is not imune to this so defenders of the realm had better stock up on lollipops.

hmmm... unwinding of carry trades will affect Thailand and/or the SET? please tell us one more joke!

[LaoPo]

It won't be long before the dollar starts rising and this will be the key trigger harpooning the carry trade and causing emerging markets to fall.

And what makes you think the Dollar will start rising ? And, what do you mean by "it won't be long"...any time frame you wish to share with us ?

LaoPo

[Heng]

thai "economy" might be doing "great" but just because an "economy" is doing well dont mean the majority of people in any given country can make ends meet .

Trickle down. It's all relative... as long as they can get those ends to rub once in awhile, it's good enough.

[highdiver]

Thailand is a food producer.

As a food producer it will have a good market of buyers who will continue to buy food products.

so there is no worry on that front.

The USD will continue its drop as the american people will start paying for 2 decades of spending.

we are living in a transition period... the US is no longer the leader. and the USD is no longer the "favorite currency"

Many countrie are now dumping dollars and buying into other curencies.

[highdiver]

It won't be long before the dollar starts rising and this will be the key trigger harpooning the carry trade and causing emerging markets to fall.

And what makes you think the Dollar will start rising ? And, what do you mean by "it won't be long"...any time frame you wish to share with us ?

LaoPo

It will "not be long before" the USD takes a further dive when even amercians relise that the USD is a wortless currency...

2 decades of spending and a debt of 9 trillion have to come to an end.

[astral]

When I was a lad, there were 240 pennies to the UK pound

and the exchange rate for the dollar was $2.40 = £1.

So one UK penny was the same as the US penny (1 cent).

2/6d (12.5p today) was called half a dollar.

It looks like we are heading back to those days.

[midas]

It won't be long before the dollar starts rising and this will be the key trigger harpooning the carry trade and causing emerging markets to fall.

And what makes you think the Dollar will start rising ? And, what do you mean by "it won't be long"...any time frame you wish to share with us ?

LaoPo

It will "not be long before" the USD takes a further dive when even amercians relise that the USD is a wortless currency...

2 decades of spending and a debt of 9 trillion have to come to an end.

When the Chinese start to pull the plug which they are talking about already

- I am wondering if it will be like watching domino's fall one after another.........................

[cclub75]

After the "chinese blow" last week. Another one...

"The U.S. dollar's depreciation is hampering Qatar's plans to use earnings from dollar-priced oil and gas sales to diversify sources of income overseas, Prime Minister Sheikh Hamad bin Jasim bin Jaber al-Thani said.

The weak dollar is ``not helping'' Qatar's investment program, Sheikh Hamad told reporters at the Dubai Air Show today. The Gulf state last week abandoned a takeover bid for U.K. retailer J Sainsbury Plc after a study showed it wasn't worth going further, he said, declining to comment further.

Qatar may drop the riyal's peg to the dollar within six months as inflationary pressures outweigh the benefits of maintaining links, Merrill Lynch & Co. said in a Nov. 8 report. " (Bloomberg)

[cclub75]

My mistake : wrong destination for my last message (about USD). I've mixed up the threads.