Baht Continues To Strengthen

[george]

Baht continues to strengthen

BANGKOK: -- The baht currency is expected to remain strong against the US dollar next week, and the stock market will move within a limited range after soaring to a one-year high Friday on the back of political clarifications, according to a report issued by Kasikorn Research Center.

By late Friday the baht moved at about Bt34.61 against the dollar on the onshore market compared to Bt34.67 the previous day.

Liquidity in the capital's money market is expected to return after commercial banks close their fortnightly reserve requirements Tuesday, with the baht projected to move at around Bt34.50-34.70 against the dollar, the report said.

Kasikorn said traders are expected to still focus on the landmark verdict handed down by the Constitution Tribunal Wednesday dissolving ousted prime minister Thaksin Shinawatra's Thai Rak Thai Party and three other small political parties after they were found guilty of electoral fraud leading up to the April 2, 2006 general election.

All senior executives of the dissolved parties are now banned from all political activity for five years.

Money traders are also anticipated to await key US economic data, including imports and exports for May, to be released this week, the report said.

The Stock Exchange of Thailand (SET) composite index on Friday closed at 753.93, up 4.8 per cent from the previous week, while average daily turnover stood at about Bt21.84 billion, an increase from about Bt14.92 billion the previous week. The Market for Alternative Investment on Friday closed at 213.2 points, an increase of 0.95 per cent from a week ago.

Next week, the SET index is projected to move within a narrow range after rising significantly this week, said the report. Profit-taking is expected as investors continue to monitor local political development.

The state-run National Economic and Social Development Board is scheduled to announce gross domestic product for the first quarter this year which is expected to decline to around 3 per cent compared to 4.2 per cent the previous quarter, the report said.

Consolidation of foreign bourses, especially China, is anticipated and this may affect the SET.

The report said support level for the SET next week is projected at 737 points while the resistance level at between 760-770 points.

-- TNA 2007-06-03

[chownah]

There is an onshore and an offshore rate. What mechanism maintains the spread.

[Naam]

There is an onshore and an offshore rate. What mechanism maintains the spread.

the answer is = liquidity. the spread is narrowing.

[Artfullmover]

Posting Removed

Edited June 3, 2007 by Artfullmover

[chownah]

There is an onshore and an offshore rate. What mechanism maintains the spread.

the answer is = liquidity. the spread is narrowing.

Liquidity might be the reason for the spread I guess (don't reallly know) but it seems like there must be some agency or some person who sets the spread...I really can't imagine that it is some market force that creates it...if so then lots of currencies would have two rates. I'm wondering who or how is the rate calculated or administered or decided. My guess is that its set by the Bank of Thailand...probably by the head person there but I don't know for sure.

Don't really know....but "liquidity" does not satisfy me as an answer...maybe I'm missing something...don't know.

Chownah

[Galong]

And yet there's another ongoing thread titled "The Thai Economy Is In Crisis"... hmmm.

[georgebkk]

Let me ask this: how many of you are aware that U.S. Central Bank, aka The Federal Reserve, is NOT a Federal entity at all but instead a privately-owned, for-profit corporation, whose members consists of both U.S. and European banks?

Further: how many of you are aware that the U.S. dollar is not backed by anything and has absolutely no intrinsic value whatsoever except its perceived value relative to other currencies, and is, in actuality, nothing more than an extremely-highly leveraged debt instrument (promissory note) issued by this privately-owned bank, The Federal Reserve?

Further still: how many of you know what the value of the U.S. dollar really is now, since this privately-owned bank that issues this worthless paper decided to stop reporting M3 money supply (because they have likely greatly increased said money supply electronically and then leveraged that 10 to 1 or more to continue to keep the U.S. economy from imploding as well as use it to manipulate markets -- including stock and currency markets around the world).

Just wonderin...

So, has the Thai baht mysteriously strengthened and remained strong because of... the "roaring" Thai economy?? Really?

That's strange. Last I looked, the Thai economy was weak and getting weaker.

Seems to me that a privately-owned bank that has the power to literally create BILLIONS of dollars out of thin-air -- and hide its tracks from public scrutiny -- could "write its own ticket", wouldn't you think?

Edited June 3, 2007 by georgebkk

[Naam]

Liquidity might be the reason for the spread I guess (don't reallly know) but it seems like there must be some agency or some person who sets the spread...I really can't imagine that it is some market force that creates it...if so then lots of currencies would have two rates.

it's the market forces (offer and demand) which cause the spread and whereever currency restrictions exist (like Thai Baht) different exchange rates do exist like in dozens of other currencies. however it is normally the other way around. restrictions cause a lower exchange rate offshore -or in many cases the "black market"- than onshore.

currencies are acting like commodities, shares or any other products. more demand than offer causes the price go up, more offer than demand depresses the price. as simple as that.

[chownah]

Liquidity might be the reason for the spread I guess (don't reallly know) but it seems like there must be some agency or some person who sets the spread...I really can't imagine that it is some market force that creates it...if so then lots of currencies would have two rates.

it's the market forces (offer and demand) which cause the spread and whereever currency restrictions exist (like Thai Baht) different exchange rates do exist like in dozens of other currencies. however it is normally the other way around. restrictions cause a lower exchange rate offshore -or in many cases the "black market"- than onshore.

currencies are acting like commodities, shares or any other products. more demand than offer causes the price go up, more offer than demand depresses the price. as simple as that.

Ok...now I think we're making progress....who or what causes the restriction...does some Thai gov't agency create some kind of restrictions?....maybe restrictions on Thai banks overseas?

Chownah

[yberry]

by georgebkk:Posted Today, 2007-06-03 08:03:58

Let me ask this: how many of you are aware that U.S. Central Bank, aka The Federal Reserve, is NOT a Federal entity at all but instead a privately-owned, for-profit corporation, whose members consists of both U.S. and European banks?

Georgebkk - you are incorrect. From the Fed website: http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#4

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

[VegasVic]

Let me ask this: how many of you are aware that U.S. Central Bank, aka The Federal Reserve, is NOT a Federal entity at all but instead a privately-owned, for-profit corporation, whose members consists of both U.S. and European banks?

Further: how many of you are aware that the U.S. dollar is not backed by anything and has absolutely no intrinsic value whatsoever except its perceived value relative to other currencies, and is, in actuality, nothing more than an extremely-highly leveraged debt instrument (promissory note) issued by this privately-owned bank, The Federal Reserve?

Further still: how many of you know what the value of the U.S. dollar really is now, since this privately-owned bank that issues this worthless paper decided to stop reporting M3 money supply (because they have likely greatly increased said money supply electronically and then leveraged that 10 to 1 or more to continue to keep the U.S. economy from imploding as well as use it to manipulate markets -- including stock and currency markets around the world).

Just wonderin...

So, has the Thai baht mysteriously strengthened and remained strong because of... the "roaring" Thai economy?? Really?

That's strange. Last I looked, the Thai economy was weak and getting weaker.

Seems to me that a privately-owned bank that has the power to literally create BILLIONS of dollars out of thin-air -- and hide its tracks from public scrutiny -- could "write its own ticket", wouldn't you think?

George, The U.S. dollar went off the gold standard 35 years ago during the Nixon administration this is no state secret, and most people who any sort of decent education do indeed know that the Fereral reserve bank is indeed a private entity, however your conspiracy theory about M3 is way out there my friend. Are you one of those new world order conspiracy theorists who believes all the mumbo jumbo about the free masons and the knights templar? The Davinci Code was just one of Dan Browns wet dreams put down on paper, it has more holes in it than a large block of swiss cheese as does all that crap about a new world order and the U.S. Ferderal reserve. The Thai baht has mysteriously strengthened over the last year due to speculators outside the country and when the chinese stock market colapses later this year the baht and the SET will also come tumbling down. The U.S. is currently allowing the dollar to remain weak because it slows the trade deficet and keeps the U.S. economy rolling along with record low unemployment, virtually no inflation, and record corporate earnings and thus all time highs in every U.S. market average with the exception of the NASDAQ wich just set a post dot com bubble high itself. When the U.S. begins to pull out of Iraq you will see the dollar begin to strengthen and george soros and the rest of the large hedge funds that have been shorting the U.S. dollar for years now will unwind their positions and many will flip to the other side of the bet, these hedge funds have made billions while aiding the U.S. in keeping the dollar at these low levels. Its not some mysterious new world order controling these events its simply market forces at work.

[georgebkk]

You are mistaken and misinformed.

And I'm sorry I don't have time to argue this topic.

[VegasVic]

You are mistaken and misinformed.

And I'm sorry I don't have time to argue this topic.

HaHa! A new world order fanatic, I knew it. Stay in the fiction section of the bookstore george, guys like you have a real tough time with reality!

[yoshiwara]

This is what happens George when one gets abducted by aliens.....

....as for the 2-rate baht it is a govt external barrier against speculation pushing the baht up

...it seems strange as most of us think the economy is one plank short of a roof-tree, but there it is and the authorities know that short-term speculation risks pushing all into a collapse.

[jasperblubber2005]

so with all this information, what is the exchange rate the banks are giving for the typical tourist walking down the street?

jasper

[Dakhar]

You are mistaken and misinformed.

And I'm sorry I don't have time to argue this topic.

HaHa! A new world order fanatic, I knew it. Stay in the fiction section of the bookstore george, guys like you have a real tough time with reality!

Don't drink the milk! Oh boy..... !!!!!!!!!! I would write more, but I fear I am being wathced....

[jetjock]

George, The U.S. dollar went off the gold standard 35 years ago during the Nixon administration this is no state secret, and most people who any sort of decent education do indeed know that the Fereral reserve bank is indeed a private entity, however your conspiracy theory about M3 is way out there my friend. Are you one of those new world order conspiracy theorists who believes all the mumbo jumbo about the free masons and the knights templar? The Davinci Code was just one of Dan Browns wet dreams put down on paper, it has more holes in it than a large block of swiss cheese as does all that crap about a new world order and the U.S. Ferderal reserve. The Thai baht has mysteriously strengthened over the last year due to speculators outside the country and when the chinese stock market colapses later this year the baht and the SET will also come tumbling down. The U.S. is currently allowing the dollar to remain weak because it slows the trade deficet and keeps the U.S. economy rolling along with record low unemployment, virtually no inflation, and record corporate earnings and thus all time highs in every U.S. market average with the exception of the NASDAQ wich just set a post dot com bubble high itself. When the U.S. begins to pull out of Iraq you will see the dollar begin to strengthen and george soros and the rest of the large hedge funds that have been shorting the U.S. dollar for years now will unwind their positions and many will flip to the other side of the bet, these hedge funds have made billions while aiding the U.S. in keeping the dollar at these low levels. Its not some mysterious new world order controling these events its simply market forces at work.

VegasVic, I totally agree with your analysis of the currency market. If only I could figure out when each of those events was going to happen, I could make some real money! I am not going to hold my breath waiting for the US to begin it's pullout in Iraq but hopefully it will be soon.

Edited June 3, 2007 by jetjock

[jeffrosner]

by georgebkk:Posted Today, 2007-06-03 08:03:58

Let me ask this: how many of you are aware that U.S. Central Bank, aka The Federal Reserve, is NOT a Federal entity at all but instead a privately-owned, for-profit corporation, whose members consists of both U.S. and European banks?

Georgebkk - you are incorrect. From the Fed website: http://www.federalreserve.gov/generalinfo/faq/faqfrs.htm#4

The Federal Reserve System is not "owned" by anyone and is not a private, profit-making institution. Instead, it is an independent entity within the government, having both public purposes and private aspects.

As the nation's central bank, the Federal Reserve derives its authority from the U.S. Congress. It is considered an independent central bank because its decisions do not have to be ratified by the President or anyone else in the executive or legislative branch of government, it does not receive funding appropriated by Congress, and the terms of the members of the Board of Governors span multiple presidential and congressional terms. However, the Federal Reserve is subject to oversight by Congress, which periodically reviews its activities and can alter its responsibilities by statute. Also, the Federal Reserve must work within the framework of the overall objectives of economic and financial policy established by the government. Therefore, the Federal Reserve can be more accurately described as "independent within the government."

You are 100 percent wrong. What you read on the Fed's website is doublespeak.

The Fed is made up of member banks - who owns those banks? Not the government, so who?

The Fed is private - no more Federal than Federal Express.

[ding]

George, The U.S. dollar went off the gold standard 35 years ago during the Nixon administration this is no state secret, and most people who any sort of decent education do indeed know that the Fereral reserve bank is indeed a private entity, however your conspiracy theory about M3 is way out there my friend. Are you one of those new world order conspiracy theorists who believes all the mumbo jumbo about the free masons and the knights templar? The Davinci Code was just one of Dan Browns wet dreams put down on paper, it has more holes in it than a large block of swiss cheese as does all that crap about a new world order and the U.S. Ferderal reserve. The Thai baht has mysteriously strengthened over the last year due to speculators outside the country and when the chinese stock market colapses later this year the baht and the SET will also come tumbling down. The U.S. is currently allowing the dollar to remain weak because it slows the trade deficet and keeps the U.S. economy rolling along with record low unemployment, virtually no inflation, and record corporate earnings and thus all time highs in every U.S. market average with the exception of the NASDAQ wich just set a post dot com bubble high itself. When the U.S. begins to pull out of Iraq you will see the dollar begin to strengthen and george soros and the rest of the large hedge funds that have been shorting the U.S. dollar for years now will unwind their positions and many will flip to the other side of the bet, these hedge funds have made billions while aiding the U.S. in keeping the dollar at these low levels. Its not some mysterious new world order controling these events its simply market forces at work.

Maybe China keeps the dollar healthier than it really is. The USD is within band with the RMB but 3% is weakening under pressure. Europe would find investment too tempting to resist if the RMB were to float. If China finds gas reserves and doesn't need dollars for energy, that could happen.

The US Treasury is flat busted.

Wall Street is a false arbiter of US economic health. Your bluster and "shoot the messenger" tactics are wafer thin arguments. Maybe you're invested in non-USA growth markets. Maybe that's where all the US taxcut money has landed. Maybe not.

The US house of cards should concern the world outside China's power structure. The wealth disparity in the US, US health care costs, an aging population, and US industry has been gutted as well- leaving it not too diversified. Tax cuts wont save this scenario even though The Great Oz rewrites the laws of economics everytime I see the TV news in America.

[backflip]

georgebkk, along with the other Three Horseman of the Apocalypse, are fans of various conspiratorial websites, and live in constant fear that someone, somewhere is enjoying his life.

[Samuian]

..very interesting that this thread now got this SF twist... more Michael Moore Fans around? Clever Men, like Dan Brown and the like, making money, loads of it, with other peoples fears and obstruse fantasies..

have a nice day, every day, folks!

[Hermano Lobo]

VegasVic, either you are in denial or belong to one of the funny hand-shake societies ?

The NWO exists, it is not just a Conspiracy Nut Fantasy.

Take a look at this :-

Bohemian Grove exists !

Down wiv your spellin - bak to skool !

[astral]

Star TV news this evening was reporting above expected growth in the Thai economy.

Can this really be true, amid all the uncertainty and recent changes?

Or is someone cooking the books.

[FatigueManagement]

VegasVic, either you are in denial or belong to one of the funny hand-shake societies ?

The NWO exists, it is not just a Conspiracy Nut Fantasy.

Take a look at this :-

Bohemian Grove exists !

Down wiv your spellin - bak to skool !

This is also an interesting film.

http://video.google.com/videoplay?docid=-8...q=money+masters

[VegasVic]

..very interesting that this thread now got this SF twist... more Michael Moore Fans around? Clever Men, like Dan Brown and the like, making money, loads of it, with other peoples fears and obstruse fantasies..

have a nice day, every day, folks!

I see the nut jobs are out in full force here! You are correct Samuian, as long as there are loonies like some of the ones posting on this thread, guys like Dan Brown, Michael Moore and Al Gore will be assured of a very comfortable retirement. The facts folks, lets look at the cold hard facts: (1) The U.S. economy is far and away the strongest economy in the world and will reamain so for the forseeable future(so just learn to live with it). (2) There is a symbiotic relationship between the U.S. and China in which neither party wants to rock the boat too much, however with that said it is China that is far more dependent on the U.S. than the other way around. (3) Now we come to the fantasy that China could flood the market with U.S. debt instuments and weaken the U.S. economy, once again a misinformed argument. While China does hold a large position in U.S. debt instuments the fact is that the ammount of U.S. debt that China holds is equivilant to less than two days trading volume on the New York goverment securities market and if China did dump(which of course they will not because it is not in their best interest) all of those debt instuments at once, while it would make the market crazy for a couple of days they would be absorbed and business as usual would go on. (4) The Chinese stock market has been forming a huge bubble( average forward PE ratios in exess of 60) for quite a while now and it will most definately bust in the very near future and the fallout for the Thai SET and the baht will be far worse than any tsunami. Now you guys really need to stop playing dungeons and dragons, take off those rose colored glasses and wake up and smell the coffee before its too late. I can understand a buch of naive teenagers falling for some of these weird conspiracy theorys, but not adults, come on guys get a life and join the rest of us in the REAL world!

[chinthee]

..very interesting that this thread now got this SF twist... more Michael Moore Fans around? Clever Men, like Dan Brown and the like, making money, loads of it, with other peoples fears and obstruse fantasies..

have a nice day, every day, folks!

I see the nut jobs are out in full force here! You are correct Samuian, as long as there are loonies like some of the ones posting on this thread, guys like Dan Brown, Michael Moore and Al Gore will be assured of a very comfortable retirement. The facts folks, lets look at the cold hard facts: (1) The U.S. economy is far and away the strongest economy in the world and will reamain so for the forseeable future(so just learn to live with it). (2) There is a symbiotic relationship between the U.S. and China in which neither party wants to rock the boat too much, however with that said it is China that is far more dependent on the U.S. than the other way around. (3) Now we come to the fantasy that China could flood the market with U.S. debt instuments and weaken the U.S. economy, once again a misinformed argument. While China does hold a large position in U.S. debt instuments the fact is that the ammount of U.S. debt that China holds is equivilant to less than two days trading volume on the New York goverment securities market and if China did dump(which of course they will not because it is not in their best interest) all of those debt instuments at once, while it would make the market crazy for a couple of days they would be absorbed and business as usual would go on. (4) The Chinese stock market has been forming a huge bubble( average forward PE ratios in exess of 60) for quite a while now and it will most definately bust in the very near future and the fallout for the Thai SET and the baht will be far worse than any tsunami. Now you guys really need to stop playing dungeons and dragons, take off those rose colored glasses and wake up and smell the coffee before its too late. I can understand a buch of naive teenagers falling for some of these weird conspiracy theorys, but not adults, come on guys get a life and join the rest of us in the REAL world!

Well spoken VegasVic. Many of these amateurs don't have a clue what is really happening. Why do you waste your time explaining it?

[ThaiGoon]

..very interesting that this thread now got this SF twist... more Michael Moore Fans around? Clever Men, like Dan Brown and the like, making money, loads of it, with other peoples fears and obstruse fantasies..

have a nice day, every day, folks!

I see the nut jobs are out in full force here! You are correct Samuian, as long as there are loonies like some of the ones posting on this thread, guys like Dan Brown, Michael Moore and Al Gore will be assured of a very comfortable retirement. The facts folks, lets look at the cold hard facts: (1) The U.S. economy is far and away the strongest economy in the world and will reamain so for the forseeable future(so just learn to live with it). (2) There is a symbiotic relationship between the U.S. and China in which neither party wants to rock the boat too much, however with that said it is China that is far more dependent on the U.S. than the other way around. (3) Now we come to the fantasy that China could flood the market with U.S. debt instuments and weaken the U.S. economy, once again a misinformed argument. While China does hold a large position in U.S. debt instuments the fact is that the ammount of U.S. debt that China holds is equivilant to less than two days trading volume on the New York goverment securities market and if China did dump(which of course they will not because it is not in their best interest) all of those debt instuments at once, while it would make the market crazy for a couple of days they would be absorbed and business as usual would go on. (4) The Chinese stock market has been forming a huge bubble( average forward PE ratios in exess of 60) for quite a while now and it will most definately bust in the very near future and the fallout for the Thai SET and the baht will be far worse than any tsunami. Now you guys really need to stop playing dungeons and dragons, take off those rose colored glasses and wake up and smell the coffee before its too late. I can understand a buch of naive teenagers falling for some of these weird conspiracy theorys, but not adults, come on guys get a life and join the rest of us in the REAL world!

http://www.nationmultimedia.com/breakingne...newsid=30035977

Thai shares close at a new one-year high

Thai share prices soared 2.21 per cent Monday to a fresh one-year high as sentiment remained positive after Thai judges last week dissolved ousted premier Thaksin Shinawatra's party, dealers said.

They said foreign inflows also partly shifted from the volatile Chinese market, helping push Thai stocks to finish in line with other regional bourses.

Edited June 4, 2007 by ThaiGoon

[Maxi101]

maybe its a bit strong to compare a steep drop with a tsunami, but I ensure you goon, you laughter will stuck it you throuth, not a threat only experience.

And think about it, everyone gets right sometimes.

[ThaiGoon]

maybe its a bit strong to compare a steep drop with a tsunami, but I ensure you goon, you laughter will stuck it you throuth, not a threat only experience.

And think about it, everyone gets right sometimes.

The Chinese officials have already tried to cool their stock market with new regulations which resulted in two huge drops in their market in the past week and the SET, along with many others in Asia (and the rest of the world I might add), still did all quite all right. So think about it as well. (There are still threats for the SET, but evidently they look less and less likely to be coming from China. If anything bad happens, it will come from domestic issues. And I don't think it will. )

[Samuian]

The Chinese officials have already tried to cool their stock market with new regulations which resulted in two huge drops in their market in the past week and the SET, along with many others in Asia (and the rest of the world I might add....

Fact! Since months China has been asked to correct the RMB.... but they won't ... let's see... another 1997 in the making?