Baht Continues To Strengthen

[ThaiGoon]

another 1997 in the making?

Did you even think before you posted this?

[Heng]

Another '97 followed by another 10 years of weak Baht would be sweet.

[Maxi101]

Basicly I am appreciate Thaigoons optimism and have to agree with the point that the shock might come from abroad (china).

As for Thailand if the political situation doesn't clear till then it is very vulnerable.

Anyway to me the whole sitation doesn't look right and there are no datas to back that because the economical datas are not reliable.

So I rely on your feeling.

That the Chinese bubble will blast is certain, only the timeframe is not.

[ThaiGoon]

Maxi, there's plenty of Thailand's economic data if you are really looking for it. It's everywhere and even on here. You don't have to rely on my feelings.

[Acharn]

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.

Here's a good explanation from a web site which encourages the possession of gold: http://www.usagold.com/federalreserve.html

Each of the Federal Reserve banks is "owned" by National and State banks within the Federal Reserve Bank's geographic area, which are known a "member" banks. Stock in the Federal Reserve Banks is not traded publically. It may only be owned by a bank. There are thousands of member banks in each Federal Reserve geographic area, especially New York, and no one bank owns as much as 5% of the outstanding stock, so no one member bank can control the Federal Reserve Bank that governs its area.

Nobody knows where Mullins and Kah (the two most influential conspiracy theory writers) got their information, but since it cannot be verified it can't be trusted. If you insist on believing them, I've got this bridge in New York which would make a wonderful investment -- please contact me.

[Hermano Lobo]

Vegas Vic wrote:"I see the nut jobs are out in full force here!"

To quote Sir Isaac Newton when queried about his interest in Astrology,"Sir, I have studied the subject you have not !

You will be saying that Skull & Bones is Fantasy next ?

Bohemian Grove and the Builderbergers are fact. The proceedings are never published or discussed. They probably talk about 'Bee-keeping' or some such thing?

You allege that the US is the strongest economy in the World. But will it be brought down by debt ?

The debt game

When politicians (of both parties) talk about the debt, they don't like talking about $9 trillion, so they add up all the funds, and talk about the "debt held by the public." They call this the "national debt," and they call its yearly increase the "deficit."

But this way of talking makes it sound like the money put into Social Security and into government and military pensions funds, all of which is borrowed by the General Fund, is not owed to the public. But it is. That money came from everyone's paychecks (FICA) and is owed to them in retirement. Every president has promised to keep that money safe. So, really, the whole $9 trillion is owed to the public.

In fact, over $2 trillion of what they call "held by the public" is actually held by foreign interests, while 100% of what is owed by Social Security is owed to Americans.

How did the General Fund end up $9 trillion in the hole? Tax cuts and spending increases--largely military spending increases, plus there is a little debt left over from WWII. Check when and how did the national debt accumulate?

Edited June 5, 2007 by Hermano Lobo

[LaoPo]

That the Chinese bubble will blast is certain, only the timeframe is not.

Too many people talk about the Chinese stock-market-bubble without knowing what's going on.

The markets rose 130% in 2006 and another 60% so far in 2007.

The point is that the players on the stock markets (more than one) are mainly Chinese. A significant drop -not a blast- is already happening but it goes steps-wise (any stock can't drop more than 10%/day).

The economy itself will not suffer but is on track with a growth of 10.3/10.4% for 2007; in other words, the companies, listed on the stock markets are doing very well.

It's the sentiment and hype amongst the private Chinese players what's creating the bubble.

Apart from that: ALL the money put into the stock markets in China is a mere 5% of ALL savings by the Chinese; the rest is still in the banks.

So, there's not much to worry about.

If it's getting too hot, the government will step-in with other measurements to protect the 100 million (!) people, playing on the stockmarkets....'protect' them against themselves as well as the whole nation since they can't afford to lose face, one year before the Olympics...

If the millions of newcomers on the stock markets lost enough money...they'll leave and suffer the pain.

The economy & companies however are in shape; better than Thailand I would think.

LaoPo

[manuchaomk]

Why anybody think the reasons that

Baht Continues To Strengthen are allocated in SET rule ?

I think that Thai Baht is influenced by Thai politic and Internal Events, first.

Somebody remembered 1997 ? I know only that we can't compare apples vs pears !

Chok dee krapp

Manu

[Maxi101]

"Too many people talk about the Chinese stock-market-bubble without knowing what's going on.

The markets rose 130% in 2006 and another 60% so far in 2007."

When I read and watch in TV some docu from China and Vietnam where is stated that a housemaid left her job in order to invest on the stockmarket to get rich quick -(and thats only a example)- I know where the bell is ringing from.

Many investors underestimate Chinas structural and political problems. The Party still rules. Don't forget the poor, too. Unemploymentrate is on a level like the citizen of France and England together.

Still they did a suprising good job.

The market is overpriced anyway and even if the stocks can fall every day only 10% this rule never avoids a bleeding - See Germany 2000, they bleeded 2 to 3 years (esp. New Market). The effects where the same - which is overdue and healthy.

[LaoPo]

The market is overpriced anyway and even if the stocks can fall every day only 10% this rule never avoids a bleeding - See Germany 2000, they bleeded 2 to 3 years (esp. New Market). The effects where the same - which is overdue and healthy.

Of course the stocks are overheated; and, it was not just Germany in 2000....the whole world went down on the stockmarkets.

Wherever you went, everyone was talking 'stocks'...in the bus, train, bars, restaurants, clubs, television etc.

It's the same in China now, but it will cool off once people lose money and learn a lesson. The economy however will steam on with corrections but it's a global market now. There's no road back.

It's quite normal that people want to improve their lifestyle, worldwide, especially in the Far East.

LaoPo

[Jai Dee]

Current baht appreciation not worrying, says BoT

The baht appreciation at current is of no concern because it has moved in the same direction with other currencies in the region, according to the Bank of Thailand.

Pongpen Ruengvirayudh, Senior Director of BoT’s Financial Markets and Reserve Management Department, said the baht movement this year would not be as volatile as that of last year.

She conceded a foreign capital inflow into the Stock Exchange of Thailand in a large amount had made the baht strengthen.

But the appreciation remained not worrying when compared with that of last year.

Mrs. Pongpen expressed support for a move to bring local money to invest overseas, saying it could balance the baht value.

The move could help curb the baht appreciation because a demand for foreign currencies including the US dollar would increase.

At the same time, people, who invested overseas, would get the exchange rate at more satisfactory level than that of last year when they converted foreign currencies into baht.

During 2003-2004, Thai investors had invested around 17 per cent of the total amount in overseas securities.

The investment increased to 44 per cent in 2005, but dropped to 12 last year due to the heavy fluctuation of the baht, she said.

Source: TNA - 07 June 2007