Concern for the Thai baht and liquidity if Thailand does not move swiftly to raise interest rates

[ThailandRyan]

16 minutes ago, RocketDog said:

I continue to expatriate my USD as the baht weakens.

I'm amused that some people think Thai banks are riskier than USA banks.

Of course holding loads of any fiat currency is risky. That's where conversion of some of it to metals comes in. Tangible assets are good in a virtual world of ones and zeros.

Been buying gold 2 baht, 3 baht and 5 baht bars for the past few years.  We shall see.

[sandyf]

20 hours ago, itsari said:

The US dollar has its support from the whole world . USA can take advantage of that .

I for one that is grateful to the USA 

Since WW2 the US has been the global bully and currency is no exception.

 

But the real power of the dollar is its relationship with sanctions programs. Legislation such as the International Emergency Economic Powers Act, the Trading With the Enemy Act and the Patriot Act allow Washington to weaponize payment flows. The proposed Defending Elections From Threats by Establishing Redlines Act and the Defending American Security From Kremlin Aggression Act would extend that armory.

Read more at:
https://economictimes.indiatimes.com/news/international/business/how-the-us-has-made-a-weapon-of-the-dollar/articleshow/65715068.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

[RocketDog]

12 minutes ago, ThailandRyan said:

Been buying gold 2 baht, 3 baht and 5 baht bars for the past few years.  We shall see.

Stacking metals can never hurt if you have the excess funds, but may save your life (and savings) if things really finally do go south globally. (and they will).

Personally I prefer half and one baht unadorned gold jewelry. Easier to buy/sell over extended periods of time without painting a target on your back.

[ThailandRyan]

5 minutes ago, RocketDog said:

Stacking metals can never hurt if you have the excess funds, but may save your life (and savings) if things really finally do go south globally. (and they will).

Personally I prefer half and one baht unadorned gold jewelry. Easier to buy/sell over extended periods of time without painting a target on your back.

Have that as well....all locked in the very large safe....5' Tall, hidden in a secret wardrobe...lol

[RocketDog]

Just now, ThailandRyan said:

Have that as well....all locked in the very large safe....5' Tall, hidden in a secret wardrobe...lol

Needless to say, don't keep it in a bank or your sock drawer.

 

I've opted for multiple sites, including Silver Bullion vault in Singapore. Of course I pay to keep it there, but it's a very impressive enterprise. All the eggs in one basket warning makes sense to me.

[Enzian]

1 hour ago, RocketDog said:

I continue to expatriate my USD as the baht weakens.

You mean you're using dollars from accounts in the US to buy baht to deposit in Thailand? Might be an ok idea, but its a "bet" like many such moves, and may not yield very much over time. I'm not diversified but my RE in CA went up 10%+ in the past 12 months, but it's all just paper gains, meaningless unless I want more debt.

[itsari]

1 hour ago, sandyf said:

Since WW2 the US has been the global bully and currency is no exception.

 

But the real power of the dollar is its relationship with sanctions programs. Legislation such as the International Emergency Economic Powers Act, the Trading With the Enemy Act and the Patriot Act allow Washington to weaponize payment flows. The proposed Defending Elections From Threats by Establishing Redlines Act and the Defending American Security From Kremlin Aggression Act would extend that armory.

Read more at:
https://economictimes.indiatimes.com/news/international/business/how-the-us-has-made-a-weapon-of-the-dollar/articleshow/65715068.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

The global bully has put shoes on the feet of billions of people since world war 2 .

Get real Sandy 

[david555]

3 hours ago, RocketDog said:

Stacking metals can never hurt if you have the excess funds, but may save your life (and savings) if things really finally do go south globally. (and they will).

Personally I prefer half and one baht unadorned gold jewelry. Easier to buy/sell over extended periods of time without painting a target on your back.

Whatever amount in money you would buy Gold for keep it an easy selling quantaty shape.....as in difficult times not all are able to pay / buy your 1 kilo/ 500 or 250 grams  bullion .....and no practical doing to use a iron sawin the selling ....????????

[RocketDog]

7 hours ago, Enzian said:

You mean you're using dollars from accounts in the US to buy baht to deposit in Thailand? Might be an ok idea, but its a "bet" like many such moves, and may not yield very much over time. I'm not diversified but my RE in CA went up 10%+ in the past 12 months, but it's all just paper gains, meaningless unless I want more debt.

Correct. I transfer using Wise and get the mid-market FX rate.

Correct, all fiat currency accounts are a bet since they are backed by absolutely nothing except faith in governments with Debt/GDP ratios considerably higher than 1.00. However, as you know, you don't actually realize a profit until you sell an asset; interim gains/losses are just noise.

 

Hence the need to have some tangible asset classes such as metals and real estate.

 

I recently sold a rental duplex in USA and doubled my money over 11 years as well as pulling $100,000 profit out of the property over that time. So I made gains of 10% + every year that I owned the property.

 

I bought a pool villa and a Chevy truck in Thailand three years ago  and paid cash. Those are assets I can use and enjoy every day.

 

Next is my residence in Denver in a year or two. I'll pull most of my assets out of USA then and relocate them to Thailand and other countries.

 

I'm 72 so it's way past time to stop saving and start spending. My concern now is preservation, not profits.

[KIngsofisaan]

US interest rate is already 4% and they meet again 06/15/2022 to discuss hiking the rate.

[KIngsofisaan]

On 6/11/2022 at 11:56 AM, AnotherFarang8 said:

Airdropping free money all the time is the modus operandi, the crash that’s coming will be much worse than at the coronavirus airdrop. The Fed’s chief isn’t that guy from the 1970s era who stopped inflation then, small chance he will continue to raise rates when economy starts cracking, virtually none. We won’t have to wait long, should be obvious around September.

Asian Financial Crisis hit Thailand hard in 1997.

 

It began as a currency crisis when Bangkok unconnected the Thai Baht from the US Dollar.

 

The currency devaluated and massive amounts of capital left Thailand

 

Not sure if there were any lessons learned there or not?

 

 

[billd766]

On 6/11/2022 at 10:00 AM, dave moir said:

So true

 

I watch the GBP/THB every day using the KBank forex rate, XE forex mid market rate and the Wise forex mid market rate. I have been doing it for years.

 

Whilst the KBank rate is not very good, it is better than the daily Bangkok forex rate.

 

One thing I have noticed is the forex rate that Wise offers at BBK is better than any other UK bank.

[nauseus]

I am. Lots of lessons learned by lots of people.

[nauseus]

41 minutes ago, KIngsofisaan said:

US interest rate is already 4% and they meet again 06/15/2022 to discuss hiking the rate.

Fed rate is 1%.

[billd766]

On 6/11/2022 at 11:26 AM, Burma Bill said:

Sadly, yes. The best rate I ever got, for a short period only in the late 1990's, was 89 Baht for 1 GBP!!

Oh Happy Days

 

As the great Welsh comedian, Max Boyce used to say.

 

"I know, cos I was there".

[ThailandRyan]

1 hour ago, KIngsofisaan said:

US interest rate is already 4% and they meet again 06/15/2022 to discuss hiking the rate.

Better do some research as usual, wrong again.

 

https://www.federalreserve.gov/newsevents/pressreleases/monetary20220504a1.htm#:~:text=The Board of Governors of,%2C effective May 5%2C 2022.

• In a related action, the Board of Governors of the Federal Reserve System voted unanimously to approve a 1/2 percentage point increase in the primary credit rate to 1 percent, effective May 5, 2022. In taking this action, the Board approved requests to establish that rate submitted by the Boards of Directors of the Federal Reserve Banks of Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St. Louis, Minneapolis, Kansas City, Dallas, and San Francisco.

[metisdead]

Some off topic posts and the replies have been removed. 

[jayceenik]

Pension locked in Euro, so can only pray for better rates. And worry.

Savings in foreign Euro account. I'd like to transfer savings in my Thai bank account and buy more land for my Thai wife but she says : No, wait, Baht will fall in future. Euro will too, I'm afraid.  ???? 

[Isaan sailor]

58 minutes ago, jayceenik said:

Pension locked in Euro, so can only pray for better rates. And worry.

Savings in foreign Euro account. I'd like to transfer savings in my Thai bank account and buy more land for my Thai wife but she says : No, wait, Baht will fall in future. Euro will too, I'm afraid.  ???? 

Can feel your pain.  USD languished for years, and now it takes a full-blown US recession to bring it back to life.  Last week, I did buy more land for wife, with an adjustment to her will, just in case.

[ThailandRyan]

34.77 Thb to USD today.

[sandyf]

23 hours ago, itsari said:

The global bully has put shoes on the feet of billions of people since world war 2 .

Get real Sandy 

Tell that to the Vietnamese and all the other nations that have suffered from their interference.

[itsari]

59 minutes ago, sandyf said:

Tell that to the Vietnamese and all the other nations that have suffered from their interference.

Yes, you are correct that not all the US has done is good .  

But then there are a few other nations with a bad record as well .

Overall  they have done right since the second world war .  

[Excel]

1 minute ago, itsari said:

Overall  they have done right since the second world war

Oh dear, can see a factual tsunami heading this way disputing that.

[itsari]

Just now, Excel said:

Oh dear, can see a factual tsunami heading this way disputing that.

Many just see there own tunnel vision view of the world .

Talk to the elderly citizen's of Norway for example and see what they have to say about USA 

The Marshall plan created wealth for millions of people 

In return the US had countries to trade with after the second world war.

The US has vision 

[garyk]

18 hours ago, RocketDog said:

Correct. I transfer using Wise and get the mid-market FX rate.

Correct, all fiat currency accounts are a bet since they are backed by absolutely nothing except faith in governments with Debt/GDP ratios considerably higher than 1.00. However, as you know, you don't actually realize a profit until you sell an asset; interim gains/losses are just noise.

 

Hence the need to have some tangible asset classes such as metals and real estate.

 

I recently sold a rental duplex in USA and doubled my money over 11 years as well as pulling $100,000 profit out of the property over that time. So I made gains of 10% + every year that I owned the property.

 

I bought a pool villa and a Chevy truck in Thailand three years ago  and paid cash. Those are assets I can use and enjoy every day.

 

Next is my residence in Denver in a year or two. I'll pull most of my assets out of USA then and relocate them to Thailand and other countries.

 

I'm 72 so it's way past time to stop saving and start spending. My concern now is preservation, not profits.

Curious as why you want to pull your money out of the US banks and into Thailand and other countries??

[Soikhaonoiken]

On 6/11/2022 at 7:26 AM, mikebell said:

'Bought' my house when it was 72 to the pound.

I bought mine in 2004 @ 75 to the pound, sold it in 2013 for the same price i paid and the Baht was 40 to pound  and took money back to uk so nearly doubled my money on exchange value...

Fat chance of that ever happening again...

[Excel]

3 minutes ago, Soikhaonoiken said:

I bought mine in 2004 @ 75 to the pound, sold it in 2013 for the same price i paid and the Baht was 40 to pound  and took money back to uk so nearly doubled my money on exchange value...

Fat chance of that ever happening again...

Never did get that low in 2013. , the lowest it got was high 43s in April of that year, but take your point.

[JimGant]

37 minutes ago, itsari said:

Overall  they have done right since the second world war

Actually, since the first world war, where we had no business or national security interest in getting involved -- but we did, and lost 100,000 young Americans for nothing -- while Holland, in the heart of the conflict, sat it out and lost none. Insane.

 

And insane, too -- Vietnam and Iraq. Isolationism is difficult in this shrunken world, but we just can't seem to help ourselves in getting involved. Need to return to the thinking and policies of the Eisenhower era. And, yes, former generals can be excellent leaders, in all aspects.

[charmonman]

On 6/10/2022 at 4:52 PM, Excel said:

I will be willing to bet that the worlds richest 1% will ultimately benefit even further should there be a global crash

Richest 0.1% more like it. To them the rest of the 1% are just well-off peasants.

[david555]

On 6/13/2022 at 9:31 AM, RocketDog said:

I continue to expatriate my USD as the baht weakens.

I'm amused that some people think Thai banks are riskier than USA banks.

Of course holding loads of any fiat currency is risky. That's where conversion of some of it to metals comes in. Tangible assets are good in a virtual world of ones and zeros.

"I continue to expatriate my USD as the baht weakens."

 

Strange.... as i am repatriating to Euros , as Thai baht was bought at 47 when i came Thailand 13 years ago and so now my Euroland € is 37 worth so a welcome gift for my repatriating back to My home country ....

 

Strange how some case  can differ from person or nationality but same benefit   ????????

 

You benefit from your $ rising  and i from my Euro sliding down against Teflon Baht

Edited June 18, 2022 by david555