Thai Baht May Hit 30 To The Us Dollar

[VegasVic]

PM orders central bank to watch hedge funds, fearing attack on baht

Monday 16 July 2007 08:42:40 PM (GMT+7:00)

Prime Minister Surayud Chulanont asked the Finance Ministry and the Bank of Thailand to keep close watch on movements by hedge funds, fearing their hands in the currency appreciation.

The prime minister’s edict came during the meeting Monday among members of Finance and Banking Committee of the National Legislative Assembly, according to Mr Santi Wilassakdanont, president of the Federation of Thai Industries who also attended the meeting.

MCOT Public Company Limited

I guess the PM should talk to Palm who would hand him a lollipop and state that hedge funds have no effect here.

You forgot the rose colored glasses and a hit of acid (Palm must have a good supply there in Koh Samui). Now that the PM has had his wake up call to the reality of just how devestating the strong baht is to the Thai economy, it seems the government will be pulling out all the stops to soften the baht. Of course I am sure that Palm in his hut there in Koh Samui has a better view of the current situation than those in power in BKK. I hope the drugs don't run out there Palm, then you would be forced to take some reality pills, and paradise may not look the same!

[bingobongo]

say bye bye to Thailand's competitive advantage and the economy.......

http://www.forecasts.org/baht.htm

[thaigene2]

say bye bye to Thailand's competitive advantage and the economy.......

http://www.forecasts.org/baht.htm

Yeah just like 97, the rich Thais will make a killing off this. They' re all hedging and shorting the Baht on insider info. Of course once again it will all go bad for the middle-class Thai speculators who don't have these kind of sources..Then the hi-sos who got rich will put on that 'outraged' face again and blame 'foreign investors' - you just watch..

Same thing is going to happen to retail investors in China. The name of the game will be "Find the Scapegoat."

[chinthee]

say bye bye to Thailand's competitive advantage and the economy.......

http://www.forecasts.org/baht.htm

Ahemm. Bingobongo, can you detail for us just exactly which competitive advantage Thailand enjoys??

[bingobongo]

say bye bye to Thailand's competitive advantage and the economy.......

http://www.forecasts.org/baht.htm

Ahemm. Bingobongo, can you detail for us just exactly which competitive advantage Thailand enjoys??

good point, i actually forgot som tham and bar girls are not easily exported, i guess what i meant to say is that the competitive advantage in cheap labor and in the manufacturing base WILL CONTINUE to be eroded, my bad

Edited July 17, 2007 by bingobongo

[VegasVic]

It seems to me that large inter-currency rate fluctuations are inevitable in a situation where there is a loss of faith in what was the world's reserve currency.

We debated this last year in "Get out of $dollars$ now". It is a grim situation that the US dollar is falling by the wayside, since the US economy, as it is, is unsustainable; but there is no clear alternative.

The main thing is for the Government not to throw good money after bad in response to the cries of pain from one portion of the 'economic players' or another. The ship must be steered to ride the waves, not to try defying them.

I remember that thread, everyone seemed to be predicting the colapse of the dollar and the U.S. economy. Well I have to admit the dollar has indeed droped about 5-6% since that thread last year, but the U.S. economy is even stronger now than then. Unemployment is now lower in the U.S. and inflation is still basically non existent, oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today! I also seem to remember that the numbers thrown around on that thread were a pound at 240 and a Euro at 160-165 by the end of this year. I hope those predictions come true, then even the NASDAQ may hit an all time high and the DOW will easily hit the 20,000 mark by year end.

[chinthee]

It seems to me that large inter-currency rate fluctuations are inevitable in a situation where there is a loss of faith in what was the world's reserve currency.

We debated this last year in "Get out of $dollars$ now". It is a grim situation that the US dollar is falling by the wayside, since the US economy, as it is, is unsustainable; but there is no clear alternative.

The main thing is for the Government not to throw good money after bad in response to the cries of pain from one portion of the 'economic players' or another. The ship must be steered to ride the waves, not to try defying them.

I remember that thread, everyone seemed to be predicting the colapse of the dollar and the U.S. economy. Well I have to admit the dollar has indeed droped about 5-6% since that thread last year, but the U.S. economy is even stronger now than then. Unemployment is now lower in the U.S. and inflation is still basically non existent, oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today! I also seem to remember that the numbers thrown around on that thread were a pound at 240 and a Euro at 160-165 by the end of this year. I hope those predictions come true, then even the NASDAQ may hit an all time high and the DOW will easily hit the 20,000 mark by year end.

Vegas, we're talking the same language. The US economy is everlastingly supreme, and all these US-hating members who are preening in the light of their high currency will take a hard fall soon. Pretenders to the throne usually fall for the bright lights just before the dark. We'll see.. No glee, just facts.

[thaigene2]

oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today!

That doesn't mean anything. In fact, it could be seen as an omen. What do insitutional investors do all day? They look for short-term gains and if they believe they will move one way or another they plough money in and rake it out as fast as they can when required. That's what causes these 2-3 % per day fluctuations up and down. It's also what causes the spike in Asian markets. Institutional investors in the US and Europe (and japan) are desparate to justify their bonuses.

It's a shell game at every level, have no doubt about that. At some point, everyone moves to the shell with no pearl under it. And it then becomes too late to find another shell.

[LaoPo]

1. Unemployment is now lower in the U.S. and

2. inflation is still basically non existent,

1. Unemployment in the US:

Seasonally Adjusted

Unemployment Rate:

History 4.5% in Jun 2007 versus 4.6% in 2006

Change in Unemployment Level:

History +114,000 in Jun 2007

Unemployment Level:

History 7,001,000 for 2006

2. Inflation:

US$ 1 in 1997 has the same buying power as US$ 1.30 in 2007...

Thanks to US Bureau of Labor Statistics.

Facts Sir Vic, facts.

LaoPo

[VegasVic]

It seems to me that large inter-currency rate fluctuations are inevitable in a situation where there is a loss of faith in what was the world's reserve currency.

We debated this last year in "Get out of $dollars$ now". It is a grim situation that the US dollar is falling by the wayside, since the US economy, as it is, is unsustainable; but there is no clear alternative.

The main thing is for the Government not to throw good money after bad in response to the cries of pain from one portion of the 'economic players' or another. The ship must be steered to ride the waves, not to try defying them.

I remember that thread, everyone seemed to be predicting the colapse of the dollar and the U.S. economy. Well I have to admit the dollar has indeed droped about 5-6% since that thread last year, but the U.S. economy is even stronger now than then. Unemployment is now lower in the U.S. and inflation is still basically non existent, oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today! I also seem to remember that the numbers thrown around on that thread were a pound at 240 and a Euro at 160-165 by the end of this year. I hope those predictions come true, then even the NASDAQ may hit an all time high and the DOW will easily hit the 20,000 mark by year end.

Vegas, we're talking the same language. The US economy is everlastingly supreme, and all these US-hating members who are preening in the light of their high currency will take a hard fall soon. Pretenders to the throne usually fall for the bright lights just before the dark. We'll see.. No glee, just facts.

Chin, You have a good take on the misplaced confidence that many here have in their particular artificially pumped up currency valuations, but I would add that the U.S. economy is certainly not everlastingly supreme, in fact the U.S. has some huge problems going forward with entiltlements (that will hit them by the mid 2030's) and they need to adress them ASAP!

[VegasVic]

1. Unemployment is now lower in the U.S. and

2. inflation is still basically non existent,

1. Unemployment in the US:

Seasonally Adjusted

Unemployment Rate:

History 4.5% in Jun 2007 versus 4.6% in 2006

Change in Unemployment Level:

History +114,000 in Jun 2007

Unemployment Level:

History 7,001,000 for 2006

2. Inflation:

US$ 1 in 1997 has the same buying power as US$ 1.30 in 2007...

Thanks to US Bureau of Labor Statistics.

Facts Sir Vic, facts.

LaoPo

The discussion was about a thread on thaivisa last year not in 1997! Inflation for the current year in the U.S. is running at less than 2%. These are the facts Mr. Po. You aren't a Michael Moore fan by any chance are you Po?

[LaoPo]

1. Unemployment is now lower in the U.S. and

2. inflation is still basically non existent,

1. Unemployment in the US:

Seasonally Adjusted

Unemployment Rate:

History 4.5% in Jun 2007 versus 4.6% in 2006

Change in Unemployment Level:

History +114,000 in Jun 2007

Unemployment Level:

History 7,001,000 for 2006

2. Inflation:

US$ 1 in 1997 has the same buying power as US$ 1.30 in 2007...

Thanks to US Bureau of Labor Statistics.

Facts Sir Vic, facts.

LaoPo

The discussion was about a thread on thaivisa last year not in 1997! Inflation for the current year in the U.S. is running at less than 2%. These are the facts Mr. Po. You aren't a Michael Moore fan by any chance are you Po?

No Vic, I'm not; I am a realist.

Just showing that the average American has to pay US$ 1,30 NOWADAYS versus US$ 1,00 for the same product 10 years ago, that's all.

That's 30% inflation in 10 years.

And that's bad for people with a low income and people below the poverty line, in the US.

LaoPo

[VegasVic]

1. Unemployment is now lower in the U.S. and

2. inflation is still basically non existent,

1. Unemployment in the US:

Seasonally Adjusted

Unemployment Rate:

History 4.5% in Jun 2007 versus 4.6% in 2006

Change in Unemployment Level:

History +114,000 in Jun 2007

Unemployment Level:

History 7,001,000 for 2006

2. Inflation:

US$ 1 in 1997 has the same buying power as US$ 1.30 in 2007...

Thanks to US Bureau of Labor Statistics.

Facts Sir Vic, facts.

LaoPo

The discussion was about a thread on thaivisa last year not in 1997! Inflation for the current year in the U.S. is running at less than 2%. These are the facts Mr. Po. You aren't a Michael Moore fan by any chance are you Po?

No Vic, I'm not; I am a realist.

Just showing that the average American has to pay US$ 1,30 NOWADAYS versus US$ 1,00 for the same product 10 years ago, that's all.

That's 30% inflation in 10 years.

And that's bad for people with a low income and people below the poverty line, in the US.

LaoPo

The discussion was about a thread on thaivisa from last year, so when you injected data from 1997 it sort of looked "out of context" hence the reference to Michael Moore the king of taking things "out of context". I believe that your 1997 figures are correct, it probably takes $1.30 now to buy what you could have bought for $1 in 1997 (however many items are cheaper now than in 1997 so thats not completely accurate thanks to prison and child labor in China ). With that said, even some retirees who are existing only on social secirity and are well below the poverty line, are still better off in the U.S. today than in 1997 due to the fact that the average annual COLA increase has been 3.4% over this same ten years and of course that is compounded so the real increase since 1997 is well over 34%. All in all considering a market crash, 9-11 and a major war, I think that a 30% increase in the cost of goods over a 10 year period (especially this ten year period) is pretty reasonable.

[lannarebirth]

It seems to me that large inter-currency rate fluctuations are inevitable in a situation where there is a loss of faith in what was the world's reserve currency.

We debated this last year in "Get out of $dollars$ now". It is a grim situation that the US dollar is falling by the wayside, since the US economy, as it is, is unsustainable; but there is no clear alternative.

The main thing is for the Government not to throw good money after bad in response to the cries of pain from one portion of the 'economic players' or another. The ship must be steered to ride the waves, not to try defying them.

I remember that thread, everyone seemed to be predicting the colapse of the dollar and the U.S. economy. Well I have to admit the dollar has indeed droped about 5-6% since that thread last year, but the U.S. economy is even stronger now than then. Unemployment is now lower in the U.S. and inflation is still basically non existent, oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today! I also seem to remember that the numbers thrown around on that thread were a pound at 240 and a Euro at 160-165 by the end of this year. I hope those predictions come true, then even the NASDAQ may hit an all time high and the DOW will easily hit the 20,000 mark by year end.

Vegas, we're talking the same language. The US economy is everlastingly supreme, and all these US-hating members who are preening in the light of their high currency will take a hard fall soon. Pretenders to the throne usually fall for the bright lights just before the dark. We'll see.. No glee, just facts.

This "map" from another thread gives some context. Nations GDP's as if they were US states:

http://strangemaps.files.wordpress.com/200...392a0d28_o1.jpg

[chinthee]

It seems to me that large inter-currency rate fluctuations are inevitable in a situation where there is a loss of faith in what was the world's reserve currency.

We debated this last year in "Get out of $dollars$ now". It is a grim situation that the US dollar is falling by the wayside, since the US economy, as it is, is unsustainable; but there is no clear alternative.

The main thing is for the Government not to throw good money after bad in response to the cries of pain from one portion of the 'economic players' or another. The ship must be steered to ride the waves, not to try defying them.

I remember that thread, everyone seemed to be predicting the colapse of the dollar and the U.S. economy. Well I have to admit the dollar has indeed droped about 5-6% since that thread last year, but the U.S. economy is even stronger now than then. Unemployment is now lower in the U.S. and inflation is still basically non existent, oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today! I also seem to remember that the numbers thrown around on that thread were a pound at 240 and a Euro at 160-165 by the end of this year. I hope those predictions come true, then even the NASDAQ may hit an all time high and the DOW will easily hit the 20,000 mark by year end.

Vegas, we're talking the same language. The US economy is everlastingly supreme, and all these US-hating members who are preening in the light of their high currency will take a hard fall soon. Pretenders to the throne usually fall for the bright lights just before the dark. We'll see.. No glee, just facts.

This "map" from another thread gives some context. Nations GDP's as if they were US states:

http://strangemaps.files.wordpress.com/200...392a0d28_o1.jpg

Thank you Lannarebirth. That kinds of puts everone in his or her respective place, doesn't it?

[VegasVic]

It seems to me that large inter-currency rate fluctuations are inevitable in a situation where there is a loss of faith in what was the world's reserve currency.

We debated this last year in "Get out of $dollars$ now". It is a grim situation that the US dollar is falling by the wayside, since the US economy, as it is, is unsustainable; but there is no clear alternative.

The main thing is for the Government not to throw good money after bad in response to the cries of pain from one portion of the 'economic players' or another. The ship must be steered to ride the waves, not to try defying them.

I remember that thread, everyone seemed to be predicting the colapse of the dollar and the U.S. economy. Well I have to admit the dollar has indeed droped about 5-6% since that thread last year, but the U.S. economy is even stronger now than then. Unemployment is now lower in the U.S. and inflation is still basically non existent, oh yea I almost forgot the most important thing the stock market is hitting all time highs once again today! I also seem to remember that the numbers thrown around on that thread were a pound at 240 and a Euro at 160-165 by the end of this year. I hope those predictions come true, then even the NASDAQ may hit an all time high and the DOW will easily hit the 20,000 mark by year end.

Vegas, we're talking the same language. The US economy is everlastingly supreme, and all these US-hating members who are preening in the light of their high currency will take a hard fall soon. Pretenders to the throne usually fall for the bright lights just before the dark. We'll see.. No glee, just facts.

This "map" from another thread gives some context. Nations GDP's as if they were US states:

http://strangemaps.files.wordpress.com/200...392a0d28_o1.jpg

Thank you Lannarebirth. That kinds of puts everone in his or her respective place, doesn't it?

Come on now, most of these guys here that attack the U.S. already have an inferiority complex, shame on you for presenting the facts and making thier complex worse. Now there is likely to be a run on prozac in Pattaya and elseware!

[endure]

If this thread doesn't veer rapidly back on topic it will be closed. Thaivisa is not the place to discuss US politics or the US economy.

[LaoPo]

If this thread doesn't veer rapidly back on topic it will be closed. Thaivisa is not the place to discuss US politics or the US economy.

You are right and I sincerely apologize for my part of the content, off topic.

I kind of slipped downhill. Sorry for that!

LaoPo

[VegasVic]

If this thread doesn't veer rapidly back on topic it will be closed. Thaivisa is not the place to discuss US politics or the US economy.

I'll second what Mr.Po said, and if you noticed my last post on this topic you will see that I chastised the posters that were "rubbing it in" to the U.S. haters! I will say one thing though, and that is it is hard to keep The U.S. completely out of the discussion as it is the weak U.S. dollar that is part of the problem as to why the baht is so strong. Also the U.S. economy and its realationship to china in particular has a profound impact on what is happening and what will happen to the Thai ecomony, but I do agree that U.S. politics has no place what so ever on thaivisa forum as it is terribly incindiary and gets the thread off topic very quickly.

[bingobongo]

well folks the differential will get worse, the $ will continue its decline and baht stronger and thai economy continue to sink like bangkok into the water table.......bears stearns mortgage hedge funds blow up and the rest of the financial world holds its breath as this is just the tip of the US mortgage mess.....something wicked this way comes

Dollar Slumps to Record Low Versus Euro on Bear Stearns Losses

The dollar has fallen against 15 of the 16 most-active currencies since Bear Stearns said June 22 it had to bail out its hedge fund because of losses on securities backed by subprime loans.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Bear credit hedge funds almost wiped out: sources

Leveraged fund worth nothing; larger fund reportedly loses 91% of its value

Late Tuesday, one investor was bidding one cent on the dollar to exit their position in the High-Grade Structured Credit Fund, the person said.

http://www.marketwatch.com/news/story/bear...mp;siteid=yhoof

Edited July 18, 2007 by bingobongo

[Jai Dee]

Deputy Prime Minister affirms government conducting continuous discussion to solve baht situation

The Deputy Prime Minister affirms government officials are conducting continuous discussions in order to solve the baht currency situation.

Deputy Prime Minister and Minister of Industry Kosit Panpeamras (โฆสิต ปั้นเปี่ยมรัษฎ์) reports that the Prime Minister has been conducting continuous discussions with private organizations in order to create policies to restructure the nation's industrial sector, labor management, wage schedule, and other areas to counter the Thai baht's appreciation. The Minister of Industry and the Governor of the Bank of Thailand are closely monitoring the baht currency situation and will be meeting on July 19th to discuss intervention measures necessary to resolve the baht's appreciation.

The Deputy Prime Minister believes that a solution to the baht situation can be proposed to the Cabinet within next week.

Source: Thai National News Bureau Public Relations Department - 18 July 2007

[Steely Dan]

well folks the differential will get worse, the $ will continue its decline and baht stronger and thai economy continue to sink like bangkok into the water table.......bears stearns mortgage hedge funds blow up and the rest of the financial world holds its breath as this is just the tip of the US mortgage mess.....something wicked this way comes

Dollar Slumps to Record Low Versus Euro on Bear Stearns Losses

The dollar has fallen against 15 of the 16 most-active currencies since Bear Stearns said June 22 it had to bail out its hedge fund because of losses on securities backed by subprime loans.

http://www.bloomberg.com/apps/news?pid=206...&refer=home

Bear credit hedge funds almost wiped out: sources

Leveraged fund worth nothing; larger fund reportedly loses 91% of its value

Late Tuesday, one investor was bidding one cent on the dollar to exit their position in the High-Grade Structured Credit Fund, the person said.

http://www.marketwatch.com/news/story/bear...mp;siteid=yhoof

Disclaimer: This is not anti-US but in an inter-related world the biggest economy and it's currency effect us all.

The pound now stands at 2.055 to the dollar a level so high that as a contrarian I'm opening a $ account expecting a revision to the mean to at least result in a rate of 1.7. I am now buying goods from the U.S with sterling and having them shipped to Thailand as it makes economic sense at present. Of course the U.S has long accused China of having an artificially weak currency, but dollar movements of late have achieved the same result, the important thing to bear in mind is how much U.S paper is owned by China, Russia, Japan and the Middle east. If these Countries start cashing in their U.S paper the effect would be catastrophic hence I believe the Fed may even be forced to put up interest rates to support the dollar, hence if I was a rich Thai I would be buying dollars offshore and selling Baht like it was going out of fashion.

[jumnien]

Like any good investor, if China was going to sell dollars they would have done it when the dollar was high, not as it's at its low.

On another note, it's funny how some folks think Bush is rather inept because he's weakened the dollar and then think the Thai govt. is inept by letting the baht strengthen.

[Steely Dan]

Like any good investor, if China was going to sell dollars they would have done it when the dollar was high, not as it's at its low.

On another note, it's funny how some folks think Bush is rather inept because he's weakened the dollar and then think the Thai govt. is inept by letting the baht strengthen.

Of course neither the Thai government nor Bush are inept viz their currencies but merely hapless bystanders. With regards to China selling dollars I would point out that as governments are the ultimate consensus machine their investment decisions tend to join bandwagons when they are about to end. I wouldn't be surprised if some governments do sell their dollars just as the dollar starts to rise again just as the UK sold down it's Gold reserves at $250 an oz.

[bkkandrew]

How the US Economy is not related to a thread entitled "Thai Baht may hit 30 to the US Dollar", I am unsure, but hey..

My two cents worth:

On the "Map", no sign of the UK there...

Unemployment - figures do not take into account of MASSIVE US jail population of 0.73%, compared with highest in EU (UK) at 0.1%, also does not take into account of the 0.5% in the US Military on active service, hugely more than any competitor economy.

xe.com puts USD at 2.052 today to GBP - we were re-taking the Falklands when this was last the case!

The gradual drip drip of Countries protecting their interests (as they should do) by dumping physically (and the use of) the USD, latterly Iran requesting remittances in Yen for oil, means that the collapse of the currency to levels where the trade balance will be corrected is, seemingly, inevitable.

Edited July 18, 2007 by bkkandrew

[Jai Dee]

Thailand Development Research Institute advise BOT to reduce interest rates

Analysts from the Thailand Development Research Institute (สถาบันวิจัยเพื่อการพัฒนาประเทศไทย ) advised the Bank of Thailand to decrease interest rates in order to reduce the severity of the Baht currency's appreciation.

The Interim Director of the Thailand Development Research Institute, Mr. Ammarn Siamwala (อัมมาร สยามวาลา), believes that the Bank of Thailand should differentiate between currency policies and inflation policies in order to improve measures aimed at controlling the Thai Baht. Mr. Ammarn said that interest rate reduction at a gradual rate of 1-1.5 percent over a period of time will aid in reducing foreign investments which contribute to the strengthening of the Thai Baht.

Meanwhile Finance Minister Chalongpob Sussankarn (ฉลองภพ สุสังกร์กาญจน์) reports that adjustments of interest rates by a large percentage may result in an increase, rather than a reduction, in foreign investments, therefore careful consideration is necessary when intervening in economic policies.

Source: Thai National News Bureau Public Relations Department - 18 July 2007

[Jai Dee]

DPM Kosit suggests BoT to cut interest rates to tackle baht appreciation

Deputy Prime Minister and Minister of Industry Kosit Pampiemrat (โฆสิต ปั้นเปี่ยมรัษฎ์) suggests the Bank of Thailand (BoT) to cut interest rates to assist entrepreneurs affected by the strengthening of the baht and cancel the requirement of 30% foreign capital reserves to prevent too much capital inflows.

Mr Kosit also instructs BoT Governor Tarisa Watanagase (ธาริสา วัฒนเกส) to expedite measures to tackle the appreciation of the baht. He says the government will not interfere with the measures as BoT works independently.

According to Mr Kosit, the current foreign capital inflows in the Asian region are due to an economic imbalance which might eventually lead to an economic crisis. He therefore suggests that investments and entrepreneurs should be extra careful before deciding to invest during this period.

As for the private sector’s request for a domestic reserve fund of ten billion baht, the minister says he will submit the request to the Cabinet meeting next week and affirms the government appreciates the private sector’s solutions to the baht appreciation.

Tomorrow (July, 19th), Mr Kosit is scheduled to attend a meeting with Finance Minister Chalongphob Sussangkarn (ฉลองภพ สุสังกร์กาญจน์), the BoT Governor, and relevant government units to find solutions to the baht crisis.

Source: Thai National News Bureau Public Relations Department - 18 July 2007

[Jai Dee]

Thai Minister of Finance calls on Asian nations to cooperate in maintaining currency stability

The Minister of Finance is calling on Asian nations to cooperate in managing the stability of their respective currencies.

Minister of Finance Chalongpob Sussangkan (ฉลองภพ สุสังกร์กาญจน) conducted a speech on the occasion of the 10th anniversary of the Asian financial crisis. Mr. Chalongpob said that despite the depreciation of the US dollar currency due to an influx of investment in the Asian region, officials will put their full effort into maintaining the stability and efficiency of Asian currency exchanges.

The Minister of Finance revealed that the Asian region has the highest foreign reserve in the world, valued at $3 trillion. Careful management is cited as necessary to maintain the stability of currencies in the Asian region. Mr. Chalongpob said that the present currency situation is different from the Asian financial crisis of 1997 in which a large amount of short term non-performing loans flowed into Asian nations.

The Minister of Finance affirms that Asian nations now maintain a sizeable foreign reserve in order to counter such occurrences.

Source: Thai National News Bureau Public Relations Department - 18 July 2007

[Jai Dee]

Minister of Commerce: current surge in baht is not at critical level

Minister of Commerce, Mr. Krirk-krai Jirapaet (เกริกไกร จีระแพทย์) has affirmed that the current baht crisis is not at its critical level. He also indicates that a reduction of interest rates could not help improve the situation.

Mr. Krirk-krai said that the situation is not as severe as the value for money in other countries in the region, including Philippines, Malaysia, and Indonesia has also increased. He viewed that Thai private sector should try to develop the quality of products so they can gain higher profits. He believes that if they are able to adjust their businesses in line with the situation, they can handle the strengthening of baht currency easily.

At the same time, the government is considering to set up a fund to promote Thai businesses in foreign countries.

Japan is confident in Thailand’s economic situation, but it also expresses concern over Thailand's political uncertainty.

As for policies concerning interest rates, Minister of Commerce said that the adjustment of interest rates must be based on the national economy and inflation. He emphasized that a reduction of interest rates cannot facilitate the improvement of the baht appreciation.

Source: Thai National News Bureau Public Relations Department - 18 July 2007

[palm]

PM orders central bank to watch hedge funds, fearing attack on baht

Monday 16 July 2007 08:42:40 PM (GMT+7:00)

Prime Minister Surayud Chulanont asked the Finance Ministry and the Bank of Thailand to keep close watch on movements by hedge funds, fearing their hands in the currency appreciation.

The prime minister’s edict came during the meeting Monday among members of Finance and Banking Committee of the National Legislative Assembly, according to Mr Santi Wilassakdanont, president of the Federation of Thai Industries who also attended the meeting.

MCOT Public Company Limited

I guess the PM should talk to Palm who would hand him a lollipop and state that hedge funds have no effect here.

You forgot the rose colored glasses and a hit of acid (Palm must have a good supply there in Koh Samui). Now that the PM has had his wake up call to the reality of just how devestating the strong baht is to the Thai economy, it seems the government will be pulling out all the stops to soften the baht. Of course I am sure that Palm in his hut there in Koh Samui has a better view of the current situation than those in power in BKK. I hope the drugs don't run out there Palm, then you would be forced to take some reality pills, and paradise may not look the same!

Another blabbering idiotic post from you. I live in Bangkok, with much of my time spent Hong Kong and London. Never been to Ko Samui. I earn my income mainly in Sterling and Euros, with some Dollars too.

Feel free to keep making things up to try and sway your piss-poor economic knowledge. I'll be happy to point out your pathetic inability to stick to facts.

Business is booming for me; sorry to hear your personal circumstances are so devastated by a 15% currency swing.