Gbp Sterling

[fletchsmile]

Idealism!

100% cash in GBP 6.51% AER offshore. Only transfer (spending money) to LOS when THB/GBP rates are high.

Practicle? or stupid?

While I don't see the need to put money offshore - tax free and feeless accounts are available on the mainland with better interest rates.

But in all other respects this is a good policy.

The Thai Baht is up and down like a tarts draws over any 12 month period. Just buy when you are happy with the rate.

And Is offshore really safe from the Tax-Man?

GH do you really work in risk management? I can only assume it is not related to finance if so. This is a dangerous policy for someone based in Thailand. Not particularly good I would say either for someone in UK over long term. You also shouldn't be looking at simply exchange rates over 12 months. Additionally very surprised you can deem it a good policy on the absolute minimum of info given. We know nothing of the guys backgrounds, age, etc

What happens when the exchange rates half, interest rates half, and inflation kicks in? At say 3% inflation that will half in real value over around 20-25 years. At 7% it will have in 10 years.

Sorry but on say a 25 year time frame: 100% in a single currency, outside where you are living, in a single asset, eg cash, which has no protection from inflation, is not a good policy, and I would say risky.

1/2 x 1/2 x 1/2 = 1/8. Could the guy live in Thailand on 1/8 of what he doesn't now in real terms in 25 years. If not he could be eating into capital and on a downard spiral.

Think this scenario is unrealistic?

eg Between 1981-1997 THB was much lower than now. It has had 10 years at high rates following the Asian crisis.

eg Inflation of 3% is quite benign. As Thailand develops price gaps will narrow as it eventually trends to second and first world prices.

eg BoE has been cutting rates in its last two moves. You only need go back to 2003 to see base rates below 4%

Edited December 21, 2007 by fletchsmile

[camerata]

Debt fears push sterling to 20 month low

By Edmund Conway, Economics Editor

21/12/2007

The pound has slumped to its lowest level in 20 months, after a "shocking" raft of figures revealed how deeply reliant the UK has become on debt.

Britain's current account has recorded its worst deficit since the late 1980s, making Britain's national balance sheet worse than the United States' for the first time since Nigel Lawson was Chancellor of the Exchequer.

Figures published by the Office for National Statistics caused a major sell-off of the pound, as experts warned that the UK currency would have to fall in value to bring the current account back into line.

More at the Daily Telegraph

[cmsally]

This article above, pretty much follows the opinions of many of my friends in the UK, who have their fingers much closer to the pulse than I do.

If anything I tend to be more optimistic , perhaps that is because I don't live there!

[Ricardo]

The Thai Baht is up and down like a tarts draws over any 12 month period.

With recent instability, perhaps a bridegroom's backside, might be more appropriate !

[ace]

Debt fears push sterling to 20 month low

By Edmund Conway, Economics Editor

21/12/2007

The pound has slumped to its lowest level in 20 months, after a "shocking" raft of figures revealed how deeply reliant the UK has become on debt.

Britain's current account has recorded its worst deficit since the late 1980s, making Britain's national balance sheet worse than the United States' for the first time since Nigel Lawson was Chancellor of the Exchequer.

Figures published by the Office for National Statistics caused a major sell-off of the pound, as experts warned that the UK currency would have to fall in value to bring the current account back into line.

More at the Daily Telegraph

Scary. UK economy has experienced a period of growth for over a decade and still that idiot Brown has managed to screw the economy. It won't end there either with PFI debt and rising unemployment to come amongst others....

To be honest I spend as little time in the UK as possible, 2 weeks this year. But the shoddy state of the place, the old beat up cars on the pot-holed, gridlocked roads, etc, etc, did not fill me with hope for the near future for UK.

On a related note, does anyone know if there is a way for the falang to hold an interest paying bank account of any kind in Thailand?

[apetley]

If your not getting interest on a normal savings account your getting screwed.

I have a normal savings account and fixed term ones too, all pay the same rate of interest to me( a Brit) as to a Thai.