Thailand And China Yaun

[lovelomsak]

I was just wondering if the people here on this forum can see any relationship in how the baht is staying strong against all other asian currencies and the china yuan staying unchanged.

My simple layman opinion is. China needs to keep yuan where it is to stablilize economy and support companies that require a favorable currency. So no change will hapen in the near future no matter how much USA complains.

Now thailand has a strong baht difficult to trade as seen by experts. But if the class system stays in place and labour remains cheap there is baht to be made by big manufactures and traders.All the satellites countries of Thailand ( Loas, Burma ,Cambodia, Vietnam) will see trade opportunities because of currency values and will be willing to trade with Thailand. Thailand will see great value in trading with China. Thailand can become the center of asian trade. All goods go to Thailand and Thailand distributes as they see economic gain or political power. If the baht is strong enough the others asian countries have no need to market overseas at the present time. Costs for them go down , exchange transport everything is simpler. Put it on a truck and drive it where it is going. No ships just highway like Canada and Mexico were for USA. Everything delivered in 24 hours.

We cannot forget how quickly asia as a whole is developing into strong consumers.

Now this puts Thailand in the position of having to market everything to the rest of the world well distributing to Asian countries . Which is quite easy actually. If the other asian countries cannot supply overseas demands because asian demand takes most of what they manufacture, then the foreign traders must go to who can supply the goods. So they have to deal with Thailand. Thailand says we will deal we can buy lots of your goods our baht is strong lets make some trade agreements and the future is set. Its a done deal.

I know some will say some guys like me just have to much time on our hands and a little knowledge is dangerous. But hey really do any of you think there is opportunity for a strong baht in the future in some way? And in what way?

One thing I amnot sure of so could someone answer this one for me. Is it possible for China to support the Thai baht?

[garyh]

Are you talking about the Yuan verses USD? If so you should do some research, the Yuan has been pegged at parity with the USD. However as of the 8/3/2010 China has supposedly started to float the Yuan but only gradually. Therefore the Yuan has been very consistent against the USD.

[garyh]

If this article is correct there will lots of screaming about it exchange rates form those that have funds in USA http://www.telegraph.co.uk/finance/finance...e-currency.html

[britmaveric]

China will be eaten from the inside. Population and discontent will be the end for them.

[lovelomsak]

Sorry if my post was hard to understrand. I was just reading yahoo.ca news and was using the information they gave of the currency exchange in an article I will quote it for you it is still on line you can get the whole story there ok.

Quote

He declined to elaborate on the nature of the talks but said the United States was not alone in wanting a stronger yuan. China has kept the currency on ice near 6.83 per dollar since mid-2008 to help its exporters ride out the global credit crunch. Unquote.

Are they wrong in this statement?

[lovelomsak]

Sorry if my post was hard to understrand. I was just reading yahoo.ca news and was using the information they gave of the currency exchange in an article I will quote it for you it is still on line you can get the whole story there ok.

Quote

He declined to elaborate on the nature of the talks but said the United States was not alone in wanting a stronger yuan. China has kept the currency on ice near 6.83 per dollar since mid-2008 to help its exporters ride out the global credit crunch. Unquote.

Are they wrong in this statement?

here is another quote from the article it is quite interesting. I do feel thailand can benefit from what is happening here. so here is the quoteChina faced important negotiations over the yuan in coming weeks, U.S. Ambassador Jon Huntsman said, adding Washington was not alone in wanting Beijing to unshackle its currency from the 20-month-old currency peg unquote

I would like some thoughts on how the frozen yuan can assist the Thai baht in maintaining its strengh to be beneficial to both nations?

I feel there is a very strong link.

[sokal]

Sorry if my post was hard to understrand. I was just reading yahoo.ca news and was using the information they gave of the currency exchange in an article I will quote it for you it is still on line you can get the whole story there ok.

Quote

He declined to elaborate on the nature of the talks but said the United States was not alone in wanting a stronger yuan. China has kept the currency on ice near 6.83 per dollar since mid-2008 to help its exporters ride out the global credit crunch. Unquote.

Are they wrong in this statement?

here is another quote from the article it is quite interesting. I do feel thailand can benefit from what is happening here. so here is the quoteChina faced important negotiations over the yuan in coming weeks, U.S. Ambassador Jon Huntsman said, adding Washington was not alone in wanting Beijing to unshackle its currency from the 20-month-old currency peg unquote

I would like some thoughts on how the frozen yuan can assist the Thai baht in maintaining its strengh to be beneficial to both nations?

I feel there is a very strong link.

Wanting a weak currency is a misguided keynesian policy. Exports are the price a country pays for imports. The more a countries currency is worth, the less the population pays for energy, materials and food. When the US was the biggest export nation in the world , it had a strong currency.

People in the US that complain about China pegging have no idea what they are talking about. If China de pegged it would have less and less money to buy US treasury bonds, the less US bonds China buys, the higher interest rates will go in the US. Higher interest rates in the US will drop home prices another 30 to 40% so the US better hope that China does not de peg and keeps buying US bonds.

[lovelomsak]

Sorry if my post was hard to understrand. I was just reading yahoo.ca news and was using the information they gave of the currency exchange in an article I will quote it for you it is still on line you can get the whole story there ok.

Quote

He declined to elaborate on the nature of the talks but said the United States was not alone in wanting a stronger yuan. China has kept the currency on ice near 6.83 per dollar since mid-2008 to help its exporters ride out the global credit crunch. Unquote.

Are they wrong in this statement?

here is another quote from the article it is quite interesting. I do feel thailand can benefit from what is happening here. so here is the quoteChina faced important negotiations over the yuan in coming weeks, U.S. Ambassador Jon Huntsman said, adding Washington was not alone in wanting Beijing to unshackle its currency from the 20-month-old currency peg unquote

I would like some thoughts on how the frozen yuan can assist the Thai baht in maintaining its strengh to be beneficial to both nations?

I feel there is a very strong link.

Wanting a weak currency is a misguided keynesian policy. Exports are the price a country pays for imports. The more a countries currency is worth, the less the population pays for energy, materials and food. When the US was the biggest export nation in the world , it had a strong currency.

People in the US that complain about China pegging have no idea what they are talking about. If China de pegged it would have less and less money to buy US treasury bonds, the less US bonds China buys, the higher interest rates will go in the US. Higher interest rates in the US will drop home prices another 30 to 40% so the US better hope that China does not de peg and keeps buying US bonds.

I agree with you on keynesian policy. That is why I feel Thailand is on the right track in pursuing a strong baht at this time. The satellite countries as I mentioned will feel they can benefit from this. They shall deal not exclusively but mostly with thailand in turn Thailand will export the finished goods to other countries such as the USA. China can keep its yuan where it is because there will be strong export trade with Thailand. It isnot necessary in that case for china to strengthen its yuan. Thialand will give its trade surplus. And then Thailand trades with USA and other nations and has a large export surplus also. So asia as a whole wins but the new leader is Thailand. Also China can hold America as financial hostage so to speak . If China will be in control. And Thailand shall be their broker.

Edited March 18, 2010 by lovelomsak

[britmaveric]

^Yanks can tell China to get stuffed and well what are the Chinese to do? Remember both can equally screw one another, so this is a no win situation for either China/USA.