Baht Against The Dollar?

[Dirk_brijs]

OK USD is not the strongest currency in the world right now but how does it keep loosing ground against the baht with all the issues Thailand has faced during the last few months/year???

How does this Baht keep this up????

is this destined to fall?

So is USD to go back up compared to the baht?

[hansum]

Something to do with President Obama and Timothy Geithner spending money like no govt has done in history so they can stay in power like all socialist govts do, and not looking like theyve any intention or a plan of getting their deficits down .... well apart from printing more money as theyre looking to do shortly!

Im not a septic but am getting paid in dollars and i dont think its looking good until this lot are out of office and they have a govt who can negotiate more even trade agreements and deal with Chinas suppressed currency, once Obamas absolutely brilliant marketing campaign to get into power was over, he seemed to run out of ideas.

Edited August 6, 2010 by sbk
inappropriate name removed

[gregb]

OK USD is not the strongest currency in the world right now but how does it keep loosing ground against the baht with all the issues Thailand has faced during the last few months/year???

How does this Baht keep this up????

is this destined to fall?

So is USD to go back up compared to the baht?

Nope. The US empire is in the beginning stages of collapse. Happens to all empires eventually. If it didn't we'd be using hieroglyphics for this forum. The Brits didn't like it in the 18th century when it happened to them either.

The Baht is not really "keeping up" as you say. It is depreciating against other Asian currencies. The USD is simply rapidly moving towards its inherent value of zero.

Eventually, faith in the USD will fail completely and we will see hyperinflation. You will most likely be long dead before an American currency (won't be the USD anymore) recovers. It should be fairly obvious to you already that if investors prefer the Thai Baht with all the political problems going on over here, then the US must be in serious trouble.

The market is acting completely rationally. It is only your belief that the US economy is sound which is irrational.

[vont]

thb vs usd:

One reason is her ability to increase her exports globally in exchange for usd, eruo, wan, yuan et.

Edited August 6, 2010 by vont

[Jingthing]

Some really wild exaggerations here (and just a little racism against our president) but Asia especially China is on the rise so the days of cheap Asian currencies including the baht are numbered.

[hansum]

The US empire is in the beginning stages of collapse. Happens to all empires eventually. If it didn't we'd be using hieroglyphics for this forum. The Brits didn't like it in the 18th century when it happened to them either.

Despite trying the US has never had an empire, being unable to win wars or befriend the locals has been their hindrance.

Try the start of the 20th century for when the British Empire showed signs of crumbling, despite peaking in size after World War 1.

[Jingthing]

The US empire is in the beginning stages of collapse. Happens to all empires eventually. If it didn't we'd be using hieroglyphics for this forum. The Brits didn't like it in the 18th century when it happened to them either.

Despite trying the US has never had an empire, being unable to win wars or befriend the locals has been their hindrance.

Try the start of the 20th century for when the British Empire showed signs of crumbling, despite peaking in size after World War 1.

We won the ones that really mattered, now didn't we? No, not a colonial empire like the doomed British one, but more of an empire of economic and cultural domination. Yes, it's a real one and no it ain't over yet.

[justmaybe]

Im not a septic

Another point of disagreement.

[cloudhopper]

We won the ones that really mattered, now didn't we? No, not a colonial empire like the doomed British one, but more of an empire of economic and cultural domination. Yes, it's a real one and no it ain't over yet.

Yes WW2 mattered quite a bit. The Bretton Woods agreement made toward the end of WW2 allowed the USD to become the world reserve currency. WW2 also left the US manufacturing industries dominant since a good bit of the rest of the world capacity was destroyed.

These 2 advantages the US has enjoyed (taken advantage of) are now gone. In 1971 president Nixon reneged on the BW agreement allowing unlimited devaluation of the USD and US manufacturing has now largely moved offshore. The remaining paper pushing industries like finance and insurance based on US dollars (rapidly losing value as the Fed prints to infinity to meet socialist political obligations) are doomed.

No it ain't over yet but it is in rapid decline. Expect the USD to weaken against the THB.

[hunglikea]

Im not a septic

Another point of disagreement.

I think 'hansum' meant what he said. He is not a 'septic' - rhyming slang - septic tank 'Yank'.

I don't think he was being sceptical or even 'skeptical'.

[Robby nz]

The US$ is dead.

Max Kaiser told me so.

[gotlost]

The USD SUCKS.

[gregb]

The US empire is in the beginning stages of collapse. Happens to all empires eventually. If it didn't we'd be using hieroglyphics for this forum. The Brits didn't like it in the 18th century when it happened to them either.

Despite trying the US has never had an empire, being unable to win wars or befriend the locals has been their hindrance.

Try the start of the 20th century for when the British Empire showed signs of crumbling, despite peaking in size after World War 1.

At the risk of discussing something totally unrelated to Thailand, I would say began towards the end of the 18th century and was completed by middle of the 20th. Clearly once they started losing their colonies the writing was on the wall. The fact that they straggled on for a while before complete failure does not change this. Collapse is never a fast process.

The complete collapse of the US will take a few centuries as well. You don't eliminate the world's largest military (or arguably the world's largest banking syndicate) overnight.

But the reality the long term trend of the US is down, and the long term trend of Asia is up. Investors who don't have an irrational bias recognize this fact, and it is reflected in the currency.

Personally, while I wait for history to resolve this question, I'll stick with gold. But I do think people waiting for the THB to crash against the USD are going to be worm feed long before they ever see the day.

[Jingthing]

Greg, I agree with most of what you said. The US (and Europe) is in decline and Asia is on the rise, but it won't happen completely overnight. I don't think centuries though, in my view more like 75 to 100 years to fade towards being like Portugal.

Gold bug? I just can't relate.

Baht? Forget about hoping for 40 to the dollar again. Worry instead about it going to 15.

The bright side for Americans? Well, our public transport infrastructure will have to be improved, that's good. Also, as the US empire slowly fades away, expect FUTBALL to become much more popular and we may even win a World Cup, or two!

Edited August 7, 2010 by Jingthing

[flying]

If many feel as this thread suggests & are also like JT & not interested in metals.......

Wouldn't it behoove them...(if they plan to continue with expenses here in LOS )...to convert as much as they can now.

Just wondering how folks think... Or do they rely on things changing even against their stated forecasts?

Edited August 7, 2010 by flying

[cloudhopper]

Collapse is never a fast process.

The complete collapse of the US will take a few centuries as well. You don't eliminate the world's largest military (or arguably the world's largest banking syndicate) overnight.

Collapse can happen relatively quickly - witness the Soviet Union; a formidable military power, educated population and abundant resources.

Banking/financial systems can collapse overnight.

[cloudhopper]

If many feel as this thread suggests & are also like JT & not interested in metals.......

Wouldn't it behoove them...(if they plan to continue with expenses here in LOS )...to convert as much as they can now.

Just wondering how folks think... Or do they rely on things changing even against their stated forecasts?

i have been turning my electromagnetic USD into electromagnetic THB at a good clip for the past year. With that I have (after receiving Baht notes) bought (and am improving) farm land, gold bullion, petroleum and toys. Been turning lots of virtual cash (THB and USD) into bank notes too.

[flying]

i have been turning my electromagnetic USD into electromagnetic THB at a good clip for the past year. With that I have (after receiving Baht notes) bought (and am improving) farm land, gold bullion, petroleum and toys. Been turning lots of virtual cash (THB and USD) into bank notes too.

Seems like the way to go & I would do the same if I lived here in LOS full time.

Although like you I have converted almost all virtual into notes & metals

[luckyluke]

Thai economy is improving, more oversea investors are buying more Thai equities.The U.S. economy is stalling and may need more stimulus.

Edited August 7, 2010 by luckyluke

[gotlost]

All the mongers against the USA it has not collapsed or is it heading for it. The bottom line is numerous countries economy (Thailand) are doing better while the USA's economy is stalled. This make the exchange rate what it is.

Edited August 7, 2010 by gotlost

[Jingthing]

All the mongers against the USA it has not collapsed or is it heading for it. The bottom line is numerous countries economy (Thailand) are doing better while the USA's economy is stalled. This make the exchange rate what it is.

I agree, it hasn't collapsed. But saying the economy is stalled is kind of an understatement. There are serious structural problems that may take decades to fix and I don't think there is the political will or capability to fully address these problems. The best short term hope that might be possible is the US creating/leading another technological revolution of some kind, such as with the internet boom. The trouble is that there are a number of other countries just as well positioned now to be leaders of the next big thing, US leadership is not at all assured. Another bright spot for the US compared to Japan and western Europe, while we do have a huge pool of aging baby boomers we also have a huge pool of younger people, including immigrants, to balance that out. Edited August 7, 2010 by Jingthing

[gotlost]

All the mongers against the USA it has not collapsed or is it heading for it. The bottom line is numerous countries economy (Thailand) are doing better while the USA's economy is stalled. This make the exchange rate what it is.

I agree, it hasn't collapsed. But saying the economy is stalled is kind of an understatement. There are serious structural problems that may take decades to fix and I don't think there is the political will or capability to fully address these problems. The best short term hope that might be possible is the US creating/leading another technological revolution of some kind, such as with the internet boom. The trouble is that there are a number of other countries just as well positioned now to be leaders of the next big thing, US leadership is not at all assured.

I really do not see any leadership on this subject at the present time coming from DC.

[Jingthing]

All the mongers against the USA it has not collapsed or is it heading for it. The bottom line is numerous countries economy (Thailand) are doing better while the USA's economy is stalled. This make the exchange rate what it is.

I agree, it hasn't collapsed. But saying the economy is stalled is kind of an understatement. There are serious structural problems that may take decades to fix and I don't think there is the political will or capability to fully address these problems. The best short term hope that might be possible is the US creating/leading another technological revolution of some kind, such as with the internet boom. The trouble is that there are a number of other countries just as well positioned now to be leaders of the next big thing, US leadership is not at all assured.

I really do not see any leadership on this subject at the present time coming from DC.

I agree. And I don't limit my criticism to any party. It's all about partisan politics and very little gets decided or done. For example health care reform, I like the principle but the issue of COSTS and hard choices is too much of a hot potato to do anything about, so that is a major fiscal cliff. Also, Iraq, a total waste of blood and money, we will leave and Iran will take over the next week.

[gotlost]

All the mongers against the USA it has not collapsed or is it heading for it. The bottom line is numerous countries economy (Thailand) are doing better while the USA's economy is stalled. This make the exchange rate what it is.

I agree, it hasn't collapsed. But saying the economy is stalled is kind of an understatement. There are serious structural problems that may take decades to fix and I don't think there is the political will or capability to fully address these problems. The best short term hope that might be possible is the US creating/leading another technological revolution of some kind, such as with the internet boom. The trouble is that there are a number of other countries just as well positioned now to be leaders of the next big thing, US leadership is not at all assured.

I really do not see any leadership on this subject at the present time coming from DC.

I agree. And I don't limit my criticism to any party. It's all about partisan politics and very little gets decided or done. For example health care reform, I like the principle but the issue of COSTS and hard choices is too much of a hot potato to do anything about, so that is a major fiscal cliff. Also, Iraq, a total waste of blood and money, we will leave and Iran will take over the next week.

I agree with you on Iraq but will leave that for another thread.

[chainarong]

OK USD is not the strongest currency in the world right now but how does it keep loosing ground against the baht with all the issues Thailand has faced during the last few months/year???

How does this Baht keep this up????

is this destined to fall?

So is USD to go back up compared to the baht?

Nope. The US empire is in the beginning stages of collapse. Happens to all empires eventually. If it didn't we'd be using hieroglyphics for this forum. The Brits didn't like it in the 18th century when it happened to them either.

The Baht is not really "keeping up" as you say. It is depreciating against other Asian currencies. The USD is simply rapidly moving towards its inherent value of zero.

Eventually, faith in the USD will fail completely and we will see hyperinflation. You will most likely be long dead before an American currency (won't be the USD anymore) recovers. It should be fairly obvious to you already that if investors prefer the Thai Baht with all the political problems going on over here, then the US must be in serious trouble.

The market is acting completely rationally. It is only your belief that the US economy is sound which is irrational.

The next currency to replace the USD is the YUAN.

[cloudhopper]

The next currency to replace the USD is the YUAN.

Charmin that's not even allowed to trade on the open market won't be replacing anything.

[SirDougless]

A lot of interesting comments on this thread, but to get back to the OPs original question it's all about global sentiment and the health of the two economies. Today (and it may change tonight!) global sentiment is positive. Traders are, therefore, prepared to take risks. When doing so they will invest in the currencies of healthy economies. Many Asian economies are much healthier than the USA economy. Thailand is one of those, despite its political problems. Traders do not expect the political problems (including any potential military coup) to impact the economy.

At the moment if global sentiment is not positive traders flee to the stalwart USD. This is changing, however, because the USA economic empire is crumbling. This crumbling is due to many factors, not the least fighting wars (and losing) for no economic benefit. History has shown many times (Greek, Roman, Mongolian, British, Ottoman, etc) that if you spend more money trying to keep an empire than what you get in return, your empire (but not the country) is doomed. And it can (and will IMHO) happen in a decades, not centuries.

Thailand does have some future problems to confront. It's balance of trade has been very favourable due to a number of factors. Tourism is often cited, however, rice exports has been the star. This is under threat once India resumes Basmati (like Jasmine, a 'fragrant' rice) exports in numbers.

The currency of the future is (IMHO) the Yuan, after it is freely floated. China is the next empire and they know it. It manufactures tangible things that we want cheaply (iPhones etc). India provides valuable services but the're intangible and even now their value is starting to be questioned.

That's my 2 baht worth ...

[drdoom6996]

Some really wild exaggerations here (and just a little racism against our president) but Asia especially China is on the rise so the days of cheap Asian currencies including the baht are numbered.

RACISM??????????????? The truth is the truth, no matter RACE, CREED or COLOR

[Jingthing]

Some really wild exaggerations here (and just a little racism against our president) but Asia especially China is on the rise so the days of cheap Asian currencies including the baht are numbered.

RACISM??????????????? The truth is the truth, no matter RACE, CREED or COLOR

I suggest you be a tad more careful before you go postal on us. Yes, there was a racist name on Post 2 but as you can see if you read Post 2, there was an edit by a moderator on that post. The racist reference to my favorite American president was happily removed. Cheers and good evening to you sir.

Edited August 8, 2010 by Jingthing

[ralston3057]

OK USD is not the strongest currency in the world right now but how does it keep loosing ground against the baht with all the issues Thailand has faced during the last few months/year???

How does this Baht keep this up????

is this destined to fall?

So is USD to go back up compared to the baht?

Nope. The US empire is in the beginning stages of collapse. Happens to all empires eventually. If it didn't we'd be using hieroglyphics for this forum. The Brits didn't like it in the 18th century when it happened to them either.

The Baht is not really "keeping up" as you say. It is depreciating against other Asian currencies. The USD is simply rapidly moving towards its inherent value of zero.

Eventually, faith in the USD will fail completely and we will see hyperinflation. You will most likely be long dead before an American currency (won't be the USD anymore) recovers. It should be fairly obvious to you already that if investors prefer the Thai Baht with all the political problems going on over here, then the US must be in serious trouble.

The market is acting completely rationally. It is only your belief that the US economy is sound which is irrational.

Wow, you are so wrong that it is not funny. Yes, the dollar has lost value because of the FED monetizing our debt. However, that is part of the plan. Devalue the dollar to make American products cheaper for export. Why do you think China had pegged the Yuan to the Dollar? At least before you spout off nonsense, you should consider why things occur. In any case, the dollar will probably continue to be devalued over a few years.

The other question is: Why was the dollar gaining during the financial crisis of 2007 and 2008. Everyone was buying dollars Why? because they have faith and confidence in the USA.