Farang Sense Of Entitlement

[palm]

Then we are in for "interesting times"... Given how the Chinese are so proficient at making skyscrapers and toothpaste lets see how they run the world economy...

You need to get out more.

Why not take a trip to Shanghai, and you'll see some of the world's finest, newest, biggest, highest-quality skyscrapers.

[Chunky1]

http://gonzalolira.blogspot.com/2010/11/is-europe-coming-apart-faster-than.html#more

[chops]

I have tried to explain this to a few acquaintances but they don't seem to get it. European nations are falling like dominoes - Iceland, Greece, Ireland. Portugal, Spain, Italy not far behind. Western nations have been consuming on credit. It's no different than someone who buys something with a credit card when they do not have the cash to pay for it. Our production lags significantly behind. The Chinese and other emerging markets, largely for political reasons, have continued to throw good money after bad money supporting the West's debt based consumption. It has now come to the point of no return. America and Europe are insolvent. The standard of living in the West is about to collapse.

Now, what many farang say is something like "Without us, they won't have anyone to sell their products to." They view the world's economy as a restaurant where every third world citizen has a job to perform and their job is to eat and that without them, the restaurant would not function. If these Western nations were to be washed away in a tidal wave, factories in Thailand would not shut down. The products that Thais produce would instead be consumed locally.

You might recall the notion that Henry Ford who invented the factory line created the idea of paying employees enough so that they could buy the products. This hasn't yet happened in Thailand because the factory owner could export those products. Now that those Westerners are bankrupt, the employees will need to become the customers. The Thailand of today will look nothing like the Thailand of tomorrow.

You will see 25 baht per USD by the end of 2011 and I am seeing a five year target of 15 baht per USD.

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I keep hearing this same old argument, but it's not really correct. China keeps it's currency undervalued so it has become the world's mfg producer. Without them keeping their currency weak their economy would collapse. So I guess you cannot really call it 'debt'. It's more like their crutch.

[mitsubishi]

Siamrose,

It's not a conspiracy, it's a reality now.

Look at how weak the £ and $ are.

We are going back to the weak periods of the £ vs the baht during the 70s, 80s and mid 90s.

Now I personally don't think that's much fun at all if I had all my assets in the £.

Thatchers dream of making the western world the office of the world and asia the workshop of the world is now a reality.

The only hitch is that when you have a country that exports very little and manufactures fck all compared to it's bloated service and public sector it suffers in economic hard times.

This crisis is going to move into either stagnation at best or a lasting depresion.

Either way, the £ isn't going to be the best currency to be using.

Edited November 17, 2010 by mitsubishi

[SiamRose]

mitsubishi, you are conflating two separate things; currency collapse and the reason for that collapse.

I agree with you that the £ is going to fall and may even become worthless, and that his is due to the UK creating too much debt for too long and especially due to "quantitative easing" more recently

Where I disagree, is when you claim that there is a conspiracy by the "guys pulling the strings" to destroy the £

It's not the interests of the guys pulling the strings.

They want the UK skint and the people tied to the country via a £ that won't buy them a loaf of bread for a wheelbarrow-full before long.

Once that's done it's in the Euro currency and hey presto there's no more £.

.