There Goes The Pound

[thaimate]

Well that well known muppet at the Bank of Toyland has injected another 75 billion pounds into the British economy and the pound slumped immediatly , personally i wouldnt trust Mervyn King to run a bath let alone the B of E. HOW LOW WILL THE POUND GO NOW AGAINST THE bAHT?

[ukrules]

It's about the same as it was this time last year.

http://www.xe.com/currencycharts/?from=GBP&to=THB&view=5Y

Edited October 6, 2011 by ukrules

[chiang mai]

I don't think the country has got much choice in the matter, keeping the Pound strong is hardly going to help stimulate the economy, even if it does make the ex-pats happy.

Personally I think we could easily be looking at several Baht less per Pound by Xmas,

[roamer]

It was always a case of when not if. Overall small beer in the shape of things to come maybe ? Not about to get better any time soon....

[cardholder]

The Stock Market liked it.

Better to do something (even if it is not 100% right) than do <deleted> all.

[Swiss1960]

Swiss National Bank is investing Billions every month to make sure the Swiss Franc does not get too strong (which of course hurts me for my Thai exchange rate); Swiss National Bank has decided to not let the Swiss Franc drop below 1.20 towards 1 Euro which of course brings my Thai exchange rate down along the Euro: Swiss Government is investing Billions into the Economy to help our export and tourism industry which of course will be through taxes.

Shall I cry or shall I congratulate the government and the SNB for those interventions? I better congratulate them, cause they keep the unemployment down, the industry up and in the long term ensure the safety of all of us Swiss and our pension and social security system.

I am just one in 6.5 Million Swiss citizens... yes, I suffer on my Thai exchange rate now but do profit for my future...

so stop whining about exchange rates and look at the greater picture

[geriatrickid]

Swiss National Bank is investing Billions every month to make sure the Swiss Franc does not get too strong (which of course hurts me for my Thai exchange rate); Swiss National Bank has decided to not let the Swiss Franc drop below 1.20 towards 1 Euro which of course brings my Thai exchange rate down along the Euro: Swiss Government is investing Billions into the Economy to help our export and tourism industry which of course will be through taxes.

Shall I cry or shall I congratulate the government and the SNB for those interventions? I better congratulate them, cause they keep the unemployment down, the industry up and in the long term ensure the safety of all of us Swiss and our pension and social security system.

I am just one in 6.5 Million Swiss citizens... yes, I suffer on my Thai exchange rate now but do profit for my future...

so stop whining about exchange rates and look at the greater picture

You succinctly explained why the Swiss economy is holding up: The government and its citizens see the big picture and have put the interest of the nation ahead of personal interests. It is refreshing to see that some people do understand that a failure to act would cause a bigger problem with more failed exporting employers causing a drop in tax revenue and more importantly, a loss of jobs. No jobs=civili unrest as we are now seeing in some western countries.

[chiang mai]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

[robblok]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

[serenitynow]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

True, but it's still massively overvalued as anyone but a Swiss person will tell you. Just ask an Eastern European mortgage payor.

Edited October 6, 2011 by serenitynow

[chiang mai]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

And perhaps you should read my post again and comprehend what was written, I'm merely stating that CHF and GBP are currently subject to different pressures that cause them to move in opposite directions, there's no complaint involved.

[robblok]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

And perhaps you should read my post again and comprehend what was written, I'm merely stating that CHF and GBP are currently subject to different pressures that cause them to move in opposite directions, there's no complaint involved.

No the CHF is moving down too in relation to the baht. Because the Euro drops then the CHF drops too. And the euro has been dropping from 43 to 41.

Its not stopped from strengthening its dropping because the euro drops.

Edited October 6, 2011 by robblok

[thaibeachlovers]

I don't think the country has got much choice in the matter, keeping the Pound strong is hardly going to help stimulate the economy, even if it does make the ex-pats happy.

Personally I think we could easily be looking at several Baht less per Pound by Xmas,

So, can someone explain why, when the pound was worth 70 baht ( or more ) everything was OK financially in Britain? Didn't see anyone complaining that the high value of Sterling was hurting the British worker then.

Personally, I think it's all BS and we're being taken for a ride as a few get very very rich by manipulating all the economies.

[robblok]

I don't think the country has got much choice in the matter, keeping the Pound strong is hardly going to help stimulate the economy, even if it does make the ex-pats happy.

Personally I think we could easily be looking at several Baht less per Pound by Xmas,

So, can someone explain why, when the pound was worth 70 baht ( or more ) everything was OK financially in Britain? Didn't see anyone complaining that the high value of Sterling was hurting the British worker then.

Personally, I think it's all BS and we're being taken for a ride as a few get very very rich by manipulating all the economies.

There are 2 sides to a coin, it could also have reflected the state of the Thai economy at that time in relation to that of the UK.

Its not all that simple there can be many reasons. Usually the people who don't understand much of economy and so on come with these conspiracy theories.

[Swiss1960]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

And perhaps you should read my post again and comprehend what was written, I'm merely stating that CHF and GBP are currently subject to different pressures that cause them to move in opposite directions, there's no complaint involved.

No the CHF is moving down too in relation to the baht. Because the Euro drops then the CHF drops too. And the euro has been dropping from 43 to 41.

Its not stopped from strengthening its dropping because the euro drops.

Absolutely correct. CHF is stopped from strenthening agains the Euro which means it is suffering against Thai Baht alongside the Euro... But as this was absolutely necessary for the country, I do accept that situation without complaining. Few Swiss tourists / ex-pats suffering in Thailand is not an issue when otherwise the whole country could go bust...

[chiang mai]

I don't think the country has got much choice in the matter, keeping the Pound strong is hardly going to help stimulate the economy, even if it does make the ex-pats happy.

Personally I think we could easily be looking at several Baht less per Pound by Xmas,

So, can someone explain why, when the pound was worth 70 baht ( or more ) everything was OK financially in Britain? Didn't see anyone complaining that the high value of Sterling was hurting the British worker then.

Personally, I think it's all BS and we're being taken for a ride as a few get very very rich by manipulating all the economies.

It's pretty much universally accepted that the Pound was over valued at 70 Baht per Pound.

[Swiss1960]

True, but it's still massively overvalued as anyone but a Swiss person will tell you. Just ask an Eastern European mortgage payor.

Bullshit... every Swiss knows that the CHF is massively too strong. One year ago Euro was sold for 1.40 and I got 31 TBH. Two months ago, Euro was almost equal and I got 42 TBH for the Franc...

And our economy almost broke down... we heavily rely on tourist, finance and export (mainly machine) industry... no tourist coming, no exports possible, our Eastern European debtors going broke... the f*** we did not care, we are dam_n happy that those interventions by the SNB happened!

Yes, my December holiday will be 20-30% more expensive than my August holiday (i expect the THB to go down to 30 Baht per Franc), but my job security, the security of our industry and behind that the security of our pension funds and all social security systems is worth much more...

Yes, we might like the thinking to be independant of the EU... but we are NOT... but having listened to Mr. Cameron, he also thinks that less of EU is better for the Great Kingdom...

[chiang mai]

You are comparing apples and mango's, the CHF is being artifically stopped from strengthening whereas the Pound is being purposely weakened, not quite the same thing even in banking terms. Also, just how you see yourself as suffering on the exchange rate escapes me, perhaps what you meant to say was that you are not making as much out of the exchange as you otherwise could, that's hardly suffering!

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

And perhaps you should read my post again and comprehend what was written, I'm merely stating that CHF and GBP are currently subject to different pressures that cause them to move in opposite directions, there's no complaint involved.

No the CHF is moving down too in relation to the baht. Because the Euro drops then the CHF drops too. And the euro has been dropping from 43 to 41.

Its not stopped from strengthening its dropping because the euro drops.

If the Swiss central bank removed the cap against the Euro (the banks position was that it would not exceed 1.20) it would open up CHF as a safe haven currency again and it would strengthen substantially, were that to happen then CHF would strengthen against THB and Swiss1960 would get more Baht for his Swiss Francs but as he correctly points out, the economic infrastructure of the country would be damaged. So, once again, CHF has been stopped from strengthening artificially by virtue of the cap and its natural direction is opposite to that of GBP presently.

[robblok]

Maybe you should learn a bit of economics before complaining

They keep the swiss frank tied to the euro.

So if the euro drops (and it did) he suffers. Every time the Euro drops he suffers.

And perhaps you should read my post again and comprehend what was written, I'm merely stating that CHF and GBP are currently subject to different pressures that cause them to move in opposite directions, there's no complaint involved.

No the CHF is moving down too in relation to the baht. Because the Euro drops then the CHF drops too. And the euro has been dropping from 43 to 41.

Its not stopped from strengthening its dropping because the euro drops.

If the Swiss central bank removed the cap against the Euro (the banks position was that it would not exceed 1.20) it would open up CHF as a safe haven currency again and it would strengthen substantially, were that to happen then CHF would strengthen against THB and Swiss1960 would get more Baht for his Swiss Francs but as he correctly points out, the economic infrastructure of the country would be damaged. So, once again, CHF has been stopped from strengthening artificially by virtue of the cap and its natural direction is opposite to that of GBP presently.

That the natural direction is going up was clear to me and him. But in reality its going down so he is suffering just like you and me.

[StreetCowboy]

I don't think the country has got much choice in the matter, keeping the Pound strong is hardly going to help stimulate the economy, even if it does make the ex-pats happy.

Personally I think we could easily be looking at several Baht less per Pound by Xmas,

So, can someone explain why, when the pound was worth 70 baht ( or more ) everything was OK financially in Britain? Didn't see anyone complaining that the high value of Sterling was hurting the British worker then.

Personally, I think it's all BS and we're being taken for a ride as a few get very very rich by manipulating all the economies.

Not all of us - just you.

You'll find that most rich and successful people in international finance are incompetent buffoons who are motivated by nothing other than to unproductively impoverish the middle class, the poor, the working man and the pensioner.

SC

Edited October 7, 2011 by LivinginKata
flame removed

[chiang mai]

Well, given that every Western currency has fallen against the Thai Baht I would suggest that CHF has fallen less than any other so he's not exactly in a truly terrible position - BTW, I'm not suffering because I'm holding mostly SGD and THB.

NOTE: Too lazy at this time of the evening to sort out he quotes et al hence this separate post on the CHF issue.

[Swiss1960]

Well, given that every Western currency has fallen against the Thai Baht I would suggest that CHF has fallen less than any other so he's not exactly in a truly terrible position - BTW, I'm not suffering because I'm holding mostly SGD and THB.

NOTE: Too lazy at this time of the evening to sort out he quotes et al hence this separate post on the CHF issue.

Before the Swiss National Bank did bind the Swiss Franc to the Euro (telling everybody they want and exchange rate of at least 1.20), CHF went up to the Baht ilke mad... I came to BKK 20 July with 36 Baht, left in August with 42 Baht... when SNB did tell about the exchange rate of 1.20 that they will defend, CHF went down to currently 32 Baht... all in line with the Euro!

And... I never talked about this being terrible, just telling that CHF is now falling or going up in line with the Euro

[roamer]

Must say I'm inclined to think that living in LOS on a sterling income and hoping things are going to improve are a bit King Canute like at present. The QE will not work for a very simple reason. Plan A which is the only thing this government focuses on is an absolute f***ing disaster. You don't get growth in an economy where people are scared to spend money because they don't know if their job is next on the hit list. Cameron & Osbourne have talked down the economy so much that consumers are terrified to spend. People who depend on their savings interest simply can not spend.

This might be as good as your going to see sterling for a long time.

[jackr]

The baht being like 30% overvalued isn't helping, and who gives a flying one what the little swiss think... plenty of gold in them there hills.

[Swiss1960]

The baht being like 30% overvalued isn't helping, and who gives a flying one what the little swiss think... plenty of gold in them there hills.

If you would watch the american movies more closely, you would know that the gold in under Bahnhofstrasse in Zurich and not in the hills the hills are were the army stores weapons in case we need to fight against the German cavalry trying to invade on order of the German ex-finance minister Steinbrueck

But the real question: Do you really think the Baht is overvalued... or is it not that the European finance sector just <deleted>**ed up the economy and the current Baht exchange rate just shows all the risks associated with possible bust-up's of European countries? personally, I think it is the latter

[chiang mai]

The baht being like 30% overvalued isn't helping, and who gives a flying one what the little swiss think... plenty of gold in them there hills.

If you would watch the american movies more closely, you would know that the gold in under Bahnhofstrasse in Zurich and not in the hills the hills are were the army stores weapons in case we need to fight against the German cavalry trying to invade on order of the German ex-finance minister Steinbrueck

But the real question: Do you really think the Baht is overvalued... or is it not that the European finance sector just <deleted>**ed up the economy and the current Baht exchange rate just shows all the risks associated with possible bust-up's of European countries? personally, I think it is the latter

I absolutely agree it's the latter, I didn't realize there were still any flat earthers alive that think THB is overvalued in it's own right.

[james24]

By next month the Deutsche mark will be back and then the pound is really f..ked

[IMA_FARANG]

So, can someone explain why, when the pound was worth 70 baht ( or more ) everything was OK financially in Britain? Didn't see anyone complaining that the high value of Sterling was hurting the British worker then.

Personally, I think it's all BS and we're being taken for a ride as a few get very very rich by manipulating all the economies.

Nice to see that at least one person sees that point.

The reality is that the economic system today is purposely designed as a "top-end trickle-down" system where capital is poured in at the top-end and the "benefits" of that capital slowly trickle-down from the wealthy to those below. Of course by the time those "benefits" arrive down there the choice parts are already gone, and only cr-p is left.

Watch out you rich b----ds, people are actually starting to notice.

[exeter]

Swiss National Bank is investing Billions every month to make sure the Swiss Franc does not get too strong (which of course hurts me for my Thai exchange rate); Swiss National Bank has decided to not let the Swiss Franc drop below 1.20 towards 1 Euro which of course brings my Thai exchange rate down along the Euro: Swiss Government is investing Billions into the Economy to help our export and tourism industry which of course will be through taxes.

Shall I cry or shall I congratulate the government and the SNB for those interventions? I better congratulate them, cause they keep the unemployment down, the industry up and in the long term ensure the safety of all of us Swiss and our pension and social security system.

I am just one in 6.5 Million Swiss citizens... yes, I suffer on my Thai exchange rate now but do profit for my future...

so stop whining about exchange rates and look at the greater picture

You succinctly explained why the Swiss economy is holding up: The government and its citizens see the big picture and have put the interest of the nation ahead of personal interests. It is refreshing to see that some people do understand that a failure to act would cause a bigger problem with more failed exporting employers causing a drop in tax revenue and more importantly, a loss of jobs. No jobs=civili unrest as we are now seeing in some western countries.

The Greeks cheated their way into the Euro. They are like the Thais utterly corrupt. I wonder how the other European countries can trust them. Its crazy. Should have kicked them out right from the start. Corrupt countries can't be trusted.

The only thing Greece has been good for is holidays . They live life like its one big one.

[exeter]

Its not surprising the B of E decided to opt to pump more money into the economy. A few weeks ago the USA decided not to pump more money into their economy and stock markets and the stock markets descended, so pretty predictable really, they needed to show they were doing something. Personally I dont think anyone knows how to deal with financial problems we have not seen before.

The current UK govt and likely the ones before as well are spending too much, for every £4 they take in income they are spending £5, it cannot go on! They need cut public spending drastically, it will be very painful for a short time, or, they put it off. The result of putting it off is twofold, firstly when the time for the correctio finally arrives it will be harder and longer. Secondly the economy would be in such a bad state that the UK would be joining the Greeks and the Spanish as broken and bankrupt. Nobody wants to be in the hot seat when that happens, in the meantime those that are in situe just keep pushing things away till they escape the job, complete with a nice pension package.