Govt Debt Policy Will Make The Thai Currency 'Worthless'

[thaibeachlovers]

They can consult with the USA, they know how to print money at extreme fast rates. I guess the Thai Baht will race the US $ to the bottom

Perhaps some of the doom and gloom views might change if the respondents took into consideration the characteristics of the Thai economy. As some astute people have noted Thailand is an export driven economy. What part of 2/3 thirds of the GDP based upon exports do the negative nabobs not understand? When agriculture is a major component and when the sector provides almost 50% of the nation's employment, it reinforces the importance of protecting export markets, even if it means adjusting the value of the baht.

In respect to the unfounded comment on the USD, Perhaps one should have a look at the numbers. Rather than rely on FOX TV for information, I suggest one look to a FOX sister company, the Wall Street Journal . I love Thai Airways because I can always get a copy of the WSJ which is practically unavailable in Phuket.

WSJ reported as follows; After a year of swings, the U.S. dollar finished within roughly 3% of where it started the year against most major developed-market currencies. That included the euro, where the dollar finished up 3.3% as the long-simmering European debt crisis reached a boiling point and investors contemplated the breakup of the economic union that underpins the common currency.The main exception was the yen, which, despite a raft of troubles for Japan, rose more than 5% against the dollar. The U.S. Dollar Index, which measures the greenback's performance against a basket of currencies, rose 1.5% in 2011.

As long as the EU is in a mess that keeps getting worse, the pressure is on the Euro, not the USD. The US is most likely through the worst of its mess. This gives the Thai baht some breathing room. Keep in mind that China is undertaking direct FX pools and transactions which will assist the Thai baht, albeit in a small way. The USD is ok, provided the Republican teapot faction doesn't pull another tantrum.

<The US is most likely through the worst of its mess.>

Really? Obama wants to increase the debt ceiling again! When no one will lend them money, the party's over.

[Mosha]

The worst thing any country can do is borrow from China IMHO. The piper calls the tune, the cold war may be over. Now it's financial.

[OldeBellPedr]

It would not hurt the Thai economy to borrow to rebuild flood damaged businesses. The effect would be to weaken the Baht a little which would help tourism and exports without destroying the fundamentals of the economy which are sound. Borrowing for infrastructure improvements such as the proposed high speed Bangkok- Chiang Mai rail line would be sound economics too.

[CqK]

When I first starting coming to Thailand regularly, there were 44 THB to the $. my friend, that was stationed at the US base in Udon in the early 70s told me there were 2 THB to a nickel so that works out to 40 THB to the $. The lowest point for exchange I remember was about 2005-2006 when there were about 26 or 27 THB to the $. Naturally, that's when my house was under construction.

We built ours before 1997 at 25 baht to the $. But then 10 eggs were 12 bt. too; noodle soup 15 bt. Songteow 5 bt . . . local bus to go 50 km. 12 bt.

[theblether]

Good.....tell them to hurry up

[theblether]

I wouldn't mind weaker baht, but somehow I don't think there would be anything near 75baht for a £

you forget one basic thing Thailand has an economy

'

England doesn't

Give me peace, the English economy alone is at least 4 times bigger than Thailands........in fact as a rough estimate the Thai economy is twice as big as the economy of Scotland, which looks good until you realise the Thai population is 63 million, the Scottish population is 5 million.

[lungmi]

"1trillion baht+ expenditures effected by the former Abhisit regime. Keep in mind that even though a government can bring forward a budget, it almost always applies to the next fiscal year. In the interim, unless an incoming government specifically cancels programs or projects, the spending obligations inherited from the previous governent continue. This is the situation for the PTP. It can take a year or so for a new budget to shake out. Yes some taxes and wage hikes can be made to take effect sooner, but the very size and complexity of government and the economy require there to be lead in time for other aspects of a budget. Mr. Abhisit and Mr. Korn are the gifts that have kept giving."

I think it was Chavalit after the economic crisis in the late 90ths who made the gift.

[Mosha]

With the greater financial discipline within the UK, and the strong sense of urgency, as well as sound policies, for overcoming its current problems - far more than within the EU - there is no fundamental reason why we should not see the heady days of THB 75 to the GBP once again.

Knowing that the US and Greater Britain is bankrupt already there should be no reason for the Pound to not drop to 35, close to where the Euro will be soon. England is importing 80% of its Food = feeding the population; thus averting revolution.

Dont even have some potatoes grown on their soil.

Great Empire.

The wishful thinking of some rejuvenation of what was there before (eg. infrastructure in India) will go unfullfilled.

But the Empire, our "friends' will show the way. As there is that nasty "threat" called Iran.

Mark my words.

No reason to believe the robberies since centuries would suddenly stop and we hold hands and be good friends. Ask the Lybiens for Oil and water.

Enlighten me. When was the last time the UK was truely self sufficient re food?

[moe666]

They can consult with the USA, they know how to print money at extreme fast rates. I guess the Thai Baht will race the US $ to the bottom

Perhaps some of the doom and gloom views might change if the respondents took into consideration the characteristics of the Thai economy. As some astute people have noted Thailand is an export driven economy. What part of 2/3 thirds of the GDP based upon exports do the negative nabobs not understand? When agriculture is a major component and when the sector provides almost 50% of the nation's employment, it reinforces the importance of protecting export markets, even if it means adjusting the value of the baht.

In respect to the unfounded comment on the USD, Perhaps one should have a look at the numbers. Rather than rely on FOX TV for information, I suggest one look to a FOX sister company, the Wall Street Journal . I love Thai Airways because I can always get a copy of the WSJ which is practically unavailable in Phuket.

WSJ reported as follows; After a year of swings, the U.S. dollar finished within roughly 3% of where it started the year against most major developed-market currencies. That included the euro, where the dollar finished up 3.3% as the long-simmering European debt crisis reached a boiling point and investors contemplated the breakup of the economic union that underpins the common currency.The main exception was the yen, which, despite a raft of troubles for Japan, rose more than 5% against the dollar. The U.S. Dollar Index, which measures the greenback's performance against a basket of currencies, rose 1.5% in 2011.

As long as the EU is in a mess that keeps getting worse, the pressure is on the Euro, not the USD. The US is most likely through the worst of its mess. This gives the Thai baht some breathing room. Keep in mind that China is undertaking direct FX pools and transactions which will assist the Thai baht, albeit in a small way. The USD is ok, provided the Republican teapot faction doesn't pull another tantrum.

<The US is most likely through the worst of its mess.>

Really? Obama wants to increase the debt ceiling again! When no one will lend them money, the party's over.

Most of the debt of the US is held by US citizens in the form of money borrowed from Social Security. Yes please extend the limit so that the money borrowed from their on citizens can be repayed, such a non-issue.

[yoshiwara]

It looks like PTP plan on buying the next election a bit early.

QE Thaksin style. Here we go.