Prices In Los

[necronx99]

sterling was 75 to the baht just 5 years ago, and was 90 at one point, never saw that but keep hearing about it

Never ever will you find the baht that high against all the important and infuential currencies again.

I understand folks dream and wish this to be so....but it ain't going to happen.

Recent history will tell you that the baht is manipulated domestically to benefit on behalf of Thailand. Which makes sense, doesn't it?

GIven that you're confusing high with low, I suspect you're the same as Darrell in not knowing what you are talking about.

Let me ask you this, and please answer clearly so a simpleton like me can understand. HOW exactly is the baht manipulated domestically? And, if it is possible to do that, why didn't the Government or the BoT manipulate the baht when it crashed during the 97 Asia financial crisis?

People keep talking about this shady manipulation as if it's a reality, but noone backs it up with explanations. Nor do they explain why in a country so dependent on both FDI (Thailand being a manufacturing hub for numerous Japanese and Korean companies) and international tourism, what possible motive the Thai government has for keeping the Baht so strong?

A weak baht is good for both exports and tourism, but the billionaires would like their billions to be worth something when they go offshore.

[TheKeeNok]

sterling was 75 to the baht just 5 years ago, and was 90 at one point, never saw that but keep hearing about it

Never ever will you find the baht that high against all the important and infuential currencies again.

I understand folks dream and wish this to be so....but it ain't going to happen.

Recent history will tell you that the baht is manipulated domestically to benefit on behalf of Thailand. Which makes sense, doesn't it?

GIven that you're confusing high with low, I suspect you're the same as Darrell in not knowing what you are talking about.

Let me ask you this, and please answer clearly so a simpleton like me can understand. HOW exactly is the baht manipulated domestically? And, if it is possible to do that, why didn't the Government or the BoT manipulate the baht when it crashed during the 97 Asia financial crisis?

People keep talking about this shady manipulation as if it's a reality, but noone backs it up with explanations. Nor do they explain why in a country so dependent on both FDI (Thailand being a manufacturing hub for numerous Japanese and Korean companies) and international tourism, what possible motive the Thai government has for keeping the Baht so strong?

I am not professing to be an expert, but cant central banks buy and sell their own currencies in order to weaken or strengthen them? Of course they are battling against the global finacial market againjst which they dont/wont have much influence. I think the amount of influence a country has over manipulating it i currency is also dependent on how big theri currency reserve is.

I would guess that in 97 thethai govt tried to intervene, but the limited amount of cash they had on had was no match against international players like good 'old Soros and his fund.

Edited January 31, 2012 by TheKeeNok

[inthepink]

If you believe that the Thai government is manipulating the value of the baht and keeping it artificially high, how do you explain the increase in foreign reserves held by the BOT?

That's just the balance of payments. No big surprise there for an exporting country that has high tariff barriers on imports and a population that has relatively little disposable income. The same happens in China.

But why would the BOT be intervening in the market to sterilise foreign currency inflows if they wanted to keep the value of the baht high? All they would need to do would be to sit back and let the market do its work. You are not making any sense.

the BoT is trying hard NOT to keep the Baht high!

Yes I know - that's what I was trying to point out.

[inthepink]

sterling was 75 to the baht just 5 years ago, and was 90 at one point, never saw that but keep hearing about it

Never ever will you find the baht that high against all the important and infuential currencies again.

I understand folks dream and wish this to be so....but it ain't going to happen.

Recent history will tell you that the baht is manipulated domestically to benefit on behalf of Thailand. Which makes sense, doesn't it?

GIven that you're confusing high with low, I suspect you're the same as Darrell in not knowing what you are talking about.

Let me ask you this, and please answer clearly so a simpleton like me can understand. HOW exactly is the baht manipulated domestically? And, if it is possible to do that, why didn't the Government or the BoT manipulate the baht when it crashed during the 97 Asia financial crisis?

People keep talking about this shady manipulation as if it's a reality, but noone backs it up with explanations. Nor do they explain why in a country so dependent on both FDI (Thailand being a manufacturing hub for numerous Japanese and Korean companies) and international tourism, what possible motive the Thai government has for keeping the Baht so strong?

A weak baht is good for both exports and tourism, but the billionaires would like their billions to be worth something when they go offshore.

A nice little crazy conspiracy theory but one that doesn't hold much water if some of the aforementioned billionaires are making their money in the export markets (or tourism for that matter). Edited February 2, 2012 by inthepink

[inthepink]

sterling was 75 to the baht just 5 years ago, and was 90 at one point, never saw that but keep hearing about it

Never ever will you find the baht that high against all the important and infuential currencies again.

I understand folks dream and wish this to be so....but it ain't going to happen.

Recent history will tell you that the baht is manipulated domestically to benefit on behalf of Thailand. Which makes sense, doesn't it?

GIven that you're confusing high with low, I suspect you're the same as Darrell in not knowing what you are talking about.

Let me ask you this, and please answer clearly so a simpleton like me can understand. HOW exactly is the baht manipulated domestically? And, if it is possible to do that, why didn't the Government or the BoT manipulate the baht when it crashed during the 97 Asia financial crisis?

People keep talking about this shady manipulation as if it's a reality, but noone backs it up with explanations. Nor do they explain why in a country so dependent on both FDI (Thailand being a manufacturing hub for numerous Japanese and Korean companies) and international tourism, what possible motive the Thai government has for keeping the Baht so strong?

I am not professing to be an expert, but cant central banks buy and sell their own currencies in order to weaken or strengthen them? Of course they are battling against the global finacial market againjst which they dont/wont have much influence. I think the amount of influence a country has over manipulating it i currency is also dependent on how big theri currency reserve is.

I would guess that in 97 thethai govt tried to intervene, but the limited amount of cash they had on had was no match against international players like good 'old Soros and his fund.

Yes they can buy and sell their own currencies in order to strengthen and weaken them but if the BOT has been trying to strengthen the baht it would be buying its own currency and therefore its foreign exchange reserves would be falling not rising - does this make sense to you??

The amount of influence a country has over manipulating its currency in an upwards direction is limited by the amount of foreign reserves to which it has access but there is no limit to the amount that a country could weaken its currency if it chose to do so (assuming that hyperinflation did not bother those in charge).

Edited February 2, 2012 by inthepink

[QED]

Dunno how a discussion about prices turned into a p1ssing contest about who knows more about global currency mechanisms.

But, if you can't beat 'em.....I get paid in THB and had a really cheap holiday in England a few months ago, using my simpleton method of 50 THB/1 GBP I found most things to be about the same price as here (excluding petrol and cigarettes), not so a few years ago.

Long may it continue....

[zzaa09]

I am not professing to be an expert, but cant central banks buy and sell their own currencies in order to weaken or strengthen them?

Yes. They can and they do - everyday. Worldwide.

Without the attached dark and sinister conspiracies that some associated.

It's not an altruistic business. Survival and cut-throat rule the day.

Cultural-centricities become quite apparent.

[bendix]

Dunno how a discussion about prices turned into a p1ssing contest about who knows more about global currency mechanisms.

But, if you can't beat 'em.....I get paid in THB and had a really cheap holiday in England a few months ago, using my simpleton method of 50 THB/1 GBP I found most things to be about the same price as here (excluding petrol and cigarettes), not so a few years ago.

Long may it continue....

No pissing contest. Some people know what they're talking about, and the others are just talking out of their arse about how the government manipulates the baht to stay strong, without explaining how or why.

Consider it educating the stupid, if you like.

[HardenedSoul]

Shall I bring all my $$$ and convert them into bhat?

No. You should buy gold. Or silver

[StreetCowboy]

Shall I bring all my $$$ and convert them into bhat?

No. You should buy gold. Or silver

Or better still, squander your money on drink and loose women. The memories will be priceless, should there be any

SC

[zzaa09]

Shall I bring all my $$$ and convert them into bhat?

No. You should buy gold. Or silver

The same ilk that manipulate currencies have their controlling rituals towards prescious metals as well.

It's all quite moot and fanciful discussing make-believe wealth, as none of it is real.

Self-sufficiency is ever-lasting.

[Ulysses G.]

Or better still, squander your money on drink and loose women. The memories will be priceless, should there be any

One of your best posts of all time.

Edited February 3, 2012 by Ulysses G.

[theblether]

Wait a minute !! wait a minute !! all you had to do in the last three to four years to gain massively in your spending power was be an Australian!! The Aussie dollar is now stronger than the Yankee dollar and it has almost doubled in strength against the GBP....so all you gurus of finance out there can stick your advice where the sun don't shine cos one of the greatest investments of the last few years was to simply live in the sunshine of Australia!!

On topic though......prices will rise inexorcibably in Thailand, if you want a glimpse of Thailand in twenty years time have a look at South Korea. They dragged themselves from abject poverty to extreme wealth in two generations. In twenty years time there will still be substantial numbers of poverty stricken people in Thailand but the new middle class will drive consumption, supply and demand onto ever higher prices.

Westerners in their 40's at the moment will need to seriously re-think their retirement plans in Thailand, Western pensions will not even begin to keep up with Thai price inflation in the next twenty years.

[GreenSnapper]

On topic though......prices will rise inexorcibably in Thailand, if you want a glimpse of Thailand in twenty years time have a look at South Korea. They dragged themselves from abject poverty to extreme wealth in two generations. In twenty years time there will still be substantial numbers of poverty stricken people in Thailand but the new middle class will drive consumption, supply and demand onto ever higher prices.

Westerners in their 40's at the moment will need to seriously re-think their retirement plans in Thailand, Western pensions will not even begin to keep up with Thai price inflation in the next twenty years.

I agree that prices will raise here considerably in the next 20 years. A 65K pension will give you slum experience.

But to compare Thailand with South Korea is a bit off.

Just look back the last 20 years. What has Thailand achieved so far? It got a meagre BTS , some high rise buildings and a new airport. A joke if you compare the fast development in Korea or China during the same time frame.

Koreans, Japanese and Chinese are the most intelligent people in Asia and have a higher IQ than Westerners. Thais are very far from that, and actually I see Thailand behind Vietnam, Laos and Cambodia in a 20 year frame - unless they make high efforts to improve the crappy education system.

[StreetCowboy]

Or better still, squander your money on drink and loose women. The memories will be priceless, should there be any

One of your best posts of all time.

You're taxing my memory now...

Anyway, its in the top 95%

SC

[StreetCowboy]

On topic though......prices will rise inexorcibably in Thailand, if you want a glimpse of Thailand in twenty years time have a look at South Korea. They dragged themselves from abject poverty to extreme wealth in two generations. In twenty years time there will still be substantial numbers of poverty stricken people in Thailand but the new middle class will drive consumption, supply and demand onto ever higher prices.

Westerners in their 40's at the moment will need to seriously re-think their retirement plans in Thailand, Western pensions will not even begin to keep up with Thai price inflation in the next twenty years.

I agree that prices will raise here considerably in the next 20 years. A 65K pension will give you slum experience.

But to compare Thailand with South Korea is a bit off.

Just look back the last 20 years. What has Thailand achieved so far? It got a meagre BTS , some high rise buildings and a new airport. A joke if you compare the fast development in Korea or China during the same time frame.

Koreans, Japanese and Chinese are the most intelligent people in Asia and have a higher IQ than Westerners. Thais are very far from that, and actually I see Thailand behind Vietnam, Laos and Cambodia in a 20 year frame - unless they make high efforts to improve the crappy education system.

I imagine that is pretty much what was said about Koreans thirty years ago.

The fact is that Thailand is at the economic stage that Korea was then; their unequivocal support from the American war had waned, and thery had to make their own way in the world, They raised their e\xpectations to the extent that some of us call Korea (and Taiwan) democratic countries, and they are reaping the benefits of their own prosperity (and the challenges of their own wealth).

No doubt, as in Taiwan, as in Korea, as Enoch Poweell foresaw in the UK, there will be blood in the streets; but how will Thailand react: How will the international investors react? How will the factory owners react?

Good luck, and God Bless Us, One and All!

SC

[Ulysses G.]

I imagine that is pretty much what was said about Koreans thirty years ago.

The fact is that Thailand is at the economic stage that Korea was then

There is a big difference from the work ethic in Korea and Japan.

[theblether]

On topic though......prices will rise inexorcibably in Thailand, if you want a glimpse of Thailand in twenty years time have a look at South Korea. They dragged themselves from abject poverty to extreme wealth in two generations. In twenty years time there will still be substantial numbers of poverty stricken people in Thailand but the new middle class will drive consumption, supply and demand onto ever higher prices.

Westerners in their 40's at the moment will need to seriously re-think their retirement plans in Thailand, Western pensions will not even begin to keep up with Thai price inflation in the next twenty years.

I agree that prices will raise here considerably in the next 20 years. A 65K pension will give you slum experience.

But to compare Thailand with South Korea is a bit off.

Just look back the last 20 years. What has Thailand achieved so far? It got a meagre BTS , some high rise buildings and a new airport. A joke if you compare the fast development in Korea or China during the same time frame.

Koreans, Japanese and Chinese are the most intelligent people in Asia and have a higher IQ than Westerners. Thais are very far from that, and actually I see Thailand behind Vietnam, Laos and Cambodia in a 20 year frame - unless they make high efforts to improve the crappy education system.

Aha but your forgetting one crucial fact......the Chinese are coming, and they are coming in droves. I believe construction has nearly started on the new Chinese Economic Area in Bangkok, and you will soon find Chinese businessmen pouring all over Thailand in unimaginable numbers. I am aware that there is already a substantial Chinese ethnic group in Thailand ( many of them HI-So ) but these new guys will create far greater competition, and far greater demands on the Thai economy.

That in tangent with the continuing inward investment from countries like Japan will create a serious boom in Thailand in the next few years, infrastructure spending will soar, new deep sea ports will open, Chiang Mai will boom as it is the first stop on the new China - BKK rail link, etc etc.

If some future government then has the wits to ease the rules on " farang " investment then price and property inflation will soar. The wealth will spread out across the country and urbanization will increase, higher education will continue to grow and there will be serious factory competition for the " poor " people to work for them, causing wage inflation.

Burma should hopefully start to even out and a consequence of this will be a reduction in the flow of economic migrants as Burma expands rapidly ( again using massive Economic Areas and Deep Sea Ports as the battering ram ). Vietnam will soar, and will virtually match the Eastern Seaboard of China in production and wealth terms, Laos will grow but not to the same extent, as it will always be constrained by being land locked, Cambodia will fight for the scraps between Vietnam and Thailand........and.......

Your average Western pensioner will be a complete and utter nonentity in spending terms.........

[GreenSnapper]

Aha but your forgetting one crucial fact......the Chinese are coming, and they are coming in droves. I believe construction has nearly started on the new Chinese Economic Area in Bangkok, and you will soon find Chinese businessmen pouring all over Thailand in unimaginable numbers. I am aware that there is already a substantial Chinese ethnic group in Thailand ( many of them HI-So ) but these new guys will create far greater competition, and far greater demands on the Thai economy.

That in tangent with the continuing inward investment from countries like Japan will create a serious boom in Thailand in the next few years, infrastructure spending will soar, new deep sea ports will open, Chiang Mai will boom as it is the first stop on the new China - BKK rail link, etc etc.

Good point!

But this sort of development is mainly dependent on foreign investments. Thailand itself is only part of the game for delivering cheap labor. The question is, if this is still interesting for Japanese or Chinese companies 20 years later?

Unless Thailand can stand on its own feet, it will fail.

At the moment, they cannot produce even a washing machine. Thai products, except for agricultural products, are not competitve at all. Everything you see here of some value is imported.

That is very different to the situation in Korea 30 years ago. Even at that time, Koreans were very aware that a high standard of education and high work ethics are the only way to proceed. Both, education and work ethic is barely existant here. And the world moves on quickly. You cannot waste another 20 years with "mai pen rai", "mai mee" and virtually no abilities of foreign languages.

[theblether]

Aha but your forgetting one crucial fact......the Chinese are coming, and they are coming in droves. I believe construction has nearly started on the new Chinese Economic Area in Bangkok, and you will soon find Chinese businessmen pouring all over Thailand in unimaginable numbers. I am aware that there is already a substantial Chinese ethnic group in Thailand ( many of them HI-So ) but these new guys will create far greater competition, and far greater demands on the Thai economy.

That in tangent with the continuing inward investment from countries like Japan will create a serious boom in Thailand in the next few years, infrastructure spending will soar, new deep sea ports will open, Chiang Mai will boom as it is the first stop on the new China - BKK rail link, etc etc.

Good point!

But this sort of development is mainly dependent on foreign investments. Thailand itself is only part of the game for delivering cheap labor. The question is, if this is still interesting for Japanese or Chinese companies 20 years later?

Unless Thailand can stand on its own feet, it will fail.

At the moment, they cannot produce even a washing machine. Thai products, except for agricultural products, are not competitve at all. Everything you see here of some value is imported.

That is very different to the situation in Korea 30 years ago. Even at that time, Koreans were very aware that a high standard of education and high work ethics are the only way to proceed. Both, education and work ethic is barely existant here. And the world moves on quickly. You cannot waste another 20 years with "mai pen rai", "mai mee" and virtually no abilities of foreign languages.

Yes I go with that, however I can also see a hunger amongst many people to improve their lives, there will always be the "mai pen rai" attitude in Thailand, not everyone has the wits or bottle to have a go.......but there are many who will try.

[spidermike007]

I guess most of you suffer from accute memory loss.

Food prices have risen an average 20-25% only in the past 4 months,and you think that there were no price rises previously.

Overstay hasn't been 500 Baht for decades,it comes from 200 Baht.

A bottled beer at a gogo bar in walking street used to be 75 baht,try to find one now below 125 Baht.

A bag of rice has at least trippled,but I assume it's more, over the past decade,this is grown incountry.

Chicken,beef and pork have more than doubled over the past decade.

Gasoline was 9 Baht when I came here 17 years ago and ciggies were 12 Baht.

A large bottle of coke in the supermarket was 17 Baht regular price even not so long ago.

Of course they try to hide the price increases by first making the items smaller,milk boxes for example were always 250 cc but now they are 230 or even 180 cc.After that they start to rise the price,but by that time it has risen several time already in a disguised way.

Of course in the Western world the prices rice out of the pan for sure,but I was surprised that when I took a bag of rice for my mom with me on my last trip,that I could buy it cheaper in the supermarket in Europe than what I paid here.

Very accurate post. I have seen the price of fruit nearly double in two years. How about soi cowboy? 150-180 baht for a drink? 700-800 baht for a bar fine? Are they out of their minds? Are they trying to drive punters away? Are they trying to put themselves out of business? You cannot get a cocktail at a beer bar in Samui for less than 150 baht! Many restaurants are upping the prices, and they are empty all day long. Let's see, business is slow, wo why don't we raise out prices? Bangkok Air (the pirate airline) is charging 3,600 to 5,000 one way from BKK to Samui. Of course, long ago I stopped looking for common sense, and reason here in the LOS. But, it does seem like prices are getting much, much higher.

[ROMANOBA]

Some items cost the same like 20 years ago, some are more expensive.

I do not care if things are more expensive, as long as they keep being MUCH MORE CHEAPER than in my own country.If something which in my country cost 10 euro and here 2 euro, I do not mind if it's 2,10 or 2,20...Look at the global picture.If Thailand were not so dam_n cheap, there would not be so many expats living here, pediod.Right?

[BigJohnnyBKK]

Truly basic staples yes absolutely, the closer you live to a local Thai lifestyle the more the cost of living has risen in Thai baht terms over the past fifteen years, accelerating in the last five.

Soon as you talk about imported goods, farang-lifestyle stuff, not so much.

But then you have to take exchange rates into account - my first few years here USD=43+ baht, now 30.

But rice, pork, fruit & veg, cleaning supplies definitely.

[takatukaland]

Some prices have gone up, some have gone down, some have stayed the same. The main problem in Thailand is that the Baht is overvalued, which makes many things cost more here than they would in Europe, and that is just plain silly.

A strong Baht makes imports cheaper. Around 20% since about 2 years ago.

Instead of lowering prices, importers and shops just cash in the gain. But you can be sure, once the Baht will weaken again, that would be reason enough to raise prices.

What do you figure the true value of the Bhat to be?

What do you figure the value of the bhat to be when the USD crashes?

Needn't be too concern for the Baht when the US dollar collapses, for by then the Chinese Yuan will have secured it's place as the [largely] principle exchange rate standard. These events will be more advantageous to Asian currencies on the world's market than not.

I thought the rate was always 1$=25 bt now its around 30,don't think the bt is overvalued

[GreenSnapper]

How about soi cowboy? 150-180 baht for a drink? 700-800 baht for a bar fine? Are they out of their minds? Are they trying to drive punters away? Are they trying to put themselves out of business? You cannot get a cocktail at a beer bar in Samui for less than 150 baht!

Who in their right mind pays a "bar fine"?

And 150B for a Heineken in Soi Cowboy, where you get to see some show and action, is not expensive. Cocktails for 150 are not expensive too.

[janverbeem]

Some items cost the same like 20 years ago, some are more expensive.

I do not care if things are more expensive, as long as they keep being MUCH MORE CHEAPER than in my own country.If something which in my country cost 10 euro and here 2 euro, I do not mind if it's 2,10 or 2,20...Look at the global picture.If Thailand were not so dam_n cheap, there would not be so many expats living here, pediod.Right?

I'm not so sure that most expaxts live here because the food is cheap.

[StreetCowboy]

Some items cost the same like 20 years ago, some are more expensive.

I do not care if things are more expensive, as long as they keep being MUCH MORE CHEAPER than in my own country.If something which in my country cost 10 euro and here 2 euro, I do not mind if it's 2,10 or 2,20...Look at the global picture.If Thailand were not so dam_n cheap, there would not be so many expats living here, pediod.Right?

I'm not so sure that most expaxts live here because the food is cheap.

There's a limit to how much you can save on food, unless you're really going to push the boat out

SC

[Ulysses G.]

Who in their right mind pays a "bar fine"?

Someone who is looking for a very attractive temporary companion without putting much time or work into it.

[KeyserSoze01]

Some prices have gone up, some have gone down, some have stayed the same. The main problem in Thailand is that the Baht is overvalued, which makes many things cost more here than they would in Europe, and that is just plain silly.

A strong Baht makes imports cheaper. Around 20% since about 2 years ago.

Instead of lowering prices, importers and shops just cash in the gain. But you can be sure, once the Baht will weaken again, that would be reason enough to raise prices.

What do you figure the true value of the Bhat to be?

What do you figure the value of the bhat to be when the USD crashes?

Needn't be too concern for the Baht when the US dollar collapses, for by then the Chinese Yuan will have secured it's place as the [largely] principle exchange rate standard. These events will be more advantageous to Asian currencies on the world's market than not.

I would not hold my breath on the Yuan becoming as the world's reserve currency. The first thing that is required is that the currency must be allowed to freely float on the currency market. Which isn't likely to happen anytime soon, if ever.

[HardenedSoul]

Who in their right mind pays a "bar fine"?

The kind of guy who either doesn't realize or doesn't care that the wench is no more or less likely to have sex with him if he waits until her shift ends and meets her outside the bar.

Oh wait . . . you did say "right" mind, didn't you?

In that case, no one in their right mind pays a bar fine