What's Up With The Thai Baht?

[StreetCowboy]

Even silver which I have bought some of lately (junk silver dollars) may not have its "industrial" value if the economy goes into trouble. People say "silver" because more is used than is mined, but that could change.

We all have to find what we are comfortable with. I'm not comfortable with Thailand's situation.

... and this is what I mean by jumping out of the frying pan into the fire. You are 'not comfortable with Thailand's situation', but then you jump into silver and get immediately cooked. Fatal mistake to believe the precious metal crowd about PM's providing a place of safety. Maybe you should have stayed in the discomfort zone.

Then you don't understand me. We are emotional beings as well as practical. I bought $9,500 worth of junk silver because I wanted to stash it, along with a bunch of silver I bought a long, long time ago, for life. For life. I don't care what the price does because it won't affect me except to give me a little feeling of security when I lift it. I put another small fraction of my net worth into something I can see and feel and heft and feel better about owning. I traded fiat money for it and long term I'm fine with that.

Naam made a very wise statement about the value of his home, and I had to agree. Mine is the same. It's what I live in and the price isn't an issue.

If the price of my silver falls to 1 baht per ounce, it won't weigh any less. But with the money printing presses running, and looking years down the road, I think the silver will match up pretty well against that fiat money. Maybe not. How would I know for certain?

Also, please, please don't come back angrily spoiling for a fight, or being insulting. This is only a silly internet discussion, and I don't have my ego invested in it.

Peace.

Personally, I think money invested in non-productive assets is money wasted, but in the case of gold, that opinion has not stood me in good stead recently...

[mccw]

Never sure

Could you elaborate about your rentals please?

Im largely in agreement with your prognosis and strategy. I'm invested in UK rentals and thinking about diversifying. The problem is US etc are all printing just as bad or worse and have similarly bloated / unaffordable welfare programs. I don't know about planning laws in US but UK is very difficult and expensive to build new, especially with all the environmental rules and EU directive I don't see any of this changing soon; so there is a real shortage, but America looks to be well over supplied? Americans seem happy to live in cheap flimsy wooden houses also. Another thing is if the dollar is worth half in a few years and people are struggling to pay for the higher costs of fuel and food then there must be a limit on rent rises. Unless your in the much more prosperous locations. Interested to hear your views on these things. Cheers

[mccw]

Personally I'm leaning more to the Thailand investment idea. Chiang Mai specificity. I think this city has a lot more growth left in it yet. The areas next to the new malls for long term rentals and city centre for holiday rents. At least if the bht goes up or down its still bht and I can use it here where I need it. Regulations and legal hoops are minimal. Plus my guess is that Thailand is embarking on a strong bht higher debt trajectory for the next decades, compared to the devaluation policy of west, I think this longer term trend can be ridden and swapped out of 10 or 20 years from now.

I also keep gold and silver as an alternative currency reserve with a view to pay down debts or change up in the event of great opportunity.

I would by a nice little Italian villa if they pulled out of the euro and let the lira drop. Such a chaotic break up of the EU would bring alsorts of opportunities and probably be accompanied be a good up tick in the PM prices. Could be enough to break the manipulators backs

[NeverSure]

Personally, I think money invested in non-productive assets is money wasted, but in the case of gold, that opinion has not stood me in good stead recently...

Well, SC, think of it this way. I have a lot of non productive assets like my pickup which depreciates. Some things I have because they make me feel good and that's their sole value. Ever buy a case of beer, hahaha?

I wanted a little bit of silver as a hedge against massive printing of fiat money. Maybe it's a bad guess, but I have to follow my hunches. I'm not talking about next month, next year or even this decade. It's for the long pull and I'll die with it unless I find a need for it.

If it makes me feel good to look at it and heft it, and it's not a real significant amount of my investments, may I have it please?

[NeverSure]

Never sure

Could you elaborate about your rentals please?

Im largely in agreement with your prognosis and strategy. I'm invested in UK rentals and thinking about diversifying. The problem is US etc are all printing just as bad or worse and have similarly bloated / unaffordable welfare programs. I don't know about planning laws in US but UK is very difficult and expensive to build new, especially with all the environmental rules and EU directive I don't see any of this changing soon; so there is a real shortage, but America looks to be well over supplied? Americans seem happy to live in cheap flimsy wooden houses also. Another thing is if the dollar is worth half in a few years and people are struggling to pay for the higher costs of fuel and food then there must be a limit on rent rises. Unless your in the much more prosperous locations. Interested to hear your views on these things. Cheers

I don't have any views, because each situation is different. Yes the US has planning laws, but it also has a massive amount of dirt, and building isn't difficult. You're right, every area is different. Some were hit worse than others, and some have recovered more than others. Some places, while not so expensive, are very clean, nice and desirable. Those are places that attract retirees.

You're right, US houses are built to last about 100 years. They do that, too, and some much longer but not like what's been standing for 100's of years in Europe.

I don't know if people will be able to pay their rent in a few years. I don't know if that would be due to a major depression, but I don't think it would be due to inflation. Inflation in the absence of a depression, usually causes rents to rise, but also it causes people to get raises to match the rate of inflation. That should be bullish for rentals.

My personal hunch is that we're going to see massive inflation for the reasons you mentioned. I don't see how it can be avoided with governments smoking the printing presses. But I don't know that.

I don't know what will happen. I don't. If everything spins out of control and there is chaos, I can't defend against that. But that is my excuse for adding a little to precious metals although I can't predict if they'll do any good. Maybe I should have put the money into good bourbon. People can't eat or drink PM's, haha.

[Naam]

My personal hunch is that we're going to see massive inflation for the
reasons you mentioned. I don't see how it can be avoided with
governments smoking the printing presses. But I don't know that.

i think it is presently wrong to focus too much on "printing=inflation" NS.

simple reason: whatever Dollars are printed generated are not dropped into the pockets of consumers who spend it and generate inflation. the usual suspect gloom&doomers propaganda that cheap money finances speculation and drives food stuff is only partly true. global commodity prices are evidence.

and now i'm waiting for the average bread-and-butter expat, living in a village near Nakhon Nowhere and complaining in Thaivisa that the FED, Bernanke and Obama (last not least the €UR crisis) have caused inflated prices for chicken, som tam, lao khao and haircuts in his vicinity.

[AnotherOneAmerican]

With all you guys thinking about putting your money into physical objects you can 'heft'.

I'm thinking drugs, guns and bullets, can't go wrong there. They will always keep their resale value (assuming you don't use them all up).

Edited April 15, 2013 by AnotherOneAmerican

[mccw]

With all you guys thinking about putting your money into physical objects you can 'heft'.

I'm thinking drugs, guns and bullets, can't go wrong there. They will always keep their resale value (assuming you don't use them all up).

Agreed

[NeverSure]

My personal hunch is that we're going to see massive inflation for the

reasons you mentioned. I don't see how it can be avoided with

governments smoking the printing presses. But I don't know that.

i think it is presently wrong to focus too much on "printing=inflation" NS.

simple reason: whatever Dollars are printed generated are not dropped into the pockets of consumers who spend it and generate inflation. the usual suspect gloom&doomers propaganda that cheap money finances speculation and drives food stuff is only partly true. global commodity prices are evidence.

and now i'm waiting for the average bread-and-butter expat, living in a village near Nakhon Nowhere and complaining in Thaivisa that the FED, Bernanke and Obama (last not least the €UR crisis) have caused inflated prices for chicken, som tam, lao khao and haircuts in his vicinity.

Yes they are "dropped into the pockets of consumers." The biggest portion of budget deficits which are being paid by creating money, are "entitlements." Yes, the money is being created to pay to people in the form of housing, food, cash, heating, unemployment, medical assistance, etc. payments. Yes, we are seeing inflation in Western countries. It is mitigated for now by a serious recession. But the pressure is building. It isn't possible to create lots more of a commodity without devaluing it. That's true of a currency.

47% of all Americans receive some kind of "entitlement" from the government.

When this catches up with governments and real inflation sets in, they will have little choice but to raise interest rates to try to cool things. When that happens, the interest due on national debts will skyrocket. Right now there is little interest, or even negative interest being paid. What happens if the interest rate goes to a more normal 5% on 16+ trillion dollars, for a government who's annual income is perhaps about 2.5 tril, and already is borrowing or creating 40% of all the money it spends?

Global commodity prices have much to do with a recession. But oil has doubled in the past 4 years, and other things we buy daily are rising. Our government doesn't include food or energy in the inflation index, but those are two of the things people can't do without, and the prices do rise.

Edited April 15, 2013 by NeverSure

[NeverSure]

With all you guys thinking about putting your money into physical objects you can 'heft'.

I'm thinking drugs, guns and bullets, can't go wrong there. They will always keep their resale value (assuming you don't use them all up).

I agree, and I have more than my share. It's a favorite of mine. Prices have doubled for ammunition in the past year due to hoarding, and they have also at least doubled on some guns. I'm sitting pretty on that part.

Now add booze and cigarettes and you'll have a well-rounded portfolio.

[Naam]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

[StreetCowboy]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

Except when measured in US dollars, in which case those prices are going up commensurate with the decline of the dollar due to its over-abundance

[Naam]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

Except when measured in US dollars, in which case those prices are going up commensurate with the decline of the dollar due to its over-abundance

but that's not called innflayshun! and what would be the result if som tam in Nakhon Nowhere is measured in cowrie shells, shrink heads or piglets?

[mccw]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

Actually it could be said that the western welfare systems of debt and deficit spending have lead to massive over and unnatural demand for all stuffs from food to energy etc etc now the rising rest of the world will be paying more than they might otherwise if those entitlements we're not there since Westside share of global consumption would be that much less. Oil and gas prices to the cost of bread in Egypt or the price of Chang in Thailand. 100% sure it is all ultimately up more than it would otherwise be if it were not for the falangs.

[yoshiwara]

Even silver which I have bought some of lately (junk silver dollars) may not have its "industrial" value if the economy goes into trouble. People say "silver" because more is used than is mined, but that could change.

We all have to find what we are comfortable with. I'm not comfortable with Thailand's situation.

... and this is what I mean by jumping out of the frying pan into the fire. You are 'not comfortable with Thailand's situation', but then you jump into silver and get immediately cooked. Fatal mistake to believe the precious metal crowd about PM's providing a place of safety. Maybe you should have stayed in the discomfort zone.

Then you don't understand me. We are emotional beings as well as practical. I bought $9,500 worth of junk silver because I wanted to stash it, along with a bunch of silver I bought a long, long time ago, for life. For life. I don't care what the price does because it won't affect me except to give me a little feeling of security when I lift it. I put another small fraction of my net worth into something I can see and feel and heft and feel better about owning. I traded fiat money for it and long term I'm fine with that.

Naam made a very wise statement about the value of his home, and I had to agree. Mine is the same. It's what I live in and the price isn't an issue.

If the price of my silver falls to 1 baht per ounce, it won't weigh any less. But with the money printing presses running, and looking years down the road, I think the silver will match up pretty well against that fiat money. Maybe not. How would I know for certain?

Also, please, please don't come back angrily spoiling for a fight, or being insulting. This is only a silly internet discussion, and I don't have my ego invested in it.

Peace.

Our emotions can be very unreliable guides. We have all learned that the hard way in Thailand. Buying $9,500 in silver is not really so important, but matching up a supposedly 'safe' asset against a fiat currency and finding out today that that silver has crashed 10% in one day is pause for reflection.

[yoshiwara]

Personally I'm leaning more to the Thailand investment idea. Chiang Mai specificity. I think this city has a lot more growth left in it yet. The areas next to the new malls for long term rentals and city centre for holiday rents. At least if the bht goes up or down its still bht and I can use it here where I need it. Regulations and legal hoops are minimal. Plus my guess is that Thailand is embarking on a strong bht higher debt trajectory for the next decades, compared to the devaluation policy of west, I think this longer term trend can be ridden and swapped out of 10 or 20 years from now.

I also keep gold and silver as an alternative currency reserve with a view to pay down debts or change up in the event of great opportunity.

I would by a nice little Italian villa if they pulled out of the euro and let the lira drop. Such a chaotic break up of the EU would bring alsorts of opportunities and probably be accompanied be a good up tick in the PM prices. Could be enough to break the manipulators backs

You would be swapping the known legal status of your UK property for the more uncertain legal status of any Thailand property held outside of condos. Do you feel comfortable with that?

[AnotherOneAmerican]

Personally I'm leaning more to the Thailand investment idea. Chiang Mai specificity. I think this city has a lot more growth left in it yet. The areas next to the new malls for long term rentals and city centre for holiday rents. At least if the bht goes up or down its still bht and I can use it here where I need it. Regulations and legal hoops are minimal. Plus my guess is that Thailand is embarking on a strong bht higher debt trajectory for the next decades, compared to the devaluation policy of west, I think this longer term trend can be ridden and swapped out of 10 or 20 years from now.

I also keep gold and silver as an alternative currency reserve with a view to pay down debts or change up in the event of great opportunity.

I would by a nice little Italian villa if they pulled out of the euro and let the lira drop. Such a chaotic break up of the EU would bring alsorts of opportunities and probably be accompanied be a good up tick in the PM prices. Could be enough to break the manipulators backs

You would be swapping the known legal status of your UK property for the more uncertain legal status of any Thailand property held outside of condos. Do you feel comfortable with that?

Property prices are becoming quite reasonable in the USA, Spain and Cyprus. Why just look at Italy?

[NeverSure]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

You have some good points, but as SC pointed out, yes those things do cost quite a bit more in LOS USD. Things are also beginning to cost more in baht too, especially imported items. Prices are rising all over the world. Guys from the UK, Australia, Canada, and LOS have all posted in various places that prices are going up.

Also, look what the influx of excessive foreign exchange into LOS is doing to real estate values in LOS. That money is coming from somewhere. If it reverses, due to a lack of confidence in LOS, LOS will tank.

Inflation is always about more money chasing the known amount of goods.

[NeverSure]

Personally I'm leaning more to the Thailand investment idea. Chiang Mai specificity. I think this city has a lot more growth left in it yet. The areas next to the new malls for long term rentals and city centre for holiday rents. At least if the bht goes up or down its still bht and I can use it here where I need it. Regulations and legal hoops are minimal. Plus my guess is that Thailand is embarking on a strong bht higher debt trajectory for the next decades, compared to the devaluation policy of west, I think this longer term trend can be ridden and swapped out of 10 or 20 years from now.

I also keep gold and silver as an alternative currency reserve with a view to pay down debts or change up in the event of great opportunity.

I would by a nice little Italian villa if they pulled out of the euro and let the lira drop. Such a chaotic break up of the EU would bring alsorts of opportunities and probably be accompanied be a good up tick in the PM prices. Could be enough to break the manipulators backs

You would be swapping the known legal status of your UK property for the more uncertain legal status of any Thailand property held outside of condos. Do you feel comfortable with that?

+1

[NeverSure]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

Actually it could be said that the western welfare systems of debt and deficit spending have lead to massive over and unnatural demand for all stuffs from food to energy etc etc now the rising rest of the world will be paying more than they might otherwise if those entitlements we're not there since Westside share of global consumption would be that much less. Oil and gas prices to the cost of bread in Egypt or the price of Chang in Thailand. 100% sure it is all ultimately up more than it would otherwise be if it were not for the falangs.

+1 I think you already said it, but most retired falangs are drawing some kind of pension, funded with deficit spending.

[Naam]

47% of all Americans receive some kind of "entitlement" from the government.

Honourable Sir Never Sure, Esq.,

i very humble beg of you have mercy! the U.S. of A. is without any doubt the "Greatest Nation on Earth™" but the entitlements the poor people receive in a suburb of Boise, Idaho or Redneckville, Arkansas do not affect the price of som tam in Nakhon Nowhere, the cost of a bottle of Chang in Narathiwat province in a 7/11 or the bar fines in Pattaya's Walking Street.

would you agree that my assumption is correct? yes or yes?

Actually it could be said that the western welfare systems of debt and deficit spending have lead to massive over and unnatural demand for all stuffs from food to energy etc etc now the rising rest of the world will be paying more than they might otherwise if those entitlements we're not there since Westside share of global consumption would be that much less. Oil and gas prices to the cost of bread in Egypt or the price of Chang in Thailand. 100% sure it is all ultimately up more than it would otherwise be if it were not for the falangs.

+1 I think you already said it, but most retired falangs are drawing some kind of pension, funded with deficit spending.

when you are right, then you are right. i refrain to contradict

[Naam]

With all you guys thinking about putting your money into physical objects you can 'heft'.

I'm thinking drugs, guns and bullets, can't go wrong there. They will always keep their resale value (assuming you don't use them all up).

we don't enjoy the freedom your constitution entitles you on guns and bullets

[AnotherOneAmerican]

I fail to see how US food prices affect Thai food prices.

It's not as if there is competition for food resources between the two countries.

Thailand produced so much excess food that it has warehouses full of rotting rice that it can't sell to anyone at any price.

(I believe beer Chang is made from rice, but would be happy to stand corrected)

Or is my thinking faulty?

Edited April 15, 2013 by AnotherOneAmerican

[poanoi]

Beer chang is made of rotten rice, so that rice will still be of use

[yoshiwara]

Personally I'm leaning more to the Thailand investment idea. Chiang Mai specificity. I think this city has a lot more growth left in it yet. The areas next to the new malls for long term rentals and city centre for holiday rents. At least if the bht goes up or down its still bht and I can use it here where I need it. Regulations and legal hoops are minimal. Plus my guess is that Thailand is embarking on a strong bht higher debt trajectory for the next decades, compared to the devaluation policy of west, I think this longer term trend can be ridden and swapped out of 10 or 20 years from now.

I also keep gold and silver as an alternative currency reserve with a view to pay down debts or change up in the event of great opportunity.

I would by a nice little Italian villa if they pulled out of the euro and let the lira drop. Such a chaotic break up of the EU would bring alsorts of opportunities and probably be accompanied be a good up tick in the PM prices. Could be enough to break the manipulators backs

You would be swapping the known legal status of your UK property for the more uncertain legal status of any Thailand property held outside of condos. Do you feel comfortable with that?

Property prices are becoming quite reasonable in the USA, Spain and Cyprus. Why just look at Italy?

Of all that lot the only one I personally would be interested in would be a studio in Manhattan. Still a big commitment though. The attraction of Thailand is its low entry point.

[mccw]

Personally I'm leaning more to the Thailand investment idea. Chiang Mai specificity. I think this city has a lot more growth left in it yet. The areas next to the new malls for long term rentals and city centre for holiday rents. At least if the bht goes up or down its still bht and I can use it here where I need it. Regulations and legal hoops are minimal. Plus my guess is that Thailand is embarking on a strong bht higher debt trajectory for the next decades, compared to the devaluation policy of west, I think this longer term trend can be ridden and swapped out of 10 or 20 years from now.

I also keep gold and silver as an alternative currency reserve with a view to pay down debts or change up in the event of great opportunity.

I would by a nice little Italian villa if they pulled out of the euro and let the lira drop. Such a chaotic break up of the EU would bring alsorts of opportunities and probably be accompanied be a good up tick in the PM prices. Could be enough to break the manipulators backs

You would be swapping the known legal status of your UK property for the more uncertain legal status of any Thailand property held outside of condos. Do you feel comfortable with that?

+1

I keep a UK rental income base which is mortgaged. The income is good. If the currency devalued significantly then I do loose on the income but the loan capital is less to pay back. So long as I have something to pay it back in. I choose PMs and Bht for reasons stated. I think its a needed balancing/ hedging act. Buying USA or Spain would be no hedge at all given the devaluation picture. PMs alone although good they are volatile and produce no income. So I am happy to have bht income/ assets and the legal situation is not a problem due to my having an excellent wife holding the land titles; I am quite comfortable with that. Far more comfortable than I would be holding only £s watching there value drop and drop and drop. I'd like a little more diversification but can't decide where. Everywhere has downsides right now.

[NeverSure]

I fail to see how US food prices affect Thai food prices.

It's not as if there is competition for food resources between the two countries.

Thailand produced so much excess food that it has warehouses full of rotting rice that it can't sell to anyone at any price.

(I believe beer Chang is made from rice, but would be happy to stand corrected)

Or is my thinking faulty?

It's not just the US, it's all Western countries which have inflation. Obviously, anything imported costs more.

It's not the US food prices. It's the creation of money and deficit spending that allows all of the farangs and even other Asian people to visit or move to Thailand that drives Thai prices up. Again, most of the farangs in Thailand are drawing some kind of government pension or other "entitlement." They spend that money in Thailand. There is therefore more competition for the Thai products.

Farangs typically have more money than some Thais, and buy more goods and services, per person. All of this money is coming from the West where much of it is generated by deficits. If all of the expats stopped getting their Western government money, many would have to go home. So would the tourists.

Much of the inflation in LOS in real estate and other commodities is caused by foreign investment and spending by foreigners. Thais are competing for goods and services with foreigners who bring their fiat money. More money is chasing a fixed amount of goods in LOS and that always causes inflation.

[AnotherOneAmerican]

I fail to see how US food prices affect Thai food prices.

It's not as if there is competition for food resources between the two countries.

Thailand produced so much excess food that it has warehouses full of rotting rice that it can't sell to anyone at any price.

(I believe beer Chang is made from rice, but would be happy to stand corrected)

Or is my thinking faulty?

It's not just the US, it's all Western countries which have inflation. Obviously, anything imported costs more.

It's not the US food prices. It's the creation of money and deficit spending that allows all of the farangs and even other Asian people to visit or move to Thailand that drives Thai prices up. Again, most of the farangs in Thailand are drawing some kind of government pension or other "entitlement." They spend that money in Thailand. There is therefore more competition for the Thai products.

Farangs typically have more money than some Thais, and buy more goods and services, per person. All of this money is coming from the West where much of it is generated by deficits. If all of the expats stopped getting their Western government money, many would have to go home. So would the tourists.

Much of the inflation in LOS in real estate and other commodities is caused by foreign investment and spending by foreigners. Thais are competing for goods and services with foreigners who bring their fiat money. More money is chasing a fixed amount of goods in LOS and that always causes inflation.

Just to correct your first line "Obviously anything imported will cost less" (with the exchange rate so Baht strong)

I don't believe there are a significant amount of western foreigners in Thailand that could possibly affect anything.

Foreigners income and where it comes from is irrelevant to the Thai economy.

Foreigners don't compete with Thais for anything, they can't buy land, they can only buy condos sold to them (and built for them) at a "special price".

Inflation in LOS is mainly dependent on the Thai government (corrupt economic) policies and profiteering by those in power.

To believe that you, as a foreigner, affect anything in Thailand is just hubris.

("you" as all foreigners, not you in particular)

Edited April 15, 2013 by AnotherOneAmerican

[mccw]

I fail to see how US food prices affect Thai food prices.

It's not as if there is competition for food resources between the two countries.

Thailand produced so much excess food that it has warehouses full of rotting rice that it can't sell to anyone at any price.

(I believe beer Chang is made from rice, but would be happy to stand corrected)

Or is my thinking faulty?

Its not that the food price of one country effects that of another through direct competition.

What it is is the level of global "wealth" or consumption as a total which effects all of the in put factors to produce everything. For example the fuel cost, for the tractors to pole the Thai field and distribute the foods,is higher than it might be because of demand from USA EU etc. If you google "potash scarcity" you will see how this kind of earth is getting eaten up at an alarming rate and will lead to cost increases and even shortages of basic food stuffs when it really starts to run out (10-20years or so left), chemical fertilisers and plastics for packaging etc are all oil related cost increases. Even the western direct demand for Thai jasmine rice means much harvest is for overseas consumption and the cheap rice sold here is now imported from nieghbouring countries.i could go on, there are do many ways the system is linked examples could continue for pages

[mccw]

I'll just add that the rice example is now moot due to the government price intervention.

But you get the idea.

Prawns and sea food go west. As does veg.

But its more about the input costs of production.

Edited April 15, 2013 by mccw