Do You Think Thailand Could Go The Same Way As Cyprus

[MAJIC]

British expats have just had 10% taken from us, no need to deduct it straight from the bank

How?

[stoneyboy]

British expats have just had 10% taken from us, no need to deduct it straight from the bank

How?

One would assume the current exchange rate.

[MAJIC]

What with all the backhanders and double dealing that make any business dealings more expensive than necessary...see governments infastructure proposals....anything is possible. I can understand why Thais are like this as they don't have much and are surrounded by wealthy foreigners on holiday

and they want a piece of the pie. Consequently the state is paying more for improvements and where will the money come from? Either borrowing or printing

which will ultimately have to be paid back..I can see the country going into a big hole similar to that which was left in the UK by Labour.

Thailand is a beautiful country and I am happy to be able to live here. I don't think we will see anything drastic happening in the forseeable future.

As far as the future goes, watch this space.

Granted,but first they must look to the wealthy HiSos that are abundant amongst them, who do not care enough for their own people to ease their plight,so why expect it from Foreign Tourists? a peice of the pie should be home made first,before expecting foreign aid.

[MAJIC]

British expats have just had 10% taken from us, no need to deduct it straight from the bank

How?

One would assume the current exchange rate.

Thank's, gotcha now,market forces it seems,not quite the same as being forced,as the proposed Cyprus 10% deduction from Savings/Bank accounts,which will be tantamount to Political Theft (if it happens?)

[MAJIC]

No need to place levy on bank deposits, just devalue the currency.

Unfortunately Cyprus does not have it own currency, it is in the Euro zone. This is the main problem with countries such as Greece, Spain, Portugal, Ireland and also Italy in addition to Cyprus. They cannot use interest rates to help their ecomomy, they cannot devalue, they are stuck with economic decisions made outside their own borders. These countries were not exactly successful before they joined the EEC and later the Euro as they saw a situation for easy money, subsidies and financial support. All is not well that does not end well!

Your last sentence is absolutely correct,the kind of money poured into these dead loss Countries has produced a self inflicted burden,for the more able countries,hence a Social Security System for those countries who get used to the handouts,who don't have any intentions of ever becoming self sufficient,and paying back into the system,they joined the EEC to take out,not to contribute when the time comes,and now here comes Bulgaria and Rumania,with hands held out! How long can this Liberal, Bleeding Heart gravy train farce go on? the answer is: as long as it takes for this house of cards to go Bust,and come crashing down,which it surely will do!

[NeverSure]

Tanks will roll before anyone touches 10% of anyones savings in this country

Including foreigners Bank Accounts?

If Thailand either:

1. Lowered interest rates to stem the inflows of foreign currency, therefore devaluing the baht to make exports more attractive to buyers (the way the US, China, Japan etc. is) or

2. Levied some "tax" on bank accounts,

foreign capital would flow out of Thailand, crashing the baht.

Right now, in order for capital to flow into Thailand, baht has to be purchased with foreign currencies to make the Thai investments or even to open bank deposits to earn interest. We all do that. We convert our home country currencies to baht before we can spend, deposit, or invest in Thailand. That is all creating a demand for baht, driving the price up.

If for any of a lot of reasons I could think of, that flow reverses and people want their money out of Thailand, they will exchange their baht for another currency, there will be a flood of baht, and the value will drop.

This is a house of cards.

Edited March 22, 2013 by NeverSure

[delh]

Europe and the UK will go down the road of Cyprus long before Thailand would

If you mean taxing people's savings, I doubt the UK would ever take that option. They would rather print money. The UK can print money, but Cyprus can't. That is a huge difference. Same with Thailand - they can also print money.

Having said that, I still have more faith in financial institutions in UK than Thailand. If I had £1 million in cash, I'd sleep better knowing it was in UK rather than Thailand. I think Thailand is fairly stable, but you never know when things will kick off. Thailand has a small possibility of falling apart. I doubt the UK would.

If you had 1 million quid you would be a very silly person to keep it all in one financial institution in one country anyway...eggs in one basket etc etc whether Thailand or the UK, but would morons in the British goverment try and pull a stunt like cyprus...of course they would if they thought they could get away with it

Lots of comments by Cypriot and German gov'ts one day, lots of backtracking the next after lots of withdrawals - before they were stopped. Just maybe a test case to see what they could get away with?

[jocko]

Tanks will roll before anyone touches 10% of anyones savings in this country

Including foreigners Bank Accounts?

If Thailand either:

1. Lowered interest rates to stem the inflows of foreign currency, therefore devaluing the baht to make exports more attractive to buyers (the way the US, China, Japan etc. is) or

2. Levied some "tax" on bank accounts,

foreign capital would flow out of Thailand, crashing the baht.

Right now, in order for capital to flow into Thailand, baht has to be purchased with foreign currencies to make the Thai investments or even to open bank deposits to earn interest. We all do that. We convert our home country currencies to baht before we can spend, deposit, or invest in Thailand. That is all creating a demand for baht, driving the price up.

If for any of a lot of reasons I could think of, that flow reverses and people want their money out of Thailand, they will exchange their baht for another currency, there will be a flood of baht, and the value will drop.

This is a house of cards.

I am just a simple fellow besides what you talk about currency speculation which I agree with you surely Asia needs a healthy world market and as we all know that is Europe and the USA without them where is Asia going to sell all the mundane cheap goods they want to export .

Thailand is doing well now but it's hardly anything they are doing well at as far as I can see.

But as I say I'm simple

[Naam]

I am just a simple fellow...

perhaps you and me should form a club?

[yoshiwara]

Europe and the UK will go down the road of Cyprus long before Thailand would

If you mean taxing people's savings, I doubt the UK would ever take that option. They would rather print money. The UK can print money, but Cyprus can't. That is a huge difference. Same with Thailand - they can also print money.

Having said that, I still have more faith in financial institutions in UK than Thailand. If I had £1 million in cash, I'd sleep better knowing it was in UK rather than Thailand. I think Thailand is fairly stable, but you never know when things will kick off. Thailand has a small possibility of falling apart. I doubt the UK would.

If you had 1 million quid you would be a very silly person to keep it all in one financial institution in one country anyway...eggs in one basket etc etc whether Thailand or the UK, but would morons in the British goverment try and pull a stunt like cyprus...of course they would if they thought they could get away with it

Lots of comments by Cypriot and German gov'ts one day, lots of backtracking the next after lots of withdrawals - before they were stopped. Just maybe a test case to see what they could get away with?

The suggestion of giving a haircut on deposits under 100k euros came from the Cypriot side.

[Naam]

If you mean taxing people's savings, I doubt the UK would ever take that option. They would rather print money. The UK can print money, but Cyprus can't. That is a huge difference. Same with Thailand - they can also print money.

Having said that, I still have more faith in financial institutions in UK than Thailand. If I had £1 million in cash, I'd sleep better knowing it was in UK rather than Thailand. I think Thailand is fairly stable, but you never know when things will kick off. Thailand has a small possibility of falling apart. I doubt the UK would.

If you had 1 million quid you would be a very silly person to keep it all in one financial institution in one country anyway...eggs in one basket etc etc whether Thailand or the UK, but would morons in the British goverment try and pull a stunt like cyprus...of course they would if they thought they could get away with it

Lots of comments by Cypriot and German gov'ts one day, lots of backtracking the next after lots of withdrawals - before they were stopped. Just maybe a test case to see what they could get away with?

The suggestion of giving a haircut on deposits under 100k euros came from the Cypriot side.

zen vhy does ze anglo rainbow press put ze blame on ze bad Tchermans? kould it be zat zey follow a sekret atchenda of vhich vee don't know? but vhatever... vonce ze Tchermans are involved you know somezing fishy is going on. vone kann not troost zem!

[thenervoussurgeon]

many a true word spoken in jest Naam

[jocko]

If you mean taxing people's savings, I doubt the UK would ever take that option. They would rather print money. The UK can print money, but Cyprus can't. That is a huge difference. Same with Thailand - they can also print money.

Having said that, I still have more faith in financial institutions in UK than Thailand. If I had £1 million in cash, I'd sleep better knowing it was in UK rather than Thailand. I think Thailand is fairly stable, but you never know when things will kick off. Thailand has a small possibility of falling apart. I doubt the UK would.

If you had 1 million quid you would be a very silly person to keep it all in one financial institution in one country anyway...eggs in one basket etc etc whether Thailand or the UK, but would morons in the British goverment try and pull a stunt like cyprus...of course they would if they thought they could get away with it

Lots of comments by Cypriot and German gov'ts one day, lots of backtracking the next after lots of withdrawals - before they were stopped. Just maybe a test case to see what they could get away with?

The suggestion of giving a haircut on deposits under 100k euros came from the Cypriot side.

zen vhy does ze anglo rainbow press put ze blame on ze bad Tchermans? kould it be zat zey follow a sekret atchenda of vhich vee don't know? but vhatever... vonce ze Tchermans are involved you know somezing fishy is going on. vone kann not troost zem!

Allas klar.

I used to go to a German barber

Herr Cut.

[chiang mai]

If things get tough for the government/banks, I can easily see the Thai government electing to give foriegn depositors/investors a hairdut of some percentage, the precedent has already been set by Cyprus and endorsed by the EU.