Thai Baht in biggest weekly fall in four months after US Fed move

[sirineou]

There is a direct relationship to GDP and revenue

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=205

[thailiketoo]

The US national debt is over 17 TRILLION usd. That's more than 57 thousand usd for every man, woman, child living in the US. For every taxpayer it is over 1 MILLION usd.

They better start drilling for and selling that oil, because far as I understand that national debt is going up fast. Paying interest can't be easy I suppose.

I am not trying to excuse the national debt of the US or of many other countries which is just as bad, but the only meaningful measure of national debt is as a percentage of GDP .

Debt per capita UK $160,158, Germany $57,775, Netherlands, $226,503, Switzerland $154.063, Norway $131,220, US $52,170, Thailand $1,292

http://en.wikipedia.org/wiki/List_of_countries_by_external_debt

debt per capita is as irrelevant as debt per gdp. especially when it's a country like Thailand who's population consists of nearly 35% inhabitants below the age of 18 and above 65 plus another 25-30%, a total of 60-65% who don't pay any income tax.

The most comprehensive measure of overall economic performance is gross domestic product or GDP, which measures the “output” or total market value of goods and services produced in the domestic economy during a particular time period. GDP is probably the best measure of the overall condition of the economy because it includes the output of all sectors of the economy.

http://www.frbsf.org/education/publications/doctor-econ/1999/november/economic-indicators-policy

I guess when one is trying to skew statistics because of some nationalistic loyalty one could say why use per capita figures because people are different than the make up of people in Germany.

And that's a good point if we were comparing the world to Germany. However economists use per capita figures to be able to compare countries in an objective manner.

If GDP per capita was not important why the <deleted>** does every country use that as a comparison for economic decisions when it is irrelevant?

Make it simpler. OK. You come to my bank, mom and pop and 4 children. You ask for a loan and tell me that you have outstanding debts of $52,000 (US). Another family comes in mom and pop and 4 children and they have outstanding debts of $1,000 (Thai). A third family comes in and they have debts of $225,000 (Dutch). As a banker I'm going to subtract your income from your debt to determine your credit worthiness. So I have to know how much you are paid and how much you owe. How much you are paid is your GDP and how much you owe is your debt.

US GDP per capita $52,000, Dutch per capita $41,000, Thailand, $9,500. So based on debt minus income who is the best bet to loan money to?

Edited December 25, 2013 by thailiketoo

[mudscrubber]

That is why Benito Sutheppi is so popular with some posters here!!

He is increasing the value of their pensions!

The rice scheme has a way higher influence than all of Sutheps actions. Any idea where that scheme came from?

Any idea where that scheme came from?

Yes, commonly used in developed countries. The US provides subsidies to most agriculture crops since food in necessary for all of the citizens of that country. You must do everything in your power to see that the farmers keep farming, because without them...well obviously you know the answer to this. It takes a special person to be a farmer, and it is usually passed down from generation to generation. You don't see business people deciding to become farmers. Don't force farmers to become bankers, because you will not have anyone to grow your food supply.

I must say that the Thai government made the wrong decision to pay subsidies and then thinking they could raise the price of rice on the world market. Sheer lunacy. They should have just risen taxes to support the subsidies and be done with it. Thinking they could move the market price of rice around the world was their downfall here, and made it seem like the entire program (scheme) was faulty. Not so, just their implementation. They were correct in supporting the farmer. (And no, I have never been a farmer. You could never get me to work that hard for so little.)

Do not forget that the Thai government is also supporting rubber growers, most of whom are in the south. The world over supply will get worse as vast new plantations in neighbouring countries start producing latex. This scheme has tha potential to dwarf the problems with the rice pledging scheme.

Actually, the Thai government does not subsidize the rubber farmers. That was why the rubber farmers were protesting late this year. They wanted the Thai govt to pay them above market rates for their product but the govt. refused.

[mudscrubber]

The US national debt is over 17 TRILLION usd. That's more than 57 thousand usd for every man, woman, child living in the US. For every taxpayer it is over 1 MILLION usd.

They better start drilling for and selling that oil, because far as I understand that national debt is going up fast. Paying interest can't be easy I suppose.

I am not trying to excuse the national debt of the US or of many other countries which is just as bad, but the only meaningful measure of national debt is as a percentage of GDP .

-the only meaningful measure of national debt is not GDP.

-debt cannot be serviced with GDP.

-revenue is required to service debt.

-U.S. revenue is far below the required debt service.

that's why new debt is continously issued to pay interest as well as redemption of existing debt.

This is untrue. The U.S. can easily pay the interest on its current debt.

[Naam]

The US national debt is over 17 TRILLION usd. That's more than 57 thousand usd for every man, woman, child living in the US. For every taxpayer it is over 1 MILLION usd.

They better start drilling for and selling that oil, because far as I understand that national debt is going up fast. Paying interest can't be easy I suppose.

I am not trying to excuse the national debt of the US or of many other countries which is just as bad, but the only meaningful measure of national debt is as a percentage of GDP .

-the only meaningful measure of national debt is not GDP.

-debt cannot be serviced with GDP.

-revenue is required to service debt.

-U.S. revenue is far below the required debt service.

that's why new debt is continously issued to pay interest as well as redemption of existing debt.

This is untrue. The U.S. can easily pay the interest on its current debt.

i did not doubt that. but interest and redemption can only be paid by issuing new debt instead of using revenue. and it is a well known fact that issuing new debt the U.S. can do indeed easily

[Naam]

If GDP per capita was not important why the <deleted>**...

neither GDP per se nor GDP per capita renders a correct picture.

here's one of a zillion examples why:

-country X produces a cruise missile and a smart bomb each valued 1 million Dollars. manufacturing cost of 2 million Dollars is added to country X's GDP.

-one month later country X launches that cruise missile and drops that smart bomb on country Y.

-another month later X produces 3 cruise missile and 3 smart bomb each valued 1 million Dollars. manufacturing cost of 6 million Dollars is added to country X's GDP.

-a short time later the 3 cruise missiles and the 3 smart bombs are dropped on country Z.

result: 8 million Dollars were added the country X's GDP but value left is 0 Dollars.

conclusion: that why the "eff" GDP is a useless figure except for window dressing.

the same applies to any figure "per capita". if you want me to post some examples please ask.

[thailiketoo]

Since apparently there are new posting rules which allow my posts to be edited and quotes not used in response so no one has any idea who said what or how much of a quoted reply is from the poster. I'll stop responding.

Instead I'll suggest that the increase of financial involvement with the rest of the world by the US and Thailand makes obvious that substantial assets are held by both US and Thai nationals in other currencies. Exchange rate movements effect the NIIP. When the dollar depreciates the NIIP improves. Take a look at the US NIIP between 99 and 01 as an example. 30% of the change in the US NIIP was due to exchange rate changes. The US residents dollar was worth more but foreign exchange less so the NIIP got worse.

What does this have to do with the Baht? Well, as the baht goes down in value the NIIP goes up. An increase in the value of the dollar and the NIIP gets worse.

If this allows you to use the NIIP as an investment tool good for you.

[sirineou]

If GDP per capita was not important why the <deleted>**...

neither GDP per se nor GDP per capita renders a correct picture.

here's one of a zillion examples why:

-country X produces a cruise missile and a smart bomb each valued 1 million Dollars. manufacturing cost of 2 million Dollars is added to country X's GDP.

-one month later country X launches that cruise missile and drops that smart bomb on country Y.

-another month later X produces 3 cruise missile and 3 smart bomb each valued 1 million Dollars. manufacturing cost of 6 million Dollars is added to country X's GDP.

-a short time later the 3 cruise missiles and the 3 smart bombs are dropped on country Z.

result: 8 million Dollars were added the country X's GDP but value left is 0 Dollars.

conclusion: that why the "eff" GDP is a useless figure except for window dressing.

the same applies to any figure "per capita". if you want me to post some examples please ask.

i Don't understand the analogy,

Products were produced and products were consumed,

I would think that regardless of whether these products were bombs dropped on X country, or sold to X country , or cars sold to consumers. both categories represent products that were produced in a factory, utilizing all the necessary means of production and the government collected all the taxes associated with these means of production.

I would think that bombs dropped, would in fact have a bigger impact,( pun intended ) since such product is destroyed during it's use and would need to be replaced.

In fact during the years of the golf war where many bombs were dropped on not so X country ( though there are those who would argue that Iraq is by now an Ex-country ). the taxes collected as a percentage of GDP remained with in the statistical average.

Edited December 25, 2013 by sirineou

[Naam]

I would think that bombs dropped, would in fact have a bigger impact,( pun intended ) since such product is destroyed during it's use and would need to be replaced.

i admire your flawless logic...

[sirineou]

I would think that bombs dropped, would in fact have a bigger impact,( pun intended ) since such product is destroyed during it's use and would need to be replaced.

i admire your flawless logic...

QISmaS DatIvjaj 'ej DIS chu' DatIvjaj

[thailiketoo]

Is there a new posting rule that allows Nam to post snippits of another posters posts? Can we all do that?

30) Do not modify someone else's post in your quoted reply, either with font or color changes, added emoticons, or altered wording.

I realize he can post inflammatory, irrelevant or off-topic messages with the primary intent of provoking other users into an emotional response or to generally disrupt normal on-topic discussion such as, "i admire your flawless logic." But I didn't know the snippit thing has changed.

Edited December 25, 2013 by thailiketoo

[Naam]

I would think that bombs dropped, would in fact have a bigger impact,( pun intended ) since such product is destroyed during it's use and would need to be replaced.

i admire your flawless logic...

QISmaS DatIvjaj 'ej DIS chu' DatIvjaj

same to you. hope you got a lot of presents

[Naam]

Is there a new posting rule that allows Nam to post snippits of another posters posts? Can we all do that?

30) Do not modify someone else's post in your quoted reply, either with font or color changes, added emoticons, or altered wording.

I realize he can post inflammatory, irrelevant or off-topic messages with the primary intent of provoking other users into an emotional response or to generally disrupt normal on-topic discussion such as, "i admire your flawless logic." But I didn't know the snippit thing has changed.

usually people present multiple points in their postings. it is against forum rule 30 to alter these postings. cutting a part out which is relevant to an answer is the only "legal" way as long as the "snippet" is not altered. it's also the only way that the answering comment is not misleading, i.e. referring to an irrelevant part of the posting.

note:

i couldn't care less what you realise or don't. and if you think it is inflammatory if and when rubbish is called rubbish... so be it!

[thailiketoo]

Is there a new posting rule that allows Nam to post snippits of another posters posts? Can we all do that?

30) Do not modify someone else's post in your quoted reply, either with font or color changes, added emoticons, or altered wording.

I realize he can post inflammatory, irrelevant or off-topic messages with the primary intent of provoking other users into an emotional response or to generally disrupt normal on-topic discussion such as, "i admire your flawless logic." But I didn't know the snippit thing has changed.

note:

i is called rubbish... so be it!

I agree.