Is Our Money Safe in a Thai BanK?

[chingching]

The entire concept of money has always been "metal" based. Or based on something durable and relatively scarce, the scarcity implying an amount that would not fluctuate wildly. After WWII, the countries got together at Breton Woods and made the U.S. Dollar the reserve currency and all other currencies would derive their value from the dollar. In 1946 this wasn't a bad idea. The U.S.A. was by far the most powerful, biggest army, biggest navy, biggest airforce, and the atomic bomb, and it's economy going full blast.

By 1971 Nixon changed all that (probably he had no choice) by de-linking the U.S. Dollar from gold. Since 1971, the only thing holding it together - as far as international banks go, is the trust in the u.s.economy, that it will continue to be strong and resilient.

As countries continue to fail (Greece, Ireland, Iceland, Spain...) they will get backing from richer countries simply because to let them fail would probably be the domino that would bring down the entire world economy.

As to those who would buy gold and store gold in case of a complete melt down of paper money, I think you'll be fine for a few weeks. But then as you pay the noodle lady with a few shavings of gold. Then pay for your dinner with a few shavings of gold, don't you think people will start to take notice and talk among themselves. If all around you are 1000's of families with starving children, how long do you think you will be able to keep all your gold safe?

I'm not a doomsayer, but every economy the world over is based on increasing jobs from year to year. How do you do that with shrinking resources (oil, clean water,) every year.?

[midas]

Sorry I'm late chiang mai

I wouldn't dream of doing that because I know how much you disbelieve Zero Hedge

.

How about if I posted some links to history books as to how this is going to end - would you believe those?

Or don't tell me you one of those delusional people who say “ ah but it will be different this time “

I shall forgive you this once only Midas, expecting better things next term.

History is of course usually fairly accurate, based on who how and why a particular event is being recanted, sadly, most of us were not present at the time ALL the ACTUAL events took place hence it's difficult to form an independent view on matters!

But hey ho, the past is always a good indicator for the future, that doesn't mean of course that the future must or will replicate the events of the past, the path forward might just be a different one and on the basis of probability, will be.

Cue historic examples of blah blah - cut to marketing material for tin foil hat sales, play!

But you were here in 2007 and 2008?

This is definitely going to repeat itself because nothing has changed only they have just blown an even bigger bubble this time around

Please advise hat size in accordance with the following:

http://www.ubs.iastate.edu/hat_sizing_chart.html

Shall also require preference as to foil, tin, steel or kevlar, please advise.

Please note payment is required before shipping.

even the cat knows all is not well

[FiftyTwo]

I'm not a doomsayer, but every economy the world over is based on increasing jobs from year to year. How do you do that with shrinking resources (oil, clean water,) every year.?

Resources are increasing every year.

There may come a point when some resources are shrinking, but we haven't reached that point yet.

World Oil Production

http://www.indexmundi.com/energy.aspx?product=oil&graph=production

Edited February 4, 2014 by FiftyTwo

[Naam]

He is?

Can you supply the link about that?

You got my attention!

I think the following needs to get everybody's attention - especially anyone under the illusion that their savings are safe up to

50 million baht under Thailand's deposit insurance scheme.

"Deposit in Thailand is fully guaranteed until 10 August 2011. From 11 August 2011 until 10 August 2012, the coverage drops to 50 million baht per depositor per bank. Thereafter, coverage is limited to THB one million per depositor per bank". - WICKIPEDIA.

The bold italics are mine. But even without them, the meaning is pretty clear. If any Thai bank goes bust, you will get back just about enough to qualify for your next Retirement Visa.

If, that is, there is anything left after all the other creditors have been paid. Oh, and it could take a year or more for the money to be disbursed.

Of course, one could always try suing Kuhn Suthep for your lost millions. But I gather he is already up to his scrawny little neck in debt, to the tune of more than 300 million baht.

And you thought you had problems!!!

wikipedia = information of yesterday

Coverage of insured deposits

The Coverage of insured deposits according to The Royal Decree on an extension of deposit coverage, is as follows:

Period

Coverage

11 Aug 2012 – 10 Aug 2015

Baht 50 million

11 Aug 2015 – 10 Aug 2016

Baht 25 million

11 Aug 2016 – Onwards

Baht 1 million

Deposits exceeding the coverage amount could be claimed from the liquidation process.

http://www.dpa.or.th/ewt_news.php?nid=320&filename=index___EN

[JAS21]

Have a look here http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/InvestmentsAndDeposits/FixedDeposits/Pages/DepositCampaign2014.aspx

[JAS21]

Have a look here http://www.bangkokbank.com/BangkokBank/PersonalBanking/BuildYourWealth/InvestmentsAndDeposits/FixedDeposits/Pages/DepositCampaign2014.aspx

Right hand of page ... Takes you back to what Naam showed

Edited February 4, 2014 by JAS21

[Beetlejuice]

Stop getting your knickers in a twist, girls.

On one of the Thai TV channel news last week it was announced at a board meeting by the heads of all the major Thai banks that they will not lend towards the controversial govt rice scheme, especially the Thai State Bank for the time being and I very much doubt that the commercial banks will risk leading to the government during this present crisis. Also to consider that many of major banks actually support the anti Government protesters.

Link and another source:
http://www.reuters.com/article/2014/02/04/thailand-ktb-loans-idUSL3N0L90KW20140204

I will try to find some more sources and update if I find them.

He is another link:

http://oryza.com/news/rice-news/thailand-government-seeks-state-council-approval-4-billion-loan-pay-rice-farmers

I read that if the Government is unable to gain any positive results from the Thai banks, they will try the foreign banks.

My advise is; do your research Online and delve into this properly.

Edited February 4, 2014 by Beetlejuice

[uptheos]

I have a retirement Visa so I have to put some money somewhere in Thailand since HSBC is "holding" my money, in Thailand its Krungsri, any opinion of this bank?

It's one of the better banks, they bought HSBC Thailand retail division and now in turn they have been bought (72%) by Bank of Tokyo/Mitsubishi which has assets of USD 2.5 TRILLION (yes, trillion USD). So I don't think they are going anywhere and the idea that Suthep or anyone else is going to steal a few million baht from the Krungsri accounts, well, it's laughable.

http://www.krungsri.com/en/about-us-listing.aspx?cid=44

[SheungWan]

Form two orderly queues, preppers, doomers and conspiracy theorists on the left and thinking people on the right, no pushing and shoving please - my, isn't that left line long!

Thinking people ARE preppers and doomers and a LOT more of the conspiracies have a kernel of truth to them than you would expect!

Only ignorant fools think that everything will be fine in the long run and that their great grandchildren will be free to walk into a 7-11 a pick from 20 varieties of chocolate bars!

I'm more of a Swiss chocolate man myself.

[SheungWan]

The entire concept of money has always been "metal" based. Or based on something durable and relatively scarce, the scarcity implying an amount that would not fluctuate wildly. After WWII, the countries got together at Breton Woods and made the U.S. Dollar the reserve currency and all other currencies would derive their value from the dollar. In 1946 this wasn't a bad idea. The U.S.A. was by far the most powerful, biggest army, biggest navy, biggest airforce, and the atomic bomb, and it's economy going full blast.

By 1971 Nixon changed all that (probably he had no choice) by de-linking the U.S. Dollar from gold. Since 1971, the only thing holding it together - as far as international banks go, is the trust in the u.s.economy, that it will continue to be strong and resilient.

As countries continue to fail (Greece, Ireland, Iceland, Spain...) they will get backing from richer countries simply because to let them fail would probably be the domino that would bring down the entire world economy.

As to those who would buy gold and store gold in case of a complete melt down of paper money, I think you'll be fine for a few weeks. But then as you pay the noodle lady with a few shavings of gold. Then pay for your dinner with a few shavings of gold, don't you think people will start to take notice and talk among themselves. If all around you are 1000's of families with starving children, how long do you think you will be able to keep all your gold safe?

I'm not a doomsayer, but every economy the world over is based on increasing jobs from year to year. How do you do that with shrinking resources (oil, clean water,) every year.?

Conch shells.

[schietkop]

After the debacle with failing banks and the resulting bail outs in both Europe and the US I seriously doubt if your money is 100% safe anywhere.

Unfortunately if the system does start to collapse all areas of investment, precious metals, real estate etc will suffer too. Without a stable banking system and money supply everything grinds to a halt.

Love the pic

[SheungWan]

As america reduces its monthly free money to the world policy called QE from 85 billion to less and less every month the banks they have been helping will started to collapse example of HSBC http://www.zerohedge.com/news/2014-01-24/bank-run-fears-continue-hsbc-restricts-large-cash-withdrawals now if hsbc goes every bank in asia goes.

Its the end of the world 'if' and 'eventually' squad performing their hysteria quick step routine and aren't those golden sequins lovely!

[Tchooptip]

I have a retirement Visa so I have to put some money somewhere in Thailand since HSBC is "holding" my money, in Thailand its Krungsri, any opinion of this bank?

It's one of the better banks, they bought HSBC Thailand retail division and now in turn they have been bought (72%) by Bank of Tokyo/Mitsubishi which has assets of USD 2.5 TRILLION (yes, trillion USD). So I don't think they are going anywhere and the idea that Suthep or anyone else is going to steal a few million baht from the Krungsri accounts, well, it's laughable.

http://www.krungsri.com/en/about-us-listing.aspx?cid=44

Some answers are agreeable sometimes LOL

I knew they bought HSBC Thailand, but I'll tell you why I choose them, maybe totally irrational ?

For a few month I changed regularly the € I have brought and noticed they had always the best change rate...I thought maybe they are not too much of a thief if they can do that! My wife advices me to go to Bangkok Bank (bigger) but I always follow my intuitions.

[bangon04]

Lets just say that no politician is going to close SCB: http://www.scb.co.th/en/about-scb/investor-relations/company-information/shareholder-structure

Very relevant point indeed.

Of the others, KTB looks like it has maybe been too "flexible" with the Shin clan.

Kasikorn is the Farang friendly bank, so that would count against it if a target is needed.

but is it even remotely likely that Suthep's ranting will cause any bank to worry about its future??

more chance of a bankruptcy courtesy of government mismanagement (aka plundering).

[parallaxtech]

Hope this doesn't signal a stampede:

http://www.thaivisa.com/forum/topic/702233-thai-bankers-association-tells-depositors-not-to-rush-to-withdraw-money-rice-pledging/

[slipperylobster]

I cannot recommend it.

Much better to have and Insured Bank for the amount you put in.

I see no advantage of keeping money in Thailand, as I have no rights/priviledges/vote/capability of land ownership/ etc.

As I see it, they have not earned the right to have my money in their banks.

[harrry]

None of us have to worry.....didn't the Thai Government guarantee bank deposits.

[buddy]

Ordinarily I would say its nonsense to even think its at risk.

Then the word Cyprus pops in to my mind and I can't be 100% sure.

I'm stil 99.999% sure though!

Just look at the highly paid unelected EU Commissionaires eyes rolling…he doesn't give a flying <deleted> about him and his ilk stealing money from bank accounts in Cyprus.

2 days before the official announcement 2 Billion Euros was withdrawn from Cypriot banks, so the EU bosses informed their rich mates what they were going to do before hand.

If they stole my hard earned money i would still be hunting this EU cretin now.

If the European Union can steal from peoples bank accounts don't be so sure it can't happen in Thailand.

[chiang mai]

None of us have to worry.....didn't the Thai Government guarantee bank deposits.

Why let a small fact like that interfere with a feeding frenzy of paranoia, what are you trying to do, spoil their fun.

[harrry]

None of us have to worry.....didn't the Thai Government guarantee bank deposits.

Why let a small fact like that interfere with a feeding frenzy of paranoia, what are you trying to do, spoil their fun.

They guaranteed the farmers too so "what are you trying to do, spoil their fun.?"

[slipperylobster]

Ordinarily I would say its nonsense to even think its at risk.

Then the word Cyprus pops in to my mind and I can't be 100% sure.

I'm stil 99.999% sure though!

Just look at the highly paid unelected EU Commissionaires eyes rolling…he doesn't give a flying <deleted> about him and his ilk stealing money from bank accounts in Cyprus.

2 days before the official announcement 2 Billion Euros was withdrawn from Cypriot banks, so the EU bosses informed their rich mates what they were going to do before hand.

If they stole my hard earned money i would still be hunting this EU cretin now.

If the European Union can steal from peoples bank accounts don't be so sure it can't happen in Thailand.

what a nightmare you guys got...holy moley !!! I am going to run back to America and kiss Obama.

[midas]

Just look at the highly paid unelected EU Commissionaires eyes rolling…he doesn't give a flying <deleted> about him and his ilk stealing money from bank accounts in Cyprus.

2 days before the official announcement 2 Billion Euros was withdrawn from Cypriot banks, so the EU bosses informed their rich mates what they were going to do before hand.

If they stole my hard earned money i would still be hunting this EU cretin now.

If the European Union can steal from peoples bank accounts don't be so sure it can't happen in Thailand.

what a nightmare you guys got...holy moley !!! I am going to run back to America and kiss Obama.

but honestly …… MYRA ……..

“ and its gone “

[marcusd]

I would be careful. Thai banks are B rated in the world monetary arena. Safe ? Yes at present. BUT REMEMBER Foreign banks were supported by their Governments whereas the GOVERNMENT here wants the Banks to support THEM. WRONG WAY ROUND. And Thailand is finding it very difficult to BORROW money from overseas Regardless of the rubbish you hear abut PASSING BILLS TO BORROW. I can pass any bill I like but will a bank led to me because I say I PASSED A BILL? I don't think so.

IF you see the banks here lending to the Government I would CAUTIOUSLY with draw your money and deposit back home. RETIREMENT can be backed by a letter from your embassy stating you have a pension overseas. A STAT DEC usually does the job but more information can be found on this forum.

REMEMBER the major ratings agencies are placing Thailand on WATCH meaning they are sure to DOWNGRADE the credit worthiness. That means it is HARDER for Thailand and its banks to borrow money.

If they lend money to the government for this scheme which has been deemed by all people in business and money as FLAWED, I would start to look at options to place your funds with a FOREIGN OWNED BANK

[FiftyTwo]

http://www.thaivisa.com/forum/topic/702233-thai-bankers-association-tells-depositors-not-to-rush-to-withdraw-money-rice-pledging/page-4

The Banking Association says your money is safe!

Lots of people seem to be making withdrawals.

[Showbags]

http://www.thaivisa.com/forum/topic/702233-thai-bankers-association-tells-depositors-not-to-rush-to-withdraw-money-rice-pledging/page-4

The Banking Association says your money is safe!

Lots of people seem to be making withdrawals.

Would they say it is not ?

[jsflynn603]

Form two orderly queues, preppers, doomers and conspiracy theorists on the left and thinking people on the right, no pushing and shoving please - my, isn't that left line long!

"Ah, how the seeds of cockiness blossom when soiled in ignorance." STEVE ALTEN, The Loch

Open you eyes bro. But you have to be a thinker and one who is aware and can see.... Oh, I forgot, you're in the right line.

Think that you haven't already been robbed? Try this: You were robbed if you were in Thailand in 2009. Here, let me prove it to you--it's easy.

Find a one baht coin dated 2008 or earlier. Then find another dated 2010 or later. Hold each up to a magnet--the one on your fridge will work just fine.

The 2008 coin will stick. The 2010 coin will fall.

"On February 2, 2009, the Treasury Department announced changes to several circulating coins. The composition of the one-baht coin will change from cupronickel to nickel-clad iron, reducing the mass from 3.4 grams to 3.0 grams. The obverse image has also been updated to a more recent portrait of the king."

Consider this: The 2008 1 baht coin's value if melted is exactly $0.0297. There are 32.75 baht to the US$ today, so 32.75 x $0.0297 = $0.97. Therefore one US$ turned into pre 2009 1 baht coins has a true metal value at today's nickel and copper market value of $0.97.

But 33 1 baht coins issued after 2009 is worth exactly: $0.0077, that's at $210/ton for steel. Let's round that $0.0077 to $0.01. Therefore the old coins have a true melt value of 97 times the true melt value of the new coins.

Inversely, just recently, the Thai 1 baht coin just got devalued by 99%.

Think about that. Think about the fact that the entire world has systematically debased its currency to valueless (though the US nickel (5 cent piece) is still valuable--but Canada went the same route--their nickel, recently 80% Copper and 20% Nickel is now mere nickel plated steel.

Since 1964 America has devalued its currency over 95%.

C'mon--you're a self-admitted "thinking person." Think about it. So Mr Thinker--tell us please-----What's next?

Edited February 5, 2014 by jsflynn603

[chiang mai]

Sounds like you'd be good in the scrap metal business!

What's going to happen next you ask?

What's going to happen is the political wrangling in Thailand is going to continue for a while until at some point a solution or compromise is agreed, in the meantime exports and the economy will likely take a hit but in the fullness of time these things will recover.

Meanwhile the banks in Thailand will continue to make a profit although it wont be at the record 30% level shown for the past year I would guess. The likes of Krungsri will continue to do well, did I mention they're owned by Bank of Tokyo/Mitsubishi which has assets of USD 2.5 trillion! The likes of CIMB (Malaysian) and UOB (Singapore) will continue their highly profitably expansions in Thailand and they'll be watching closely and making further inquisitions, as and when they become available and are permitted to do so by law - think of vultures sitting on high branches.

The other Thai banks will continue to do business because if they don't they will be acquired by the likes of CIMB, UOB and BAY,. Meanwhile the Deposit Protection scheme remains in place to keep nervous depositors happy and calm frazzled nerves although some worriers can't be soothed sufficiently, for the rest of us however it'll just be another day at the office.

Those are the things that are going to happen.

Edited February 5, 2014 by chiang mai

[FiftyTwo]

I think nothing is safe in Thailand.

Including us.

This isn't likely to end peacefully.

Let's hope it doesn't go the civil war route.

[Naam]

Sounds like you'd be good in the scrap metal business!

What's going to happen next you ask?

What's going to happen is the political wrangling in Thailand is going to continue for a while until at some point a solution or compromise is agreed, in the meantime exports and the economy will likely take a hit but in the fullness of time these things will recover.

Meanwhile the banks in Thailand will continue to make a profit although it wont be at the record 30% level shown for the past year I would guess. The likes of Krungsri will continue to do well, did I mention they're owned by Bank of Tokyo/Mitsubishi which has assets of USD 2.5 trillion! The likes of CIMB (Malaysian) and UOB (Singapore) will continue their highly profitably expansions in Thailand and they'll be watching closely and making further inquisitions, as and when they become available and are permitted to do so by law - think of vultures sitting on high branches.

The other Thai banks will continue to do business because if they don't they will be acquired by the likes of CIMB, UOB and BAY,. Meanwhile the Deposit Protection scheme remains in place to keep nervous depositors happy and calm frazzled nerves although some worriers can't be soothed sufficiently, for the rest of us however it'll just be another day at the office.

Those are the things that are going to happen.

why spoiling with irrelevant facts an utmost interesting story a scrap metal dealer presents? finally i know why i was cheated in 2009

[SheungWan]

Form two orderly queues, preppers, doomers and conspiracy theorists on the left and thinking people on the right, no pushing and shoving please - my, isn't that left line long!

"Ah, how the seeds of cockiness blossom when soiled in ignorance." STEVE ALTEN, The Loch

Open you eyes bro. But you have to be a thinker and one who is aware and can see.... Oh, I forgot, you're in the right line.

Think that you haven't already been robbed? Try this: You were robbed if you were in Thailand in 2009. Here, let me prove it to you--it's easy.

Find a one baht coin dated 2008 or earlier. Then find another dated 2010 or later. Hold each up to a magnet--the one on your fridge will work just fine.

The 2008 coin will stick. The 2010 coin will fall.

"On February 2, 2009, the Treasury Department announced changes to several circulating coins. The composition of the one-baht coin will change from cupronickel to nickel-clad iron, reducing the mass from 3.4 grams to 3.0 grams. The obverse image has also been updated to a more recent portrait of the king."

Consider this: The 2008 1 baht coin's value if melted is exactly $0.0297. There are 32.75 baht to the US$ today, so 32.75 x $0.0297 = $0.97. Therefore one US$ turned into pre 2009 1 baht coins has a true metal value at today's nickel and copper market value of $0.97.

But 33 1 baht coins issued after 2009 is worth exactly: $0.0077, that's at $210/ton for steel. Let's round that $0.0077 to $0.01. Therefore the old coins have a true melt value of 97 times the true melt value of the new coins.

Inversely, just recently, the Thai 1 baht coin just got devalued by 99%.

Think about that. Think about the fact that the entire world has systematically debased its currency to valueless (though the US nickel (5 cent piece) is still valuable--but Canada went the same route--their nickel, recently 80% Copper and 20% Nickel is now mere nickel plated steel.

Since 1964 America has devalued its currency over 95%.

C'mon--you're a self-admitted "thinking person." Think about it. So Mr Thinker--tell us please-----What's next?

Buy a new fridge.