Curious on what standard is the Baht backed on?

[Thai at Heart]

I hear all this news of BOT saying the Baht is strong but see all these corrupt failed government schemes losing billions of baht what backs the baht ? Is it rice gold silver gems? There is no real industry other than rice commodity. Tourism surely can't be it because of current political state. As far as gold California produces more than Thailand has in country. So what's is it based on? Lies?

Go to bangkok. Turn east

When u have passed the beaches, then keep going and drive through the massive car inssudtry and the industrial estates and the oil refineries

Please do some reading before asking dumb questions.

[farang000999]

Here comes the Ron Paul crowd with their economic manifesto written in finger paint....

"it's backed by thin air!"

Pejorative? "...backed by thin air;" Don't know who you've quoted above.

Money in US not "printed out of thin air"; that's fantasy. It's promissory debt of the American people=coercion. Ron Paul would have been quite perilous for the US and surely it's allies but he was right about one thing, the Fed should have at least one audit in 100years. US Fed is quite relevant as it influences and strong arms central banks throughout the world. They are the same sheet of music conductor. I think this topic interesting, even though I was mistaken about the only reason for the post- what pegs Thai Baht. Thanks for telling me.

now tell us what really happened at Sandy Hook...

[arjunadawn]

Here comes the Ron Paul crowd with their economic manifesto written in finger paint....

"it's backed by thin air!"

Pejorative? "...backed by thin air;" Don't know who you've quoted above.

Money in US not "printed out of thin air"; that's fantasy. It's promissory debt of the American people=coercion. Ron Paul would have been quite perilous for the US and surely it's allies but he was right about one thing, the Fed should have at least one audit in 100years. US Fed is quite relevant as it influences and strong arms central banks throughout the world. They are the same sheet of music conductor. I think this topic interesting, even though I was mistaken about the only reason for the post- what pegs Thai Baht. Thanks for telling me.

now tell us what really happened at Sandy Hook...

I don't get it, "Sandy Hook?" That's 2 posts now that state... well, nothing at all- just curmudgeon-like inferences.

I enjoy the forums because I learn a lot. I like to share too, but I'm not always spot on. People correct me if I miss the point or err. But I am never mean nor define myself as mean spirited, or indeed, irrelevant. Were provoking others my joy on a site where a lot can be learned and shared with fun, I would be quite a sad man for sure. Since the last two posts you've both quoted me and said absolutely nothing, it's time to unsubscribe. I would add I like people like you very much. You are for me a tool, or a fulcrum, you serve to define best that which I am thankful I am not. Can't you see, it's like a community service you provide. With so many posts I think it's fair to say many TV folks have been blessed with your penetrating utility. You put forth provocation or pejorative inference but achieve for others contrast. Would a review of your helpful posts or witty anecdotes confirm your wonderful character on TV? Perhaps on another thread you may find we see eye to eye, or at least meet politely.

[chiang mai]

I'm paid in £'s which my bank converts to THB for me and then pays this into my Thai bank. Glad to see I am now getting roughly 15 - 20% more baht for my money compared with a couple of years ago. Long may it last! A weak baht due to political turmoil suits this capitalist.

Hope you don't own any property or vehicles of any reasonable value in Thailand - in GBP terms they just got devalued by 15-20%.

please enlighten us why that devaluation

If the pound is strong against the baht then exchanging the opposite way negates the gains. In other words, more baht to buy a pound and less pounds to buy baht.

Again please, slighlty differently this time perhaps?

[NeverSure]

But wait. I thought the Thai government told me that the baht was backed by 20 million tons of premium Thai rice in warehouses.

I thought it was on the rice standard.

[alanrchase]

Here comes the Ron Paul crowd with their economic manifesto written in finger paint....

"it's backed by thin air!"

Pejorative? "...backed by thin air;" Don't know who you've quoted above.

Money in US not "printed out of thin air"; that's fantasy. It's promissory debt of the American people=coercion. Ron Paul would have been quite perilous for the US and surely it's allies but he was right about one thing, the Fed should have at least one audit in 100years. US Fed is quite relevant as it influences and strong arms central banks throughout the world. They are the same sheet of music conductor. I think this topic interesting, even though I was mistaken about the only reason for the post- what pegs Thai Baht. Thanks for telling me.

now tell us what really happened at Sandy Hook...

Unfortunately " thin air" has as as much value as the average currancy in the world.

Look at all the forex trading sites available (if you don't get regularly spammed by them). Currency trading is (possibly) a big money maker.

Not sure where you come from but US of A and most of Europe have been printing money to satisfy certain requirements since the 2008 crisis.

In the "good old days" government had gold to back the currancy up. Not true generally these days.

To argue that any government in the world does not print money is futile.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

[chiang mai]

Here comes the Ron Paul crowd with their economic manifesto written in finger paint....

"it's backed by thin air!"

Pejorative? "...backed by thin air;" Don't know who you've quoted above.

Money in US not "printed out of thin air"; that's fantasy. It's promissory debt of the American people=coercion. Ron Paul would have been quite perilous for the US and surely it's allies but he was right about one thing, the Fed should have at least one audit in 100years. US Fed is quite relevant as it influences and strong arms central banks throughout the world. They are the same sheet of music conductor. I think this topic interesting, even though I was mistaken about the only reason for the post- what pegs Thai Baht. Thanks for telling me.

now tell us what really happened at Sandy Hook...

Unfortunately " thin air" has as as much value as the average currancy in the world.

Look at all the forex trading sites available (if you don't get regularly spammed by them). Currency trading is (possibly) a big money maker.

Not sure where you come from but US of A and most of Europe have been printing money to satisfy certain requirements since the 2008 crisis.

In the "good old days" government had gold to back the currancy up. Not true generally these days.

To argue that any government in the world does not print money is futile.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Please provide at least one acceptable link showing where and when Europe has printed money, ever, post 1640AD that is!

[KittenKong]

If the pound is strong against the baht then exchanging the opposite way negates the gains. In other words, more baht to buy a pound and less pounds to buy baht.

Again please, slighlty differently this time perhaps?

The language used may be a bit confusing but the logic behind the calculation is inescapable, as demonstrated in my previous post.

Anyone who bought a condo or car in Thailand in late April 2013 using funds transferred from the UK at that time is now looking at a depreciation in GBP terms of well over 20%. This is important for anyone with no family here and who expects to repatriate their wealth either before or after death.

[Thaiberius]

Hope I don't get my arse handed to me but think Thai baht based on USD. It's the international currency standard, petrol too. BRICS counties are trying to wrestle this standard away and beginning yo trade in other currencies. Note: USD is pure fiat. It has no associated commodity to back it. My fear is US unending pumping of USD will tragically hurt Thailand as well as the more money in circulation the less value it has. The Creature From Jekyll Island is a great book for grasping the total absurdity of the modern banking cartel.

It's a free market open to speculators, trends, economic forecasts etc. Not tied to the mighty USD. The days of the gold standard are gone.

[Thaiberius]

Unfortunately " thin air" has as as much value as the average currancy in the world.

Look at all the forex trading sites available (if you don't get regularly spammed by them). Currency trading is (possibly) a big money maker.

Not sure where you come from but US of A and most of Europe have been printing money to satisfy certain requirements since the 2008 crisis.

In the "good old days" government had gold to back the currancy up. Not true generally these days.

To argue that any government in the world does not print money is futile.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Please provide at least one acceptable link showing where and when Europe has printed money, ever, post 1640AD that is!

Quantitative easing?

[Cheeby Luva]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

[Cheeby Luva]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

just another casualty in the faggot wake.

[Thaiberius]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

Have you been drinking? Leaving virtually the strongest currency in Europe to adopt the Euro? Yeah, makes great sense.

Once you have independence then the English will breathe a huge sigh of relief and be considerably wealthier.

[Cheeby Luva]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

Have you been drinking? Leaving virtually the strongest currency in Europe to adopt the Euro? Yeah, makes great sense.

Once you have independence then the English will breathe a huge sigh of relief and be considerably wealthier.

you win. joke of the century

[chiang mai]

Quantitative easing?

Unfortunately " thin air" has as as much value as the average currancy in the world.

Look at all the forex trading sites available (if you don't get regularly spammed by them). Currency trading is (possibly) a big money maker.

Not sure where you come from but US of A and most of Europe have been printing money to satisfy certain requirements since the 2008 crisis.

In the "good old days" government had gold to back the currancy up. Not true generally these days.

To argue that any government in the world does not print money is futile.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Please provide at least one acceptable link showing where and when Europe has printed money, ever, post 1640AD that is!

QE is Europe! Your supportive link is not readily seen, neither is your argument obvious, but please do take another shot.

[Thaiberius]

Quantitative easing?

Unfortunately " thin air" has as as much value as the average currancy in the world.

Look at all the forex trading sites available (if you don't get regularly spammed by them). Currency trading is (possibly) a big money maker.

Not sure where you come from but US of A and most of Europe have been printing money to satisfy certain requirements since the 2008 crisis.

In the "good old days" government had gold to back the currancy up. Not true generally these days.

To argue that any government in the world does not print money is futile.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Please provide at least one acceptable link showing where and when Europe has printed money, ever, post 1640AD that is!

QE is Europe! Your supportive link is not readily seen, neither is your argument obvious, but please do take another shot.

Not sure of your logic? You asked in your previous post where Europe has printed money. The UK has printed billions over the past 4 years at least in QE. I don't have to provide a link on what this is much as I don't have to post a link on how to open a door. It's common knowledge. There's a facility on the internet called Google, give it a shot.

[Carmine6]

Hope I don't get my arse handed to me but think Thai baht based on USD. It's the international currency standard, petrol too. BRICS counties are trying to wrestle this standard away and beginning yo trade in other currencies. Note: USD is pure fiat. It has no associated commodity to back it. My fear is US unending pumping of USD will tragically hurt Thailand as well as the more money in circulation the less value it has. The Creature From Jekyll Island is a great book for grasping the total absurdity of the modern banking cartel.

Don't wish to hand your ar*e to you but if it were based on the Almighty US Dollar the exchange rate with the Almighty US Dollar would not change. look to the Mid East for currancies linked to the Dollar due to oil being priced in said currancy.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Haha. So that's what my arse looks like! Love it. Yea, I lived in DXB before and dinar tied to dollar. I recall difference now. I stand corrected. For any who read my post, please accept my apologies. Dumbassness on stage.

Though not tied to, and not based on the dollar, the BOT does care about how fast the exchange rate changes.

http://www.thaivisa.com/forum/topic/298576-us-dollar-plunges-bank-of-thailand-intervenes-to-stabilise-the-baht/

http://www.pattayamail.com/business/strong-baht-deters-thai-industrial-exports-25283

http://www.thaivisa.com/forum/topic/226070-perplexed/

This makes sense if you look at how much of Thailand's trade is denominated in US dollars. See the classifications "By Currency":

http://www.bot.or.th/English/Statistics/EconomicAndFinancial/ExternalSector/Pages/StatInternationalTrade.aspx

Payments for imports and receipts for exports are both about 80% in US Dollars right now. However, there is a trend away from the US dollar since the late 1990's.

[Cheeby Luva]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

Have you been drinking? Leaving virtually the strongest currency in Europe to adopt the Euro? Yeah, makes great sense.

Once you have independence then the English will breathe a huge sigh of relief and be considerably wealthier.

wake up and smell the roses (they stink!)

Edited May 10, 2014 by Cheeby Luva

[Thaiberius]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

Have you been drinking? Leaving virtually the strongest currency in Europe to adopt the Euro? Yeah, makes great sense.

Once you have independence then the English will breathe a huge sigh of relief and be considerably wealthier.

wake up and smell the roses (they stink!)

Cryptic.

[cooked]

Nobody has mentioned the fact that since returns from investments in Japan diminished drastically, much of the money in the area has been looking around for other opportunities. Indonesia and Thailand have benefited from this. However many are looking for short term returns, which is one reason why condos are changing hand so often. Looks like a boom/bust situation to me.

[Naam]

just who in their right mind would invest in pounds! after scotland succeeds and switches to euro, pound is gonna lose just how much of its value exactly? good riddance.

Have you been drinking? Leaving virtually the strongest currency in Europe to adopt the Euro? Yeah, makes great sense.

Once you have independence then the English will breathe a huge sigh of relief and be considerably wealthier.

ahemm... cough... cough... talking about drinking?

the "strongest" currency in Europe the £ lost ~40% vs the €UR since its inception 14 years ago

[Thaiberius]

Ok then the euro is a strong currency. It must be me but most of northern Europe wants to exit the euro and most of southern Europe is bankrupt. Silly me I thought all economies using the euro were booming. Tell that to the Greeks, Italians, French etc etc.

[chiang mai]

If you want to say that the UK has undertaken QE, say so. If you say that Europe has undertaken, QE when you mean to say the UK, is very misleading to most people.

[Thaiberius]

Europe isn't a country, it's made up of a number of different nations all with independent financial policies. This is the main reason the euro will never work. The UK is geographically separate from Europe but still part of the european continent and within the EC (sadly). You have to be more specific about your geography.

In a nutshell, the UK is part of the European Community and has undertaken QE. Is that clear enough?

[Naam]

Ok then the euro is a strong currency. It must be me but most of northern Europe wants to exit the euro and most of southern Europe is bankrupt. Silly me I thought all economies using the euro were booming. Tell that to the Greeks, Italians, French etc etc.

before shooting more bullets in your foot you are kindly advised to do a little homework on "bankrupt" countries which are able to refinance debt at record low interests, e.g. Italy 2.96%, Portugal 3.95%, Spain 2.92%

compare that with Thailand 3.55%, Malaysia 3.99%, Viet Nam 8.72%, Philippines 4.1%, Indonesia 8.05%

and yes, i agree that both your postings, the one i referred to earlier and the present one are indeed quite silly

[Naam]

Europe isn't a country, it's made up of a number of different nations all with independent financial policies. This is the main reason the euro will never work. The UK is geographically separate from Europe but still part of the european continent and within the EC (sadly). You have to be more specific about your geography.

In a nutshell, the UK is part of the European Community and has undertaken QE. Is that clear enough?

countries which opted for the €UR cannot carry out individual and independent financial policies.

[Thaiberius]

Europe isn't a country, it's made up of a number of different nations all with independent financial policies. This is the main reason the euro will never work. The UK is geographically separate from Europe but still part of the european continent and within the EC (sadly). You have to be more specific about your geography.

In a nutshell, the UK is part of the European Community and has undertaken QE. Is that clear enough?

countries which opted for the €UR cannot carry out individual and independent financial policies.

Members of the euro decide their own borrowing, interest rates, inflation targets etc etc. This is the reason the euro will never work. You are embarrassing yourself, I'd advise you to give up now.

[Naam]

Europe isn't a country, it's made up of a number of different nations all with independent financial policies. This is the main reason the euro will never work. The UK is geographically separate from Europe but still part of the european continent and within the EC (sadly). You have to be more specific about your geography.

In a nutshell, the UK is part of the European Community and has undertaken QE. Is that clear enough?

countries which opted for the €UR cannot carry out individual and independent financial policies.

Members of the euro decide their own borrowing, interest rates, inflation targets etc etc. This is the reason the euro will never work. You are embarrassing yourself, I'd advise you to give up now.

i am giving up. it's a waste of time discussing the colours and the brushstroke of an old master's painting with a blind man.

i might have more success discussing quantum mechanics with my gardener.

[Thaiberius]

Europe isn't a country, it's made up of a number of different nations all with independent financial policies. This is the main reason the euro will never work. The UK is geographically separate from Europe but still part of the european continent and within the EC (sadly). You have to be more specific about your geography.

In a nutshell, the UK is part of the European Community and has undertaken QE. Is that clear enough?

countries which opted for the €UR cannot carry out individual and independent financial policies.

Members of the euro decide their own borrowing, interest rates, inflation targets etc etc. This is the reason the euro will never work. You are embarrassing yourself, I'd advise you to give up now.

i am giving up. it's a waste of time discussing the colours and the brushstroke of an old master's painting with a blind man.

i might have more success discussing quantum mechanics with my gardener.

You've given up on QE because of the misguided notion that it hadn't been used in Europe?

If you honestly think those borrowing interest rates are reasonable in comparison with Asian nation borrowing interest rates then you are comparing apples with oranges.

Try telling the Greeks they are getting a good deal.

[homeownership]

Fact:

The Thai Baht is a fractional reserve currency which means it is backed by the ability of the taxpaying public to pay down national debt.

For instance lets say the Thai Government raises 50 Billion US Dollars in tax revenue each year, that is all the income arrived from paying taxes on airfares to hotel bills.

They can access international funds called Bonds, which means they can borrow against their future tax revenues.

The amount of interest they pay is based on how reliable the tax revenues will be for the next 10 financial years (10 year bond).

This allows an amount that can be printed in that currency in value to the amount of the bonds in US Dollars.

The more they print, the more devaluation their is of the currency, unless they issue more bonds to be sold. Which then inflates the currency.

So lets say Thailand can raise 500 Billion US Dollars over the next 10 financial years combined. It can issue bonds to borrow money.

If they borrowed on a ration of 10:1 then they would have 5 Trillion US Dollars to spend. The valuation of the currency is based on how many Thai Bahts are issued against this borrowed money and how much money is paid back.

The more money they print the worse the exchange rate is for them, the more money they take out of circulation, in effect paying back the bonds then the better the exchange rate is for them.

The standard is the countries ability to raise taxes on which loans/bonds can be issued.