Popular Post homeownership Posted May 12, 2014 Popular Post Share Posted May 12, 2014 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. Your lack of knowledge is astounding ! Scotland cannot switch to the Euro. Because only countries in the European Union can use the Euro as their currency. If Scotland becomes and independent nation and leaves the United Kingdom, then it is also leaving the EU as Scotland the new nation state will not automatically become a member of the European Community, it will have to Apply to Join in its own right. Scotland cannot continue to use the Pound and the Pound is the currency of the United Kingdom which it is no longer part of. The taxpayers of the United Kingdom underwrite the value of the Pound, which Scotland would have just left. Their third option, which they are not fond of is this: Scotland issues its own currency, backed by Taxpayers in Scotland. Unfortunately for Scotland, they cannot make good on their promises made for a new Scottish future, if they have issue a currency. In otherwords, they want to make a cake, but don't want to pay for the ingredients. 3 Link to comment Share on other sites More sharing options...
thailiketoo Posted May 12, 2014 Share Posted May 12, 2014 (edited) In all this political turmoil during the past week the Thai baht vs US dollar. 32.30 to 32.64. So If you come to Thailand during all of this turmoil you can get still get two cokes at 7/11 for 32 baht. Today one US dollar is worth three of the big coins two small silver ones and on of the larger copper colored ones. Last week you would have gotten three of the big coins, two small silver one and one of the little copper colored ones. I think I got it right. When I first came here they gave me 4 of the big coins for one US dollar and I was so happy I gave them all of my US dollars. Edited May 12, 2014 by thailiketoo Link to comment Share on other sites More sharing options...
JesseFrank Posted May 12, 2014 Share Posted May 12, 2014 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 So because the EU put them on lifesupport they're not bankrupt anymore ? Link to comment Share on other sites More sharing options...
JesseFrank Posted May 12, 2014 Share Posted May 12, 2014 (edited) In all this political turmoil during the past week the Thai baht vs US dollar. 32.30 to 32.64. So If you come to Thailand during all of this turmoil you can get still get two cokes at 7/11 for 32 baht. thai-coins1.jpg Today one US dollar is worth three of the big coins two small silver ones and on of the larger copper colored ones. Last week you would have gotten three of the big coins, two small silver one and one of the little copper colored ones. I think I got it right. When I first came here they gave me 4 of the big coins for one US dollar and I was so happy I gave them all of my US dollars. When I came here you got 25 Baht for the dollar, 2 years later you got about 50 Baht for that same dollar. Edited May 12, 2014 by JesseFrank 1 Link to comment Share on other sites More sharing options...
JesseFrank Posted May 12, 2014 Share Posted May 12, 2014 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. Your lack of knowledge is astounding ! Scotland cannot switch to the Euro. Because only countries in the European Union can use the Euro as their currency. If Scotland becomes and independent nation and leaves the United Kingdom, then it is also leaving the EU as Scotland the new nation state will not automatically become a member of the European Community, it will have to Apply to Join in its own right. Scotland cannot continue to use the Pound and the Pound is the currency of the United Kingdom which it is no longer part of. The taxpayers of the United Kingdom underwrite the value of the Pound, which Scotland would have just left. Their third option, which they are not fond of is this: Scotland issues its own currency, backed by Taxpayers in Scotland. Unfortunately for Scotland, they cannot make good on their promises made for a new Scottish future, if they have issue a currency. In otherwords, they want to make a cake, but don't want to pay for the ingredients. Maybe you should be informed that Scotland has it's own currency, the Scottish pound, for a looooong time already. Link to comment Share on other sites More sharing options...
Thaiberius Posted May 12, 2014 Share Posted May 12, 2014 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. Your lack of knowledge is astounding ! Scotland cannot switch to the Euro. Because only countries in the European Union can use the Euro as their currency. If Scotland becomes and independent nation and leaves the United Kingdom, then it is also leaving the EU as Scotland the new nation state will not automatically become a member of the European Community, it will have to Apply to Join in its own right. Scotland cannot continue to use the Pound and the Pound is the currency of the United Kingdom which it is no longer part of. The taxpayers of the United Kingdom underwrite the value of the Pound, which Scotland would have just left. Their third option, which they are not fond of is this: Scotland issues its own currency, backed by Taxpayers in Scotland. Unfortunately for Scotland, they cannot make good on their promises made for a new Scottish future, if they have issue a currency. In otherwords, they want to make a cake, but don't want to pay for the ingredients. Maybe you should be informed that Scotland has it's own currency, the Scottish pound, for a looooong time already. You can't be serious Jesse. If the Scottish do vote for independence, as I hope they do, then it will still be the English propping them up in subsidies for decades to come. Their shortfall in national income, even taking into account oil revenues, will mean their economy is unsustainable. The health services and welfare budget is already more than their tax revenues, add onto this the added revenue required for infrastructure, defence etc etc then financing from Edinburgh won't be possible. England can't afford to have a bankrupt country so close to its borders and will have to prop up the Scottish economy for far longer than anybody reading this forum will live. Link to comment Share on other sites More sharing options...
chiang mai Posted May 12, 2014 Share Posted May 12, 2014 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. Whatever you're on, I hope I never absorb any of it! What you set out is a wonderful theory that has absolutely no basis whatsoever in fact. Do you understand the revenue streams of the Thai economy, your post implies it's nearly all tourism which in fact is less than 13%. And do you understand the debt levels of the Thai economy, external debt is almost non-existent!!! And did we mention that the BOT holds foriegn currency reserves that are the envy of most countries, USD 167 billion at last count. Fractional rserve currency, what a crock!, 2 Link to comment Share on other sites More sharing options...
Naam Posted May 12, 2014 Share Posted May 12, 2014 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 So because the EU put them on lifesupport they're not bankrupt anymore ? a country is bankrupt when its debt is not serviced. using the more stringent yardstick that is used for companies then the United Kingdom as well as Germany, not to forget the U.S. of A. and Japan are bankrupt. Link to comment Share on other sites More sharing options...
SheungWan Posted May 12, 2014 Share Posted May 12, 2014 (edited) 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. Your lack of knowledge is astounding ! Scotland cannot switch to the Euro. Because only countries in the European Union can use the Euro as their currency. If Scotland becomes and independent nation and leaves the United Kingdom, then it is also leaving the EU as Scotland the new nation state will not automatically become a member of the European Community, it will have to Apply to Join in its own right. Scotland cannot continue to use the Pound and the Pound is the currency of the United Kingdom which it is no longer part of. The taxpayers of the United Kingdom underwrite the value of the Pound, which Scotland would have just left. Their third option, which they are not fond of is this: Scotland issues its own currency, backed by Taxpayers in Scotland. Unfortunately for Scotland, they cannot make good on their promises made for a new Scottish future, if they have issue a currency. In otherwords, they want to make a cake, but don't want to pay for the ingredients. Maybe you should be informed that Scotland has it's own currency, the Scottish pound, for a looooong time already. Sorry, but no. The Bank of England regulates the production of sterling banknotes issued in Scotland and Northern Ireland. Edited May 12, 2014 by SheungWan 2 Link to comment Share on other sites More sharing options...
thailiketoo Posted May 12, 2014 Share Posted May 12, 2014 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. Your lack of knowledge is astounding ! Scotland cannot switch to the Euro. Because only countries in the European Union can use the Euro as their currency. If Scotland becomes and independent nation and leaves the United Kingdom, then it is also leaving the EU as Scotland the new nation state will not automatically become a member of the European Community, it will have to Apply to Join in its own right. Scotland cannot continue to use the Pound and the Pound is the currency of the United Kingdom which it is no longer part of. The taxpayers of the United Kingdom underwrite the value of the Pound, which Scotland would have just left. Their third option, which they are not fond of is this: Scotland issues its own currency, backed by Taxpayers in Scotland. Unfortunately for Scotland, they cannot make good on their promises made for a new Scottish future, if they have issue a currency. In otherwords, they want to make a cake, but don't want to pay for the ingredients. Maybe you should be informed that Scotland has it's own currency, the Scottish pound, for a looooong time already. Sorry, but no. The Bank of England regulates the production of sterling banknotes issued in Scotland and Northern Ireland. Could we move this thread to the Scotland forum? Link to comment Share on other sites More sharing options...
susan d Posted May 12, 2014 Share Posted May 12, 2014 rate is unpredictable. Link to comment Share on other sites More sharing options...
alant Posted May 12, 2014 Share Posted May 12, 2014 There is no real industry other than rice commodity. Tourism surely can't be it because of current political state.What a nonsense.Get informed before writing such statements. Thailand is neither dependent on rice commodity nor on tourism. Both make up for a small portion of GDP. Tourism shrinked about 4% in the last months, after excessive growth in the years before. As a starter a look to the usual websites would help: http://en.wikipedia.org/wiki/Economy_of_Thailand Thailand is a newly industrialized country. Its economy is heavily export-dependent, with exports accounting for more than two-thirds of its gross domestic product (GDP). The industrial and service sectors are the main sectors in the Thai gross domestic product, with the former accounting for 39.2 percent of GDP. Thailand's agricultural sector produces 8.4 percent of the GDP lower than the trade and logistics and communication sectors, which account for 13.4 percent and 9.8 percent of GDP respectively. and so on ... why does he need to get informed when you so willingly provide the info embellished with a dose of smart arse attitude. Link to comment Share on other sites More sharing options...
recycler Posted May 12, 2014 Share Posted May 12, 2014 Bold Beavers Link to comment Share on other sites More sharing options...
oxo1947 Posted May 12, 2014 Share Posted May 12, 2014 (edited) Maybe you should be informed that Scotland has it's own currency, the Scottish pound, for a looooong time already.----"JesseFrank" ----------Oh yes----------The Darien scheme................ ...the last big Scottish venture of going it alone...... Edited May 12, 2014 by oxo1947 Link to comment Share on other sites More sharing options...
how241 Posted May 12, 2014 Share Posted May 12, 2014 (edited) Currencies are not backed by any goods. +1...They are traded and valued on people's perception. The Euro is worth MORE then the dollar for example...who know why ?? Edited May 12, 2014 by how241 Link to comment Share on other sites More sharing options...
rotary Posted May 12, 2014 Share Posted May 12, 2014 A currency backed by lies......no lack of imagination on this forum.... Oh no the Thai baht is backed by the same thing the US$ is........... Link to comment Share on other sites More sharing options...
Banzai99 Posted May 12, 2014 Share Posted May 12, 2014 Naam is the only one I would take any notice of, he's successful, he's got a great house, great cars, and I am his adopted son. Link to comment Share on other sites More sharing options...
Naam Posted May 12, 2014 Share Posted May 12, 2014 Naam is the only one I would take any notice of, he's successful, he's got a great house, great cars, and I am his adopted son. son? i always thought you are a girl! Link to comment Share on other sites More sharing options...
Popular Post HUAHIN62 Posted May 12, 2014 Popular Post Share Posted May 12, 2014 Your comment about the gold is so out of line that you put a smile on my face. Per capita Thai's own more physical gold than Americans. The US produce about 230 tons of gold per year but is a net exporter, while Thailand imports +- 200 tons net per year. No country have a gold standard anymore because this would limit the banksters from leveraging their capital 100 x and would prevent the FED from printing $5 trillion on 6 years. If you take out your dollar, Euro, GBP or Baht you have in your hands an IOU. Paper money is a promise to pay by a government. Just an interesting fact, the Fort Knox gold has last been audited in 1956. Recently US bars with date stamps of the 1960's have been seen on the market. Rumors have it that the US is rock bottom on gold and have even sold/leased out the gold of countries like Germany. In 2012 Germany wanted 200 tons back from the FED (they stored it with the FED for safekeeping). The US said it will take them 7 years to give back the German gold. Last year , the first year of the 7 years the US gave back less gold than promised and none of the gold had the German stamp on it (each gold bar that was put into the FEDs vaults had the German stamp on them and was numbered). So the question is what happened to the German gold. For the answer research gold leasing. 3 Link to comment Share on other sites More sharing options...
GreasyFingers Posted May 12, 2014 Share Posted May 12, 2014 From www.xe.com Thai Baht History Early Currency in ThailandStandardized factory minted coins and banknotes were officially issued for the first time in Thailand during the Rattankosin era; with paper money appearing in the form of royal promissory notes in 1853. This was soon followed by banknotes issued by foreign banks. In 1857, Thailand acquired its first minting machine and Thai silver coins began to be minted in the area. Coinage was streamlined in 1897, when the 11 denominations were simplified into two (satang and baht) under a decimalized silver standard system. Introduction of the Thai BahtUntil 1880, the Thai Baht was fixed to the British Pound at a rate of 8 TBH to 1 GBP. This rate changed several times until the Baht was re-pegged to the Japanese Yen at par during World War II. After the war, the currency changed its peg to 20.8 Baht per 1 US Dollar, then to 20 Baht per US Dollar in 1978, and to 25 Baht in 1984. Financial CrisisIn 1997, Thailand fell into financial crisis. The Baht lost half of its value prompting the adoption of a floating exchange rate regime. Since the economic collapse, the Thai Baht has stabilized.Unofficially, the Thai Baht is used in Laos, Cambodia, and Myanmar. Link to comment Share on other sites More sharing options...
rickirs Posted May 12, 2014 Share Posted May 12, 2014 The collateral backing most currencies of the world is the economy of those countries. Simply put,, a country's currency is backed by the ability of the country to meet its debt obligations. Such ability is measured by the country's GDP, credit rating for its treasury bonds, its per capita income, economic stablization, unemployment, consumer debt, etc. Such factors allow a country to assert economic measures to provide for a stable and reliable currency. Currencies that are commodity-based like gold, oil, or crops are very sensitive to commodity prices for factors that may be beyond a country's ability to moderate and difficult to adjust to short-term economic challenges. 2 Link to comment Share on other sites More sharing options...
Jonmarleesco Posted May 12, 2014 Share Posted May 12, 2014 It isn't backed by anything; you're probably thinking of the gold standard, which backed most major currencies up until 1971. Since then, FX rates have been based on various criteria intercountry. Generally, high interest rates push up the currency's value, as does an influx of foreign currencies, which then need to be converted to baht. On the other hand, political troubles, economy issues, social and political revelations, etc, should push it down. Hence, the baht has looked overvalued for years, and still, to me, looks overvalued now. But it is moving in the right direction. 1 Link to comment Share on other sites More sharing options...
yanni Posted May 12, 2014 Share Posted May 12, 2014 I have some Euros sitting in an insurance policy in Ireland. The interest it's making is not worth talking about. I don't really need the funds but was thinking about moving them here to make a little interest that will amount to beer money at Christmas. Problem is the process takes at least 2 weeks. I know we would all be millionaires if we could predict how currencies will go. Does anyone have an opinion about the future of the Baht V the Euro? Link to comment Share on other sites More sharing options...
maximillian Posted May 12, 2014 Share Posted May 12, 2014 Any currency is only backed by TRUST. Trust only. Take the US $. They just print green backs as much as they need. Nothing of value that piece of paper. But people (other countries) trust that they can buy oil (OIL) if nothing else, with these papers. As long as the US $ is accepted by oil producing countries... Another example: I have bread but no water. You have water but no bread. We can make a deal, a win win deal for you and for me as long as I trust your water isn't poisoned and you trust that my bread isn't made of clay. 1 Link to comment Share on other sites More sharing options...
GinBoy2 Posted May 12, 2014 Share Posted May 12, 2014 To return to the original topic, What is The Baht Backed By; well the simple answer is nothing. All modern currencies are Fiat Currencies in the post Gold Standard world. In other words they are not backed by any tangible asset and trade based basically on trust/feeling/gut/luck and the alignment of the stars etc. The Baht is a secondary currency on the FX markets so it doesn't move so violently. So regardless of all the turmoil here in Thailand, and the endless machinations of the TVF community the lack of overseas holdings of the Baht means it's fairly stable 2 Link to comment Share on other sites More sharing options...
Maestro Posted May 12, 2014 Share Posted May 12, 2014 from http://intl.econ.cuhk.edu.hk/exchange_rate_regime/index.php?cid=2 Since 2 July 1997, Thailand has adopted the managed-float exchange rate regime, of which the value of the Baht is determined by market forces. The Bank of Thailand would intervene in the market only when necessary, in order to prevent excessive volatilities and achieve economic policy targets. The floating regime enhances flexibility and efficiency in monetary policy implementation and increases confidence of domestic and international investors. Link to comment Share on other sites More sharing options...
GlobalCtzn Posted May 12, 2014 Share Posted May 12, 2014 Nothing backs the Baht. It is 100% fiat. Same thing with the U.S. Dollar, British Pound Sterling, Euro, Yen, Yuan, Ruble, etc........................... We are living in the waning moments of the grand Central Banking experiment that is about to go BOOM, and then they will try and implement their world currency. It is going to get very interesting very soon! Link to comment Share on other sites More sharing options...
thailiketoo Posted May 12, 2014 Share Posted May 12, 2014 Nothing backs the Baht. It is 100% fiat. Same thing with the U.S. Dollar, British Pound Sterling, Euro, Yen, Yuan, Ruble, etc........................... We are living in the waning moments of the grand Central Banking experiment that is about to go BOOM, and then they will try and implement their world currency. It is going to get very interesting very soon! Thought you needed some music. Link to comment Share on other sites More sharing options...
Bpuumike Posted May 12, 2014 Share Posted May 12, 2014 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. I think that probably the OP didn't phrase the question quite right. As readily pointed out, the Baht is not really backed by anything. The value of the Baht is calculated against a basket of currencies consisting, I believe, of the USD, Euro and GBP Sterling. Naam will soon correct me if I'm wrong. For further info, as always, the OP can consult Dr. Google. Link to comment Share on other sites More sharing options...
AYJAYDEE Posted May 12, 2014 Share Posted May 12, 2014 no industry? where do you get these misconceptions? Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now