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Depreciation of Euro/Baht rate continues?


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Today the ECB(European Central Bank) initiated a monthly multi billion Euro QE(Quantative Easing),lasting till September 2016.

The majority of financial institutions and economists predict a drastic fall of the Euro against the dollar, and the Thai baht as well.

This trend already being reflected and anticipated in the Euro/Baht exchange rate going down the last 3 months from almost 44 to 37 Baht per euro.

Link:http://www.thisismoney.co.uk/money/news/article-2921653/Eurozone-QE-tipped-fight-deflation-euro-crisis-work.html

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All fairly good insights. However, Greece is only about 1% of the Euro GDP. The real problems facing the Euro are EU banks carrying corporate debt from the following countries (in order):

1. Spain

2. France

3. Italy

Greece can be and has been easily bailed out. However, Dragi has used up his ammunition and doesn't have enough in his arsenal to rescue one of the aforementioned countries.

Also, FX markets have already adjusted in the price of the latest round of QE. Don't expect the Euro to fall much more, if at all. Of course, if Spain, France, or Italy need a bailout, then the Euro will be a failed currency. Then, you would see the Euro crash.

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Unfortunately for the Euro..it's in a period of downturn...& worst case scenario ..is at the end!

It's not just one reason...

I think it's too simplistic to blame the "lazy " Greeks but does make for a good argument around the table over a couple beers .....if one knows nothing of world politics & economics.

I would argue that the problems to the Euro are self induced..and now will see mass exit of the currency to US dollars or maybe even the Thai baht...further diminishing it's conversion value.

Now that the EU has introduced "quantitative easing" there is no way out.Fracturing within the European community will escalate.

Germany will be unhappy with the quantitative easing EU policy.

Greece this weekend will probably elect a anti austerity government that will probably default on it's EU loans.

The Swiss this past week unpegged their currency to the Euro.

The European banks are in serious problems & when one fails...many will go down together.

Sanctions against Russia following the foreign policy of the US was probably the nail on the head..and in return Russia put in place their own sanctions.

Supporting the "Nazis" fascist government in Ukraine in a coup last year against it's trade partnership with Russia was/is a colossal mistake.

It's almost laughable...if it wasn't so devastating to the population.

The Greek situation will destroy the EU on the fiscal side.

The Swiss unpegging will destroy the EU on the currency side.

The sanctions against Russia will destroy the EU on the economic side.

The "quantitative easing" will destroy the EU on the monetary side with German opposition...& maybe abandoning the EU altogether.

The war in the Ukraine will destroy the EU on the energy side.

So yeah the Thai economy & Thai baht look quite stable to me compared to the Euro.

Until further notice, the Thai Baht looks good, but it will change shortly. The rubber tree farmers are in deep trouble, many unable to pay the bank. The currency numbers are not important in the long run. The few wealthy will own 80% of the country anyway. The pension obligations in the western world are the biggest problem. The US is about 100 + TRILLIONS under water and that is besides the 18 Billions they talk about now.

The solution, lets go to Mendocino for the great smoke out and grow some mushrooms too LOL

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Unfortunately for the Euro..it's in a period of downturn...& worst case scenario ..is at the end!

It's not just one reason...

I think it's too simplistic to blame the "lazy " Greeks but does make for a good argument around the table over a couple beers .....if one knows nothing of world politics & economics.

I would argue that the problems to the Euro are self induced..and now will see mass exit of the currency to US dollars or maybe even the Thai baht...further diminishing it's conversion value.

Now that the EU has introduced "quantitative easing" there is no way out.Fracturing within the European community will escalate.

Germany will be unhappy with the quantitative easing EU policy.

Greece this weekend will probably elect a anti austerity government that will probably default on it's EU loans.

The Swiss this past week unpegged their currency to the Euro.

The European banks are in serious problems & when one fails...many will go down together.

Sanctions against Russia following the foreign policy of the US was probably the nail on the head..and in return Russia put in place their own sanctions.

Supporting the "Nazis" fascist government in Ukraine in a coup last year against it's trade partnership with Russia was/is a colossal mistake.

It's almost laughable...if it wasn't so devastating to the population.

The Greek situation will destroy the EU on the fiscal side.

The Swiss unpegging will destroy the EU on the currency side.

The sanctions against Russia will destroy the EU on the economic side.

The "quantitative easing" will destroy the EU on the monetary side with German opposition...& maybe abandoning the EU altogether.

The war in the Ukraine will destroy the EU on the energy side.

So yeah the Thai economy & Thai baht look quite stable to me compared to the Euro.

Until further notice, the Thai Baht looks good, but it will change shortly. The rubber tree farmers are in deep trouble, many unable to pay the bank. The currency numbers are not important in the long run. The few wealthy will own 80% of the country anyway. The pension obligations in the western world are the biggest problem. The US is about 100 + TRILLIONS under water and that is besides the 18 Billions they talk about now.

The solution, lets go to Mendocino for the great smoke out and grow some mushrooms too LOL

"...hat is besides the 18 Billions they talk about now."

"The solution, lets go to Mendocino for the great smoke out and grow some mushrooms too LOL"

Sounds like you started on the mushrooms already.

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It sucks..sam for Aussie dollar, luckily I am on a US dollar contract at the moment but most of my cash is in Aussie so we are bleeding too. NZ dollar is fairing well though

Yair, last year this time my Aussie pension was 31 baht to the OZ$. Last night my pension exchange rate was 24baht!!!

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It sucks..sam for Aussie dollar, luckily I am on a US dollar contract at the moment but most of my cash is in Aussie so we are bleeding too. NZ dollar is fairing well though

Yair, last year this time my Aussie pension was 31 baht to the OZ$. Last night my pension exchange rate was 24baht!!!

Tell me about it, just a few months ago my Euro pension was getting me 44.80 now its 36.47, come visa extension time we may see a lot of expats at the airport.

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I dont understand world economics, it makes no sense! The yanks owe so much money that they cannot fit it on the computer screen and just keep making more! As I understand it, from my history at school, that is what caused the 'great depression'?

Why do they continue to have such a control over world economics, when as I see it, China is really the leading country economically speaking? They are

all concerned about 7.4% growth rate in China, but that is about twice any other country at the moment.

Have a look here in Thailand, if they are not in economic s...t then I dont know what would constitute a country in recession?

Australia is also in trouble due to poor economic management after 7 years of mismanagement.

If I am off the makr, can someone try and explain it to me in layman's terms, as I have run out of hair to scratch.

Edited by mogo51
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I dont understand world economics, it makes no sense! The yanks owe so much money that they cannot fit it on the computer screen and just keep making more! As I understand it, from my history at school, that is what caused the 'great depression'?

Why do they continue to have such a control over world economics, when as I see it, China is really the leading country economically speaking? They are

all concerned about 7.4% growth rate in China, but that is about twice any other country at the moment.

Have a look here in Thailand, if they are not in economic s...t then I dont know what would constitute a country in recession?

Australia is also in trouble due to poor economic management after 7 years of mismanagement.

If I am off the makr, can someone try and explain it to me in layman's terms, as I have run out of hair to scratch.

and what grade in History GCE did you get?

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I dont understand world economics, it makes no sense! The yanks owe so much money that they cannot fit it on the computer screen and just keep making more! As I understand it, from my history at school, that is what caused the 'great depression'?

Why do they continue to have such a control over world economics, when as I see it, China is really the leading country economically speaking? They are

all concerned about 7.4% growth rate in China, but that is about twice any other country at the moment.

Have a look here in Thailand, if they are not in economic s...t then I dont know what would constitute a country in recession?

Australia is also in trouble due to poor economic management after 7 years of mismanagement.

If I am off the makr, can someone try and explain it to me in layman's terms, as I have run out of hair to scratch.

You're dead right there mate! Aussie miners have been digging out coal, iron ore, diamonds for years.

To maximise profits, the Govt cut back taxes on the mining companies, abolished carbon tax, charges their super-rich mates a ridiculously low income tax, and wonder why things are not 'working out'. facepalm.gif

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Sell as much Euros as you can TODAY. (or this week), for USD. (or eventually THB, but since USD interest rates are supposed to be raised, they will ultimately appreciate against THB)

Euro is not going to go up again against THB except if Thai Government wants to lower the THB and I don't feel they are heading this way at all.

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Dragi has used up his ammunition...

Draghi hasn't used up a single €UR but announced quantitative easing of €1.2 trillion which however are earmarked for government bonds.

He more than likely bought more robotic printing presses that print Euro's around the clock. Who is coming to Thailand? Canuck buck (me) down 20% Euro down Ruble down Yen down Indian currency down South American currencies down another shoe to drop in China possible real estate bubble to pop. Soon personal debt will hit a wall as I am sure a lot of tourists visiting here are financing their vacations. No one pays cash anymore just add it to yea ole line of credit. Soon that will become like pushing a string uphill

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I dont understand world economics, it makes no sense! The yanks owe so much money that they cannot fit it on the computer screen and just keep making more! As I understand it, from my history at school, that is what caused the 'great depression'?

Why do they continue to have such a control over world economics, when as I see it, China is really the leading country economically speaking? They are

all concerned about 7.4% growth rate in China, but that is about twice any other country at the moment.

Have a look here in Thailand, if they are not in economic s...t then I dont know what would constitute a country in recession?

Australia is also in trouble due to poor economic management after 7 years of mismanagement.

If I am off the makr, can someone try and explain it to me in layman's terms, as I have run out of hair to scratch.

obviously you know nothing about the United States. Have you ever been there?

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I dont understand world economics, it makes no sense! The yanks owe so much money that they cannot fit it on the computer screen and just keep making more! As I understand it, from my history at school, that is what caused the 'great depression'?

Why do they continue to have such a control over world economics, when as I see it, China is really the leading country economically speaking? They are

all concerned about 7.4% growth rate in China, but that is about twice any other country at the moment.

Have a look here in Thailand, if they are not in economic s...t then I dont know what would constitute a country in recession?

Australia is also in trouble due to poor economic management after 7 years of mismanagement.

If I am off the makr, can someone try and explain it to me in layman's terms, as I have run out of hair to scratch.

obviously you know nothing about the United States. Have you ever been there?

actually mogo51 in my opinion does have a grasp of the US economic policy..he stated the US owes alot of money and has been printing money (in the billions)....this is true and since he attributed his knowledge of the Great Depression from what he learned in school...there are similarities of what is happening today that appear to be leading to another financial crash this year.

As to the "Great Depression" that is simply explained for causes as

deflation in asset and commodity prices,

dramatic drops in demand and credit,

disruption of trade,

ultimately resulting in widespread unemployment and poverty.

What part of mogo51" post led you to think he knows nothing of the US?

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I dont understand world economics, it makes no sense! The yanks owe so much money that they cannot fit it on the computer screen and just keep making more! As I understand it, from my history at school, that is what caused the 'great depression'?

Why do they continue to have such a control over world economics, when as I see it, China is really the leading country economically speaking? They are

all concerned about 7.4% growth rate in China, but that is about twice any other country at the moment.

Have a look here in Thailand, if they are not in economic s...t then I dont know what would constitute a country in recession?

Australia is also in trouble due to poor economic management after 7 years of mismanagement.

If I am off the makr, can someone try and explain it to me in layman's terms, as I have run out of hair to scratch.

obviously you know nothing about the United States. Have you ever been there?

actually mogo51 in my opinion does have a grasp of the US economic policy..he stated the US owes alot of money and has been printing money (in the billions)....this is true and since he attributed his knowledge of the Great Depression from what he learned in school...there are similarities of what is happening today that appear to be leading to another financial crash this year.

As to the "Great Depression" that is simply explained for causes as

deflation in asset and commodity prices,

dramatic drops in demand and credit,

disruption of trade,

ultimately resulting in widespread unemployment and poverty.

What part of mogo51" post led you to think he knows nothing of the US?

A massive national debt did not cause the Great Depression, which is what mogo51 implies. Further, while China's growth rate may be impressive, the US still has - by far - the largest GDP in the world.

US is also not currently experiencing deflation in asset prices (yet), dramatic drops in demand and credit, or disruption of trade. If you believe the US Government, GDP grew by nearly 5% last quarter and unemployment is dropping.

While I am also leery of the ridiculous levels of debt in the US, the fact that a majority of the world's trade is conducted in US dollars remains the saving grace for the US. If that were to change, the outlook would be much more pessimistic.

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Unfortunately for the Euro..it's in a period of downturn...& worst case scenario ..is at the end!

It's not just one reason...

I think it's too simplistic to blame the "lazy " Greeks but does make for a good argument around the table over a couple beers .....if one knows nothing of world politics & economics.

I would argue that the problems to the Euro are self induced..and now will see mass exit of the currency to US dollars or maybe even the Thai baht...further diminishing it's conversion value.

Now that the EU has introduced "quantitative easing" there is no way out.Fracturing within the European community will escalate.

Germany will be unhappy with the quantitative easing EU policy.

Greece this weekend will probably elect a anti austerity government that will probably default on it's EU loans.

The Swiss this past week unpegged their currency to the Euro.

The European banks are in serious problems & when one fails...many will go down together.

Sanctions against Russia following the foreign policy of the US was probably the nail on the head..and in return Russia put in place their own sanctions.

Supporting the "Nazis" fascist government in Ukraine in a coup last year against it's trade partnership with Russia was/is a colossal mistake.

It's almost laughable...if it wasn't so devastating to the population.

The Greek situation will destroy the EU on the fiscal side.

The Swiss unpegging will destroy the EU on the currency side.

The sanctions against Russia will destroy the EU on the economic side.

The "quantitative easing" will destroy the EU on the monetary side with German opposition...& maybe abandoning the EU altogether.

The war in the Ukraine will destroy the EU on the energy side.

So yeah the Thai economy & Thai baht look quite stable to me compared to the Euro.

Total nonsense!

The Swiss unpegging has zero consequences on the EUR.

European banks don't have serious problems.

The energy side... did you have a look at the oil price?

Also, Germany, although opposing QE by principle, will be very pleased with a fall of the EUR which will boost its non-EU industrial exports.

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Unfortunately for the Euro..it's in a period of downturn...& worst case scenario ..is at the end!

It's not just one reason...

I think it's too simplistic to blame the "lazy " Greeks but does make for a good argument around the table over a couple beers .....if one knows nothing of world politics & economics.

I would argue that the problems to the Euro are self induced..and now will see mass exit of the currency to US dollars or maybe even the Thai baht...further diminishing it's conversion value.

Now that the EU has introduced "quantitative easing" there is no way out.Fracturing within the European community will escalate.

Germany will be unhappy with the quantitative easing EU policy.

Greece this weekend will probably elect a anti austerity government that will probably default on it's EU loans.

The Swiss this past week unpegged their currency to the Euro.

The European banks are in serious problems & when one fails...many will go down together.

Sanctions against Russia following the foreign policy of the US was probably the nail on the head..and in return Russia put in place their own sanctions.

Supporting the "Nazis" fascist government in Ukraine in a coup last year against it's trade partnership with Russia was/is a colossal mistake.

It's almost laughable...if it wasn't so devastating to the population.

The Greek situation will destroy the EU on the fiscal side.

The Swiss unpegging will destroy the EU on the currency side.

The sanctions against Russia will destroy the EU on the economic side.

The "quantitative easing" will destroy the EU on the monetary side with German opposition...& maybe abandoning the EU altogether.

The war in the Ukraine will destroy the EU on the energy side.

So yeah the Thai economy & Thai baht look quite stable to me compared to the Euro.

Total nonsense!

The Swiss unpegging has zero consequences on the EUR.

European banks don't have serious problems.

The energy side... did you have a look at the oil price?

Also, Germany, although opposing QE by principle, will be very pleased with a fall of the EUR which will boost its non-EU industrial exports.

You sure about the Swiss unpegging? I guess one man`s 20% drop in value is another man`s 0%.

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Unfortunately for the Euro..it's in a period of downturn...& worst case scenario ..is at the end!

It's not just one reason...

I think it's too simplistic to blame the "lazy " Greeks but does make for a good argument around the table over a couple beers .....if one knows nothing of world politics & economics.

I would argue that the problems to the Euro are self induced..and now will see mass exit of the currency to US dollars or maybe even the Thai baht...further diminishing it's conversion value.

Now that the EU has introduced "quantitative easing" there is no way out.Fracturing within the European community will escalate.

Germany will be unhappy with the quantitative easing EU policy.

Greece this weekend will probably elect a anti austerity government that will probably default on it's EU loans.

The Swiss this past week unpegged their currency to the Euro.

The European banks are in serious problems & when one fails...many will go down together.

Sanctions against Russia following the foreign policy of the US was probably the nail on the head..and in return Russia put in place their own sanctions.

Supporting the "Nazis" fascist government in Ukraine in a coup last year against it's trade partnership with Russia was/is a colossal mistake.

It's almost laughable...if it wasn't so devastating to the population.

The Greek situation will destroy the EU on the fiscal side.

The Swiss unpegging will destroy the EU on the currency side.

The sanctions against Russia will destroy the EU on the economic side.

The "quantitative easing" will destroy the EU on the monetary side with German opposition...& maybe abandoning the EU altogether.

The war in the Ukraine will destroy the EU on the energy side.

So yeah the Thai economy & Thai baht look quite stable to me compared to the Euro.

Total nonsense!

The Swiss unpegging has zero consequences on the EUR.

European banks don't have serious problems.

The energy side... did you have a look at the oil price?

Also, Germany, although opposing QE by principle, will be very pleased with a fall of the EUR which will boost its non-EU industrial exports.

The Swiss unpegging shows their lack of support and/or confidence in the Euro..also the Swiss government were holding at least half a trillion Euros ..They and everyone will be escaping the Euro by buying ...probably gold or US dollars.

European banks..are in serious problems..they are all tied together so when the crash comes...many will go down.

yes oil price is low but the issue to the EU is Russia stopping the South Stream pipeline & sending the gas to Turkey & Europe can pick up what they need at the Greek border..The pipeline through the Ukraine will be stopped.

Yes the Germans will be happy with the fall of the Euro..as they are happy with the elimination of trade with Russia.

Everyone loves higher prices,higher unemployment,higher uncertainty..oh they love riots in the streets too.

I wouldn't say total nonsense...maybe some of it is...but this is thaivisa afterall whistling.gif

Edited by iphad
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The Euro is at 36baht down from a years high of 45 and still dropping to what 30? that will be a 33% drop!! thats a shocker and as i fly in on the 30th

its gonna hurt, to hell with QE and all the bla bla bla what it means to me is that for every 200euro i used to change I will now have to change 300 if

the Euro does reach 30baht.My flight is booked and paid for and the first 18 days hotels are booked and paid that will leave 10 nights to cover i guess my normal end of trip 4-5 days in Bangkok will drop off and forget any shopping and gogo bars will be history,This is really bad news for retired people on a fixed

income there will be some sad news to read in the coming months,dont forget in all this economic theory and market- currency manipulation there is a human element to suffer the consequeces .

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