Record low EUR/THB rate affecting expats?

[micmichd]

That was the social contract.

Work for a certain value, leave a certain percentage for social security, and get back a certain value as pension - wherever you are.

I deny ECB the right to break that contract.

Already being done...

European nations begin seizing private pensions

http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

Poland Nationalizes 1/2 of the nations private Pensions

http://nomadcapitalist.com/2014/05/02/retirement-account-confiscation-avoid-myra/

I would rather a government looked after my private pension than a dodgy IFA and offshore company (Friends Provident (IoM)).

Government taking control of many private pension providers would be a good thing IMHO.

[micmichd]

That was the social contract.

Work for a certain value, leave a certain percentage for social security, and get back a certain value as pension - wherever you are.

I deny ECB the right to break that contract.

Already being done...

European nations begin seizing private pensions

http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

Poland Nationalizes 1/2 of the nations private Pensions

http://nomadcapitalist.com/2014/05/02/retirement-account-confiscation-avoid-myra/

I would rather a government looked after my private pension than a dodgy IFA and offshore company (Friends Provident (IoM)).

Government taking control of many private pension providers would be a good thing IMHO.

[micmichd]

Maybe if the government would be democratic.

Germany's membership in the Euro zone is not legitimized by German people.

In other European countries they had a referendum about joining the Euro zone.

Not in Germany, because they knew that the majority of Germans would have said "No" to the Euro.

[MaeJoMTB]

Maybe if the government would be democratic.

Germany's membership in the Euro zone is not legitimized by German people.

In other European countries they had a referendum about joining the Euro zone.

Not in Germany, because they knew that the majority of Germans would have said "No" to the Euro.

I thought no vote because Germany founded and owned the EU.

Let's face it, creating the EU was cheaper for Germany than starting another world war.

Edited March 20, 2015 by MaeJoMTB

[Loptr]

That was the social contract.

Work for a certain value, leave a certain percentage for social security, and get back a certain value as pension - wherever you are.

I deny ECB the right to break that contract.

Already being done...

European nations begin seizing private pensions

http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

Poland Nationalizes 1/2 of the nations private Pensions

http://nomadcapitalist.com/2014/05/02/retirement-account-confiscation-avoid-myra/

I would rather a government looked after my private pension than a dodgy IFA and offshore company (Friends Provident (IoM)).

Government taking control of many private pension providers would be a good thing IMHO.

You have missed the point, which is that these countries have nationalized their pension plans to STEAL the contributions by citizens, to PAY their outstanding debt obligations...

[MaeJoMTB]

You have missed the point, which is that these countries have nationalized their pension plans to STEAL the contributions by citizens, to PAY their outstanding debt obligations...

You missed the point that it only becomes stolen if they don't pay out.

And it's far too early to make that judgement.

Only time can tell if legit or theft.

[micmichd]

Since I never took any credit from Euro banks, I don't owe anything to any bank.

If ECB cuts pensions they I worked for, it's theft or robbery.

And that's exactly what they do.

Edited March 20, 2015 by micmichd

[Asiantravel]

You have missed the point, which is that these countries have nationalized their pension plans to STEAL the contributions by citizens, to PAY their outstanding debt obligations...

You missed the point that it only becomes stolen if they don't pay out.

And it's far too early to make that judgement.

Only time can tell if legit or theft.

Why is it too early to make that judgement? If you have even the most basic ability to extrapolate there is more chance of a camel passing through the eye of a needle than any of these governments that are engaging in this practice either having the ability or even the desire to pay what they should because they simply won't be around when the money becomes due

[Asiantravel]

That was the social contract.

Work for a certain value, leave a certain percentage for social security, and get back a certain value as pension - wherever you are.

I deny ECB the right to break that contract.

Already being done...

European nations begin seizing private pensions

http://www.csmonitor.com/Business/The-Adam-Smith-Institute-Blog/2011/0102/European-nations-begin-seizing-private-pensions

Poland Nationalizes 1/2 of the nations private Pensions

http://nomadcapitalist.com/2014/05/02/retirement-account-confiscation-avoid-myra/

I would rather a government looked after my private pension than a dodgy IFA and offshore company (Friends Provident (IoM)).

Government taking control of many private pension providers would be a good thing IMHO.

You really live in Cuckoo land don't you?

Did they ever get their seized pensions back in Argentina? The hell they did

http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/5504137/Argentina_seizes_pension_funds_to_pay_debts_Whos_next/

Edited March 20, 2015 by Asiantravel

[NeverSure]

You have missed the point, which is that these countries have nationalized their pension plans to STEAL the contributions by citizens, to PAY their outstanding debt obligations...

You missed the point that it only becomes stolen if they don't pay out.

And it's far too early to make that judgement.

Only time can tell if legit or theft.

Nationalizing is by definition stealing. They took what didn't belong to them. How many definitions does one need?

Would you like for them to "nationalize" your rental properties to better manage them? When has a government ever managed anything well???

Now they have the ability to say "you have the standard government pension. You don't need or deserve two pensions. Everybody gets a pension but for some to get two pensions is unfair."

This is what you get with socialism. "Fairness to all" by their definition. I'm glad that I didn't invest money in any pension fund other than the required part. I like my government pension, but I won't be shocked if they tell me it's "unfair" for me to get more than many others just because I paid in more. "From each according to his ability and to each according to his needs" works very well here. Just steal my pension and give it to someone else to be "fair."

#$%@#$ Them.

[Naam]

Since I never took any credit from Euro banks, I don't owe anything to any bank.

If ECB cuts pensions they I worked for, it's theft or robbery.

And that's exactly what they do.

if you think the ECB cuts your pension then you are not taking the medication the good doctor prescribed

[micmichd]

There's a medication against thinking?

[Naam]

There's a medication against thinking?

probably not against your thinking that the ECB is responsible for the price you pay for som tam and lao khao.

[micmichd]

This is not about expenditure, it's about income (in THB)

Feel free to remember the OP, or simply read the headline.

[Swiss1960]

Since I never took any credit from Euro banks, I don't owe anything to any bank.

If ECB cuts pensions they I worked for, it's theft or robbery.

And that's exactly what they do.

ECB has not, can not and will not ever, neither now or in any future, cut pensions as they are not authorized to do such things and have no means to do so..

Maybe you restart taking the anti-conspiracy medicine (psycho-pharmaka) you received from your doc or you stop blaiming everybody else and start taking responsibility for YOUR life decisions.. like moving abroad with no big enough security net.. but of course, there are always high-rises for you..

[micmichd]

ECB has rights to cut down currency exchange rates, right?

Maybe you took too many psycho drugs to understand that this means less pensions when they come in THB.

My very personal decisions are of no interest here.

[Robert24]

To answer the question: you can hedge your Euro exposure if you want. I.e. You go short Euros.

[micmichd]

Not if you need to live on pensions.

[Robert24]

why not?

2 ways just come to my mind:

1) you buy some financial product reflecting what you want to do. Ie short EUR long USD, the amount (say 2x your annual pension)

2) you take out a mortgage on your property in Europe of say again 2x your anual pension and move the money into USD or THB fixed income and money market investments, depending on what you want to do. You will profit from the interest difference as well as the respective currency movements.

hope this helps.

[micmichd]

Sorry,

banks and hostile investors have already taken away my property.

[Swiss1960]

ECB has rights to cut down currency exchange rates, right?

Maybe you took too many psycho drugs to understand that this means less pensions when they come in THB.

My very personal decisions are of no interest here.

You definitely must sue Mr Draghi in front of the Human Rights Court.. how dare he makes decisions influencing the well-being of few thousand expats just because he thinks it is good for the rest of Europe!

[micmichd]

Good idea, but not so easy.

Mr Draghi would say he only did his duty, and if he wouldn't have made that decision someone else would have done it. The typical "excuse" already heard from post WW2 Germans.

In my very special case, the decline of EUR value is not only to my disadvantage, though. I'm an orphan, with absolutely no Farang family in Europe.

So I've taken financial responsibility for a Thai lady and her daughter, and they also suffer from ECB strategies.

Anyone else in a similar situation?

[Swiss1960]

Good idea, but not so easy.

Mr Draghi would say he only did his duty, and if he wouldn't have made that decision someone else would have done it. The typical "excuse" already heard from post WW2 Germans.

In my very special case, the decline of EUR value is not only to my disadvantage, though. I'm an orphan, with absolutely no Farang family in Europe.

So I've taken financial responsibility for a Thai lady and her daughter, and they also suffer from ECB strategies.

Anyone else in a similar situation?

So who is responsible for your decision to move out of Europe? Who is responsible that you obviously did not take any future economic changes into consideration when you moved?

All expats having their money coming from abroad are sooner or later affected by such changes.. but the overwhelming majority does NOT blame others but take responsibility for themselves and adjust accordingly

[Sandman77]

3 german bisness man allready complain the ecb for there policy , now the file goes to german court in one and have year we know more!

The interesting thing Is that the ecb policy is a violation against there own rules!

And I also not belive that 0.80 € for one dollar next year!

When the fed stop his money printing mashines this June or until September this year the dollar crash again and then will be same exchange rate before euro crash of around 1.30 dollar for 1€

[Robert24]

@micmichd: understand your point. But I would recommend you prepare yourself for further Euro weakness. One thing we know from printing money is that it weakens the currency. Have a look at the Yen who weakened from 70 to 120 to the $ and is expected to weaken more. so you're definitely not alone to feel the pain but that is not going to help you. Prepare yourself for the Euro to become a lot weaker.

[Sandman77]

Why the swiss frank go down with the euro together when it's not paired anymore?

[Robert24]

Because interest rates are negative in Swiss francs across the whole curve (short term all the way to long term) and many investors prefer the $ at the moment which is expected to get a lot stronger and you get about 2% yield on a 10yr treasury. Also bear in mind that the Swiss franc got a lot stronger vs the Euro already, I.e. From 1.50 to now 1.05.

[micmichd]

Decline of currency exchange rates is only an effort to cure or hide the real problem.

Western economies are bankrupt, more than 90pct of the money has to be paid for interest. Interest economy (money on money) leads to (accelerating) exponential growth - of deficits.

Edited March 22, 2015 by micmichd

[Robert24]

Agree with your point micmichd overall but not on the 90% which is a little bit exaggerated. The country with the highest debt is Japan. Japan's debt is about 240% of their GDP. Their total interest payment on the debt is approx 43% of total tax revenue in Japan. For reference the 10 yr JGB yields at 0.4%. So you understand now why the yield on government debt in Japan cannot go up more. And tax level in Japan is already high, meaning raising tax levels will have its limits hence why monetizing debt is a good option for them at this point.

[Swiss1960]

Why the swiss frank go down with the euro together when it's not paired anymore?

Two reasons

One is that the Swiss franc to THB rate is now heavily depending on the strengthening USD and when CHF looses against the $ then it also looses against the Baht

And two, "clever" investors realized one day after the drop that Switzerland is f**cked without Europe and thus, the rates are going back slowly where they were before