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Whats happening to the bhat???


kevkev1888

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Ok, but as I said in another thread, many have been saying for years the Thai economy is propped up by over extension of credit, bad loans, and other issues. Many have said his, added to an unstable government should have lead to a collapse, which as of yet, has not occurred.

 

Many have further argued that the Thai economy is losing out to China and Vietnam, foreign investment is down, all in all, the Thai economy isn't that great, just the U.S. economy is THAT bad...yet all major currencies seem to be weakening against the BHT, so what is going on?

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OK, maybe I didn't say it right...I agree *SOME* Asian markets/currencies might be doing well, but aren't some doing better than Thailand? Yet aren't some currencies doing disproportionately better/worse than Thailand, which has problems the others don't have?

 

Something doesn't seem right in Thailand right now, the corruption is up, the government is all screwed up, economic policies seem to not favor foreign investment, just read in BKKPost that Japan is holding off investment as the current policy is not favorable etc...all adds up to "NOT adding up..." But then economic theory is just that, a theory, NOT a science.

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Take a look at the price of gold in terms of Thai Baht.

 

Gold is going up against virtually all currencies.

 

Also, please tell me that prices in LOS are going down---sorry, I don't think so...therefore the baht's not really strenghtening. It is only relatively falling more slowly than the buck the Euro etc.

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Hum the problem here in Europe is exactly the fact that the euro is too strong against other currencies.....And this is not me saying it but the governments and some people at the European central bank unlike the dollars and the uk pounds for example.

 

This seems to hurt some European countries not the contrary.

The asumption that all currencies are "falling"

(against what? Because depreciation of a currency is in reference to other currencies or at least that is what I understood at uni)

 

If the bht gets really too strong against all other major currencies then this is Thailand which will suffer. (exportation and tourism remember?)

 

I have very little understanding of economy but if you read western newspapers then you would realize that although the uk pound and the USD are weakening against the euro so is the yen and other major currencies. (except the Swiss of course hehehe)

At the moment the bht seems to benefit from a very high exchange rates speculation, let's see what the future will tell.

(and for me this is a good thing if the bht is strengthening against other western currencies, for private reasons)

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I read something in an aviation journal about Airbus fearing the Euro passing the $1.50 mark, which it has, claiming it would really hurt them, as their contracts are negotiated in dollars, and their costs (labor materials (some) etc are paid in Euros.

 

One bright note, the USD$$ is such crap now, that all the off shoring of work, is not so profitable, in some cases, it is equal to the cost here when transport and lost time are considered...

 

Conspiracy note, I also recall reading about a currency combining USA, Central and South America...and or even a global currency or a set currency among major trading partners...could all be a push to collapse major currencies and form a new one? or maybe a conspiracy to break up the Euro/E.U.?

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Note on the Conspiracy note:

 

It seems like the US gov wants to keep the dollar in the dirt so the US citizens do not leave the USA. This way the citizens are spending all their money within the USA :dunno:

 

Go to LOS for sun and fun...can't do it, too expensive.

 

Go To LOS (and others) for cheap medical procedures, can't do it, too expensive, to the citizens are forced to pay the super high medical insurance rates!

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