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Thai central bank chief says 'very worried' about strength of baht

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12 hours ago, smedly said:

why didn't you take action 3 years ago ???

 

oh that's right - the corrupt powers that were running the country wouldn't let you because they put their own interests above the Thailand economy 

And still are, busy buying assets overseas, having extra vacations for all the family, providing international schooling for their off-spring, while the workers of the country are stuck here in limbo... 

The best idea the PM has had so far is to subsidise some businesses that would otherwise disappear which wouldn't look good for Thailand,  and offer a cheap shop/package tour for the locals to try to generate some domestic money!

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2 minutes ago, huberthammer said:

how are they out of ammo? How does this relate to 1997?  rather confused about your statements

It might be better if you lay out your reasoning as to why you disagree with what I had to say. I am not professing to be right by any means.  I am only giving my thoughts on the matter and not claiming to be an expert on economics. What Ammo does he have? How different is this from 1997? I won't argue with you I will just listen. IF you were talking about my Post I don't think that this was the same as 1997, I said that perhaps he is worried about a Baht crash. 

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Win Win for the top brass. Buy assets overseas and when it crashes here, buy up good distress sale assets here as well. And the poor get poorer. Smart cookies. 

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I am surprised he is still in his job he said the same thing a couple of months ago and he said he was going to slow it down, that did not happen but he still has his job, now he is still saying he is worried, so he is telling the people to save what they can

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1 hour ago, Beggar said:

I remember when they have been worried when the Baht moved from around 55 to 42 to the USD. Then we were given the feeling that this is enough already. Strange that the Baht is now at 30 and honestly I expect it to rise further.

I hope you're right.  there's precedent for the THB in the 20s - common before the 1997 financial crisis.  banks in much better shape than the 90s so a baht in the 20s is sustainable, especially when looking at the fundamentals in Thailand vs the US, Europe or the UK.

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Seems it is a good time to short sell THB

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12 minutes ago, Brunolem said:

All the major currencies are engaged in a race to the bottom,

Relative to what ?

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Please, get rid of exchange control, ALL restrictions on taking money out of Thailand. We don't need them. 

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41 minutes ago, khunjeff said:

He actually graduated from Thammasat at age 18 (he had turned down a scholarship in California to stay closer to home) and got his PhD in Economics from Harvard at age 24, but sure, let's make the usual "Thais are so uneducated" jokes, why not.

Well apparently he didn't grasp anything he learned at Harvard (or TU). His mismanagement of this whole situation has been so utterly predictable as to what is now happening. Keep rates high to encourage capital inflows to the country (Thailand's reserves are at all-time highs) and thus driving the Baht higher so that certain incompetent government officials could look like they were having success. Now with almost every country in a rate lowering cycle to counter the softening economy, Thailand is behind the curve and can't catch up.

There will not be a repeat of 1997, since Thailand has plenty of reserves. What's more likely is a prolonged economic slump that will be hard pressed to get out of. Tourists are already moving to other destinations, factories are closing because they are not competitive with neighboring countries, exports of commodity products are completely uncompetitive due to the high baht and Thailand is no where close to moving up the value chain in terms of becoming more service focused economy.

A Harvard or TU degree is good for lining the bottom of a birdcage if the person with it is dumb as rock (or likely in the case taking orders from people as dumb as a rock).

 

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