Thailand News - The Nation: Economist urges BOT to fix baht fluctuation

NewsBot · #1 16-07-2007, 00:50

A noted economist yesterday advised the Bank of Thailand (BOT) to fix a fluctuation range for the baht each....

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LivinLOS · #2 16-07-2007, 10:31

And what caused the last asian meltdown ?? Trying to hold a peg they couldnt afford !!

I read the junta last 1/3rd of its currency reserves with the 30% with hlding situation..

Quote:

In trying to control the baht, the BOT can sell bonds under an available quota approved by the Finance Ministry to financial institutions and the general public and use the money to buy US dollars that it will then deposit in US banks, he suggested.

Yeah really great.. Except the dollar has come down how much ?? And where is it headed ???

Quote:

While the interest rate to be paid to bond holders would be 3.5 per cent, the central bank's dollar deposit would fetch about 5 per cent interest. It can make use of the gains from this margin to compensate for the loss in capital reserve caused by the baht appreciation, he added.

OK so you get 5% return, on a currency thats fallen 20% or so.. While paying out 3.5%.. So this would have been a net loss of 18.5% so far then..

Genius at play !!!

Thaland is not China with trillions of USD pouring in and a currency reserve it can toy with.

ATMwalking · #3 16-07-2007, 11:51

Yep, at one point they had a financial policy that actually kinda made sense. Now they spend most of there time in isolationist dreamland.

Read recently China is diversifying out of USD. They more USD now than Japan and really no need for it all.

LivinLOS · #4 16-07-2007, 12:15

Those overseas holdings of USD are a threat to the entire global financial structure.. The USD is printing money and increasing USD money supply at about 12% per year. Thats another elephant in the living room. If china did start to diversify out (even if they tried to stop accumulating) the dollar could be as much toast as the Riechmark. This has happened EVERY TIME in human history that currency was pure fiat and unbacked, right back to the romans currency debasement, the Chinese expermients with paper money etc. Every time !!

2 really interesting and even funny financial books are financial reckoning day and empire of debt.

ATMwalking · #5 16-07-2007, 12:29

Quote:

Originally Posted by LivinLOS

Those overseas holdings of USD are a threat to the entire global financial structure.. The USD is printing money and increasing USD money supply at about 12% per year. Thats another elephant in the living room. If china did start to diversify out (even if they tried to stop accumulating) the dollar could be as much toast as the Riechmark. This has happened EVERY TIME in human history that currency was pure fiat and unbacked, right back to the romans currency debasement, the Chinese expermients with paper money etc. Every time !!

2 really interesting and even funny financial books are financial reckoning day and empire of debt.

I was reading that the upside will be for the stock markets as lots of money will be pouring in.

Anyway, part of my theory that the Chines are playing a slow game to control the world

LivinLOS · #6 16-07-2007, 12:40

Without a doubt.. And they are laying all the right groundwork.

JayBee · #7 16-07-2007, 14:58

The people in power in DC have got their thumbs up their ass in Iraq, while the Chinese quietly amass more power every day. They can't see the forest for the trees, or so it would seem. Money = power. The US is losing it, as the Chinese gain it.

But then, who are the Bushies really working for? The American people or the international financial elite. It doesn't take a genius to figure the answer to that question. They play the average American working stiffs for suckers.