Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Stronger Thai Baht...
Old 12-02-2006, 12:02 AM   #1
Full time employment: Posting here.
 
Join Date: Mar 2004
Location: No Where for Very Long
Posts: 747
Stronger Thai Baht...

According to the folks at http://www.oanda.com/convert/fxhistory on Dec 2, 2005 the USD was fetching B41.24 per USD. As of today Dec 2 2006, our banged up buck reels in a paltry B35.87 per USD, about 13% less than last year.

I've raised my budget by $100 to $1,100 / month or $13,200 / year. So factoring in the weaker $, I now need about 15% more $ (or $15,180) to buy the same basket of goods. (41.24 - 35.87) / 35.87.

Another way to look at it is as follows: on Dec 2005, Joe had $1 million USD and he could exchange that for 41,240,000 THB @ B41.24 / USD. However one year later Joe's million bucks bought 35.87 THB, a loss of 5.37 MILLION baht. That "lost" baht would have purchased a very nice condo here in Bangkok....

Anyway, Thailand is still affordable, but not quite the deal it's been in the past.

The Philippines anyone?!?

Lance

PS-According to the Bangkok Post, the stronger Thai baht is due to massive foreign direct investment in Thailand. On the other hand, Thai exporters (rice, rubber, shrimp, garmets...) are complaining about losing market share. They claim that their threshold of pain is THB 37.5 / USD.
__________________

__________________

Lancelot is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Re: Stronger Thai Baht...
Old 12-02-2006, 07:54 AM   #2
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,359
Re: Stronger Thai Baht...

It just isn't the Thai Bhat that is rising relative to the dollar. It is pretty much every currency rising against the dollar.

So, as a nation we are poorer when our currency devalues as you can directly attest to. Unfortuneately the trend is going to be more of the same. That's what the trade deficit does to you.

Some people believe that this trend will get much worse in the years to come. Stay tuned ...
__________________

__________________
MasterBlaster is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 03:40 PM   #3
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Stronger Thai Baht...

Quote:
Originally Posted by Lancelot
I've raised my budget by $100 to $1,100 / month or $13,200 / year
Having to pay more is always painful. 10% is not trivial, but the difference between 1K and 1.1K is very negligible, right?

A lot of people, myself included, would be very happy to pay such a small sum for that life. Cheer up. Who knows, may be this time next year your budget will only be $900/mth. Enjoy Thailand.
__________________
Sam is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 03:54 PM   #4
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 91
Re: Stronger Thai Baht...

I dont know why any sane person would think of ER in Thailand!

Its cheap because its DANGEROUS, most places (with exceptions) with low cost of living and quality of life are cheap - it is not worth the risk of living there anyway

WAKE UP they will rob you and murder you for a can of BEER. Lots of brits have been murdered there recently - unless of course you are planning to live on a five star gated golf complex
__________________
claire is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 03:58 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Stronger Thai Baht...

Claire, when was the last time you were in Thailand. How long did you stay there?
__________________
Sam is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 04:01 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Stronger Thai Baht...

Quote:
Originally Posted by claire
WAKE UP they will rob you and murder you for a can of BEER. Lots of brits have been murdered there recently - unless of course you are planning to live on a five star gated golf complex
What are you saying? Why go all the way to Thailand to get killed when you can get robbed and murdered in the convenience of your own house back in your home country? I don't know about you, but every day on the local news channel's web site I see stories about rapes, murders, robberies, etc. Developing nations certainly don't hold a monopoly on violent crime...
__________________
justin is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 04:09 PM   #7
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 91
Re: Stronger Thai Baht...

I am saying that the place is DANGEROUS

certainly there is an argument that if your number is up ......

I agree that you can get into big trouble in your own back yard (as you say)
BUT the cost of living is low, people are poor, crime is rife, any one who appears to be from the western "civilised" world is a target

These people are poor, mean and violent

I do not have anything against poor people, far from it and I am not racist. I just think that Thailand is not the best spot to ER.
__________________
claire is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 04:15 PM   #8
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Stronger Thai Baht...

Quote:
Originally Posted by claire
These people are poor, mean and violent

I do not have anything against poor people, far from it and I am not racist. I just think that Thailand is not the best spot to ER.
I am sure you're not a racist. But I'd still love to hear about your experience in Thailand. When were you there the last time, and for how long?
__________________
Sam is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 06:48 PM   #9
Recycles dryer sheets
wompo's Avatar
 
Join Date: Jul 2005
Location: Sierra Vista
Posts: 53
Re: Stronger Thai Baht...

Quote:
Originally Posted by claire
I am saying that the place is DANGEROUS

certainly there is an argument that if your number is up ......

I agree that you can get into big trouble in your own back yard (as you say)
BUT the cost of living is low, people are poor, crime is rife, any one who appears to be from the western "civilised" world is a target

These people are poor, mean and violent

I do not have anything against poor people, far from it and I am not racist. I just think that Thailand is not the best spot to ER.
You are one of the only people I have met with that attitude about Thailand. I lived there for three years and traveled all around Thailand. I felt safer in Thailand than most any other country I have been in (and I have been all over the world). I have heard of people (guys mainly) who get drunk and acting like fools who get robbed and worse, but if you do that you are taking a risk wherever you are.
__________________
FIRE may actually be attainable
wompo is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 06:59 PM   #10
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 91
Re: Stronger Thai Baht...

well i find it strange that you missed that british girl being raped and murdered in koi samui (this may not be the correct spelling) recently - by three thai fishermen that were drunk and bored

Also a couple were gunned downed near the bridge kwai lately

I still dont understand why you would think of retiring there, perhaps I am missing something

Again,I hear lots of nasty things, people being gunned down and raped - dont go there
__________________
claire is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 07:05 PM   #11
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 91
Re: Stronger Thai Baht...

if you are looking for somewhere "cheap" to retire - try europe its safer than thailand, try italy, spain, france, inexpensive, yes, and safe
__________________
claire is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 07:13 PM   #12
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Stronger Thai Baht...

Quote:
Originally Posted by claire
if you are looking for somewhere "cheap" to retire - try europe its safer than thailand, try italy, spain, france, inexpensive, yes, and safe
Wow, Europe! I've never heard of anyone retiring to Europe (at least western Europe to the countries you listed) in order to live "on the cheap". What kind of a lifestyle would $1000-1100/month (825 Euros per month) get you in italy, france or spain? My take is that many things are rather expensive in many parts of Europe. Maybe it's the US dollar's recent weakening against the Euro which makes Europe particularly expensive for US-based ER's.
__________________
justin is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 07:21 PM   #13
Recycles dryer sheets
 
Join Date: Mar 2006
Posts: 91
Re: Stronger Thai Baht...

yes - it can be done - but i need to go now because my DH has just come in grunting at me - i think he thinks i am having an affair

its the time difference (it id noe 1.19 am) -anyway - i will speak more tomorrow

sweet dreams

xx
__________________
claire is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-04-2006, 07:38 PM   #14
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Stronger Thai Baht...

Quote:
Originally Posted by claire
yes - it can be done...
Well, I'm sure it COULD be done, but one could probably also do Thailand (or elsewhere in SE Asia) for $300/month if one were willing to learn the language and live simply like the native folks do.

I've never been to Thailand, but it seems like the folks who live there or have lived there don't think there is much of a problem. Ben, Lance, and the Kaderli's are/have lived there for quite a while. I'm sure there is crime like everywhere else.
__________________
justin is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-05-2006, 03:43 AM   #15
Full time employment: Posting here.
 
Join Date: Mar 2004
Location: No Where for Very Long
Posts: 747
Re: Stronger Thai Baht...

Quote:
Originally Posted by Sam
Having to pay more is always painful. 10% is not trivial, but the difference between 1K and 1.1K is very negligible, right?

A lot of people, myself included, would be very happy to pay such a small sum for that life. Cheer up. Who knows, may be this time next year your budget will only be $900/mth. Enjoy Thailand.
I increased my budget by $100 or 10% to cover inflation and increased spending on my part. Because of the stronger Baht, I now spend 15% more to compensate for currency changes. The total increase is 26.5% ($15,180 - $12,000) / $12,000.

The real problem is if one has settled abroad and the local currency moves against them then the relative loss of total wealth could be a significant problem.


Quote:
Originally Posted by justin
I've never been to Thailand, but it seems like the folks who live there or have lived there don't think there is much of a problem. Ben, Lance, and the Kaderli's are/have lived there for quite a while. I'm sure there is crime like everywhere else.
Sorry Justin, but you're wrong. All the Thais I've met are blood thirsty thugs. Maybe it's that radical Buddhist religion they follow

If I ever move back to the USA, I'll probably settle in inner Detroit or East LA, totally safe man : My English buddies assure me that there's never ever been a murder in the UK as well

Seriously speaking, I am more worried about being involved in a simple traffic acident (anywhere in the world) than being a crime victim in about 99% of the countries on the planet.

Lance
__________________

Lancelot is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-05-2006, 07:46 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Jun 2005
Posts: 4,005
Re: Stronger Thai Baht...

Quote:
Originally Posted by Lancelot
Seriously speaking, I am more worried about being involved in a simple traffic acident (anywhere in the world) than being a crime victim in about 99% of the countries on the planet.
That's what I'm worried about too. Every year in the US we have ~40,000 motor vehicle related fatalities with millions of non-fatal injuries. And almost all of us drive, so it is definitely something significant to worry about.

Look at Thailand's coup a few months back. Completely peaceful w/ no bloodshed. Just more evidence of the bloodlust of the Thais!
__________________
justin is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-05-2006, 10:22 AM   #17
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Stronger Thai Baht...

Quote:
Originally Posted by Lancelot
I increased my budget by $100 or 10% to cover inflation and increased spending on my part. Because of the stronger Baht, I now spend 15% more to compensate for currency changes. The total increase is 26.5% ($15,180 - $12,000) / $12,000.

The real problem is if one has settled abroad and the local currency moves against them then the relative loss of total wealth could be a significant problem.
Thanks for the clarification. Yep, 26.5% is very significant. That 10% inflation, is that just this year? What was the inflation in 2005, and 2004?

Quote:
Originally Posted by Lancelot
The real problem is if one has settled abroad and the local currency moves against them then the relative loss of total wealth could be a significant problem.
Crazy thought: The purchasing power of the USD is about 3 times as high in Thailand. So, how about keeping 1/3 of your net worth in Thai currency/investment? That way you can withdraw from whichever bucket that is advantageous at the time.

Quote:
Originally Posted by justin
Look at Thailand's coup a few months back. Completely peaceful w/ no bloodshed. Just more evidence of the bloodlust of the Thais!
You're wrong Justin! I followed the news closely. There were several incidences in which a number of people were found arguing violently on whether the coup was a good idea. One person even went so far as spitting on the other person's foot. Savage!
__________________
Sam is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-06-2006, 09:39 AM   #18
Dryer sheet aficionado
 
Join Date: Apr 2006
Location: Chiang Mai
Posts: 42
Re: Stronger Thai Baht...

My dauther is going to school in Thailand and I notice I am sending more and more greenbacks then I use to. Still I feel lucky that collage is much less in Thailand then if I had her here.

My wife is Thai and I can own land in Thailand so it makes it easy for me to live there.

I spend a few weeks in PI and having it only 3 hours away will be so nice.

I guess we will see 35 baht to the dollar soon. Oh well. Come on July 2009. Last month of work.)
__________________
Sendbaht
sendbaht is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-06-2006, 09:46 AM   #19
Dryer sheet aficionado
 
Join Date: Apr 2006
Location: Chiang Mai
Posts: 42
Re: Stronger Thai Baht...

and claire PLEASEEEEE......... what are you talking about?
__________________
Sendbaht
sendbaht is offline   Reply With Quote
Re: Stronger Thai Baht...
Old 12-06-2006, 11:02 AM   #20
Thinks s/he gets paid by the post
 
Join Date: Mar 2006
Location: Houston
Posts: 2,155
Re: Stronger Thai Baht...

Quote:
Originally Posted by sendbaht
My dauther is going to school in Thailand and I notice I am sending more and more greenbacks then I use to. Still I feel lucky that collage is much less in Thailand then if I had her here.
Interesting. I'd like to know more about this if you're willing to share. Will your daughter be back in the US after college? Would her Thai degree helps or hurts (compared to a US degree) if she's to get a professional job in the US. What's the college cost in Thailand?
__________________

__________________
Sam is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
The Thai Weinerschnitzel COLA Index in Thailand... Lancelot Life after FIRE 31 06-26-2007 09:02 AM
Songkran, the Traditional Thai New Year... Lancelot Life after FIRE 22 05-14-2007 11:23 PM
Insult the Thai monarchy at your peril... Lancelot Life after FIRE 3 04-13-2007 12:55 AM
The Ugly Thai... Lancelot Life after FIRE 53 03-20-2007 09:40 PM
Thai Trip Photos MJ Life after FIRE 16 12-07-2005 04:20 AM

 

 
All times are GMT -6. The time now is 01:15 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.