Thai Life


Demise of the Pound

The £ falls, the $ dives...

We've been putting off this kind of talk for a long time now, but even the eternal optimism of OTRT has to admit that our homelands of Europe and the USA have serious economic problems.

Back in the good ole' days the £ and $ would get you a plentiful supply of baht for a quality lifestyle. However those days are now ended, a chapter has closed and a new one begins.

It is looking very likely that the once hailed 'Queen of Currencies' the pound is looking at a lasting demise into the realms of being worth 45 baht for 1 pound sterling. (Ed- Currently at about 50 as at 27 11 14)

Time and time again we've heard the rallying chorus from the old guard of expats - The pound will rally, the baht will fall. Somehow though, we've been following the trends, forcasts and outlooks. Our conclusion is that there will be no fall of the baht, nor will the £ rally and somehow return to the dizzy heights of 65 - 70 baht to the £.

The UK economy is in tatters, the manufacturing output is low, the interest rates are almost at zero and look likely to be held at this rate well into next year. As if that was not enough, the lunatics in charge of the country have decided not to let up on the quantitive easing (printing money), this further degrades and weakens the currency.

Now this is not so bad if you like to live in the UK (which looking more and more like a failed island of communism) and don't travel. However we at OTRT life for the travel, the adventure and the experience. It's what we do, the buzz that we 'groove' to you might say. So succumbing to the low-grade lifestyle encouraged by the media-drones, enjoying the prospect of an unhappy service / private sector career on a low-income, being tax'd to the hilt really isn't our thing.

So we'd advise anyone with cash to spare to get it out of the UK ASAP.

For the USA it's a different story, there's a lot to say for the place being too big to fall. Indeed the currency there has fallen nowhere near as much as the UK's has.

A lot of talk has been made of Thailand protecting it's currency via manipulation and possibly even China having a hand in aiding this. While it's certainly true to an extent that this may be the case. The real story is the £ falling more than the baht has been strengthening. Indeed Thailand has been rocked by the Redshirts being on the rampage in Bangkok, uncertainty in the tourist markets yet the baht remains afloat and their massive exports market, while surely benefitting from a weaker baht, shows no signs of slowing down.

Contrast this to the UK which exports relatively little outside of high-end arms sales, City of London banking, oil and gas plus a few cars (the market for which is slowing down). If you ain't in that, you ain't in the club.

Sorry to say folks that OTRT is waving a sorry farewell to Euroland and now basing itself more on a Thailand footing in these uncertain times...

This section is compiled by the OTRT crew.

Copyright OTRT

Chang Mai Province Phitsanulok Bangkok Koh Tao Koh Pang Yan Koh Samui