Money matters

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Money matters

Postby MGV12 » Thu Oct 14, 2010 12:38 pm

Dozer has quite rightly closed the 'Money Transfers' thread as the recent discussions were no longer related to the OP's subject.

Those discussions do need a place to be aired and addressed ... so that's the purpose of this thread:

Anything generally to do with money that does not really justify its own thread .... exchange rates ... cost of living ... etc etc

NOT Material Prices & Building Costs, nor Buying Land or Houses as there are already forums covering those.

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The price of gold rockets to a record high

Postby MGV12 » Thu Oct 14, 2010 12:49 pm

Hope those of you who were astute enough to invest in gold feel smug now :mrgreen:

http://www.bangkokpost.com/breakingnews ... high-point

Unlikely it will ever drop back to the price it was when our 'astute' Chancellor of the Exchequer Gordon Brown sold off half of the UK's gold reserves!
Even though many 'less clever' folk said NO! DON'T DO IT!

http://www.telegraph.co.uk/news/newstop ... llion.html

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Re: Money matters

Postby Roger Ramjet » Thu Oct 14, 2010 1:17 pm

I also see the Australian dollar is now trading higher than the US dollar..(Financial Section, BP).. this means Australia will be asked to buy, hum, say a complete "star wars" program to protect the top end of Australia from...err..flying crocodiles?
The Canadian dollar is also knocking on the door, so it looks as though they can start selling "hard" water to the US at a profit again.
Congrats on a new thread MGV12.
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Re: Money matters

Postby BKKBILL » Thu Oct 14, 2010 3:13 pm

Yes quite easy to wander. :oops:

Back to exchange rates. Seem the USD is still dropping in value. And of course that puts up oil. If a basket of currencies were used the drop would be even greater.

Here are the screen shots.
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Re: Money matters

Postby MGV12 » Thu Oct 14, 2010 3:24 pm

As the THB is, theoretically at least, tied to the USD that should have a favourable effect on our rate if it carries on .... right?

Even the GBP which is back over US$1.60 :?

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Re: Money matters

Postby BKKBILL » Thu Oct 14, 2010 4:35 pm

MGV12 wrote:As the THB is, theoretically at least, tied to the USD


Don't know if this would be classed as tied to.

Think something something cliff would be more appropriate.
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Re: Money matters

Postby BKKBILL » Thu Oct 14, 2010 4:38 pm

Oh! That is a two year chart. :)
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Re: Money matters

Postby MGV12 » Thu Oct 14, 2010 4:57 pm

BKKBILL wrote:
MGV12 wrote:As the THB is, theoretically at least, tied to the USD


Don't know if this would be classed as tied to.

Think something something cliff would be more appropriate.


Yes that was a tad tongue in cheek ... it's just that often you read that it's tied in some way but it never actually appears to follow.

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None of it makes sense to you?

Postby MGV12 » Fri Oct 15, 2010 9:34 am

.
You really don't understand how money markets work?

See if this 'Idiots Guide' to one sector helps:



An Easily Understandable Explanation of the Derivative Markets


Heidi is the proprietor of a bar in Detroit. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronize her bar. To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later. She keeps track of the drinks consumed in a ledger; thereby granting the customers loans.


Word gets around about Heidi's "drink now, pay later" marketing strategy and, as a result, increasing numbers of customers flood into Heidi's bar. Soon she has the largest sales volume for any bar in Detroit.


By providing her customers freedom from immediate payment demands Heidi gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Heidi's gross sales volume increases massively.


A young and dynamic Vice President at the local bank recognizes that these customer debts constitute valuable future assets, and increases Heidi's borrowing limit. He sees no reason for any undue concern, since he has the debts of the Heidi's customers as collateral.


At the bank's corporate headquarters, expert traders transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then bundled and traded on international security markets. Naive investors don't really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics.


Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation's leading brokerage houses.


One day, even though the bond prices are still climbing, a over-zealous new risk manager at the original local bank charged with reducing the banks exposure decides that the time has come to demand payment on the Heidi's debts. He so informs Heidi.


Heidi then in turn demands payment from her patrons but, being unemployed alcoholics, they cannot pay back their drinking debts. Since Heidi cannot fulfil her loan obligations she is forced into bankruptcy. The bar closes and the eleven employees lose their jobs.


Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The collapsed bond asset value, rather than reducing its exposure, destroys the banks liquidity and prevents it from issuing new loans; thus freezing credit and economic activity in the community.


The suppliers of Heidi's bar had granted her generous payment extensions and had also invested their firms' pension funds in the various BOND securities. They find they are now faced with not only having to write off her bad debt but also with losing over 90% of the presumed value of the bonds. Her wine supplier claims bankruptcy, closing the doors on a family business that had endured for three generations, and her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.


Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multi-billion dollar, no-strings attached, cash infusion from their cronies in Government. The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Heidi's bar.


Now do you understand how things really work?

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Re: Money matters

Postby Roger Ramjet » Fri Oct 15, 2010 3:11 pm

MGV12,
Excellent explanation.
I tried finding one for Google and how, even though it sells nothing, is worth billions of dollars.
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Re: Money matters

Postby BKKBILL » Fri Oct 15, 2010 4:51 pm

SET index closed at 997.15, up 3.43; Bt/USD29.69; GBP47.44; AUD29.44; EUR41.70; CAD29.53; HKD3.82; SGD22.79; JPY36.36
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Re: The price of gold rockets to a record high

Postby MrRee » Sat Oct 16, 2010 5:58 am

MGV12 wrote:Hope those of you who were astute enough to invest in gold feel smug now :mrgreen:

:lol: Life is certainly good these days...
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Re: Money matters

Postby MGV12 » Sat Oct 16, 2010 6:35 am

"The runaway train came down the track and she blew,
The runaway train came down the track and she blew,
The runaway train came down the track, her whistle wide and her throttle back,
And she blew, blew, blew, blew, blew.

The engineer said the train must halt and she blew,
The engineer said the train must halt and she blew,
The engineer said the train must halt -- he said it was all the fireman's fault,
And she blew, blew, blew, blew, blew.

The conductor said there'd be a wreck and she blew,
The conductor said there'd be a wreck and she blew,
The conductor said there'd be a wreck and he felt the chills run up his neck,
And she blew, blew, blew, blew, blew."


http://www.bangkokpost.com/business/eco ... ry-prasarn

http://www.bangkokpost.com/breakingnews ... or-us-woes

.......... don't see how this can all end without a lot of tears!

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Gravity ... one law that cannot be broken

Postby MGV12 » Sat Oct 16, 2010 9:30 am

MGV12 wrote:Hope those of you who were astute enough to invest in gold feel smug now :mrgreen:


MrRee wrote: :lol: Life is certainly good these days...


Just the thoughts of an average guy ......

Investing in gold is no crime, many of us wish we had, but after decades of stagnation in the gold market the sudden rise in value did have all the makings of a bubble that would inevitably burst ... like housing and Dot Coms ... whatever man sends up will inevitably come down. After all, gold is basically just a pretty piece of the Earth's crust that can be turned into nice jewellery and is only otherwise of value due to supply/demand and manipulation. Buying gold has so far proven to be an astute move and whilst it is currently riding the crest of a wave those who bought some have every reason to be happy .... morally however, exhibiting smugness about it would be indicative of the growth of the 'me' culture and the decline of the honest days work for an honest days pay culture that most of us grew up with.

Definition of SMUG: Exhibiting or feeling great or offensive satisfaction with oneself or with one's own situation; self-righteously complacent

These are difficult times for many who have started or hope to start realising their dream of building in LOS ... only to have their plans delayed, diluted or even scuppered by currency exchange rate problems. So sad that we live in a time where the rich amongst us have an excessive and often obsessive need to get richer and richer at the expense of others ... it's way past a question of need ... it's the reality of greed. There are some mega-rich philanthropists out there but many of them only do it for tax reasons or to gain publicity .... and anyway, who gave them the right to rob 'us' of our hard-earned money even if they do then distribute some to their choice of 'needy cause'? Even Robin Hood only stole from the rich ... not the average guy.

I can't see an end to all the financial manipulation of markets and there is little doubt in my mind that we haven't seen the back of this global crisis; it will be a long time before the ripples die away and an 'after-shock' is a real possibility .... after all the world needed a good shake-up ... but this apparently hasn't been enough to bring a level of sanity back to the world as the rich are just finding somewhere/something else to exploit ... which is part of the reason why the Thai Baht is under an unsustainable pressure due to foreign investment flooding into the country. It won't be long before 'Short Sellers' arrive.

Definition of Short Selling: http://www.investorwords.com/4556/short_sale.html

I can only hope that those of you adversely affected find a way to make it through to realise your dream .... and encourage you to make that extra effort to do so. There are some great examples on CTH of those who have built/are building some lovely homes on a very modest budget. It's all down to the variables: the location and size of plot ... the contractor or team you employ ... self-involvement [hands on?] ... buying your own materials/fittings? ... the quality of those materials and fittings [standard through to luxury] ... which aspects are 'wants' and which are 'needs'.

Thailand is still a great place to be and worth the effort ..... best wishes to all and don't forget to tell us all about it ...
the good, the bad and even the ugly ... with lots of pics of course!

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Re: Gravity ... one law that cannot be broken

Postby fredlk » Sat Oct 16, 2010 9:47 am

MGV12 wrote:best wishes to all and don't forget to tell us all about it ... the good, the bad and even the ugly ... with lots of pics of course!

I am doing exactly that. I only wish that more of you would do the same. :wink:
MGV12 wrote:I can only hope that those of you adversely affected find a way to make it through to realise your dream ....

My extra variable at the moment is the Dutch Internal Revenue.
They are trying to claim 10,000 Euro in back taxes from me, a kind of penalty for emigrating and leaving them stranded with their unpaid bills.
I want it reduced to 5,000 Euro and I'm willing to call it quits. 5,000 Euro is all my windows and glass for this first house. :?
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