baht: 13 years high

[Guest voldemar]

I just noticed that Baht riched 30.22 per US dollar. This is the highest level since 1997 crisis. While the reasons may be complicated , one component is obvious: general weakness

of US dollar.

Economically and politically speaking, the situation in US continues rapidly deteriorate.

November elections, in my opinion, will be the last possibility to stop the slide to abyss.

I at least hope that everybody will consider to vote.

[Guest lvdkeyes]

My ballot was mailed yesterday.

[KhorTose]

November elections, in my opinion, will be the last possibility to stop the slide to abyss.

I at least hope that everybody will consider to vote.

 

I am afraid our last chance to stop this slide passed with the 2000 election of Bush. It will take a long time before our country can recover from that disaster.

[Guest aot87]

This is not ment to be bitchy but please dont assume that every body that reads this forum is from the USA

[Guest voldemar]

I am afraid our last chance to stop this slide passed with the 2000 election of Bush. It will take a long time before our country can recover from that disaster.

I would love to discuss political ramifications of coming elections but after all this forum is about Thailand not USA. I actually do not suggest that people should vote along any party line. There are very reasonable people on both sides of the ile. I suggest to look what congressman Ryan (Rep) proposes. On the other hand, I saw very reasonable interview of a Democrat from New Jersey. The problem is the country has no long time to recover. Do not look back. The current madness in Washington should be stoped right now.

I hope that all expats (following Lvdkeys lead) go ahead and cast their votes.

[Guest beachlover]

Would you guys vote Republican or Democrat?

[Guest voldemar]

Would you guys vote Republican or Democrat?

I will vote for Republican in my Congress district. My current congressmen is Democrat and pretty reasonable guy. However, I cannot vote for him based on his record.

In particular, he voted for absolutely crazy provision which requires filing so-called 1099 form to IRS each time the sale is made in the amount of more than 600 Dollars

(or several sales with cumulative amount exceeding 600 dollars). While it will increase Government burocracy, it will most probably bankrupt substantial amount of small businesses. Recently Senator Nelson (Dem) tried to amend this provision to 5000 US but failed (due to his party colleagues)

With actual unemployment in the country at the level of 20 percent, with coming insolvency of several states (starting with California), you ask yourself who can afford these crazy games. The problem is that many people simply do not know what their "representatives" are actually doing in Washington...

Baht continues to rise. I personally do not care much (and always can tap my Aussi Dollar account). For others it should be a real pain... Do not forget though when the serious financial crisis hit the country, no American will be able to escape...

[Bob]

In particular, he voted for absolutely crazy provision which requires filing so-called 1099 form to IRS each time the sale is made in the amount of more than 600 Dollars

(or several sales with cumulative amount exceeding 600 dollars).

 

I'm curious what provision you're actually talking about there.

 

There's been an IRS requirement ever since I was in business (mid-70's) that requires the annual filing of 1099 forms (essentially the same forms you file for employees) for anybody you've paid $600.00 during that year for services (like payments to a lawyer or payments to somebody regularly engaged to do your lawn - in short, for what we would call "independent contractors"). The purpose of the provision, of course, is to make sure that the person receiving those funds actually reports the income to the IRS and pays taxes on that income.

 

Is there another provision out there that you're talking about?

 

In answer to BL's question, I've never voted a straight ticket as I pick and choose who I want from either party. I've always considered that people who walk into a voting booth in the US and who simply mark one box (Republican or Democrat) are intellectually lazy voters (espepecially given that both of those parties seem to have their share of absolute worthless creeps); that being said, I've probably ended up choosing the democratic candidate for a given office about 80-90% of the time since I've started to vote.

[Guest voldemar]

I'm curious what provision you're actually talking about there.

 

There's been an IRS requirement ever since I was in business (mid-70's) that requires the annual filing of 1099 forms (essentially the same forms you file for employees) for anybody you've paid $600.00 during that year for services (like payments to a lawyer or payments to somebody regularly engaged to do your lawn - in short, for what we would call "independent contractors"). The purpose of the provision, of course, is to make sure that the person receiving those funds actually reports the income to the IRS and pays taxes on that income.

 

Is there another provision out there that you're talking about?

 

 

Yes. In previuos provision corporations were exempt. The new one was added to health care bill. It is a huge burden especially on small businesses in terms of additional paperwork. See e.g.

http://www.entrepreneur.com/money/taxcenter/taxpertisecolumnistbonnielee/article207404.html

[Guest beachlover]

Fair enough... I don't know much about American politics but from what I see, I like the democrat's more liberal social equality/acceptance policies and feel they are less susceptible to being dickheads foreign policy. I kind of feel the republicans are better for business/economy but not sure if this is the reality, especially with Bush's track record. Republicans are also more prone to being loud and proud about their ridiculous christian beliefs... evangelicals and such.

 

On the other hand, Arnold Schwarzenegger is a republican and I like him LOL.

[Guest voldemar]

Bloomberg.com shows exchange rate 29.98 per US Dollar. First time (since 1997) below 30 Baht. Gold-1342 US per ounce. This is nominally speaking all times high...

[Guest lvdkeyes]

 

 

On the other hand, Arnold Schwarzenegger is a republican and I like him LOL.

Arnie has a strong wife who is very much a Democrat. That may temper his politics a bit.

[Guest voldemar]

Arnie has a strong wife who is very much a Democrat. That may temper his politics a bit.

My understanding that you are (former) Californian. Do you get State pension?

I am asking because several observers who were quite accurate in their forecasts in the past predict California bankrupcy within 12 monthes.

[Guest beachlover]

Arnie has a strong wife who is very much a Democrat. That may temper his politics a bit.

Yeah, I'm aware he is one of the most moderate republicans. He is even quite vocal about supporting gay rights etc. Good on him!

[Guest beachlover]

I think most Westerners are going to need to get used to their currency not buying as much overseas as it used too... more and more so.

 

It's likely, a couple of decades from now, if not sooner, Asian countries will be on par with Western countries in terms of wealth and buying power. I wonder if it will ever be the other way around... that would be very weird.

[Guest lvdkeyes]

Do you get State pension?

 

Yes, I do get a state pension.

[Guest]

I think most Westerners are going to need to get used to their currency not buying as much overseas as it used too... more and more so.

 

It's likely, a couple of decades from now, if not sooner, Asian countries will be on par with Western countries in terms of wealth and buying power. I wonder if it will ever be the other way around... that would be very weird.

 

Absolutely. Some Asian countries are already on a par with the west for wealth. High education standards, low taxes and work ethic see to that.

People don't get wealthy & stay wealthy by borrowing money to spend on imported goods, as many western countries seem to do so. Of course Thailand will be held back to some extend by corruption. Education standards may be a factor.

 

As for currency movements, anyone planning for retirement in Asia should be assembling a portfolio of Asian assets to fund that retirement.

[Guest voldemar]

 

 

As for currency movements, anyone planning for retirement in Asia should be assembling a portfolio of Asian assets to fund that retirement.

That is,of course, generally speaking very good idea. The problem is that we tacitly assume that US demise will be ordered and slow. Unfortunate thing is that Americans ( I deliberately do not want to generalize to the whole Western world) loose more and more of their economic freedoms. Since various governmental deficits (both on Federal and State

levels) become more and more unsustainable, government bureaucrats become more and more desperate to get hold on private funds. There are clear indications that private retirement

plans are not safe. It is more and more difficult for Americans to have offshore accounts.

It is only natural to assume that more restrictions are coming including investments in overseas markets. Since Americans still possess a lot of private wealth (40 percent of all investors are Americans) these growing restrictions may in turn effect global capital markets.

Let us hope that world rearrangement will be orderly and smooth. But for that, profound changes in America are absolutely necessary.

[Bob]

There are clear indications that private retirement plans are not safe. It is more and more difficult for Americans to have offshore accounts.

 

While I agree that the US has to put its fiscal house in order, there's no problem at all with private retirement plans (at least with IRA's, 401k's, deferred compensation accounts, or any portion of defined benefit plans that are self-funded). There are a few (very few) underfunded defined benefit plans but even that's not much of an issue given there is government insurance to back most if not all of those. Given that, I am curious about what you claim are "clear" indications that these private pensions are unsafe.

 

As to offshore accounts, no problem in getting one at all. The only difference these days is that you have to annually report them (if they hold more than 10k US at anytime during the year) to the Treasury Department.

 

I'm curious as to what restrictions you assert exist as to offshore accounts or "coming" restrictions in investing in overseas markets. I'm aware of none and I've read about no plans to have any.

[Guest voldemar]

While I agree that the US has to put its fiscal house in order, there's no problem at all with private retirement plans (at least with IRA's, 401k's, deferred compensation accounts, or any portion of defined benefit plans that are self-funded). There are a few (very few) underfunded defined benefit plans but even that's not much of an issue given there is government insurance to back most if not all of those. Given that, I am curious about what you claim are "clear" indications that these private pensions are unsafe.

 

As to offshore accounts, no problem in getting one at all. The only difference these days is that you have to annually report them (if they hold more than 10k US at anytime during the year) to the Treasury Department.

 

I'm curious as to what restrictions you assert exist as to offshore accounts or "coming" restrictions in investing in overseas markets. I'm aware of none and I've read about no plans to have any.

You talking about current situation but you are not aware what is cooking.

For starters I recommend the following article:

http://www.lewrockwell.com/holland/holland12.1.html

The Nationalization of pension plans was implemented in Argentina with devastating

consequences for retires. Regarding offshore accounts, wait till 2013 when the so-called Hire act is supposed to be fully implemented. That is already the law.

[Bob]

Rather than be repetitious, what I wrote above is accurate - there is no problem with the private pension funds, there is no problem with getting an offshore account, and there are no plans on the table to have the US government mess with those private pensions funds. So, other than that, your comments may be correct....

 

I'd recommend you don't view Ron Holland as some economic guru as he isn't. And, in my view, he doesn't know what he's talking about. His notion that some suggestion by a low-level staffer about a new and additional type of annuity-retirement account would be either adopted by the US government in the next many years or that such a new item would be mandatory is pure poppycock.

[Guest]

That is,of course, generally speaking very good idea. The problem is that we tacitly assume that US demise will be ordered and slow.

 

I wasn't thinking just about the US demise. I view the UK as being in a similar position in certain respects -certainly with regard to government deficits, consumer deficits and printing the currency like it's toilet paper.

 

Obviously there's an element of risk with UK pension plans. However, currently we can still transfer our plans to a qualifying overseas fund, which may be in a low tax country. If the underlying pension fund assets are shares in Asian stock markets, that provides some level of cover against depreciation of the

[Guest voldemar]

Rather than be repetitious, what I wrote above is accurate - there is no problem with the private pension funds, there is no problem with getting an offshore account, and there are no plans on the table to have the US government mess with those private pensions funds. So, other than that, your comments may be correct....

 

I'd recommend you don't view Ron Holland as some economic guru as he isn't. And, in my view, he doesn't know what he's talking about. His notion that some suggestion by a low-level staffer about a new and additional type of annuity-retirement account would be either adopted by the US government in the next many years or that such a new item would be mandatory is pure poppycock.

I wonder whether you know who is Ron Holland....

You are entitled to your opinion, of course...I also wonder how do you know what are Obama plans regarding private pension funds... The proposal was in fact in Byden's commission report. There was a strong reaction by GOP to this proposal.Unless you consider Byden a low-level stuffer, you are may be correct....

Let us return to the issue of offshore accounts. I discussed provisions of Hire act with several US attorneys who are specialized on Assets protection and two international bankers and they think it will be very difficult for Americans to have offshore accounts after 2012. But you do not need to take my word for it. If you are currently in Thailand, consider a short trip to Singapore. Check out with any major bank. I personally checked it with DBS, HSBC,Standard Chartered and CITIBANK. As an American citizen at the moment you will have no problem with opening a retail account.

However, they will not allow you to open brokerage account or make any investments with them (except for term deposits). The question is why? It is not illegal for an American to have offshore brokerage account. The answer is in current US legislation. All mentioned banks have the so-called QI status with Department of Treasure. That, in particular, mean that they suppose to perform certain services for IRS (e.g. tax withholding from brokerage accounts) and the cost of performing these services makes it too expensive for them to maintain brokerage accounts for US citizens. In the Hire act offshore financial institutions are supposed to do similar (and in some cases more stringent) things for IRS for retail accounts if they enter new agreement. Therefore, it is broadly expected that vast majority of offshore banks will dump US customers.

To some extent, it is similar to what Patriot act did to US expats: many US brokerage firms closed their accounts. Tim Geitner recently explained that there is nothing (legally speaking) in Patriot act which prevents US expats to have brokerage and bank accounts in US except for it is expensive for banks and firms to maintain such accounts and satisfy Patriot act provisions. (To be fair Patriot act was enacted under Bush and has nothing to do with Obama administration).

I have to say that I somewhat simplified the real situation but, of course, Hire act is in public domain and everybody is welcome to read it (Not easy!).

It is probably worth mentioning here that I make this post not for the sake of discussion with Bob. Bob knows very little about subject matter but nevertheless entitled to his opinion. I hope that people will start paying attention. Legally, these new provisions are quite complicated. They are delayed in time. But when they are fully enacted, their consequences will be quite substantial for all Americans, including expats.

[Bob]

It is probably worth mentioning here that I make this post not for the sake of discussion with Bob. Bob knows very little about subject matter but nevertheless entitled to his opinion.

 

Rather than return the compliment, it would indeed be very wise for people to read what you wrote and also read the article that you linked which allegedly supported your contention that private pension funds in the US were somehow unsafe, that there were plans in the offing to mess with those private pension funds, and that there is some prohibition for a US citizen to open and maintain an offshore account. Then those readers can easily make up their mind as to who, as you describe, knows very little about the subject matter.

[Guest voldemar]

that there were plans in the offing to mess with those private pension funds, and that there is some prohibition for a US citizen to open and maintain an offshore account. Then those readers can easily make up their mind as to who, as you describe, knows very little about the subject matter.

Of course, I never said any of that. We are, Bob, in different leagues: I have an expertise, give precise references and facts. You talk jibberish as usual. Simaltaneously, you are scared as others because what is coming is not pretty. You, obviously try to learn from me. What is really disgusting is you then try to distort everything I say. The thing is it is not about you: it is about coming elections which are probably the most important in recent American history and I hope Americans will make the right choice.