How far would the british pound have to fall before expat brits decided to pack up and return home or decide not to come to Thailand even for a holiday ?
How far would the british pound have to fall before expat brits decided to pack up and return home or decide not to come to Thailand even for a holiday ?
Sterling was strangely overvalued, when judged against balance of payments data, and the Brexit vote was the catalyst that provoked a correction.
There's no compelling argument for a further downward correction, and a distinct possibility of another Asian financial crisis ere long, which would have the reverse effect. However it is hard to know just how deeply Thailand is involved in some of the dodgy banking practices that have been going on in China and elsewhere in Asia - which could blow up at any time..
For Brits living in Thailand the cost of living is so much less that one's life will go on with slight changes, visitors might think twice, the euro will likely be on par with the dollar but expect the pound to be under pressure till Brexit is resolved.
I know of one gay couple who moved here from the UK about a dozen years ago and live on their pensions and a small nest egg. With interest rates since 2008 so low, they have already had to sell their apartment and are in the process of moving yet again from a large rented apartment to a much smaller one. I'm not sure if diversification would have helped them enough to avoid selling the apartment, but their case illustrates the problems of relying on just one currency in retirement.
Those of us with even half an eye on reality could have told you that 13 years of a Labour government spending so high above its means was going to bring one big fuck off come down. It was always always unsustainable.
Thank you racists and little-Englanders for your efforts. Soon, a trade deal with the buffoon who's about to mis-run the USA will lead to the demise of the NHS. We'll be at the mercy of corrupt American Big Business with their disdain for the human rights of anyone who's not rich and white..
I'm lucky; I can continue to travel to Thailand three times a year and to continue the support of my boyfriend. Others aren't so fortunate. So, on behalf of them, thank you racists and little-Englanders. You wanted it, you've got it.
arsenal (January 17th, 2017), Khor tose (January 18th, 2017), scottish-guy (January 17th, 2017)
Could you be more specific ?
llz (January 18th, 2017)
The Labour party run up loads of debts.
Gordon Brown borrowed 3% of GDP per year in the good years, which rose to 11% after the inevitable pop.
Normally the Conservatives would slowly get borrowing back under control and take all the blame for "spending cuts" from the lefties.
The current administration have unfortunately only done half a job of restoring the finances.
However, it was the Labour party which created the mess.
As for Brits living in Thailand, or planning to do so, it has been very obvious that the UK has been borrowing & running up debts. A fall in the pound has been inevitable.
The first way to reduce Sterling risk is to increase the percentage of assets invested in Asia. I made my first modest step on that road in 1992.
Secondly, rather than live high on the hog and have to progressively downsize if/when the pound falls, ask "What will happen if the pound falls by 50% and to what extent do I need to live within my means now to protect the future?"
arsenal (January 17th, 2017)
Brad the Impaler wrote:
"They've been out of power for six years yet it is still all their fault! I think that your politics are clouding your vision, so I suggest that you use more than half an eye!"
It doesn't work like that Brad. Economic policies and decisions taken can have repercussions lasting for decades. Look at the economy Labour inherited and look at that which they bequeathed.
Old git (January 17th, 2017)