Will things change?

[Masahiko]

Well it looks like Asia's answer to the Euro is really going to happen. Japan, China, South Korea and the 13 ASEAN countries (including Thailand) are going forward with the creation of an Asian Currency Unit.

With the largest economy in the world (China) behind it, it will be interesting to see if it takes off like the Euro did.

Things (prices) could be drastically changing down the road, better plan your trip now.

[stogie bear]

Never gonna happen!

[Guest]

(stogie bear @ Jun. 16 2006,18:19) Never gonna happen!

They said that about the Euro too.

[Guest]

Correction, 4th largest

[Mai-Kee]

Yen & RMB.....?? Not so sure about that, because it wouldn't make sense wihout one of them.....
The ‚¬ can obviously exist without the Sterling.....

[stogie bear]

(ozzie @ Jun. 16 2006,17:25)

(stogie bear @ Jun. 16 2006,18:19) Never gonna happen!

They said that about the Euro too.

The British did!

[Snick]

The problem of course is determining the inital price relative to each country. I therefore propose that we base the exchange mechanism on the APU, Asian Prostitute Unit, using the yen as a baseline we establish that 100 APU = Short time in Tokyo. In Singapore Short time would be about 35 APU, China 20 Apu, and Thailand and PI at about 17 APU.

The APU might also be used for other things like buying food or rent. But who really cares about that.

( The idea of a common currency including China, Taiwan, Japan and S. Korea - sounds nice in theory but IMHO could never be implemented. The players just don't get along. )

[Guest]

World economies 2004

[stogie bear]

(Snick @ Jun. 16 2006,19:02) The idea of a common currency including China, Taiwan, Japan and S. Korea - sounds nice in theory but IMHO could never be implemented. The players just don't get along...

Exactly - and what about India in all this. The main problem is the issue of hegemony.

[Guest]

They don't seem to get along too well in the EU either, Could it be, .. gasp.. the French?

[PigDogg]

If implemeted this would be bad for farang punters.

Aren't places such as Prague now more expensive since the introduction of the Euro?

[stogie bear]

(victorida @ Jun. 17 2006,09:02) They don't seem to get along too well in the EU either,  Could it be, .. gasp.. the French?

The EU gets on very well as economic partners. This why the Euro works well for many of them. The continental Europe is now a 'no-borders' economy. Labor, raw materials, markets and services can go anywhere and do business wth anyone. The 'protectionism' (for good or bad) has all but disappeared.

The Asians have far too many obstacles to cover before they are serious about uniting themselves with a common currency.

Don't forget that the flow of money in Asia isn't decided by a free market economy but by restrictive governments. Sure - the same could be said of some European states but in Europe the states are democratically elected (and booted out!) For the most part they are in league with big business. More importantly they are (at least seen to be) acting with the interests of the economy and not for building up personal wealth. The economics of Europe is generally left to run along quite nicely with minimal interference from the state(s)

Not so with the feifdoms of Asia.

[dummy_plug]

This could happen, but not any time in the next 10-15 years. Inevitably, I think there is a trend toward geopolitical coalitions of power (i.e. USA, Europe, Asia, etc...) that necessitate cross-border cooperation to remain competitive with the Jones of the world.

However, economic, social, and political conditions aren't ripe in Asia for an undertaking of this size. Asia is nowhere near as economically integrated and politically motivated as the EU was when it decided to adopt the Euro and I don't see things changing drastically in the short-term.

[Snick]

There is also the related issue of interest rates, since they have to be the same across the entire zone. This is a problem right now in Europe, Germany with a slow economy should have low intrest rates, and Ireland with a booming economy should have higher rates (to avoid inflation and overbuilding).

Thats Europe, now take Asia. Where China has high interest rates in many regions to avoid over building and speculation, Thailand also has relatively high rates to control real estate and mounting credit card debt; and then there is Japan. which has negative interest rates to try and get out its 10 year slump.

"One size fits all" barely works in Europe (I'm with the Euro==slow growth camp), it would be impossible in Asia ( plus as Stogie mentioned corruption/manipulation is endemic here )

[PigDogg]

In the short term term the dollar shoud rise. But when the Fed stops raising interest rates, then it's time to sell dollars. One way to do this is the Rydex Dynamic Weakening Dollar Fund.