Say it isn’t so.

34.17 Baht to the Dollar.

It could get even worse.

The Thai Baht closed against the US Dollar at its highest rate since the 1997 collapse of the national currency. A Security VP has cautioned the government that the baht’s appreciation is dangerous, due to the lack of economic restrictions on predatory currency speculation and if the bank of Thailand allowed the baht to follow market forces, it would probably hit 30 baht to the dollar. The baht is also gaining on the Euro, Yen, and Pound Sterling.

This drop from last year’s 40 baht to the dollar has hurt exporters and financial analysts reckon the loss in tax revenues will top 3 billion baht. All sectors of the export industries are affected by the strong baht, yet the BOT doesn’t deem the situation as critical, since other Asian currencies are rising against Western capital.

This also happened in 1997, however everyone around the world is trying to dump a weak dollar. No one else wants them and the biggest dumper has to be China. Prices especially in the real estate market are adjusting to the current trend, where the Park Condo in Bangkok is offering a three bedroom for a million dollars.

No haggling.

The dollar has flooded the Bangkok stock exchange, pushing the SET to new record highs. Investors are undaunted by the political instability or the insurgence in the south. Getting caught with a bag of dollars scares them more and Americans aboard can thank the economic geniuses behind the Bush regime for their shortfall in income.

Especially ex-Treasury Secretary John Snow.

“Cheap dollar, more exports.”

Except the USA doesn’t make anything anymore.

So what are the chances of the Baht hitting 30 to the dollar?

I just flipped a coin in called heads.

It came up tails.

Happy Fourth of July

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