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In a recent article from The Telegraph author Ambrose Evans-Pritchard analyzed how Federal Reserve policies impact emerging markets. It is a very interesting article for anyone (especially expatriates living abroad) interested in understanding how Fed policy reverberates in markets outside of the United States. Of particular interest to expats living overseas was the analysis of the disproportionate impact Fed policy has on foreign nationals residing in other countries. Although the aforementioned article would seem primarily targeted  at a British audience, as an American expatriate living in the Kingdom of Thailand, I found this information compelling. Evans-Pritchard cited an assertion from Mirza Baig of BNP Paribas noting that foreign nationals bear significant currency risks in some of the nations in Southeast Asia. In Thailand, it appears that foreigners bear currency risks of 81%, while those expatriates living in Malaysia and India bear 90% and 74% risk, respectively. I have  dealt with the vicissitudes of currency fluctuation many times during my tenure in Thailand as the exchange rate between the Thai Baht and the US Dollar was around 39-1 when I first arrived in the Kingdom. Since then, I have seen the exchange rate fall (or rise depending upon your perspective) to around 27-1 and re-stabilize around 30-1. As of the time of this writing, the Baht-Dollar exchange rate stands at approximately 31-1. However, many are speculating that the Baht will lose value against the dollar in the coming months. This would likely be due to the perception that the Fed may begin to implement a kind of belt tightening after years of promoting liquidity.

Unlike times past, the actions of the Fed have increasingly serious implications in emerging markets. As the article noted, in the past when the Federal Reserve Chairman Paul Volcker tightened up his belt, there were substantial ramifications in South America and elsewhere. The negative aspects of those policies on South American economies was containable. However, this was at a time when China was virtually isolated, and the Soviet Union did not really factor into the any analysis of the economic interactions between countries in the “Free World”. Meanwhile in the 1990′s Federal Reserve policies could negatively impact global economics more than before that period, such negative implications were still containable since there was a “power ratio” of around 1:2 between the United States economy and the emerging markets. This is no longer the case as the relationship has basically equalized. Should Fed policies have a substantial negative impact on the emerging markets, then the problem may not be contained within those markets and the economic problems could easily (and quickly, if there is anything to be learned from the financial crashes of the past decade) spill over into Western Europe and America.

In American politics, one cannot read articles and information regarding the United States’ stance on Southeast Asia without seeing the words “pivot”. The Obama administration has consistently noted that the U.S. wishes to see American foreign policy “pivot” to a more solid relationship with the nations in the Asia-Pacific region and those comprising the Association of Southeast Asian Nations (ASEAN). In fact the P-word has been cited in connection to the visit to Southeast Asia by the American Secretary of Defense. However, in light of recent events in the economic sphere it would appear that ASEAN countries and Thailand specifically may be “pivoting” themselves. For example, at the recent meeting between the Foreign Ministers of ASEAN and the Foreign Minister of China it was noted that Sino-ASEAN trade increased five times compared to ten years ago. As of 2012, trade between China and ASEAN stood at approximately $400 billion. Clearly, China is becoming an increasingly important trading partner and in light of the fact that ASEAN and Thailand may not wish to be at the mercy of the Fed’s whims, further solidifying this relationship may prove to be an effective method for ASEAN nations to mitigate negative side effects caused by economic policies of both China and the United States.

In a recent interview, the Prime Minister of Thailand, Yingluck Shinawatra, articulated a desire to see further investment in Thailand from China and supported such an investment due to Thailand’s position as the “strategic center” of ASEAN. “Thailand will be spending about 66 billion U.S. dollars in infrastructure. Especially, we will need the technology that China has, like high speed train,” Mrs. Yingluck stated. “And we know that the high-speed railway connecting Thailand and China will run from Thailand through Laos to China. So it will be an important part of Chinese investment in Thailand”. As the deadline for ASEAN integration comes ever closer it seems logical to assume that Thailand, the ASEAN jurisdictions, and China will all see a closer economic relationship begin to blossom. How this relationship will impact both diplomatic and trade relations with the United States remains to be seen, but American economic policy makers should be aware that the era of America being able to set economic and monetary policy with little thought to the implications in emerging Asian markets has passed.

Tags: ASEAN, ASsociation of Southeast ASian Nations, China, China-ASEAN trade, currency exchange, expatriate currency issues, Federal Reserve Chairman Paul Volcker, high-speed railway, Laos, Malaysia, Thailand, United States, Yingluck Shinawatra
Posted in American Business, ASEAN Business, China Business, Laos Business, Malaysia Business, News, Thailand Business, US Business | No Comments »

It recently came to this blogger’s attention that an 11th Circuit Court of Appeals decision apparently found certain sections of the law enacting American health care reform to be unconstitutional. In order to provide further details this blogger is compelled  to quote directly from an article written by JENNIFER HABERKORN and posted to the website of Politico, Politico.com:

The 11th Circuit Court of Appeals on Friday ruled that the health care reform law’s requirement that nearly all Americans buy insurance is unconstitutional, a striking blow to the legislation that increases the odds the Supreme Court will choose to review the law…The 2-1 ruling marks the first time a judge appointed by a Democrat has voted to strike down the mandate. Judge Frank Hull, who was nominated by former President Bill Clinton, joined Chief Judge Joel Dubina, who was appointed by George H.W. Bush, to strike down the mandate…

The administration of this blog asks interested readers to click upon the relevant hyperlinks noted above to read this interesting and insightful article in its entirety.

Where governmental officials impose restrictions upon individual rights there may be an argument that said activity violates the United States Constitution. Meanwhile, it remains to be seen whether this case will be appealed to the United States Supreme Court and, if it is appealed; whether the Supreme Court will grant Certiorari. Even if the Supreme Court opts to review the matter it is difficult to speculate as to their decision since Supreme Court decisions should never be considered foregone conclusions. Hopefully the ultimate decision in the matter benefits all concerned while remaining in compliance the the law and principles of the United States Constitution.

In news pertaining to the Association of Southeast Asian Nations (ASEAN), it recently came to this blogger’s attention that the Deputy Secretary-General of ASEAN for ASEAN Economic Community was noted for comments regarding ASEAN’s perspective on economic issues in the United States and Europe. To provide further elucidation on these developments it is necessary to quote directly from the website MYSinchew.com:

MANADO, Indonesia, Aug 12 (Bernama) — The Association of Southeast Asia Nations (Asean) learns a lot from debt crisis in Europe and the United States, looking ways to avoid such disaster, a high-ranking official at the Asean Secretariat told Xinhua news agency in an exclusive interview on the side lines of Asean Ministers Meeting in North Sulawesi provincial capital city of Manado. Deputy Secretary-General of Asean for Asean Economic Community Sundram Pushpanathan said that in term of the current situation in Europe, Asean has agreed to stay vigilant. “After experiencing two crises in the region (in the past), ASEAN recognizes the importance of coordination of policies and keeping each other informed, so that the region stays stable in the situation. And of course, I think that from the EU, we have learned a lot of lesson,” he said…[sic]

This blogger asks readers to click upon the hyperlinks noted above to read this article in detail.

Many of the jurisdictions which comprise ASEAN (Brunei Darussalam, Cambodia, Indonesia, Laos, Myanmar, Philippines, Singapore, Thailand, Malaysia, and Vietnam) have shown strong growth in economic terms. Meanwhile, further integration facilitated by trade is likely to lead to further economic advantages for the ASEAN region in the coming months and years. Discussion regarding a unified ASEAN visa could result in tangible benefits to business travelers and those wishing to streamline regional business operations.

For information about legal services in Southeast Asia please see: Legal.

Tags: 11th Circuit Court of Appeals, ASEAN, ASEAN Economic Community, Asean Ministers Meeting, ASEAN region, Asean Secretariat, ASEAN Visa, Association of Southeast Asia Nations, Brunei Darussalam, business travelers, Cambodia, Chief Judge Joel Dubina, Deputy Secretary-General of Asean for Asean Economic Community Sundram Pushpanathan, EU, European Union, George H.W. Bush, health care reform law, Indonesia, Judge Frank Hull, Laos, Malaysia, Manado, Myanmar, North Sulawesi, Philippines, President Bill Clinton, Singapore, streamline regional business operations, Thailand, unconstitutional, United States, United States Constitution, United States Supreme Court, US, Vietnam
Posted in ASEAN Business, ASEAN Visa, US Citizenship, US Constitution | No Comments »

It recently came to this blogger’s attention that officials from the jurisdictions which comprise the Association of Southeast Asian Nations (ASEAN) are being encouraged to implement the ASEAN Economic Community (AEC) Blueprint. In order to provide further insight into these developments it is necessary to quote directly from a fascinating article posted to the Live Trading News website, LiveTradingNews.com:

The Association of Southeast Asian Nations (ASEAN) Wednesday was urged to implement the ASEAN Economic Community (AEC) Blueprint 2015 timely. “This year’s ASEAN Economic Ministerial meeting takes place at a critical juncture when there is so much uncertainty about the global economy given the fiscal situations in the United States and members of the European Union. From Indonesia’s perspective, it is imperative that ASEAN implements the AEC Blueprint 2015 on time as this will bring benefits to all of its members and allow ASEAN to grow together with our dialogue partners,” said Indonesian Trade Minister Mari Elka Pangestu…

Readers are encouraged to click upon the relevant hyperlinks noted above to read this article in detail.

Those who read this web log with any frequency may be aware of the fact that there have been many significant developments pertaining to the Association of Southeast Asian Nations (ASEAN). One major announcement, from this blogger’s perspective, was the broaching of the subject of a possibly unified ASEAN visa similar to the Schengen visa scheme currently utilized in Europe. Concurrently, in the context of the Kingdom of Thailand; there has been discussion surrounding the idea of creating Thailand Plazas throughout the ASEAN jurisdictions in order to promote Thai business interests in the region. With respect to geopolitics, ASEAN has been in the news recently as this organization seems poised to eventually promulgate a formal declaration with respect to freedom of navigation in the South China Sea. How such matters will ultimately evolve remains to be seen.

In news pertaining to United States immigration, it recently came to this blogger’s attention that the Governor of the sovereign State of Arizona has petitioned for Supreme Court review of that State’s recently enacted immigration law. In order to provide further insight it is necessary to quote directly from the official website of Politico, Politico.com:

Arizona Gov. Jan Brewer announced late Wednesday she has filed a petition asking the Supreme Court to consider her state’s appeal to a lower court ruling that put on hold key parts of Arizona’s anti-illegal immigration law. “I am hopeful that the U.S. Supreme Court will choose to take this case and issue much-needed clarity for states, such as Arizona, that are grappling with the significant human and financial costs of illegal immigration,” Brewer said in a statement released by her office. “For too long the Federal government has turned a blind eye as this problem has manifested itself in the form of drop houses in our neighborhoods and crime in our communities. SB1070 was Arizona’s way of saying that we won’t wait patiently for federal action any longer. If the federal government won’t enforce its immigration laws, we will.” Brewer, a Republican, vowed this spring to take the case to the high court after a ruling by the 9th Circuit Court of Appeals rejecting her motion to throw out a district court’s ruling that blocked implementation of parts of the law. The deadline to do so was Wednesday…

This blogger asks interested readers to click upon the relevant links above to read this article in detail.

As noted previously on this web log, the powers related to immigration and often wielded by the federal legislature and the federal executive are plenary in nature as immigration is one of the relatively few areas in which the United States federal government maintains virtually unfettered seemingly exclusive jurisdiction. That stated, how said jurisdiction interrelates with reserved States’ Rights and prerogatives is an interesting and almost interminably unsettled question. Hopefully, the Supreme Court of the United States can provide insight into these issues and possibly delineate a framework which will facilitate a better understanding of all of these issues and their interaction within the context of the United States Constitution.

For information related to US immigration from the Kingdom of Thailand please see: K1 Visa Thailand.

For information pertaining to general legal services in Southeast Asia please see: Legal.

Tags: 9th Circuit Court of Appeals, AEC, AEC Blueprint, AEC Blueprint 2015, anti-illegal immigration law, Arizona Governor Jan Brewer, ASEAN, ASEAN Economic Community, ASEAN Economic Community Blueprint, ASsociation of Southeast ASian Nations, European Union, Executive Plenary Power, illegal immigration, Indonesian Trade Minister Mari Elka Pangestu, Legislative Plenary Power, plenary, Plenary Power, SB1070, State of Arizona, States' Rights, U.S. Supreme Court, United States, United States Constitution, United States Supreme Court
Posted in ASEAN Business, ASEAN Visa, Comprehensive Immigration Reform, CR1 Visa, Department of Homeland Security, States' Rights, US Constitution, US Mission ASEAN, US Visa, US Visa and Immigration, USCBP, USCIS | No Comments »

It recently came to this blogger’s attention that Economic Ministers from the jurisdictions which comprise the Association of Southeast Asian Nations (ASEAN) are set to meet in Indonesia over the upcoming weeks. Of especial importance, in this blogger’s opinion, is the fact that said meeting is set to include representatives from the United States of America and Russia. In order to shed further light upon these developments it is necessary to quote directly from the official website of The Nation, NationMultimedia.com:

Free-trade partners of Asean, in addition to the United States and Russia, will join Asean economic ministers for a meeting in Manado, Indonesia, next week with the aim of tightening economic integration. Indonesia will host the Asean Economic Ministers (AEM) meeting from August 9-13. Yanyong Phuangrach, permanent secretary at the Commerce Ministry, who will lead the Thai delegation to the meeting, said the main agenda was to forge closer cooperation among Asean member states and trading partners, mainly with FTA partners and the two economic giants – the US and Russia…

Readers are strongly encouraged to click upon the relevant hyperlinks above to read this important article in detail.

In recent months there have been many positive developments in the ASEAN region as discussions pertaining to a possible unified ASEAN visa have been broached. Meanwhile, discussions pertaining to the South China Sea appear to have lessened some of the tensions between ASEAN members nations and China. However, as of yet, a final framework for dealing with the South China Sea has yet to be developed. As the ASEAN region continues to show further economic potential it stands to reason that geo-politically dominant economies will show increasing interest in the Southeast Asian region.

In news specifically related to the Thai Real Estate and Property markets, it recently came to this blogger’s attention that Singaporean and international real estate developers have noted their optimism regarding the Thai property market. In order to provide further elucidation regarding these developments this blogger is compelled to quote directly from the PropertyShowrooms.com website:

A Singapore property development company has decided to invest in a series of condominium projects in Thailand over the coming year. Speaking to Property Report, business development manager at Dalvey Developments Noel Goh described the Thai real estate sector as “a very attractive market with high growth potential”. “Moreover, property prices remain low when compared to neighbouring countries,” Mr Goh added…According to one Asian real estate expert, buyers from Hong Kong are increasingly being drawn to high-end properties in the Thai capital. Executive director for investment and project marketing at CB Richard Ellis Rebecca Shum told the Bangkok Post that the city is a “top-two destination for lifestyle” from the point of view of Hong Kong investors. She added that a rise in optimism about Thailand’s political and economic conditions is helping boost the luxury property market in the nation.

The administration of this web log encourages readers to click on the relevant hyperlinks above to read further from this article.

For many, the purchase of property in Thailand can be a cumbersome and somewhat confusing endeavor as Thai law on the subject has been described as rather complex and, in some cases, byzantine. This is especially true in cases involving foreigners wishing to purchase land in Thailand since there is virtually a de facto prohibition on foreign nationals purchasing Thai land. That stated, such a prohibition does not exist in the context of a Thai lease, Thai usufruct, or Thai condominium. In fact, pursuant to the Thailand Condominium Act, foreign nationals in Thailand may be permitted to purchase a Thai Condo so long as that proposed real estate holding comports with the relevant provisions of the Act. For this reason, and many more, some opt to retain the assistance of an attorney in Thailand to assist in conducting due diligence and conveyancing matters pertaining to Thai property.

For information related to legal services in the Kingdom of Thailand please see: Legal.

Tags: AEM, ASEAN, Asean economic ministers, ASsociation of Southeast ASian Nations, Commerce Ministry, conveyancing, Conveyancing In Thailand, de facto prohibition on foreign nationals purchasing Thai land, due diligence, Free-trade partners of Asean, Hong Kong investors, Property In Thailand, purchase land in Thailand, Real Estate In Thailand, Russia, Thai capital, Thai Condo, Thai Condominium, Thai Lease, Thai usufruct, Thailand Condominium Act, Thailand Property, Thailand Property Law, Thailand Real Estate, Thailand Real Estate Law, United States
Posted in ASEAN Business, Cambodia Business, Indonesia Business, Laos Business, Malaysia Business, Russia Business, Thailand Property, Thailand Real Estate, Vietnam Business | No Comments »