Another mouth-watering currency play from Jack Crooks. Of the Asian states, Thailand’s export-based economy is most exposed to a US recession. And political instability could accelerate capital flight. Jack says this means the Thai baht will likely drop like a stone.

Today, General Motors announced plans for a new $445-million diesel-engine plant in Thailand. It has firmly established the country as the new Detroit of Asia.

This means long-term gains for the ISHARES MSCI THAI (NYSE:THD) Thailand index, says Irwin Greenstein writing for Contrarian Profits.

The index is down 21.83 percent over the past six months. But it almost certainly got dragged down with other emerging-market investments thanks to high inflation rates…

Thailand’s fairytale of growth and prosperity is over, says currency expert Jack Crooks in The Sovereign Society.

Fuel and food costs are pushing inflation towards double-digit levels. The central bank is behind the curve in tightening monetary policy, and it doesn’t look like it will catch up anytime soon.

All this makes the Thai currency, the baht, look very vulnerable, says Jack. Short-selling is the best option in the weeks to come… 

Last week, we reported that the Taipan Emerging Market Index was up a healthy 9.3% for the week. Those gains were wiped out on Friday, says Taipan Emerging Markets blog editor Irwin Greenstein. The only consolation being that major US markets took a beating too.

Stansberry Research’s Tom Dyson has been pushing Taiwanese stocks lately. Now Stansberry’s Ian Davis is tipping another overlooked Asian market: Thailand. Ian is calling it a commodity play. For starters, Thailand is rich in rubber and iron ore — two commodities that nearby China can’t get enough of. Ian recommends investing in Thailand with three special Thai ETFs…