Bank of Thailand governor gives veiled warning to voters on the danger posed by populist policies

[webfact]

Governor Sethaput Suthiwartnarueput expressed concern that a hyper and broad-based policy of financial stimulus or giveaways will drive up public debt and give only a short-term boost to the economy, burdening future growth and exacerbating the country’s chronic structural problems, not least by increasing public debt. He called for more sustainable policies and welfare stimulus targeted at the less well-off.

 

by Joseph O' Connor

The Bank of Thailand is by statute independent of the government but reportedly works closely with the Prime Minister’s economic team including the Ministry of Finance on policies relating to debt restructuring and digital assets while also offering guidance. Governor Sethaput served as an economic advisor to General Prayut Chan ocha before taking up his current role.

The Governor of the Bank of Thailand Sethaput Suthiwartnarueput in recent days came as close as possible, given the political neutrality required by the bank boss to preserve the bank’s independent status, to criticising populist policies being put before the electorate in the run-up to the May 14th General Election. Governor Sethaput said what Thailand’s economy needs right now is to safeguard the country’s financial stability instead of short-term fiscal stimulus which burdens the kingdom’s prospects by elevating public debt. He also pointed out that even for that, even though he supported such measures, it was only for targeted handouts aimed at the less well-off.

 

Thailand’s independent Bank of Thailand governor, on Tuesday, appeared to warn voters off the populist policies being pursued by parties in the current General Election which is scheduled for May 14th next with the opposition well ahead in the opinion polls.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2023/04/27/bank-of-thailand-governor-warns-of-populist-economic-policies-preserve-stability/

 

-- © Copyright Thai Examiner 2023-04-28

 

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[Thailand]

Independent but only a little bit!

[nigelforbes]

12 minutes ago, Thailand said:

Independent but only a little bit!

I don't think you'd ever want to be a BOT governor who wasn't independent, the last one who wasn't and was in charge when the crash took place, will go down in history for all the wrong reasons.

[ikke1959]

The Bank Governor should do what he has to do.... and being involved in elections

[dinsdale]

Seems like the envelopes with money for votes being distributed as I type is off his radar.

[ozz1]

I don't think the poor people care about anything he has to say sitting in his ivory tower

[connda]

Bank of Thailand governor gives veiled warning TO VOTERS on the danger posed by populist policies

"Vote For Our Party And We Will Shower You With Public Money - Don't worry, we'll just print some more!!!"  ????  This is the message on virtually every political billboard tied to lamp-posts nationawide.  But??? 

It IS the epitome of corruption and should be Illegal to do. 

And it's fiscally irresponsible.  Of course tho' the Bank Bigwig blames the voters and not the politicians who are making these inflationary policies.  But it will be the voters who will suffer immensely when the chickens come home to roost and extreme inflation hits them square between the eyes.  Elitists must stick together to keep the commoners as the focus of all the national ills and poor governance decision.

Bigwig Governor Sethaput will probably chide the voters once more as inflation sets in with real teeth six months to a year from now.  Perhaps he hasn't seen the posters with politicians offering the voters 10,000 THB each out of the government treasury if only their party wins wins WINS!!!  "Happiness To The Debt Slaves!!!  Too bad about the inflation!  It the voters fault!!!"
And then the THB depreciates 25% over the next year, gold goes to 45K / baht-weight, and the USD (which has its own problem due to money giveaways) goes to 40+ THB/ USD.  And the prices for staple items in Big C and Makro really start going through the roof.  Villager double the prices for their fruits and vegetables out of their own gardens and its Inflationary "Game On!"

The only decent policies I see out of this bunch is the one being touted to give the elderly a bump on their monthly public "safety net" payment of 600 THB to 3000 THB.  That by itself isn't necessarily too inflationary as it is targeted for the Thai elderly, although I think it should be capped to those who have no other sources of income, like an elderly rural couple who would have combined 6000 THB which is just enough to live on in a rural spartan manner.  However, with all these other giveaways being funded by the public treasury, that 3000 THB will be worth 600 THB in about two years. 

This is insanity but it seems the purpose of all the insane policies globally is to create a new class of debt-slaves and economic serfs with the Neo-Feudal elites lording over all like some Lakron TV show with uber-wealthy masters and their lowly servants and slaves.

Edited April 28, 2023 by connda

[nigelforbes]

20 minutes ago, connda said:

Bank of Thailand governor gives veiled warning TO VOTERS on the danger posed by populist policies

"Vote For Our Party And We Will Shower You With Public Money - Don't worry, we'll just print some more!!!"  ????  This is the message on virtually every political billboard tied to lamp-posts nationawide.  But??? 

It IS the epitome of corruption and should be Illegal to do. 

And it's fiscally irresponsible.  Of course tho' the Bank Bigwig blames the voters and not the politicians who are making these inflationary policies.  But it will be the voters who will suffer immensely when the chickens come home to roost and extreme inflation hits them square between the eyes.  Elitists must stick together to keep the commoners as the focus of all the national ills and poor governance decision.

Bigwig Governor Sethaput will probably chide the voters once more as inflation sets in with real teeth six months to a year from now.  Perhaps he hasn't seen the posters with politicians offering the voters 10,000 THB each out of the government treasury if only their party wins wins WINS!!!  "Happiness To The Debt Slaves!!!  Too bad about the inflation!  It the voters fault!!!"
And then the THB depreciates 25% over the next year, gold goes to 45K / baht-weight, and the USD (which has its own problem due to money giveaways) goes to 40+ THB/ USD.  And the prices for staple items in Big C and Makro really start going through the roof.  Villager double the prices for their fruits and vegetables out of their own gardens and its Inflationary "Game On!"

The only decent policies I see out of this bunch is the one being touted to give the elderly a bump on their monthly public "safety net" payment of 600 THB to 3000 THB.  That by itself isn't necessarily too inflationary as it is targeted for the Thai elderly, although I think it should be capped to those who have no other sources of income, like an elderly rural couple who would have combined 6000 THB which is just enough to live on in a rural spartan manner.  However, with all these other giveaways being funded by the public treasury, that 3000 THB will be worth 600 THB in about two years. 

This is insanity but it seems the purpose of all the insane policies globally is to create a new class of debt-slaves and economic serfs with the Neo-Feudal elites lording over all like some Lakron TV show with uber-wealthy masters and their lowly servants and slaves.

For the BOT Governor to publicly blame politically parties for this, he would be seen to be partisan and to have entered the political debate, he would be biased and that would mean he was not independent. What other choice does he have? He wants to warn voters that what the political parties are saying is fiscally irresponsible hence he's taking the only route open to him, making voters aware. His option? Do nothing, that would be irresponsible but safe. Remember, the voting public is uneducated and mostly poor, the political parties have stooped about as low as they could possibly do in offering these carrots on sticks.

[rabiedabruce]

And then the THB depreciates 25% over the next year - one can dream

[John Drake]

He have anything to say about the submarines?

[hotchilli]

9 hours ago, webfact said:

The Bank of Thailand is by statute independent of the government but reportedly works closely with the Prime Minister’s economic team including the Ministry of Finance on policies relating to debt restructuring and digital assets while also offering guidance. Governor Sethaput served as an economic advisor to General Prayut Chan ocha before taking up his current role.

So he's joined at the hip with Prayut, 

[Srikcir]

Where was BOT for this:

"Government agencies and state enterprises have been instructed to devise New Year gift ideas for the public that will not be seen as vote-buying tactics."

and

"... gifts should help stimulate the country's economy, like the 'Let's Go Halves' co-shopping subsidy scheme and the 'We Travel Together' tourism promotion campaign."

Oct. 25, 2022

"Thailand eyes new stimulus as New Year gifts for the public"

www.nationthailand.com

Goose and Gander.

Edited April 28, 2023 by Srikcir
fumble fingers

[RichardColeman]

I mean its not like they have said they would forgive student loans or anything to get voters

[Mavideol]

12 hours ago, webfact said:

The Bank of Thailand is by statute independent of the government

is there something/someone "independent" in Thailand.... is it the same as the BBC being independent from the Tories  555

[nigelforbes]

2 hours ago, Srikcir said:

Where was BOT for this:

"Government agencies and state enterprises have been instructed to devise New Year gift ideas for the public that will not be seen as vote-buying tactics."

and

"... gifts should help stimulate the country's economy, like the 'Let's Go Halves' co-shopping subsidy scheme and the 'We Travel Together' tourism promotion campaign."

Oct. 25, 2022

"Thailand eyes new stimulus as New Year gifts for the public"

www.nationthailand.com

Goose and Gander.

That is economic stimulus by the incumbent government, I don't know that incumbent government should cease functioning just because there's an election looming. OK so some people will see it as attempts at bribing the electorate, that can't be helped.

[stoner]

wow. the childish games never cease here eh. 

 

so jealous of ones policy that you trot out this bumbling muppet to spout fear regarding a certain promise that was made. 

 

 

 

 

[bignok]

He wants to keep his job and keep the poor still poor. That's how these guys think. All about themselves.

[nycjoe]

Have they thought about trickle down economy, worked wonders in the usa, that yellow stream just keeps pouring down.

[Venom]

19 hours ago, rabiedabruce said:

And then the THB depreciates 25% over the next year - one can dream

Globally it's a very competitive race to the bottom. 

[zzaa09]

On 4/27/2023 at 3:22 PM, Thailand said:

Independent but only a little bit!

....or pretending to be. 

[BayArea]

Does the title governor have a different meaning in Thailand??

 

 

[rabiedabruce]

On 4/29/2023 at 5:08 AM, Venom said:

Globally it's a very competitive race to the bottom. 

Look up 'world's strongest currency' and you will find 'Thai Baht'. Given the economy's in the crappr, Phuket had just two months 'high season' and now everyone complaining, why's that then? Given so much emphasis on tourism as GDP given by junta. It's barely moved against ALL currencies since elephant in the room's takeover.

[JackGats]

I'd say he is right from the point of view of economics. Besides, I am an staunch opponent of hand-outs and free lunches in which I cannot partake.

[pegman]

On 4/28/2023 at 2:04 AM, hotchilli said:

So he's joined at the hip with Prayut, 

So then he should go down with the General on election day

[nigelforbes]

3 hours ago, rabiedabruce said:

Look up 'world's strongest currency' and you will find 'Thai Baht'. Given the economy's in the crappr, Phuket had just two months 'high season' and now everyone complaining, why's that then? Given so much emphasis on tourism as GDP given by junta. It's barely moved against ALL currencies since elephant in the room's takeover.

Simply not true at all, against the Pound it's moved at least 20% in that period, against USD it's moved even more:

https://www.xe.com/currencycharts/?from=GBP&to=THB&view=10Y