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Will the Srettha government pursue debt-fuelled growth?  


webfact

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2 hours ago, webfact said:

In response, some government supporters did echo the administration’s narrative that it would boost the economy and support low-income groups.

For about 5 seconds... it will do nothing for the GDP...

Out with one hand back in with another.

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Populist?  Nothing Taksin did came close to this give away, and nobody will benefit.  There are a hundred ways this money can be diverted from its original purpose and into corrupt pockets.  Every one will be used to make sure that only Srettha's supporters benefit.

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10 hours ago, retarius said:

Yes they will pursue debt based growth, and like the west it will sink them, except Thailand hasn't had the period of wealth and prosperity that in the west preceded the fall. Thailand's fall will be dramatic and quick. 


Not sure if they really can borrow enough. Government debt already over 60% of GDP and consumer debt is over 80%. Along comes the roadshow clown in red sox with a plan handed to him by some joker to borrow another 2.7% of GDP to generate incremental GDP of 2.7%. Wow this is magic he said. Let’s do it. What could possibly go wrong?

 

But what do we do after that? Keep on begging low end tourists to come from the motherland. They will come to our rescue.

Edited by Dogmatix
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58 minutes ago, Dogmatix said:


Not sure if they really can borrow enough. Government debt already over 60% of GDP and consumer debt is over 80%. Along comes the roadshow clown in red sox with a plan handed to him by some joker to borrow another 2.7% of GDP to generate incremental GDP of 2.7%. Wow this is magic he said. Let’s do it. What could possibly go wrong?

 

But what do we do after that? Keep on begging low end tourists to come from the motherland. They will come to our rescue.

I agree about the borrowing, for every borrower there has to be a lender. It was easy when the GDP growth closer to 10% or so, not so easy for a low growth economy hooked on promotional ideas instead of sound business strategies. The other side of the coin is the interest rates. Anyone lending to Thailand (who is sane) will want a premium for the high risk here. The problem with high interest rates is that it kills of poor business ideas....paying back a 2% loan on a new business when national GDP growth is 6% is a much lower risk than an 8% loan when your national GDP growth is 3%. And who is going to pay back all the loans for those cannabis stores and businesses that have just opened?

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