Former Deputy PM warns Srettha that if he does not listen, he may spark a real economic crisis

[webfact]

Former Deputy Prime Minister Kobsak Sabhavasu raises his concern about the current economic approach pursued by the government of Srettha Thavisin relating to higher government expenditure and forced economic expansion.

Srettha’s policies under scrutiny as former Deputy Prime Minister Kobsak Sabhavasu questions the efficacy of the Digital Wallet scheme and warns against the proposed civil servant salary increase. Sabhavasu emphasises the looming risks of a genuine economic crisis driven by escalating public and private sector debt, coupled with potential inflation.

A former deputy Prime Minister in the 2008 to 2011 government of Prime Minister Abhisit Vejjajiva this week warned that the expansionist policies of the current Srettha Thavisin government in the face of counter realities risks driving the kingdom into a genuine economic crisis, that may not be so easy to tackle. 

 

In a candid analysis in the last few days, former Deputy Prime Minister Kobsak Sabhavasu, a key player in the 2008 to 2011 government of Prime Minister Abhisit Vejjajiva assessed Thailand’s economic landscape, focusing on the controversial digital wallet wealth distribution measure and the proposal to increase civil servants’ salaries by 18% in 2024.

 

by Joseph O' Connor

 

Full story: Thai Examiner.com 2023-12-05

 

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[hotchilli]

Boom or bust?

I think Thailand is edging towards the latter.

[SiamAndy]

Srettha is gearing up the printing presses and government borrowing facilities, this will be a slow motion disaster.

[soalbundy]

19 minutes ago, hotchilli said:

Boom or bust?

I think Thailand is edging towards the latter.

Not unlike the whole world if all the economic experts are to be believed, only the FED believes in a soft landing. The market is betting on a rate cut in the first quarter because  the money tightening has been overdone, it will be too little too late, the economic damage has been done. Large rate cuts will lead to a false bull run in stocks, a last hurra before the collapse and then there will be a rate cut race to zero causing another spike (a bigger one) in inflation.

[daveAustin]

Former Deputy PM warns Srettha
 

Well he may as well go and tell a pack of rabid soi dogs because Srettha doesn’t know his arrse from his elbow and is not in charge. He gets told what to do.

[ikke1959]

He is right, the whole 10k wallet scheme will have a negative impact on Thailand.. It is too expensive and with the money they could do other things that are more beneficial, such as educated and trained people to install solar panels, a security fund for the elderly that are coming in the next year and who can't live of 3000 THB a month, make roads safer, invest in electric cars to solve the air pollution, invest in decent education instead of the indoctrination in school. That would benefit Thailand more

[Thingamabob]

Pointless talking to the laughing boy PM. He takes his orders from on high.

[spidermike007]

A voice of reason within the wilderness of absolute delusion. Sretta is no doubt on a daily basis revealing that he's totally unprepared for this job, his policies are not what is needed right now, he has no vision and if he thinks this 10,000 Baht scheme is going to fix the economy the man is suffering from massive amounts of delusion. 

[Gottfrid]

Try that! A PM that listens???? No..no..no

[Sydebolle]

1 hour ago, spidermike007 said:

A voice of reason within the wilderness of absolute delusion. Sretta is no doubt on a daily basis revealing that he's totally unprepared for this job, his policies are not what is needed right now, he has no vision and if he thinks this 10,000 Baht scheme is going to fix the economy the man is suffering from massive amounts of delusion. 

In all fairness, I do not think it was his idea. He is a successful business man and as such he would never support such a disastrous decision. But if you look at it as keeping a vote-buying-promise during the election campaign - with money the government does not have in the first place .... well, it makes perfect sense. 

Those 560 billion Thai Baht are nowhere in any budget hence need to be borrowed. No commercial bank would follow suit so it will be a government bank. The latter will get the money and subsequently go down the halligalli - we've seen it all some 25 years ago. It worked then so why should it not work this time. On the other hand Dr. T will be walking the walk anytime soon which could result in major reshuffling of the primi-inter-pares of Pheu Thai; let's see what Father Christmas has up his political sleeve for 2024 

[BritScot]

On 12/5/2023 at 12:52 AM, daveAustin said:

Former Deputy PM warns Srettha
 

Well he may as well go and tell a pack of rabid soi dogs because Srettha doesn’t know his arrse from his elbow and is not in charge. He gets told what to do.

You mean like military generals were so good? The state Thailand is in right now is directly the result of two coups. What has happened to the mythical us dollar reserve that used to be crowed about? Rhetorical question. Generals are quite good at putting budgets into their personal accounts and when caught "misunderstanding"!

[scorecard]

On 12/5/2023 at 9:48 AM, spidermike007 said:

A voice of reason within the wilderness of absolute delusion. Sretta is no doubt on a daily basis revealing that he's totally unprepared for this job, his policies are not what is needed right now, he has no vision and if he thinks this 10,000 Baht scheme is going to fix the economy the man is suffering from massive amounts of delusion. 

 

Let's go back a little; he appeared out of nowhere but introduced as a highly successful very wealthy property developer but nothing more.

 

He made statements about gaining big property sales as though nothing else existed.

 

Endorsed his party's promise of 10,000Baht to every Thai person over 16 yo and with no details / no announced strings / no limitations attached.

 

Now seems he and a few others have realized the country can't afford it, but there are folks of course reminding him and his party that it a specific well announced election promise and they therefore have to deliver or face severe legal action re election laws.

 

Seems they are now lost. 

 

But, there seems little doubt the paymaster will be as free as a bird in the very near future. No doubt the paymaster will have some big ideas how to override laws and ethics. 

 

 

Edited December 6, 2023 by scorecard

[spidermike007]

1 hour ago, scorecard said:

 

Let's go back a little; he appeared out of nowhere but introduced as a highly successful very wealthy property developer but nothing more.

 

He made statements about gaining big property sales as though nothing else existed.

 

Endorsed his party's promise of 10,000Baht to every Thai person over 16 yo and with no details / no announced strings / no limitations attached.

 

Now seems he and a few others have realized the country can't afford it, but there are folks of course reminding him and his party that it a specific well announced election promise and they therefore have to deliver or face severe legal action re election laws.

 

Seems they are now lost. 

 

But, there seems little doubt the paymaster will be as free as a bird in the very near future. No doubt the paymaster will have some big ideas how to override laws and ethics. 

 

 

They can renege on this promise just like they reneged on letting Pita become PM, after he was duly elected. They just don't care. They change things willy-nilly, seemingly without any consequences. 

[Guderian]

He is listening, but only to the square-headed Chinese-Thai guy in the luxury wing of the hospital, not to anybody who actually cares about the country.

[Eric Loh]

18 minutes ago, Guderian said:

He is listening, but only to the square-headed Chinese-Thai guy in the luxury wing of the hospital, not to anybody who actually cares about the country.

Why not? Thaksin's tenureship brought much economic progress and was touted as the fifth Tiger economy after Singapore, Hong Kong, South Korea and Taiwan. In any case, why even bother with the former deputy PM who has no achievements to show off and his government left the coffers empty for the next adminstration.