Govt Debt Policy Will Make The Thai Currency 'Worthless'

[tragickingdom]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

[chooka]

They can consult with the USA, they know how to print money at extreme fast rates. I guess the Thai Baht will race the US $ to the bottom

Boy you hit the nail on the head with that statement. The baht will get weaker if the BOT is forced to print money. But so will your buying power, so nobody wins. Amazing Thailand, just borrow from the US. They have printed 5 trillion in 3 years and see what it's done for them.

A small boost for the Australian economy as that is where Thailands money is printed.

[myfriendu]

they should do it everyone benefits

[dduval99]

Forget the days of 75 baht to the sterling... I would be happy with 50baht to the sterling...

[Skywalker69]

Incredible fiscal discipline.

This is only possible in Thailand

Printing more money for such reasons. The only thing will happen is that more millions will stick to some fingers of bastards who don't really care about sending funds to people who really need it. This are really scrupulous b*st*rds, mostly housing in Parliament

A new "hub" of printing money

[Moruya]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

With your amazing understanding of finance it's a real shame the PTP haven't swept you up.

[geriatrickid]

I think economist people forget how Argentina did exactly this and went from being a world power to be a really crappy place to live. The difference is there was no flood there but President Alfonsin's policies and the Falklands (AKA Malvinas) to thank for. Also the Asian crisis was caused by Thailand's excess money borrowing for real estate development.

Economy is a complicated thing, even a household economy, once you start getting less money, things should change. Let's say you change a job that allows you to spend more time with the family, you're gaining huge having quality time, but you will have to make sacrifices, like maybe taking BTS to the office instead of car all the time, you won't borrow to cover for your extra expenditure, because it will be suicide, or you'll be in so much debt that even your kids will have to help you later.

Now let's see the government, they're getting less money in, because the populist measures, like first time car owners, but instead of taking the BTS more, they want to borrow money to buy a Hummer, that will cost even more than before to drive than the smaller car you once had. The same things here, the government has more expensive projects and the maintenance of these projects will be higher than the previous projects. If in your own house a budget doesn't make sense, probably in a bigger scale it will make even less sense.

Am I wrong?

Have a nice day everyone!

The government really hasn't started disbursing funds in respect to the populist programs. What is being spent is money in respect to the 1trillion baht+ expenditures effected by the former Abhisit regime. Keep in mind that even though a government can bring forward a budget, it almost always applies to the next fiscal year. In the interim, unless an incoming government specifically cancels programs or projects, the spending obligations inherited from the previous governent continue. This is the situation for the PTP. It can take a year or so for a new budget to shake out. Yes some taxes and wage hikes can be made to take effect sooner, but the very size and complexity of government and the economy require there to be lead in time for other aspects of a budget. Mr. Abhisit and Mr. Korn are the gifts that have kept giving.

[geriatrickid]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

With your amazing understanding of finance it's a real shame the PTP haven't swept you up.

What do you disagree with?

[geriatrickid]

Oooh good i do hope so. I owe 2 million on my condo will be much easier to pay off

Ahh, but for you, when the mortgage comes up for renewal expect an increase in the interest rate. Thai style.

[geriatrickid]

Typical how posters are just interested in their currency,s rate to the baht.Expat retirees no doubt.Some of us are working here and have salaries in baht so dont want the country,s currency devalued.

Hmm, so farang that insisted on retaining remuneration in historically stable farang currency not so stupid, yes?

[myfriendu]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

With your amazing understanding of finance it's a real shame the PTP haven't swept you up.

What do you disagree with?

your view on everything

[ianf]

Strange that when they are not in goverment they know how to run the country,when they are in charge they don't have a clue,not only in Thailand but also the UK and many other countrys.

countries?

[Moruya]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

With your amazing understanding of finance it's a real shame the PTP haven't swept you up.

What do you disagree with?

Quantitative easing refers to the near zero interest rates set by the national banks to promote corporate and personal lending in a bid to promote growth. It's not printing money.

The situation in the UK and the US is not "10 times worse" under any criteria - that's just plain guff.

[myfriendu]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

With your amazing understanding of finance it's a real shame the PTP haven't swept you up.

What do you disagree with?

Quantitative easing refers to the near zero interest rates set by the national banks to promote corporate and personal lending in a bid to promote growth. It's not printing money.

The situation in the UK and the US is not "10 times worse" under any criteria - that's just plain guff.

its selling debt,in the form of bonds

[sirchai]

I'm wondering how this country would be without money foreigners are spending? Not just for holidays, also houses, cars and more for the family....

[Dave9000]

The only body to charge that the government will print more money is the opposition. I am no fan of the current government, but it has not said it will simply print money...and it won't, given the need for economic stability in the face of ASEAN requirements and the changes which will occur in 2015.

Opposition's oppose and destabilise and the best way to destabilise a government is to constantly speculate about the failure of the economy.

Sniping from a position of safety is the realm of oppositions throughout the democratic (or in Thailand's case, quasi democratic) world. Belief in headline grabbing statements made by people with limited authority and little responsibility, is the province of fools.

[maidu]

All that money owed....to whom? Is it owed to Thai banks or Int'l banks or IMF, or World Bank, or investors with Thai bank shares, or....?

A key reason the gov't thinks it needs so much money (and reason it transferred debt to B of T) is repercussions from 2011 Bkk flood. Unfortunately, floods will continue and, in subsequent years, will be more severe. Time to start moving all that can be moved (people and things) to higher ground.

That giant sucking sound you hear is the gaggle of intelligence-challenged politicians persistantly pleading for money to save doomed Bkk.

It's like your aunt Mable with incurable cancer. You can pay 80% of your income each year on medications and treatment, or you can get some doctors to excise the cancer in a one time operation.

[thaikahuna]

The Tha baht is already overvalued.more borrowing and printing money alongside inflation will make the financial markets finally see this.

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it's not...

but am I the only to think that a weaker baht is not a bad thing?

I totally agree...you are the only one believing the weaker baht is good. The baht is over-valued by at least 4-5 baht per dollar. It has been artificially high for at least 10 years now and realistically should be in the 35-37 to 1 USD range.

[thaikahuna]

The only body to charge that the government will print more money is the opposition. I am no fan of the current government, but it has not said it will simply print money...and it won't, given the need for economic stability in the face of ASEAN requirements and the changes which will occur in 2015.

Opposition's oppose and destabilise and the best way to destabilise a government is to constantly speculate about the failure of the economy.

Sniping from a position of safety is the realm of oppositions throughout the democratic (or in Thailand's case, quasi democratic) world. Belief in headline grabbing statements made by people with limited authority and little responsibility, is the province of fools.

What you can't seem to see is that the PTP will do anything and everything to bring their almighty TS home from the UAE. The public be damned. Unfortunately, the public cannot see how much damage that man actually wreaked on the economy.

[whybother]

The only body to charge that the government will print more money is the opposition. I am no fan of the current government, but it has not said it will simply print money...and it won't, given the need for economic stability in the face of ASEAN requirements and the changes which will occur in 2015.

Opposition's oppose and destabilise and the best way to destabilise a government is to constantly speculate about the failure of the economy.

Sniping from a position of safety is the realm of oppositions throughout the democratic (or in Thailand's case, quasi democratic) world. Belief in headline grabbing statements made by people with limited authority and little responsibility, is the province of fools.

The government have said they want to palm off the FIDF debt to the BOT. The BOT have to find a way to pay for that, all which have the same effect as printing money.

[whybother]

I totally agree...you are the only one believing the weaker baht is good. The baht is over-valued by at least 4-5 baht per dollar. It has been artificially high for at least 10 years now and realistically should be in the 35-37 to 1 USD range.

Why? It seems that the people who trade currencies don't agree.

[peterquixote]

A weakening Baht by this instrument (printing) will not really lead to more B for your $, €, £ cos inflation will swallow most of the depreciation. If you want to know how to find those pound and euro symbols on a mac, just google them, like I did

I would like to know how the depreciating Thai baht will be improved by appreciation. Can you have a depreciating baht and an appreciating baht at the same time ?

[bigbamboo]

A weakening Baht by this instrument (printing) will not really lead to more B for your $, €, £ cos inflation will swallow most of the depreciation. If you want to know how to find those pound and euro symbols on a mac, just google them, like I did

I would like to know how the depreciating Thai baht will be improved by appreciation. Can you have a depreciating baht and an appreciating baht at the same time ?

Many would appreciate it's depreciation.........

[OzMick]

Thai debt is very low if you compare it with western countries... and they still hold a lot of foreign reserve , so a BS story!

So let's use all the foreign reserves to fund populist policies until we get Thaksin (paid) back!

[OzMick]

"borrow more money to finance the budget deficit"...Hmmmmm...Let me think on this for a moment...Ok...NOT A GOOD IDEA ...! Look at America...Thailand taking lessons from them...?

I do not believe in carrying debt and am a proponent of balanced budgets, however it makes sense to borrow when interest rates are low. One can lock in lucrative credit facilities which may be of great benefit if and when interest rates start rising again in a few years.

The US debt crisis is driven in large part by obligations, not the debt itself. The need to pay off the expensive wars and to pay for a bloated social security system forces the government to borrow to pay these obligations. There would be no debt crisis had the US not gone to war and had it reduced expenditures on old age pensions and medical benefits to those on medicare and started charging some fees for medical services rendered to veterans (except for those injured while in service).

Right ON ! Cut social services so that you can fund more wars, and give money to people who HATE YOU, like N. Korea and Pakistan. Have you never heard that charity begins at home?

While you're at it, set up another funding scheme so people with no assets and little income can buy overpriced houses on no deposit and easy credit (for the first 12 months) - that worked a treat last time.

[David48]

The baht is over-valued by at least 4-5 baht per dollar. It has been artificially high for at least 10 years now and realistically should be in the 35-37 to 1 USD range.

The Thai Baht is a ‘floating’ currency is 'worth' exactly what you get as a relative exchange rate every day.

Governments rarely trade in the open market to affect the exchange rate, one of the main reasons is that they need enormous foreign reserves to trade … and Thailand certainly doesn’t have that.

So how exactly has the Thai Baht been kept artificially high for at least 10 years now and how do you arrive at your estimate of the exchange rate being inaccurate given that billions of Baht are traded every week and the currency’s value is determined by both he buyer and seller … neither of which is a government.

[David48]

I would like to know how the depreciating Thai baht will be improved by appreciation. Can you have a depreciating baht and an appreciating baht at the same time ?

Many would appreciate it's depreciation.........

BigBamboo ... you have a way with words!

[OzMick]

Typical how posters are just interested in their currency,s rate to the baht.Expat retirees no doubt.Some of us are working here and have salaries in baht so dont want the country,s currency devalued.

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Indeed - sure, the retired lot will be 'happy', since their founds will cover more locally produced beer and lap-dances, but most of us that live and work here not only would like to see that our salaries aren't gutted in the global market comparably (opens up for so much renegotiation about contracts) but also that the imported goods we purchase (of which there are a lot, both technology and food) don't have their prices shoot up through the roof.

Not all the expats spend thier funds on beer and bargirls, some of us have never even seen a bargirl in action and wouldn't know where to find one. Your stereotyping expats as drunken sexpats. These are generally the tourists and not the family guys in Thailand.

"The laddy doth protest too much, methinks." (Shakespeare's Hamlet, Act III, scene II.)

Possibly, you just need to get out more. Every village I have visited has some form of bar with accompanying services. If you can speak a little Thai, you will usually be most welcome as farangs are all expected to be rich.

[KKvampire]

It is clear that you do not need much of a brain or must graduate with Chulalongkorn to write an article like this. For the Nation's information. The European Union is criticized for not printing money. All bourse people in London and New York demand that the ECB print money.

The Bank of England and the FED are printing money since 1998. They call it Quantative Easing or use similar terms.

Printing money does make the currency cheaper. That is good for economic growth ask the Chinese how they keep their currency low, they do it by pegging it to the dollar. Given the fact that the markets will sons start looking at the mess in the UK and the US which is ten times worse than in the EU. The Thai currency would not feel the slightest pain.

If the NAtion has a ashore to settle it might be useful to use a journalist with real knowledge on the subject. in the meantime they could maybe focus on article 112.

The markets have looked at theUk position and despite its debt it is dealing with it in a way that means the country can borrow money at 2% whereas Italy ,Spain ,Greece near 7% all countries tied to an artificial currency not related to their country,s economy,and the bond markets know this.Your analysis is flawed

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[guyshown]

The only body to charge that the government will print more money is the opposition. I am no fan of the current government, but it has not said it will simply print money...and it won't, given the need for economic stability in the face of ASEAN requirements and the changes which will occur in 2015.

Opposition's oppose and destabilise and the best way to destabilise a government is to constantly speculate about the failure of the economy.

Sniping from a position of safety is the realm of oppositions throughout the democratic (or in Thailand's case, quasi democratic) world. Belief in headline grabbing statements made by people with limited authority and little responsibility, is the province of fools.

What you can't seem to see is that the PTP will do anything and everything to bring their almighty TS home from the UAE. The public be damned. Unfortunately, the public cannot see how much damage that man actually wreaked on the economy.

Please provide legit documented example of how he "damaged" the economy