Idea Of Prices Rising A Misconception: PM Yingluck

[billd766]

The biggest factors in higher prices are oil and the impact of several years of interest rates trailing inflation. Do you think Thais have been keeping their money in banks at 2% interest this whole time or do you think they have been racking up loans at low interest rates and investing this money? You have seen this over and over again. The Thai stock market has more than doubled since the last crisis 4 years ago. Property prices soaring. Bangkok absolutely choked with growth.

Thailand is just a pawn in the global spectrum. We have seen the rioting in the Middle East and now the inflation is spreading to Asia. China has seen plenty of rioting.

The bottom line is that the debtor nations export paper money and the developing nations export products. The paper money is not consumed. Nobody eats paper. The paper money is invested. Costs of everything go up.

The 300b minimum wage and farmers subsidies play a role in this but it is NOT the underlying factor. The real inflation creater is Western monetary policy and artificially low interest rates.

I would think that at least 90% of all Thais don't have enough money to pay their bills let alone keep it in the bank or invest in the stock market.

Thay are far more worried about keeping their kids in school, keeping their jobs and putting food on the table than playing stocks and shares.

http://www.state.gov...ei/bgn/2814.htm

This is from a US Department of State report on 3rd January 2012 so it is reasonably up to date though how correct it is will be your own perception.

Economy*

GDP (2011 est.): $323.6 billion.

Annual GDP growth rate (2011 est.): 1.5%.

Inflation rates (as of November 2011): 4.2% (headline) and 0.5% (excluding energy and food prices).

Per capita income (2010 prelim.): $4,716.

Unemployment rate (2011 est.): 1.0% of total labor force.

$4,716 is at 31 THB 146,196 per annum or THB 12,183 per month.

Take a stab in the dark to estimate how many people get less than that then work out that mostly rich people in Thailand play the markets.

If every worker gets a minimum of 300THB per day for 26 days a month that is THB 7,800or THB 4,383 less that the per capita and you think they will invest in the stock market with that amount?

Edited for bad spelling and punctuation.

Edited May 8, 2012 by billd766

[Mosha]

That 12K Baht will be an average, So a lot of people getting a lot less than that. I put some diesel in the truck today, and it does appear to be dropping. Lets see if that has some effect on food prices.

[volk666]

The 300b minimum wage and farmers subsidies play a role in this but it is NOT the underlying factor. The real inflation creater is Western monetary policy and artificially low interest rates.

40% wage increase for millions of workers directly adds to the cost of production and it needs to be paid through increased prices. How else do you suppose companies will cover their costs?

Also, the government has been pushing the Bank of Thailand to lower interests rates and focus monetary policies on creating growth rather than on inflation control. It's not a "western" policy, it comes from PTP's own Kittirat Na Ranong.

When the govt appoints Virabongsa as BOT Chairman later this month it will finally get formal control over BOT operations and then you can kiss all inflation targeting good bye.

Whose fault will it be then? Obviously not PTPs but some nameless, evil farangs? Really?

[sparebox2]

That 12K Baht will be an average, So a lot of people getting a lot less than that. I put some diesel in the truck today, and it does appear to be dropping. Lets see if that has some effect on food prices.

Tesco have been rolling back prices for years.

Only if Yingluck had gone to do Price Check at Tesco, she can proudly claim that Mark is talking non sense.

Wet market needs to be shut down, or at least under strict controls;

- un-hygenic (want to count the number of rats, roaches, etc?)

- do not display their prices

- hogging (sugar, etc)

- sell above prices printed on the bottle (remember the arrest of palm oil at 80 Baht/ltr)

- use DDT to spray on food to prevent fly

- use chemical in the sea food to make it look fresh

- no sell by dates in most items

- sell egg by kg

- wet market is also the place where criminal, drug lord, underground lottery mafia, likes to hangout.

- the list go on and on.

[ginjag]

Thai finance minister said rises are expected at this time --Yingluck doesn't believe him. and the red shirt market trader of eggs will back her up.

[farang000999]

Also, the government has been pushing the Bank of Thailand to lower interests rates and focus monetary policies on creating growth rather than on inflation control. It's not a "western" policy, it comes from PTP's own Kittirat Na Ranong.

When the govt appoints Virabongsa as BOT Chairman later this month it will finally get formal control over BOT operations and then you can kiss all inflation targeting good bye.

Whose fault will it be then? Obviously not PTPs but some nameless, evil farangs? Really?

No, it is definitely the Farang blueprint. They are responsible for following it but we certainly invented and promote it.

[billd766]

From the Nation this morning there is a story that for some reason I am unable to copy the link to

According to the Thai Family Studies Association, 10.5 million of 15 million Thai families it surveyed are in debt, while 1.2 million of them are unable to pay back.

Panpimol Wipulakorn, the association's secretary-general, said yesterday that parents were busy working to repay these debts and thus did not have time to take proper care of their children.

The association and allied organisations will meet the 4th "Thai families warmth promotion operation" on Thursday and Friday to discuss the new challenges, recommendations and lessons from successful operations to strengthen families.

Call (02) 591 6848 for details.

Panpimol said changes in Thai society, including technology, an ageing society and fast-changing economic and financial systems, have left people vulnerable and unable to resist behaviour such as alcohol abuse, gambling and adultery.

Citing a 2009-2011 study on 4,000 families nationwide, she said most people were far too focused on income and economic status.

The association and Mahidol University's National Institute for Child and Family Development conducted the survey.

According to the survey, 70 per cent of the families had debts in 2011, 8 |per cent were unable to pay.

It is this need to pay back debts that is forcing people to work longer hours, which means they have no time for their kids, leaving them in the care of others.

[volk666]

Also, the government has been pushing the Bank of Thailand to lower interests rates and focus monetary policies on creating growth rather than on inflation control. It's not a "western" policy, it comes from PTP's own Kittirat Na Ranong.

When the govt appoints Virabongsa as BOT Chairman later this month it will finally get formal control over BOT operations and then you can kiss all inflation targeting good bye.

Whose fault will it be then? Obviously not PTPs but some nameless, evil farangs? Really?

No, it is definitely the Farang blueprint. They are responsible for following it but we certainly invented and promote it.

I will just add that Kittirat and Virabongsa cut two lonely figures on Thailand's economic landscape as virtually everyone else opposes their approach.

But yeah, it's not them, it's farangs who invented it.

Actually, there's also the CP boss Dhanin who is behind govt economic ideology of "two highs" - high growth and high prices. We haven't seen growth yet but prices are already up.

[Buchholz]

Poll: Most income earners hardly make ends meet

CHIANG MAI, 26 May 2012 (NNT) - Many income earners still have difficulty trying to survive on their salaries in the face of a jump in living expense according to a recent survey by Maejo University.

The poll, which covered 700 people aged between 25 and 35 during May 5 to 20, found that 57 percent of the respondents spent up to THB300 per day while 27 percent spend up to THB500. About 11 percent said their daily expense was over THB500. Only five percent said they pay no more than THB100 a day.

As much as 40 percent admitted earning less than they actually had to spend each month. Thirty-six percent disclosed that their current incomes were barely enough for them to live on.

Only twenty four percent have no financial problem.

Fuel price hikes were found to affect the income earners most with 90 percent. The rise in household product prices was considered second most problematic with 67 percent. The hikes in public utilities fees came third with 65 percent.

Nearly 60 percent of the respondents said they solve their financial problems by cutting back on unnecessary expenses.

When asked which measure is most helpful, the majority of respondents are supportive the free utilities program. The dispatch of Blue Flag caravans selling inexpensive goods is the second most favorite, followed by the THB 15,000 salary hike policy. Coming fourth is the launch of stalls selling cheap consumption products throughout the country. Ranking fifth is the THB300 minimum wage hike.

The respondents also suggested that the government solve the problem at its root.

Fuel costs which strongly influence product prices should be closely monitored and pricing of necessary consumption items are strictly regulated.

Populist policies aimed at winning more political support should be banned so as not to waste the national budgets.

-- NNT 2012-05-26

[crezycasy]

Future will tell:wub:

Edited May 26, 2012 by crezycasy

[AleG]

I note that there a proposal to increase the fares on the ''Skytrain'' according to a newsflash yesterday received from ''The Nation.'' This proposed increase is within the region of 14%. This is in tandem with the approved increase in public transport fares due to be implemented on the 15th of this month.

The hardest hit by these increases are the folk at the lower end of the wage scale and if the proposed VAT increase comes in if you're at the lower end of the wage scale you wont be living you're going to be existing at survival level.

.

Yet again there are according to this maladministration no increasing prices.

Now can they explain why there should be an increase of 14% on fares on the Skytrain, surely if ''everything in the garden smells of roses'' there should be no increase in fares or VAT either ?

Ah well, no doubt someone has to fund the tax cuts for the fat cats and repay the accounts rendered to the P.T. by its paymaster for enabling the P.T. to ruin run this country.

Funny, I remember a flat, 20 Baht fare for BTS and MRT as one of her election promises....

[Buchholz]

Commerce Ministry refutes claims of products overpricing

BANGKOK, 28 May 2012 (NNT) – The Commerce Permanent Secretary has insisted that the higher product prices at present are not inordinate, while expecting that the ready-to-eat meal price control scheme will be ready within two weeks.

Commerce Permanent Secretary Yanyong Phuangrach has disclosed that the recent 2-4% increase in product prices is the consequence of last year’s devastating flood combined with the poor economic situation at present. Thus, the Ministry is closely monitoring product prices from their origins to retail shops in order to prevent excessive pricing.

Meanwhile, Mr. Yanyong said that the price control scheme of ready-to-eat food should be finalized within the next two weeks. The plan will be discussed among the Subcommittee in charge of ready-to-eat meal prices before being submitted to the Deputy Prime Minister and Minister of Finance, Mr. Kittiratt Na Ranong, for approval.

-- NNT 2012-05-28

[Valentine]

Fantastic, just what the country needs, a sub committee in charge of ready to eat meals. All the money spent on committees could actually do a lot of good elsewhere.

[Ricardo]

It's perhaps amusing to us relatively well-heeled farangs, but also relevant to the poor, that the government should attempt to promote fixed-price cheap meals yet-again.

There was a similar programme, with thousands of 10-Baht-meal stands being promoted, several years ago.

Now the magic/just-attainable price is 25 Baht ... not that prices are rising, of course not, that's just a misconception, says PM-Yingluck.

[ginjag]

PRICE rises----question---Will the lottery ticket price be increased ?? Thailand 2 uk pounds a ticket---same population-prize money approx 5 mill BAHT. U.K. ticket 1 pound same number of buyers, but u.k. prize of 200 million BAHT, am I completely wrong--if so sorry---if not where is the other prize money in Thailand going, ???

[slapout]

Fantastic, just what the country needs, a sub committee in charge of ready to eat meals. All the money spent on committees could actually do a lot of good elsewhere.

I have it from fairly reliable sources. that the committees hold their discussions on ready to eat meals over lunch/dinner at the 5 star hotel eateries.

[TommoPhysicist]

PRICE rises----question---Will the lottery ticket price be increased ?? Thailand 2 uk pounds a ticket---same population-prize money approx 5 mill BAHT. U.K. ticket 1 pound same number of buyers, but u.k. prize of 200 million BAHT, am I completely wrong--if so sorry---if not where is the other prize money in Thailand going, ???

They give out a lot more prizes than the UK.

[rubl]

As prices are not rising I'm surprised no-one has come (again) with the proposal to introduce 10 Baht bills

[ginjag]

Tommo#257...we have an Idea what u.k. rake in is, from the pound ticket, and what they pay. So give us the rake in for the Thai2 pound ticket, and how much they pay out, as you disputed my post.

[ginjag]

As prices are not rising I'm surprised no-one has come (again) with the proposal to introduce 10 Baht bills

If prices drop much more,we can use the satang at all venues

[Ricardo]

As prices are not rising I'm surprised no-one has come (again) with the proposal to introduce 10 Baht bills

If prices drop much more,we can use the satang at all venues

Coincidentally, my local photocopy-shop recently stopped accepting 50-satang coins, in payment of 1-Baht-per-copy prices, this must be some further evidence of falling-prices ?

I also recall when the UK dropped the one-Pound note, and we all joked that it wasn't any-longer worth the paper it had been printed-on, now the five-pound note is getting rarer.

[ginjag]

PRICE rises----question---Will the lottery ticket price be increased ?? Thailand 2 uk pounds a ticket---same population-prize money approx 5 mill BAHT. U.K. ticket 1 pound same number of buyers, but u.k. prize of 200 million BAHT, am I completely wrong--if so sorry---if not where is the other prize money in Thailand going, ???

They give out a lot more prizes than the UK.

That didn't answer the question, it doesn't necessarily say they pay out a high per/cent of the rake in, answer please .

[OzMick]

PRICE rises----question---Will the lottery ticket price be increased ?? Thailand 2 uk pounds a ticket---same population-prize money approx 5 mill BAHT. U.K. ticket 1 pound same number of buyers, but u.k. prize of 200 million BAHT, am I completely wrong--if so sorry---if not where is the other prize money in Thailand going, ???

They give out a lot more prizes than the UK.

That didn't answer the question, it doesn't necessarily say they pay out a high per/cent of the rake in, answer please .

I'm sure that here the payout as a percentage will be lower because most Thais are "mathematically challenged". My g/f was making small bets on the illegal lottery and it took some convincing that 500:1 was not a good return on a 999:1 bet.

[Robby nz]

I know that the price of prepared food from sidewalk places has risen as I now pay 30b for what not long ago cost 25b and 40 b for what cost 30b.

I also note that the price of cas at the discount place near Mo Chit has risen from 8b to 10.5b that must be close to 30%.

Still 5 star places may for all I know give a discount for the PM and her friends.