PM Yingluck Expects Goods Prices To Fall Within Few Months

[OzMick]

I take it then that you agree with the PM that rice will go up in price and some other commodities will come back down.

Rice will go up in price while thousands of tons rots unsold in warehouses. Meanwhile hundreds of billions of baht will be spent on corruption, vote-buying and propping up an uneconomic industry - money which could be used to improve the education of the Thai people so that they can find suitably remunerative employment rather than grubbing in the mud for a pittance.

More and more primary industries want to jump on the subsidy bandwagon, and why not - no double standards, right. So increasing amounts of tax baht disappear down the black hole.

And now some sycophant asks, do WE understand market forces. We understand market intervention, and how rarely it is sustainable.

[kerryk]

I read the original article and first of all the headline is a distortion of content of the article.

Prime Minister Yingluck Shinawatra said on Wednesday that prices of several items have been rising due to numerous factors.

The prime minister also expects that certain goods, particularly farm products, will see their prices adjusted down by market mechanism.

She affirmed that not everything is more expensive as prices of some goods have come down or will likely fall soon.

None of the posts that follow specifically address any of what the PM said. I guess my challenge would be (I know this is odd on Thai Visa) to address the OP without involving the PM's personality in the discussion. Tough one eh? Ya I know. I feel for you fellows.

People aren't questioning the lovely Ms Yingluck's personality. She is charming.

It's her qualification to be a credible Prime Minister that's in question.

Did you read the posts on the first page comparing her to Miss Piggy? Do you really think people find Miss Piggy lovely and charming? And why pray tell would you be concerned about her qualifications to be a credible Prime Minister. She is the Prime Minister.

Dear Big Bamboo, to my above list add,

He looks like one of the aliens in 'Men In Black' about to burst out of its man-costume.

Every time i see a photo of one of the red leaders their eyes are redder than their shirts!

Get over your senile fetish for 40yo rich women, and consider a man in the job.

These quotes represent the level of political discourse on Thai Visa from this thread and others.

And that really is my point.

So Big Bamboo do you really think "People aren't questioning the lovely Ms Yingluck's personality?"

[kerryk]

People aren't questioning the lovely Ms Yingluck's personality. She is charming.

It's her qualification to be a credible Prime Minister that's in question.

i do not think its even her qualifications that is in question, its the statements that she makes. i wonder if she herself believes in it?!

You believe the drop out brokers posting in this thread? You really want me to start posting charts of commodities that have gone down in price? Tin, Rice,Palm oil, Copper, Cocoa, Oil. Not everyone is ill informed.

Are you having some sort of brain spasm? The price of rice may have fallen in the rest of the world but NOT in Thailand where it has risen markedly as a direct result of the policies of the PM whose qualifications we are not fit to criticise.

As I remember it the PTP subsidy was intended to be max B15000 until she made an off the cuff statement at an election rally and increased it to B20000.

Get over your senile fetish for 40yo rich women, and consider a man in the job - he would be considered a failure in the making.

Currently the price of rice in Thailand has gone up? Where do you find your numbers? Do you think discussing my fetish for 40yo rich women is really on topic?

[kerryk]

I take it then that you agree with the PM that rice will go up in price and some other commodities will come back down.

I agree with the PM that it's just a misconception

So did the PM say the price of rice will go up or down and do you agree?

[OzMick]

I read the original article and first of all the headline is a distortion of content of the article.

Prime Minister Yingluck Shinawatra said on Wednesday that prices of several items have been rising due to numerous factors.

The prime minister also expects that certain goods, particularly farm products, will see their prices adjusted down by market mechanism.

She affirmed that not everything is more expensive as prices of some goods have come down or will likely fall soon.

None of the posts that follow specifically address any of what the PM said. I guess my challenge would be (I know this is odd on Thai Visa) to address the OP without involving the PM's personality in the discussion. Tough one eh? Ya I know. I feel for you fellows.

People aren't questioning the lovely Ms Yingluck's personality. She is charming.

It's her qualification to be a credible Prime Minister that's in question.

Did you read the posts on the first page comparing her to Miss Piggy? Do you really think people find Miss Piggy lovely and charming? And why pray tell would you be concerned about her qualifications to be a credible Prime Minister. She is the Prime Minister.

Dear Big Bamboo, to my above list add,

He looks like one of the aliens in 'Men In Black' about to burst out of its man-costume.

Every time i see a photo of one of the red leaders their eyes are redder than their shirts!

Get over your senile fetish for 40yo rich women, and consider a man in the job.

These quotes represent the level of political discourse on Thai Visa from this thread and others.

And that really is my point.

So Big Bamboo do you really think "People aren't questioning the lovely Ms Yingluck's personality?"

You have an amazing ability to avoid the meat of a discussion, sliding into irrelevant side issues rather than answer criticism of points raised by yourself.

[kerryk]

People aren't questioning the lovely Ms Yingluck's personality. She is charming.

It's her qualification to be a credible Prime Minister that's in question.

Did you read the posts on the first page comparing her to Miss Piggy? Do you really think people find Miss Piggy lovely and charming? And why pray tell would you be concerned about her qualifications to be a credible Prime Minister. She is the Prime Minister.

Dear Big Bamboo, to my above list add,

He looks like one of the aliens in 'Men In Black' about to burst out of its man-costume.

Every time i see a photo of one of the red leaders their eyes are redder than their shirts!

Get over your senile fetish for 40yo rich women, and consider a man in the job.

These quotes represent the level of political discourse on Thai Visa from this thread and others.

And that really is my point.

So Big Bamboo do you really think "People aren't questioning the lovely Ms Yingluck's personality?"

You have an amazing ability to avoid the meat of a discussion, sliding into irrelevant side issues rather than answer criticism of points raised by yourself.

I didn't ask you. The post was between big bamboo and me. But of course it is nice to hear from you this morning.

[OzMick]

You believe the drop out brokers posting in this thread? You really want me to start posting charts of commodities that have gone down in price? Tin, Rice,Palm oil, Copper, Cocoa, Oil. Not everyone is ill informed.

Are you having some sort of brain spasm? The price of rice may have fallen in the rest of the world but NOT in Thailand where it has risen markedly as a direct result of the policies of the PM whose qualifications we are not fit to criticise.

As I remember it the PTP subsidy was intended to be max B15000 until she made an off the cuff statement at an election rally and increased it to B20000.

Get over your senile fetish for 40yo rich women, and consider a man in the job - he would be considered a failure in the making.

Currently the price of rice in Thailand has gone up? Where do you find your numbers? Do you think discussing my fetish for 40yo rich women is really on topic?

I find my numbers (which I didn't offer) by walking into a market or Tesco. Am I wrong, is rice actually cheaper under this government IYO? Is the PM wrong on this matter as well?

I have asked you several times to offer reasons for your support of an incompetent puppet PM. If you fail to assist me in understanding the near-inexplicable, expect alternatives. A bit too accurate?

No comment on market distortion, waste of taxpayer's funds, the corruption inherent in the rice-pledging scheme, vote-buying?

[kerryk]

You believe the drop out brokers posting in this thread? You really want me to start posting charts of commodities that have gone down in price? Tin, Rice,Palm oil, Copper, Cocoa, Oil. Not everyone is ill informed.

Are you having some sort of brain spasm? The price of rice may have fallen in the rest of the world but NOT in Thailand where it has risen markedly as a direct result of the policies of the PM whose qualifications we are not fit to criticise.

As I remember it the PTP subsidy was intended to be max B15000 until she made an off the cuff statement at an election rally and increased it to B20000.

Get over your senile fetish for 40yo rich women, and consider a man in the job - he would be considered a failure in the making.

Currently the price of rice in Thailand has gone up? Where do you find your numbers? Do you think discussing my fetish for 40yo rich women is really on topic?

I find my numbers (which I didn't offer) by walking into a market or Tesco. Am I wrong, is rice actually cheaper under this government IYO? Is the PM wrong on this matter as well?

I have asked you several times to offer reasons for your support of an incompetent puppet PM. If you fail to assist me in understanding the near-inexplicable, expect alternatives. A bit too accurate?

No comment on market distortion, waste of taxpayer's funds, the corruption inherent in the rice-pledging scheme, vote-buying?

Actually my rice comes from Surin so I have no idea what Tesco is charging. Surin rice smells and tastes a lot better to me. I don't think it holds as long though. Seems like it has a higher moisture content.

I don't have any problem discussing my senile fetishes. I have more I can count as I lived in Pattaya for a long time but as far as rich 40 year old women that doesn't strike me as a fetish but only an age appropriate matching. Now if Miss Y was in her 20's it may not be as appropriate. Although if her only purpose was as an attractive spokesperson 20's may be have been better.

To be honest with you I don't think she has been a very good PM. Not like Churchill or anything approaching that.

Personally I think Thailand needs a stronger form of government, Singaporean actually.

In this thread I agree with the PM; of course the price of some goods will fall and others will not.

She really didn't say anything else. The only reason I posted is a request to take the personality stuff out of it and try to discuss what she said or did as opposed the disrespectful characterizations that have nothing to do with the topic.

[spidermike007]

What this rocket scientist PM is not taking into account, is that "Murphy's law of Thailand economics" states that when prices go up, they rarely go down again. They simply create a new benchmark. Although I realize in Koh Samui the prices are much higher than elsewhere (the exceptionally high costs of a 90 minute ferry ride from Don Sak), just the prices of oranges alone has doubled, to tripled in the past 2 years. Watermelon is now more than in the US, though the quality is higher here. Many things are still reasonable here, but everything is going up, and the PM should have enough courage to admit she cannot influence the prices much.

[kerryk]

What this rocket scientist PM is not taking into account, is that "Murphy's law of Thailand economics" states that when prices go up, they rarely go down again. They simply create a new benchmark. Although I realize in Koh Samui the prices are much higher than elsewhere (the exceptionally high costs of a 90 minute ferry ride from Don Sak), just the prices of oranges alone has doubled, to tripled in the past 2 years. Watermelon is now more than in the US, though the quality is higher here. Many things are still reasonable here, but everything is going up, and the PM should have enough courage to admit she cannot influence the prices much.

She can drastically influence prices with the exchange rate. If she chose to do so. It is not rocket science.

[OzMick]

What this rocket scientist PM is not taking into account, is that "Murphy's law of Thailand economics" states that when prices go up, they rarely go down again. They simply create a new benchmark. Although I realize in Koh Samui the prices are much higher than elsewhere (the exceptionally high costs of a 90 minute ferry ride from Don Sak), just the prices of oranges alone has doubled, to tripled in the past 2 years. Watermelon is now more than in the US, though the quality is higher here. Many things are still reasonable here, but everything is going up, and the PM should have enough courage to admit she cannot influence the prices much.

She can drastically influence prices with the exchange rate. If she chose to do so. It is not rocket science.

Domestically produced and consumed items will not vary with exchange rates except as far as imported inputs (eg fuel). No, it is certainly not rocket science.

[kerryk]

What this rocket scientist PM is not taking into account, is that "Murphy's law of Thailand economics" states that when prices go up, they rarely go down again. They simply create a new benchmark. Although I realize in Koh Samui the prices are much higher than elsewhere (the exceptionally high costs of a 90 minute ferry ride from Don Sak), just the prices of oranges alone has doubled, to tripled in the past 2 years. Watermelon is now more than in the US, though the quality is higher here. Many things are still reasonable here, but everything is going up, and the PM should have enough courage to admit she cannot influence the prices much.

She can drastically influence prices with the exchange rate. If she chose to do so. It is not rocket science.

Domestically produced and consumed items will not vary with exchange rates except as far as imported inputs (eg fuel). No, it is certainly not rocket science.

The point should be made that exports account for 2/3 of of the Thai GDP.

[OzMick]

What this rocket scientist PM is not taking into account, is that "Murphy's law of Thailand economics" states that when prices go up, they rarely go down again. They simply create a new benchmark. Although I realize in Koh Samui the prices are much higher than elsewhere (the exceptionally high costs of a 90 minute ferry ride from Don Sak), just the prices of oranges alone has doubled, to tripled in the past 2 years. Watermelon is now more than in the US, though the quality is higher here. Many things are still reasonable here, but everything is going up, and the PM should have enough courage to admit she cannot influence the prices much.

She can drastically influence prices with the exchange rate. If she chose to do so. It is not rocket science.

Domestically produced and consumed items will not vary with exchange rates except as far as imported inputs (eg fuel). No, it is certainly not rocket science.

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

[kerryk]

Spider Monkey said the PM could not influence prices. In an export driven economy like Thailand it is very easy to influence prices by the exchange rate. Spider monkey was in error and I pointed this out.

[OzMick]

Spider Monkey said the PM could not influence prices. In an export driven economy like Thailand it is very easy to influence prices by the exchange rate. Spider monkey was in error and I pointed this out.

Erroneously.

[kerryk]

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

[kerryk]

Spider Monkey said the PM could not influence prices. In an export driven economy like Thailand it is very easy to influence prices by the exchange rate. Spider monkey was in error and I pointed this out.

Erroneously.

How do you figure that? Just saying so does not make it so. Explain what you mean.

[OzMick]

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

I hate to be blunt (not really) but what a lot of hogwash. If you devalue the currency external buyers pay LESS, and you have to sell proportionately more to compensate, to get back where you started. But except for inputs that have to be imported, there is very little change in domestic prices.

You claim some weird convoluted scenario (but it ain't rocket science) to cover up the fact that it isn't so. But you got one thing right, market intervention is a short term fix that usually causes more problems than it solves, as Yingluk is finding out the hard way.

BTW Just saying so does not make it so. The arguments you present have nothing to back them but your own opinion, and a quick dodge whenever asked to justify it with one example.

[kerryk]

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

I hate to be blunt (not really) but what a lot of hogwash. If you devalue the currency external buyers pay LESS, and you have to sell proportionately more to compensate, to get back where you started. But except for inputs that have to be imported, there is very little change in domestic prices.

You claim some weird convoluted scenario (but it ain't rocket science) to cover up the fact that it isn't so. But you got one thing right, market intervention is a short term fix that usually causes more problems than it solves, as Yingluk is finding out the hard way.

BTW Just saying so does not make it so. The arguments you present have nothing to back them but your own opinion, and a quick dodge whenever asked to justify it with one example.

I will try and keep in simple for you. If you devalue the local currency more people will buy your product. Americans won't buy Thai steel at 30 baht to the dollar. They will buy it at 40 baht to the dollar. So Thailand has a net increase of on one unit. The steel company has more business and hires more employees who also pay rent and eat som tom. See how the money gets into the Thai economy?

[animatic]

quote name='kerryk' timestamp='1336807354' post='5294166']

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

I hate to be blunt (not really) but what a lot of hogwash. If you devalue the currency external buyers pay LESS, and you have to sell proportionately more to compensate, to get back where you started. But except for inputs that have to be imported, there is very little change in domestic prices.

You claim some weird convoluted scenario (but it ain't rocket science) to cover up the fact that it isn't so. But you got one thing right, market intervention is a short term fix that usually causes more problems than it solves, as Yingluk is finding out the hard way.

BTW Just saying so does not make it so. The arguments you present have nothing to back them but your own opinion, and a quick dodge whenever asked to justify it with one example.

I will try and keep in simple for you. If you devalue the local currency more people will buy your product. Americans won't buy Thai steel at 30 baht to the dollar. They will buy it at 40 baht to the dollar. So Thailand has a net increase of on one unit. The steel company has more business and hires more employees who also pay rent and eat som tom. See how the money gets into the Thai economy?

But they seem to be more worried about buying oil/gas baht to the dollar,

than sales dollar to the baht.

Edited May 12, 2012 by animatic

[Scott]

An off-topic post has been deleted.

[OzMick]

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

I hate to be blunt (not really) but what a lot of hogwash. If you devalue the currency external buyers pay LESS, and you have to sell proportionately more to compensate, to get back where you started. But except for inputs that have to be imported, there is very little change in domestic prices.

You claim some weird convoluted scenario (but it ain't rocket science) to cover up the fact that it isn't so. But you got one thing right, market intervention is a short term fix that usually causes more problems than it solves, as Yingluk is finding out the hard way.

BTW Just saying so does not make it so. The arguments you present have nothing to back them but your own opinion, and a quick dodge whenever asked to justify it with one example.

I will try and keep in simple for you. If you devalue the local currency more people will buy your product. Americans won't buy Thai steel at 30 baht to the dollar. They will buy it at 40 baht to the dollar. So Thailand has a net increase of on one unit. The steel company has more business and hires more employees who also pay rent and eat som tom. See how the money gets into the Thai economy?

Thank you for keeping it simplistic for me. Now all Yingluk has to do is devalue the baht to 100 to the dollar, the Yanks buy the place and every Thai is rich like her brother promised. When they reach parity with the Laos kip they can stop importing toilet paper and save a fortune.

Oh wait. A sudden influx of baht will cause prices to rise as more money chases the same supply of local produce. The Thai Treasurer increases interest rates to head off inflation, and the currency market revalues the baht. Or did you think the Thai PM has the power to arbitrarily set the value of the currency?

You say Thailand will export more, but 2/3 of GDP is from exports. What happens to an exporter? If his contract is in baht, he gets fewer dollars, and if he has imported inputs, they cost more. If his contract is in dollars he gets more baht FOR THE TERM OF THE CONTRACT after which the buyer will renegotiate or buy from another supplier at the going local rate. Well happy days are here again. And just how much is all this upheaval going to affect the price of locally grown and eaten produce? SFA

[kerryk]

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

I hate to be blunt (not really) but what a lot of hogwash. If you devalue the currency external buyers pay LESS, and you have to sell proportionately more to compensate, to get back where you started. But except for inputs that have to be imported, there is very little change in domestic prices.

You claim some weird convoluted scenario (but it ain't rocket science) to cover up the fact that it isn't so. But you got one thing right, market intervention is a short term fix that usually causes more problems than it solves, as Yingluk is finding out the hard way.

BTW Just saying so does not make it so. The arguments you present have nothing to back them but your own opinion, and a quick dodge whenever asked to justify it with one example.

I will try and keep in simple for you. If you devalue the local currency more people will buy your product. Americans won't buy Thai steel at 30 baht to the dollar. They will buy it at 40 baht to the dollar. So Thailand has a net increase of on one unit. The steel company has more business and hires more employees who also pay rent and eat som tom. See how the money gets into the Thai economy?

Thank you for keeping it simplistic for me. Now all Yingluk has to do is devalue the baht to 100 to the dollar, the Yanks buy the place and every Thai is rich like her brother promised. When they reach parity with the Laos kip they can stop importing toilet paper and save a fortune.

Oh wait. A sudden influx of baht will cause prices to rise as more money chases the same supply of local produce. The Thai Treasurer increases interest rates to head off inflation, and the currency market revalues the baht. Or did you think the Thai PM has the power to arbitrarily set the value of the currency?

You say Thailand will export more, but 2/3 of GDP is from exports. What happens to an exporter? If his contract is in baht, he gets fewer dollars, and if he has imported inputs, they cost more. If his contract is in dollars he gets more baht FOR THE TERM OF THE CONTRACT after which the buyer will renegotiate or buy from another supplier at the going local rate. Well happy days are here again. And just how much is all this upheaval going to affect the price of locally grown and eaten produce? SFA

To go back to the steel example. The exporter did not sell anything until the baht was lowered to compete with cheap Vietnamese steel. So he has a net increase of 40 baht profit where before he had none.

All countries go through this cycle. The US dollar was expensive and exports declined. Now the US dollar is cheap and exports increase. Eventually the US dollar will gain in strength and the gains in exports will decline and the cycle starts over again. This is what the whole argument with China is about. The Chinese are keeping their currency low to export more.

I am not saying Yingluck is doing any of this. I don't think her government has the expertise to do it like the Chinese are doing it. All I am saying is if she wanted to effect prices of goods she could. Any country can but they eventually pay the price.

[ginjag]

Angela M. of Germany is doing something similar, exports Booming there while all Europe is reeling, Germany is raking in the coffers, (laughing quietly) are the Germans. Contrast to the High Bht.

[hellodolly]

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

You lost me in your line of reasoning. If you bring in more foreign money how does it help the Thais. There is already a shortage of Thai workers and all the profit coming in will only go to a hand full of people. Now I understand it would benifit people living here off of forign money but to be honest with you It would probably not make that munch difference over here but in my savings bank it would be a big help. Especially if prices go down and my money is worth more.

Not my field feel good to straiten me out. Any one.

Edited May 12, 2012 by hellodolly

[aussiebebe]

All this talk of prices has made me reflect on all the things that cost the same now as when I first came to Thailand six years ago. Coca-cola is still 10 baht a bottle, new air filters for my car are still 251 baht and the ladies at a local establishment I never frequent still only charge 700 baht all-in, apparently . Many things have improved; 7/11 now sells full-sized Snickers for 27 baht and I still pay the same 641 baht for my internet but get 6Mbps instead of the 512Kbps I started off with.

[kerryk]

The point should be made that exports account for 2/3 of of the Thai GDP.

Please explain the relevance, if any, of that statement on the price of a kg of rice, pork, onions or any other basic produced and consumed in Thailand.

It is not difficult for a government to raise or lower domestic prices in the short term. The question is it a good idea to do so is altogether different.

When you have an economy heavily dependent on exports the quickest way to increase the amount is to reduce the value of the local currency hence bringing in more new foreign cash. This of course means more local profit and more local sales. As the export sector brings in more cash the local economy will also increase.

Of course it is always a balance between what you sell and what you have to import. For example Thailand sells rice but imports oil to run the machines that harvest the rice.

Is anyone in the current government qualified to select the proper balance? I don't think so. I could do it but they haven't asked my opinion.

You lost me in your line of reasoning. If you bring in more foreign money how does it help the Thais. There is already a shortage of Thai workers and all the profit coming in will only go to a hand full of people. Now I understand it would benifit people living here off of forign money but to be honest with you It would probably not make that munch difference over here but in my savings bank it would be a big help. Especially if prices go down and my money is worth more.

Not my field feel good to straiten me out. Any one.

Foreign money is new money. It has not been circulated before in Thailand. It goes around about ten times. When you pay a bar fine the owner of the bar deposits that money in the bank and the bank loans it out to a Thai family who plants rubber trees and harvests latex and sells that to buy the food from the som tom lady who buys clothes for her children from the seller in the mall who buys a new car manufactured in Rayong with tires and parts that need replacement from local merchants who all have mia nois and so on and on. Anyway it goes around about ten times generating more income for all concerned.

This is not the same for old money already in circulation in Thailand. They call it the multiplier effect I believe.

Then there is the effect of the balance of payments that is what Thailand buys as opposed to what it sells on the international markets. It is better to sell more than you buy. Other wise you will eventually run out of money and have to print more which lowers the value of the money already in circulation.

For every dollar you bring in by tourism or Thais exporting a product made from Thai natural resources it generates 5 to 10 dollars in income for Thai people in the form of wages and or other benefits.

It is one of the reasons Australia is doing so well right now. They have large amounts of natural resources that they are selling to China. The same as Canada is selling oil to the USA. The USA and China are dumping cash into Canada and Australia.

Sure there is a shortage of Thai workers but there are still 60 million Thais living in Thailand and 30 million of those are working. For example Ford just opened a new auto manufacturing plant in Thailand that will produce 500,000 autos a year because it is more confident of the current Thai government and business conditions in Thailand than in Detroit, Michigan. That new auto manufacturing plant will employ thousands of Thais at above minimum wage and all those wages will be taxed because Ford is not part of the black or gray market.

[rubl]

Foreign money is new money. It has not been circulated before in Thailand. It goes around about ten times. When you pay a bar fine the owner of the bar deposits that money in the bank and the bank loans it out to a Thai family who plants rubber trees and harvests latex and sells that to buy the food from the som tom lady who buys clothes for her children from the seller in the mall who buys a new car manufactured in Rayong with tires and parts that need replacement from local merchants who all have mia nois and so on and on. Anyway it goes around about ten times generating more income for all concerned.

This is not the same for old money already in circulation in Thailand. They call it the multiplier effect I believe.

Then there is the effect of the balance of payments that is what Thailand buys as opposed to what it sells on the international markets. It is better to sell more than you buy. Other wise you will eventually run out of money and have to print more which lowers the value of the money already in circulation.

For every dollar you bring in by tourism or Thais exporting a product made from Thai natural resources it generates 5 to 10 dollars in income for Thai people in the form of wages and or other benefits.

It is one of the reasons Australia is doing so well right now. They have large amounts of natural resources that they are selling to China. The same as Canada is selling oil to the USA. The USA and China are dumping cash into Canada and Australia.

Sure there is a shortage of Thai workers but there are still 60 million Thais living in Thailand and 30 million of those are working. For example Ford just opened a new auto manufacturing plant in Thailand that will produce 500,000 autos a year because it is more confident of the current Thai government and business conditions in Thailand than in Detroit, Michigan. That new auto manufacturing plant will employ thousands of Thais at above minimum wage and all those wages will be taxed because Ford is not part of the black or gray market.

The kerryk economics 101 doesn't seem to have much in common with real world economics or market mechanisms. Attempting to insert some objectivity and/or knowledge doesn't help either. IMHO

No offence, but somehow I think after you fought for Thailand during their war against the commies, you should have started resting on your laurels.

(Note: info as taken from another forum/topic/post of kerryk on TV)

Edited May 12, 2012 by rubl

[volk666]

KerryK, you started this debate arguing that commodities worldwide are going down but provided the links that seem to prove quite the opposite - prices have been going up for at least half a year.

Now you quietly dropped that line of arguing and concentrated on whatever mistakes your opponents could have made whilst arguing with you. This reminds me of Thaksin who, upon being convicted, stirred the pot up so that everyone crossed some kind of line and now they propose the general amnesty for everyone so that PAD gets to walk free for tresspassing airport properties and Thaksin gets his 46 billion back. Fair deal, huh?

The government did its fair share to nudge the prices up and they've been told all along that it would happen if they pursued their policies. Now chickens come to roost and the government is being asked about its contribution. Asked by the opposition, mind you, the general public assumes that PTP have been trying to keep the prices down all along.

There's a price to pay for this assumption and it's being paid now.

[kerryk]

Foreign money is new money. It has not been circulated before in Thailand. It goes around about ten times. When you pay a bar fine the owner of the bar deposits that money in the bank and the bank loans it out to a Thai family who plants rubber trees and harvests latex and sells that to buy the food from the som tom lady who buys clothes for her children from the seller in the mall who buys a new car manufactured in Rayong with tires and parts that need replacement from local merchants who all have mia nois and so on and on. Anyway it goes around about ten times generating more income for all concerned.

This is not the same for old money already in circulation in Thailand. They call it the multiplier effect I believe.

Then there is the effect of the balance of payments that is what Thailand buys as opposed to what it sells on the international markets. It is better to sell more than you buy. Other wise you will eventually run out of money and have to print more which lowers the value of the money already in circulation.

For every dollar you bring in by tourism or Thais exporting a product made from Thai natural resources it generates 5 to 10 dollars in income for Thai people in the form of wages and or other benefits.

It is one of the reasons Australia is doing so well right now. They have large amounts of natural resources that they are selling to China. The same as Canada is selling oil to the USA. The USA and China are dumping cash into Canada and Australia.

Sure there is a shortage of Thai workers but there are still 60 million Thais living in Thailand and 30 million of those are working. For example Ford just opened a new auto manufacturing plant in Thailand that will produce 500,000 autos a year because it is more confident of the current Thai government and business conditions in Thailand than in Detroit, Michigan. That new auto manufacturing plant will employ thousands of Thais at above minimum wage and all those wages will be taxed because Ford is not part of the black or gray market.

The kerryk economics 101 doesn't seem to have much in common with real world economics or market mechanisms. Attempting to insert some objectivity and/or knowledge doesn't help either. IMHO

No offence, but somehow I think after you fought for Thailand during their war against the commies, you should have started resting on your laurels.

(Note: info as taken from another forum/topic/post of kerryk on TV)

You are of course welcome to provide what you think are real world alternatives to Econ 101. And anyway I was trying to answer a question posed by the previous poster about new money coming into Thailand.

I am trying to teach and explain with facts while I think you are trying to burn down with innuendos. KISS. Try teaching another theory. I am open to listen. I tourist dollar comes into Thailand and creates 5 to 10 dollars in Thai economic benefit. Do you disagree?