PM Yingluck: Eurozone Debt Crisis Will Not Affect Thailand

[rubl]

No idea of what she is talking about. Cannot believe that her advisers allow her to make speeches like this. It is embarrassing to read and does nothing to boost confidence in this government. They are living in cloud cuckoo land if they believe this utter nonsense.

Minister of Science Prodprasop probably told her that the 'cloud' was really 'in'

[nkg]

Meanwhile, all European investment projects in Thailand will continue uninterrupted. NOT ONE European investor might have second thoughts.

So let's all celebrate (and continue sticking our heads in the sand). As the euro zone crisis is going to more or less affect countries worldwide, Thailand is safe! If Mrs. PM says that, it is almost like a magic spell.

Investment money is leaving Europe, not arriving there. Wealthy people who have no desire to see their land and currency devalued have treated Asia as a safe haven in the last 4 years - and Thailand is one of the larger Asian economies.

The drop-off in tourism from Europe has been offset by ever-increasing tourists from China, Japan, Korea, Russia and India, amongst other countries.

So remarkably enough,Yingluck may be somewhere near the truth on this.

[ginjag]

The P.M. is in denial along with her r-slicking supporters.

The Airport is BURSTING at the seams, and tourism up 30%-all reported of late and we are to get Hi-So tourists to boot. By the way there is no 'F' in goverment.

[MEL1]

No idea of what she is talking about. Cannot believe that her advisers allow her to make speeches like this. It is embarrassing to read and does nothing to boost confidence in this government. They are living in cloud cuckoo land if they believe this utter nonsense.

Lol...... Don't you get it? She has no idea of what she's talking about, and her advisors know less. They're not embarrassed because they are loved by si dang. Cuckoo land? That is called the Houses of Parliament. It's only nonsense if you view it from a western point of view.

If you view it from a Thai point of view it's better than reading 2 fat slags in VIZ.

-mel.

[nkg]

Europe can barely handle it, but Thailand can...?

Yep, Pigs Fly over the Brooklyn Bridge,

that I just sold her for blankets and trinkets.

Thailand didn't invest trillions in "AAA" dog crap mortgage bonds, or artificially ramp up their housing market for political purposes. Japan, China and the USA are Thailand's top 3 trading partners, in that order.

[letitbe]

has her brother not yet told her strongly enough r not to open her mouth but it seems here one can fool most of the people all of the time

[kutjebu]

She is totally mad !!!!

She's just stupid. She sucks at being a PM, but at least she is good at sticking her foot in her mouth on a daily basis..a little competition with Chalerm.

I wouldn't say she is stupid, just hopelessy out of her depth. She does her best but everybody knows she is just a figurehead, not a politician, and what she needs is a strong 'guardian' to guide her through the cesspit of Thai politics. Unfortunately she has been surrounded by assorted sychophants and incompetents not selected for their political ability either and the whole show is masterminded by a third hand several time zones way.

Be careful what to say about the PM.You're a guest in Thailand.

[geriatrickid]

The PM is not wrong on the Euro debt crisis. Thailand is fairly well insulated because Thai banks have not invested in EU based sovereign debt financing. Nor did Thailand invest heavily in mortgage backed securities. Some of Thailand's most valuable exports are not affected by the debt crisis. Don't believe me, read the EU data;

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113454.pdf

The good thing about being a food exporter is that no matter how bad the world economy may get, people still need to eat.

Of more concern is the LIBOR scandal. This is heavy duty sh*t. I don't think most people are fully aware of the implications regarding the manipulation of lending rates. The LIBOR scandal has the potential to cause more damage than the recent Wall Street and London City meltdown.

I don't think the Thai MoF officials are in a position to respond and they like many other finance ministry officials around the world, are sitting there in shock.

The LIBOR rates, compiled from estimates by large banks of how much they believe they have to pay to borrow from each other, are used to determine interest rates on trillions of US dollars worth of contracts around the world. As of this moment, every regulator in the G8 has launched an investigation with Germany just announcing its intent. There are going to be a lot of banking execs tossed under the bus.

[annabel]

"During the weekly “Yingluck Government Meets the People” show, Prime Minister Yingluck Shinawatra said that as the government has been closely watching the crisis in Europe, the public should not be worried about any fallout and all investments should continue uninterrupted."

Didn't they closely watch the flood crisis last year? And we see how will that worked out. It's like watching a replay of the same football match ten times and hoping the outcome changes.

"Lastly, the PM said that a working committee has been set up to monitor any possible fallout from the problems in Europe and to help those already hit by the crisis as well as to find new markets to offset the shrinking sales."

And where are these new markets? If there were new markets, they would have been targeted as soon as Vietnam and other southeast Asian countries started chipping away at Thailand's share of already existing markets.

CHINA !!! Hello !!... Tablets and wild life animals to feed them too or in exchange ... pick your choice

Edited July 7, 2012 by annabel

[nkg]

The LIBOR rates, compiled from estimates by large banks of how much they believe they have to pay to borrow from each other, are used to determine interest rates on trillions of US dollars worth of contracts around the world. As of this moment, every regulator in the G8 has launched an investigation with Germany just announcing its intent. There are going to be a lot of banking execs tossed under the bus.

You make an excellent point. A lot of bankers should be going to prison for this - as with their previous errors, they are probably hoping that the issues involved are too complex for the general public to understand.

I'm not sure that there's enough public anger about this to bring about a much-needed banker cull, though. Politicians know that being nice to banks can pay for a very nice retirement .......

Edited July 7, 2012 by nkg

[SantiSuk]

When you think about the abject nature of Thai politics over the last few decades it is quite extraordinary that the Thai economy has been so successful compared to other similar politically messed-up nations, such as most of its neighbours, much of Africa and a good chunk of South and Central America. I don't understand how that happens. Is the Thai non-political side of the administration just quietly competent? Are the country's natural resources, tourism and agriculture just that much better than elsewhere?

Serious question. Not looking for cliches

Edited July 8, 2012 by SantiSuk

[kimamey]

The woman is clueless......I have chickens that communicate on a more intelligent level

Well if you can find one that's got a dodgy past if possible involving violence and bail jumping, can incite hatred, violence and intimidation and can talk complete rubbish. All you need to do is get it a lobotomy. I hear there's a cabinet reshuffle coming up. Just don't mention it to the PM though. I don't think she's been told yet.

[kimamey]

It's ridiculous to suggest that the crisis in the Euro zone won't affect Thailand. Of course it doesn't mean that you shouldn't try to alleviate the problems by improving other areas by targeting other countries. It's true that Thailand isn't directly exposed to the Euro zone but it doesn't have to be direct. For instance the UK isn't in the Euro zone but it is its major trading partner so it effects the UK which in turn means the UK citizens have less money to spend in places like Thailand. China despite being so strong is trying to build it's domestic market as it's overseas markets such as the USA and the Euro zone are buying less. With the global nature of trade you can be hit by the knock on effects from countries you have little or no trade with.

I don't know the details of import duties between Thailand and other countries although I'm of course aware that Thailand imposes large taxes on things such as cars which is part of the reason that Toyota, Honda, Ford and the rest have factories here. If those other countries decide they've had enough of this unfair taxing then they may take action against Thailand.

let's hope she's right and they have it under control.

[Moruya]

The Prime Minister reiterated that the government will maintain this year’s export growth target at 15 percent.

From not so long ago

"2012-05-25

Commerce Ministry: Jan-Apr export posted -3.86% growth, import grew 9.79%, trade deficit at $8 bn"

Swept under the carpet. The BOT has a great website full of the truth

[Moruya]

The PM is not wrong on the Euro debt crisis. Thailand is fairly well insulated because Thai banks have not invested in EU based sovereign debt financing. Nor did Thailand invest heavily in mortgage backed securities. Some of Thailand's most valuable exports are not affected by the debt crisis. Don't believe me, read the EU data;

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113454.pdf

The good thing about being a food exporter is that no matter how bad the world economy may get, people still need to eat.

Of more concern is the LIBOR scandal. This is heavy duty sh*t. I don't think most people are fully aware of the implications regarding the manipulation of lending rates. The LIBOR scandal has the potential to cause more damage than the recent Wall Street and London City meltdown.

I don't think the Thai MoF officials are in a position to respond and they like many other finance ministry officials around the world, are sitting there in shock.

The LIBOR rates, compiled from estimates by large banks of how much they believe they have to pay to borrow from each other, are used to determine interest rates on trillions of US dollars worth of contracts around the world. As of this moment, every regulator in the G8 has launched an investigation with Germany just announcing its intent. There are going to be a lot of banking execs tossed under the bus.

Libor is just the London market

[kimamey]

One thing I noticed was the 300,000 people out of a job. The reason I noticed this is because I'm from the UK which has a similar population and I thought the unemployment was around 2,000,000. I checked and it's 2.63 million or 1.59 million depending an which set of figures you use.

I asked my gf about unemployment benefits in the kingdom and although I'm still not absolutely sure I think if you work for a company you make contributions and then if you become unemployed you get some money for a certain length of time (6 months I think). I would imagine there are a lot of people doing low skilled jobs that will be outside the system and not paying tax who won't be eligible for any money so they are unlikely to go and tell the government they are out of work. I'm also pretty sure that officials at the relevant employment ministry aren't going to go out of their way to try to find these people and make their figures look worse.

[mrtoad]

She is totally mad !!!!

She's just stupid. She sucks at being a PM, but at least she is good at sticking her foot in her mouth on a daily basis..a little competition with Chalerm.

Chalerm should be sent to Europe to investigate and implement a crackdown od bac economic policy

[ttelise]

The PM is not wrong on the Euro debt crisis. Thailand is fairly well insulated because Thai banks have not invested in EU based sovereign debt financing. Nor did Thailand invest heavily in mortgage backed securities. Some of Thailand's most valuable exports are not affected by the debt crisis. Don't believe me, read the EU data;

http://trade.ec.europa.eu/doclib/docs/2006/september/tradoc_113454.pdf

The good thing about being a food exporter is that no matter how bad the world economy may get, people still need to eat.

Of more concern is the LIBOR scandal. This is heavy duty sh*t. I don't think most people are fully aware of the implications regarding the manipulation of lending rates. The LIBOR scandal has the potential to cause more damage than the recent Wall Street and London City meltdown.

I don't think the Thai MoF officials are in a position to respond and they like many other finance ministry officials around the world, are sitting there in shock.

The LIBOR rates, compiled from estimates by large banks of how much they believe they have to pay to borrow from each other, are used to determine interest rates on trillions of US dollars worth of contracts around the world. As of this moment, every regulator in the G8 has launched an investigation with Germany just announcing its intent. There are going to be a lot of banking execs tossed under the bus.

Yep, what I wrote about a month ago when Thai official said steps were being taken to insulate Thailand from Euro crisis.

Thailand is fortunate not to be in over it's head in CMOs, CDOs, and credit swaps.

What you don't hear about is how bad China could get taken down by investments in CMOs. The CDO bubble already burst for all intents and purposes. The CMO bubble burst is on the horizon and China is waste deep in. China could take a big hit unless Fannie Mae, Freddie Mac, or Ginnie Mae steps in as guarantors on close to a trillion in bad bonds. This sucks for US as taxpayers are just footing bill to keep another country out of implosion.

I know for a fact that Bank of American alone is reserving $ 100,000,000,000 for settlements in the CMO litigation. I think a lot of this is being put off post election and there is a good chance of TARP II once banks are forced to settle CMO debt mess.

Edited July 8, 2012 by ttelise

[animatic]

When you think about the abject nature of Thai politics over the last few decades it is quite extraordinary that the Thai economy has been so successful compared to other similar politically messed-up nations, such as most of its neighbours, much of Africa and a good chunk of South and Central America. I don't understand how that happens. Is the Thai non-political side of the administration just quietly competent? Are the country's natural resources, tourism and agriculture just that much better than elsewhere?

Serious question. Not looking for cliches

Partly the luck of geography, and decent crops for the markets for some time.

A unusual culture attracted tourism and post Nam soldiers enduring interest

which brought back people who saw manufacturing as viable here.

With them came others seeing a profit to be made.

And some forigners navigate the quiet back channels OK.

Another aspect is the over ridding need to up your Face which is typically done with cash / power, so there is a societal mechanism to make commerce of any type work. And on the back of that the corruption. Few one will risk killing the golden calf if they get a bucket or 3 of milk come payday every payday.

Right now Thailand is being manipulated by someone who see's

face for himself as above all other considerations and this is why

things are presently off the rails.

Plus the logically coming 'other large transition' into the future.

Edited July 8, 2012 by animatic

[waza]

The World Bank, Bloomberg and the Economist all have it wrong and Yingluck has it right. Thailand is so lucky to have her as PM.

PS: This is sarcasm

[ttelise]

The World Bank, Bloomberg and the Economist all have it wrong and Yingluck has it right. Thailand is so lucky to have her as PM.

PS: This is sarcasm

Just curious. What specifically are you referring to where she is inconsistent with Bloomberg and World Bank. You can find economist on either side and both Bloomberg and World Bank have been wrong before, but that us a completely different thread.

Haha, I am working on a class action regarding 07/08 implosion right now where chief analyst for banks were getting daily reports from Bloomberg in 2nd and 3rd quarter of 2007 saying the underlying economy was strong and rating certain bank stocks such as Regions/Amsouth pre and post merger as a buy. Well, Regions lost 80 percent shortly thereafter when other banks averaged about a 60 percent dip.

[geriatrickid]

The World Bank, Bloomberg and the Economist all have it wrong and Yingluck has it right. Thailand is so lucky to have her as PM.

PS: This is sarcasm

I don't recall any of these entities stating that Thailand was exposed.

I would be appreciative of any examples of exposure to the financial crisis in the EU. Germany which is one of biggest EU investors in Thailand is in good shape. Germany made the investments not Spain or Portugal etc. Same argument holds for Sweden and Denmark. Even the UK as battered as it is, is not on the verge of reneging on any financial agreements with Thailand.

So, please someone explain to me whay Thailand should be rending its clothes in fear.

[ginjag]

For crying out loud, the reason the P.M. is so wise, and up on all matters is because of the time she spends studying all subjects. Being the P.M. it is her duty to be well informed, ready to answer any question posed.

This explains her not being present at government sessions, and debates. The lady is not wonder woman, her knowledge on the world monetary situation explains all.---doesn't it ????

[metisdead]

Some inflammatory nonsense posts have been removed.

[sauvagecheri]

PM urges public not to panic, affirms Thailand can handle Europe's debt crisis

BANGKOK, July 7 - Prime Minister Yingluck Shinawatra on Saturday urged the Thai public and private sector not to panic or halt investments due to Europe's debt crisis, for she was certain the government could deal with the issue.

The premier spoke during “Yingluck Government Meets the People,” her weekly talk show on state-run television Channel 11.

Panicking as a response to the situation will worsen the Thai economy, she noted. Her administration is ready to launch contingency measures in case of negative scenarios.

She advised Thai entrepreneurs that have businesses in some European countries to reduce their stocks there or look for new markets. The Commerce Ministry is available to provide advice to affected entrepreneurs, she said, while committees are to be set up to monitor and manage likely urgent problems from the eurozone debt crisis.

Ms Yingluck said the Thai economy remains fundamentally strong. Several sectors, such as industrial products, tourism, and agriculture, have seen positive growth, although not very high, as the country has just recovered from last year's flood.

Concerning the country's unemployment rate of over 300,000 persons, the premier said her government has invited relevant persons to discuss the matter and see if the production of labour has occurred according to demand. The employment ratio and the numbers of new graduates are to be analysed for evaluation and finding further solutions, she noted. (MCOT online news)

-- TNA 2012-07-07

Only 300,000 unemployed in Thailand ?That is impossible ..it is much more than that .

[PoodMaiDai]

Because her fortune teller told her so.

[Moruya]

The World Bank, Bloomberg and the Economist all have it wrong and Yingluck has it right. Thailand is so lucky to have her as PM.

PS: This is sarcasm

Thailand being a good place to invest in is one thing.

The Thai government's handling of its own finances is another.

Don't confuse the two.

[BirdsandBooze]

When you have a large part of industry acting as manufacturer for an outsourcing country that exports many products to the Eurozone you are going to suffer as a result of the contraction in the Eurozone economy.

[BarryM]

I can only imagine that someone far away sees having a clueless puppet together with a crook running the show can only ease the path for a triumphant return to power

[kerrysum]

Can you spell STUPID?

NUFF SAID