Populism, Friction Hurt Thai Rating

[webfact]

Populism, friction hurt Thai rating

Wichit Chaitrong

The Nation

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

BANGKOK: -- Thailand is convinced it deserves an "A" sovereign credit rating, but several fiscal measures and renewed political tensions are now clouding the prospects of an immediate upgrade.

Deputy Prime Minister Kittiratt Na-Ranong, who is also finance minister, will today brief analysts from Moody's Investors Service on the country's economic picture and fiscal policies, Ekniti Nitithanprapas, deputy director-general of the Fiscal Policy Office, said yesterday.

The international ratings agency is conducting its annual review of the Kingdom's sovereign rating.

Thailand's long-term foreign currency rating has been downgraded by Moody's from "A2" in 1989 to "Baa1" currently, and by S&P from as high as "A" before the 1997 financial crisis to "BBB+". Fitch Ratings has assigned the country a "BBB".

Thailand is ready for a promotion, given its ability to withstand global economic weaknesses, Ekniti said. Its foreign reserves stand at 48 per cent of gross domestic product (GDP), while countries with an "A" rating from Moody's are at only 18 per cent.

Thailand's foreign debt is only 6.9 per cent of its total public debt, and public debt was at a modest level of 43.27 per cent of GDP as of October.

"High foreign reserves and low foreign debt support economic stability," he said.

However, a source said rating agencies are now concerned about Thailand's generous populist policies and rising political friction.

The agencies' analysts fear that fiscal discipline may be compromised. Public debt is low now but could surge in the future due to the policies as well as massive infrastructure investment.

The rice-pledging scheme, which the World Bank expects will cause a Bt115-billion loss from the 2011-12 harvest, is a red flag. Since several populist policies are implemented through state-owned banks, rating agencies are also alarmed about off-budget liabilities.

Virabongsa Ramangkura, the economic adviser to Prime Minister Yingluck Shinawatra, has suggested that the government reduce its holding in PTT so that it would no longer count as a state enterprise and its debts would not have to be included in public debts. This would give the government more borrowing capacity without pushing public debt above the threshold of 60 per cent of GDP, he has said.

Political strife is viewed by rating agencies as possibly intensifying and jeopardising the country's credit rating, the source said.

The Pheu Thai-led government is pressing ahead with a constitutional amendment, while some patriots are mobilising public support as Thailand's chances of winning the international court case on the Preah Vihear Temple grow slimmer.

"Compared with its peers [countries with the same rating], Thailand has demonstrated impressive growth and resilience. Yet, on its own path, Thailand has not yet shown stark improvement," the source said.

Tan Kim Eng, Standard & Poor's Ratings Services analytical manager for sovereign ratings in Asia-Pacific, noted that Thailand's government debt is essentially lower than that of its peers, but political instability remains high, which poses problems for public investment projects.

Higher credit ratings equal lower default risks, allowing countries to issue bonds at reduced cost.

-- The Nation 2013-01-14

[DiNiro]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

[lemoncake]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Edited January 14, 2013 by lemoncake

[DiNiro]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Respecting election results would have avoided all that.

[siampolee]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

[Thai at Heart]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

[maturebrit]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

why should Thailand expect any credit rating.... the entire populous has no idea how to manage its domestic debt....debt is the major problem with so many People and its increasing

Sent from my GT-N7000 using Thaivisa Connect Thailand mobile app

[lemoncake]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Respecting election results would have avoided all that.

and i always thought self control and common sense was the key

[lemoncake]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

why should Thailand expect any credit rating.... the entire populous has no idea how to manage its domestic debt....debt is the major problem with so many People and its increasing

Sent from my GT-N7000 using Thaivisa Connect Thailand mobile app

domestic debt is no different to any other country on the planet, if anything Thailand is more cash society than most other countries

[Thai at Heart]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

why should Thailand expect any credit rating.... the entire populous has no idea how to manage its domestic debt....debt is the major problem with so many People and its increasing

Sent from my GT-N7000 using Thaivisa Connect Thailand mobile app

This is government ratings, not consumer debt ratings. Every government in the developed world would bite off their own hand to have the statistics that Thailand has today.

Edited January 14, 2013 by Thai at Heart

[Moruya]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

popular policies to unpopular will be a big shift. They should have introduced 5% with the minimum wage

[hellodolly]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

"Virabongsa Ramangkura, the economic adviser to Prime Minister Yingluck Shinawatra, has suggested that the government reduce its holding in PTT so that it would no longer count as a state enterprise and its debts would not have to be included in public debts. This would give the government more borrowing capacity without pushing public debt above the threshold of 60 per cent of GDP, he has said."

Didn't they just foist of a huge debt to the banking system to get to these figures and are now thinking of foisting off another debt. bottom line is they were responsible for the debt's and the non Thai annalists know this and will be taking it into account Can any one think of any other nation as corrupt as Thailand with a better rating. And there are many other as corrupt if not more so.

[Thai at Heart]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

"Virabongsa Ramangkura, the economic adviser to Prime Minister Yingluck Shinawatra, has suggested that the government reduce its holding in PTT so that it would no longer count as a state enterprise and its debts would not have to be included in public debts. This would give the government more borrowing capacity without pushing public debt above the threshold of 60 per cent of GDP, he has said."

Didn't they just foist of a huge debt to the banking system to get to these figures and are now thinking of foisting off another debt. bottom line is they were responsible for the debt's and the non Thai annalists know this and will be taking it into account Can any one think of any other nation as corrupt as Thailand with a better rating. And there are many other as corrupt if not more so.

Selling or reducing their stake in PTT is akin to privatisation. PTT is profitable, but by tacit meaning of holding the shares, (51% I think) they are on the hook to guarantee the debts. However, that goes for Thai Airways, and any government enterprise. Problem is, that no one wants to buy them, but PTT would be an attractive purchase for most investors or corporates.

Put it like this. The Thai government debt situation is not as horrendous as anyone claims (putting Thailand and Greece in the same discussion), and is capped to 60% of GDP by law. The rating they get, defines the interest rate they pay, and with the stats as they are, would one say they are in a better economic situation than many of those countries with AAA? Definitely, but of course, there is some allowance to be made for corruption, political instability etc. Might they get an upgrade, I think so.

Edited January 14, 2013 by Thai at Heart

[AleG]

"Virabongsa Ramangkura, the economic adviser to Prime Minister Yingluck Shinawatra, has suggested that the government reduce its holding in PTT so that it would no longer count as a state enterprise and its debts would not have to be included in public debts. This would give the government more borrowing capacity without pushing public debt above the threshold of 60 per cent of GDP, he has said."

Didn't they just foist of a huge debt to the banking system to get to these figures and are now thinking of foisting off another debt. bottom line is they were responsible for the debt's and the non Thai annalists know this and will be taking it into account Can any one think of any other nation as corrupt as Thailand with a better rating. And there are many other as corrupt if not more so.

It's like a leper, that cuts off body parts as they rot to appear healthy, they can't do that forever.

[Moruya]

Wikipedia reports Thai GDP as being $346B in 2011 - THB10.4T

In the Nation on August 24th 2011, Dr Virabongsa Ramangura reported the foreign reserves as eing $178B or THB5.3T which he wanted to be freed for infrastructure loans. Were these funds allocated and are now being counted twice?

Domestic and Foreign debt is reported as just over 50% of GDP - but that does not include the THB1.14T of debt (taking the real total to over 60%) shifted from the FIDC to the BoT - swept under the carpet.

The rice scheme is stated above to cost (lose) THB115B but that necessitates selling old rice and will add around another 10% of GDP

The first car scheme is also expected to cost somewhere in the region of THB100B - another 10% of GDP

True debt 80% of GDP and rising?

Whilst it's true that there may be more tax credits than the flat position I have used above, the reduction in corporation tax, rising unemployment, diesel subsidies, OTPC etc. etc. is not bringing in more bacon.

[InActionMan]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

However the Ministry of Propaganda asures tourism is on the rise and if the Thai govt says it who are we mere mortals, especially farang, to disagree ?

[InActionMan]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Respecting election results would have avoided all that.

and i always thought self control and common sense was the key

It's Thai culture and the "Thai way" !

[hawker9000]

Populism eventually drags down every nation that succumbs to it. It's the polite name for mob rule, and the direct result of "progressivism". I believe Obama's code word for it is wealth redistribution. Its history goes back to ancient Rome, and the last chapter is never pretty.

[NoshowJones]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

Don't give the Thai Government any ideas. The first people they will pick on will be us Farangs.

[Thai at Heart]

Although the govt believes country should get an 'A', agencies fear fiscal indiscipline

Therein th quote above lies the truth of the matter. The government and not only this one hvae over the years believed that Thailand is a lead player on the worlds stage.

Now sadly reality is biting, Thailand is nothing more than a bit player and always has been so on the worlds stage. The sooner that the government(s) now and future wake up to this fact and then start to put learn and then their script into order the better it will be for Thailand to take its place on the worlds stage.

A poorly educated mass of people, a corrupt governmental system coupled with a somewhat unusual and indeed a feudal system as a social hierarchy which is repressive on society and thus business and administration along with a poor financial and banking system has and indeed and still is deluding the population into a xenophobic mass of born again we are the best people on the planet.

This country has potential, however whether that potential can or ever will be recognized and as a result Thailand will be or can dragged screaming and protesting into the21st century remains a moot point.

The crunch time is coming with the advent of A.S.E.A.N. already we see and hear the nay sayers in Thai society proclaiming that the influx of alien neer do wells will harm Thailand. To those nay sayers I say 'look in the mirror''.

The Luddites blazed the same trail as these current nay sayers and it didn't work,

Thailand and the Thai people if your going to survive and you wish to take your rightful place as a nation on the worlds stage you've got to to have a proactive and clean governmental system.. .

That is a fairly harsh interpretation, when it comes down to the basic statistics of the facts relating to its fiscal rating. The agencies are right to be concerned about the future debt levels, but at 43%, with whopping Forex reserves, and a growing economy, it isn't an unfair interpretation that Thailand might be due an upgrade. If the taxman did his job properly, the government would be swimming in so much cash, they wouldn't know what to do with it. There is plenty of scope to increase tax revenues in the country.

Don't give the Thai Government any ideas. The first people they will pick on will be us Farangs.

Well, when it comes to taxes, the only people who get reliably taxed are employees. Beyond that it is a complete free for all. Huge swathes of the economy carry on in a cash environemnt, VAT exempt. Companies are run and absorb costs way beyond the normal to reduce taxes. It is an enormous amount of money that the government doesn't even get to see.

This is why they tax things like cars so heavily, because it has to be registered, so can assessed at sale. Alcohol is assessed t the factory gate etc. But, note, them reducing corporate tax levels or increasing the "free allowances" on corporate tax. You can only avail yourself of the benefit if you pay it etc. This is the start of trying to get companies to pay a little more of their share.

Edited January 14, 2013 by Thai at Heart

[tomross46]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Respecting election results would have avoided all that.

Elections are run by politicians, all elections can be bought. The purchase of elected office happens in every country, including the USA.

[Arkady]

It doesn't inspire a lot of confidence that the only measure the government can suggest to deal with this growing problem is a cosmetic measure to transfer 2% of the shares in PTT to indirect government ownership via the Vayapak Fund that is 100% owned by the Finance Ministry, to hoodwink rating agencies into believing government debt obligations have gone down. The people who work for rating agencies proved themselves remarkably stupid in the subprime scandal but even they are unlikely to fall for this one and will just add the PTT debt back, if the company is still majority owned by the government. It would make much more sense to genuinely privatise PTT and other state enterprises by selling shares into the market. That is not to mention dumping the more ruinous populist schemes such rice pledging and flood walls to nowhere.

[lemoncake]

It's Thai culture and the "Thai way" !

what is? to burn the city or take it hostage? what part of thai culture would that be part of? do educate me please

[bigbamboo]

Hmm...... an A credit rating?

Thailand's economy certainly has some plus points such as it's unbelievable (literally) tourist numbers.

Then again it does have a few minuses too such as a Finance Minister who hands out false economic numbers, a government that is run by a fugitive criminal from abroad and a reputation to rival Russia for institutionalised corruption.

Thailand may get straight A's if one of it's universities was handing out the grades, or even one in Kentucky, but te international credit ratings agencies are tougher nuts to crack.

[Halion]

Just more "little white lies" and as for the country rolling in cash , I think that is the mandate of most of the senior politicians .Maybe a good time to let this country know that talking a better game than you play is very old hat.

[Locationthailand]

An A+ rating in fiscal mismanagement would be appropriate as well as an A+ rating in creative accounting. Every political body globally, Thailand being no exception, has somehow adopted the 'spend now - account later' policy. The enslavement to irresponsible Government debt by future generations means none should have any A rating.

[marchawkes]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Some of us would'nt have Thailand any other way. Purrrfect for business given its many faults. Tough to operate if people refuse tea-money or if Thais were logical & calm or far-sighted or if things 'worked' like they do in OECD countries. In fact the neighboring Greater Mekong region is even more pock marked by faults making it business friendly. Look to the other border we have Burma now open for business and very attractive - making this a small geography grouping of 5 morally bankrupt but dollar-driven states . "Lemoncake" you will not need to lament over tourists who try to save 1 baht on bottled water or pick up the 1 baht change returned on check-bills !! You can actually spread your wings and leave the nickle & diming behind, mate. Edited January 14, 2013 by marchawkes

[Baerboxer]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

Do not forget burning its capital , holding its capital hostage for months, pouring blood over the Parliament House and rebuilding Parliament House to bring good luck

Respecting election results would have avoided all that.

But not checked the rabid corruption, misappropriation of public funds and disregard of the laws of the land. The credit agencies aren't easily fooled with little white lies and see the dangers of having a puppet government controlled by a fugitive criminal. Maybe respecting all laws would be a better start.

[BuddyPinkham]

Deputy Prime Minister Kittiratt Na-Ranong, who is also finance minister, will today brief analysts from Moody's Investors Service on the country's economic picture and fiscal policies,????????

Sure, tell more lies to save face and everything will be fine!!!!

[Thait Spot]

Hard to have confidence in a country with regular Army coups, mafia police force, crooked politicians, invisible hand running things,, politicized courts, gunning down democratic protesters, storming airports and instigating a war with Cambodia.

However the Ministry of Propaganda asures tourism is on the rise and if the Thai govt says it who are we mere mortals, especially farang, to disagree ?

I must admit that the cynic in me is doubting any figures put forward by the government.

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