Popular Post webfact Posted July 13, 2013 Popular Post Share Posted July 13, 2013 How Thailand's Botched Rice Scheme Blew a Big Hole in its EconomyBy Dan KedmeyBANGKOK: -- The plan was simple: Thailand’s government would buy rice from local farmers at a generous price, some 50 percent above the market rates. It would hold the rice in warehouses, cutting off exports to the rest of the world. The sudden shortage from the world’s heavyweight champion of rice exports would cause a spike in global prices.Then, payday for the government as it swung open the warehouse doors and sold its stockpile to the world at a premium. Farmers win, the government wins, foreign consumers lose, but then they don’t vote in Thai elections, so what do they matter? The plan was a political no-brainer, except for one problem: Thailand’s government underestimated how quickly the market can kick back at any would-be puppeteers.“If any government thinks they are living above the market, they are living in a fool’s paradise,” says Tejinder Narang, a former rice trader who now advises one of India’s largest grain exporters, Emmsons International. Narang reads a running stream of news reports, trade publications, monthly studies – any news that will keep him up to date on the latest machinations of the market.Full story: http://world.time.com/2013/07/12/how-thailands-botched-rice-scheme-blew-a-big-hole-in-its-economy/-- TIME 2013-07-13 4 Link to comment Share on other sites More sharing options...
Popular Post Stradavarius37 Posted July 13, 2013 Popular Post Share Posted July 13, 2013 Cue the TV Red Shirts to rise up and defend the honor of their besmirched champions of "the people"!!!! 4 Link to comment Share on other sites More sharing options...
Popular Post OzMick Posted July 13, 2013 Popular Post Share Posted July 13, 2013 Tejinder thinks the rice scam was foolish, but he's only looking at the facade. A closer look reveals the waste of taxpayers' funds in a populist vote-buy. And you have to look even closer to see the criminal intent of self-enrichment for its proposers. 25 Link to comment Share on other sites More sharing options...
bigbamboo Posted July 13, 2013 Share Posted July 13, 2013 It's not so easy to get rich quick when you aren't running the whole show. 2 Link to comment Share on other sites More sharing options...
Popular Post Tatsujin Posted July 13, 2013 Popular Post Share Posted July 13, 2013 In one respect, the scheme has worked beautifully, it's lined the pockets by a huge amount of "some" of the people exactly as planned. Unfortunately the outright arrogance and contempt they have for the "people" of Thailand doesn't translate well in the global marketplace. 5 Link to comment Share on other sites More sharing options...
Popular Post samran Posted July 13, 2013 Popular Post Share Posted July 13, 2013 The people who needed to get rich got rich. Poor rural voters don't care about global markets as long as they get their trinkets. 4 Link to comment Share on other sites More sharing options...
Popular Post theblether Posted July 13, 2013 Popular Post Share Posted July 13, 2013 "fool’s paradise" That says it all on so many levels 4 Link to comment Share on other sites More sharing options...
Popular Post theblether Posted July 13, 2013 Popular Post Share Posted July 13, 2013 Tejinder thinks the rice scam was foolish, but he's only looking at the facade. A closer look reveals the waste of taxpayers' funds in a populist vote-buy. And you have to look even closer to see the criminal intent of self-enrichment for its proposers. He's right to say that it's foolish, that's a fair critique of the scheme. It's not his job to be a Thai political analyst 3 Link to comment Share on other sites More sharing options...
Thai at Heart Posted July 13, 2013 Share Posted July 13, 2013 But, it worked for years for AIS..... 2 Link to comment Share on other sites More sharing options...
Soutpeel Posted July 13, 2013 Share Posted July 13, 2013 The governments are never rational. The governments are political,” suggesting that the rational politician is an oxymoron. This sentence in the article, especially the last bit pretty much sums you the current Thai goverment and dear Yingluck to a tee... Link to comment Share on other sites More sharing options...
Popular Post LuckyLew Posted July 13, 2013 Popular Post Share Posted July 13, 2013 It was not a botched scheme the PTP got what they wanted - elected - money syphoned off to their friends and families by continuing this scheme they increase their odds of being re-elected How does this equal a botched scam? 5 Link to comment Share on other sites More sharing options...
Bellweather Posted July 13, 2013 Share Posted July 13, 2013 "... Thai government underestimated how quickly the market can kick back... " which isn't a surprise given the Thai attitude to the rest of the world, it doesn't rate consideration other than giving YL places to visit. Link to comment Share on other sites More sharing options...
Popular Post davejones Posted July 13, 2013 Popular Post Share Posted July 13, 2013 I wonder what the rice farmers will say when they have to go back to selling on the market. It won't seem such a good then. But enough people think short-term for these policies to buy votes. Same in USA and UK - offer some freebies and people will vote for you, not matter what the long-term consequences. 3 Link to comment Share on other sites More sharing options...
moe666 Posted July 13, 2013 Share Posted July 13, 2013 Its a bit like the Hunt brothers trying to take over the silver market in the 80s, it just to big. Link to comment Share on other sites More sharing options...
Neilly Posted July 13, 2013 Share Posted July 13, 2013 Good article...summed it up well...loved this bit It has completed part “A” of the plan, buy rice at a premium. It’s part “B,” selling it at a premium, that’s proving devilishly tricky. Link to comment Share on other sites More sharing options...
rametindallas Posted July 13, 2013 Share Posted July 13, 2013 Its a bit like the Hunt brothers trying to take over the silver market in the 80s, it just to big. That was when I switched from film to video. Link to comment Share on other sites More sharing options...
Popular Post rametindallas Posted July 13, 2013 Popular Post Share Posted July 13, 2013 I got this quote today. “It is hard to imagine a more stupid or more dangerous way of making decisions than putting those decisions in the hands of people who pay no price for being wrong” – Thomas Sowell 6 Link to comment Share on other sites More sharing options...
ramrod711 Posted July 13, 2013 Share Posted July 13, 2013 As for the Moody’s report, she has promised to rebut the findings with a government investigation into the true cost of the program. Well, I think we would all be inclined to believe Yingluck and the boys in the cabinet over Moody's. After all, the cabinet has no worries about popularity, re-election or filling their pockets, whereas Moody's......oh, wait, sorry about that. Link to comment Share on other sites More sharing options...
Thai at Heart Posted July 13, 2013 Share Posted July 13, 2013 As for the Moodys report, she has promised to rebut the findings with a government investigation into the true cost of the program. Well, I think we would all be inclined to believe Yingluck and the boys in the cabinet over Moody's. After all, the cabinet has no worries about popularity, re-election or filling their pockets, whereas Moody's......oh, wait, sorry about that. Is it 30 days since Moody's raised the issue. Yinglucks behind on her homework. Link to comment Share on other sites More sharing options...
soi41 Posted July 13, 2013 Share Posted July 13, 2013 "fool’s paradise" That says it all on so many levels Blether. Has the rosetinted finally started to slide off? The rat? The mercedes girl? Welcome to the highly rated reality show, called living in Thailand! 1 Link to comment Share on other sites More sharing options...
manxninja Posted July 13, 2013 Share Posted July 13, 2013 Botched scheme, I don't think so it permitted the red movement to gain power. The yellow are considerably weakened for the future, giving stability to Thais. Win win for all. Link to comment Share on other sites More sharing options...
OzMick Posted July 13, 2013 Share Posted July 13, 2013 Botched scheme, I don't think so it permitted the red movement to gain power. The yellow are considerably weakened for the future, giving stability to Thais. Win win for all. So you believe thata policy costing hundreds of billions of baht that have been spent/siphoned off, having no effect in its stated purpose, was intentional theft of taxpayer's funds? Link to comment Share on other sites More sharing options...
drdoom6996 Posted July 13, 2013 Share Posted July 13, 2013 The Hunt Brothers tried this in America some years back with Silver. They lost big time. Link to comment Share on other sites More sharing options...
nami Posted July 13, 2013 Share Posted July 13, 2013 (edited) They should sell the rice instead of storing it and trying to manipulate the global prices, which won't happen just because of a single country holding it. Also, food is a much more than a product, a necessity and people is dying in many countries because of no access to basic food like rice.Anyway, I am with them on subsidizing the rice and helping the farmers, it happens in most developed countries for some crops. Just don't waste money in storing it and distributing it twice. I am happy to give part of my taxes to help the farmers to make a living, but that's it. Actually better than some @#$@ pocketing our taxes for themselves, who don't need it. Edited July 13, 2013 by nami Link to comment Share on other sites More sharing options...
paulmw Posted July 13, 2013 Share Posted July 13, 2013 If I remember big brother Mr T did the same with rubber when he was in power and totally screwed up world rubber prices for years. Link to comment Share on other sites More sharing options...
Gulfsailor Posted July 13, 2013 Share Posted July 13, 2013 If I remember big brother Mr T did the same with rubber when he was in power and totally screwed up world rubber prices for years. He obviously learned from the mistakes made there, and is now executing version 2.0 of his scheme on the rice commodity. Link to comment Share on other sites More sharing options...
pb1936 Posted July 13, 2013 Share Posted July 13, 2013 It's a sad state of affairs when the government dare not make public the facts relating to the rice scheme and how much money and rice have been lost. There seems now to be a similar event unfolding in relation to the water scheme. Hope Mr Moody is watching........a downgrade would perhaps hurt the govt. more than the voting public are likely to do. Link to comment Share on other sites More sharing options...
Utley Posted July 13, 2013 Share Posted July 13, 2013 "[The rice subsidy] program isn’t bankrupting Thailand. The country’s $346 billion economy can handle the $4.4 billion the government blew on rice purchases last year." "Look closer, though, at the thrust of Yingluck’s economic policies. Her government has subsidized rice prices, provided handouts to car buyers and favored megaprojects that will enrich the politically connected more than the masses. All this comes at the expense of long-term competitiveness and prosperity: Thailand should instead be investing in its future, especially education, if it wants to break out of the “middle-income trap” that befalls many developing nations." Thailand Needs to Invest in People, Not Rice: http://www.bloomberg.com/news/2013-07-11/thailand-need-to-invest-in-people-not-rice.html Link to comment Share on other sites More sharing options...
up-country_sinclair Posted July 13, 2013 Share Posted July 13, 2013 Moody is watching........a downgrade would perhaps hurt the govt. more than the voting public are likely to do. Has there been any indication if / when Moody's might make a decision on Thailand? Link to comment Share on other sites More sharing options...
Soutpeel Posted July 13, 2013 Share Posted July 13, 2013 If I remember big brother Mr T did the same with rubber when he was in power and totally screwed up world rubber prices for years. He obviously learned from the mistakes made there, and is now executing version 2.0 of his scheme on the rice commodity. bit like the Thai elite card system...seems we have version 2.0 as well...are we not starting to see a pattern here Link to comment Share on other sites More sharing options...
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