IMF takes aim at Yingluck’s rice-pledging scheme

[skorchio]

Well, it was always gonna be a financial disater. The whole idea was to keep the rice folk on the gravy train long enough to get this amnesty business sorted. Now that it looks like the rice is scam is gonna boil over before big bro is home on an Amnesty visa, the plan to pay for (hide) the rice scam is to borrow 2 Trillion, build a few roads and cook the books a bit. This buys time to keep rice scam floating and rice folk onboard despite rifting within Red circles, as amnesty is forced onto back boiler for 180 days. Rice scheme will not end before Takkie is home or the Yingluck govt is dissolved. The I-EM-EP (well-known to Thais since the last time it was in charge of the Thai purse) is trying to do the Thai electorate a favour by pointing this out before it happens.

[mrtoad]

There is no way that the thieving convicted criminal caddy will make any meaningful humanitarian gesture to the PI, as there are no votes to be won in for that, but there is plenty of money to be made by selling above market prices, which is a win win for him and his Paid for cronies.

Thainess in action.

Edited November 13, 2013 by mrtoad

[hellodolly]

Or caddie.

I am just a [*%#)&^!_-&^*|:"><] clone.

IMF said “with the pledging prices about 40% above market prices, it is inevitable for the government to incur losses as long as the scheme remains unchanged.”

Well a half wit knows that. But she has backers who aren't smart enough. She thinks she has the whole world fooled by selling it Government to Government with out giving out the prices.

the fact that the IMF, Moody's, Blumeburg. The economists and Forbes have educated people working for them that specialize in economics and can read her like an open book just doesn't register with the clones.

She is as good at economics as I am at spelling. My spell check couldn't even figure Blumeberg or Bloomberg out. Well maybe it did.. How would I know. I just know that they do not have high expectations out of the current bunch in the seat of power,

[Halion]

The rice pledging scheme was simply a ploy to buy and maintain voter stability are pass rewards to a selected few and all at the public's expense. It has the small of big brother all over it.

[tingtongteesood]

So it helps to clear the farmer's debts by making them into the country's debts that generations to come will have to struggle to pay back. Let then damn farmers pay off their own damn debts and stop wasting money on this daft populist scheme that is aimed purely at securing election votes.....

[gp2002]

Protestors on every street corner....And now the IMF ..she's not having a very good week is she?

There can be only one solution for Ying(bad)luck.............SHOPPING!!!!!!!

[gp2002]

IMF no understan thainess

rice scam & flood scam = money for corrupt people to buy big mansions, mercedes, mia nois, etc...........

The three M's that all Thai men hope to achieve

[bigbamboo]

I just posted this elsewhere, but on reflection I think it makes more sense here. Apologies for double posting:

With reference to the rice buying scheme, let's not forget Thaksin's justification that: 'the government led by his sister Yingluck should continue the rice subsidy scheme for two or three years... Thaksin also urged the government to increase rice stocks by 20 million to 40 million tonnes over the next few years, as the global price would go up due to the possibility of some kind of natural disaster'.

Well, now we have a natural disaster with an estimated 11 million people in the Philippines ravaged by a super typhoon, millions without food and water, an estimated half of Leyte's rice crop wiped out. Yet to date the Thai government has made no suggestion that some surplus rice might be transferred FREE to their Filipino ASEAN brothers...

Instead it seems a most opportune time for this grasping, despotic, small-minded man to offer to sell the surplus rice crop at above market values - maybe the Americans or the EU will pay the cost? After all, that is what he explicitly suggested in his justification for the rice buying scheme. Buy with Thai tax payers money, wait for natural disaster, reap a high return by profiteering at the expense of those suffering from a natural disaster, and to hell with morality and common humanity.

Step up, Thaksin, show your mettle! The world will surely be impressed.

But seriously, let's hope the more high-minded and generous nature of the great majority of Thai people of all political colours will shine through and eclipse the evil, self-centred nature of one man.

Now is surely the time for Thailand to make a substantial gesture towards the Philippines. It would win considerable international kudos... and if they don't the rice will rot anyway.

In terms of agricultural mismanagement Thaksin's rice policy is beginning to resemble that of another Chinese demagogue and his Great Leap Forward.

Edited November 13, 2013 by bigbamboo

[Emptyset]

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the government’s rice pledging scheme helped to increase farmers’ earnings and clear their debts

If that was true, I would think that public debt would decline instead of rise to previous unknow levels

http://www.thaivisa.com/forum/topic/675653-thailand-august-public-debts-at-4463-of-gdp/

BANGKOK, Oct 19 – Thailand’s public debt in August was Bt5.3 trillion, or 44.63 per cent of gross domestic product (GDP), according to a senior Finance Ministry official report.

Previously unknown?

[JRSoul]

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the government’s rice pledging scheme helped to increase farmers’ earnings and clear their debts

If that was true, I would think that public debt would decline instead of rise to previous unknow levels

http://www.thaivisa.com/forum/topic/675653-thailand-august-public-debts-at-4463-of-gdp/

BANGKOK, Oct 19 – Thailand’s public debt in August was Bt5.3 trillion, or 44.63 per cent of gross domestic product (GDP), according to a senior Finance Ministry official report.

Previously unknown?

Do you have a graph for private debt, which would be much more logical in his statement?

[Thai at Heart]

I see that Special K has said that Thailand is a special case and should continue as it is.

He also says that the IMF's recommendation to increase the interest rates and raise VAT from 7% to 10% doesn't apply to Thailand because it's special.

You know there is something wrong when the apparent rules of the market are suspended because Thailand is special.

[EricBerg]

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

Wrong, should be: IMF is not my brother.

[Robby nz]

From elsewhere :

Kittiratt has rejected the IMF report saying that he has listened to their different points of view but the IMF needs to understand the true situation before giving theoretical comments.

He added that he had not yet read the report.

If it was a comedy show it would be hilarious.

But this is the man who is running the finance's of the country.

He has rejected a report that he has not read.

[fareastguy]

If the government was truly concerned about individual (poor) farmers who were in debt, then why didn't they target them directly.

I'm sure they could have set up a system with the bank whereby a farmers debt could have been written off & paid by the government, thus cutting out the "rice miller middleman" and saving untold billions in graft/corruption.

The rice market prices would have been as they should be, leaving the farmers to sell their present crops as normal, also no stock piles of rotting rice to try to hide.

But that's what common sense say's, not what the "Shin dynasty" want!!

[benny1616]

the imf? they should first tell the usa, a state wich have now more than 90 millions people living below the poverty line how to run a state

[selftaopath]

Not to worry. They will sell the rice to flood areas in the place of sand bags.

[Just1Voice]

Finance Minister stated the programs outlined by the IFM might work in other countries but wouldn't work in Thailand because Thailand is "special". Reminds me of a previous Minister who said that rice harvesting machines that work perfectly in Vietnam, Lao, Philippines, Malaysia, Indonesia, and even Burma, wouldn't work in Thailand because Thai rice and land are "different". Or the one quoted as saying that Thai don't really need to wear helmets when riding motorbikes because the heads of Thai were "naturally harder", and that Thai brains have developed to the point where they are perfectly capable of talking or texting on a phone while driving.

The inane one liners from Gvt officials could fill a book.

[khaowong1]

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

You beat me to it.. good show..

[Emptyset]

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the government’s rice pledging scheme helped to increase farmers’ earnings and clear their debts

If that was true, I would think that public debt would decline instead of rise to previous unknow levels

http://www.thaivisa.com/forum/topic/675653-thailand-august-public-debts-at-4463-of-gdp/

BANGKOK, Oct 19 – Thailand’s public debt in August was Bt5.3 trillion, or 44.63 per cent of gross domestic product (GDP), according to a senior Finance Ministry official report.

Previously unknown?

Do you have a graph for private debt, which would be much more logical in his statement?

Well, he did specifically mention public debt... I can't find a chart for household debt to GDP, or household debt to disposal income which would probably be the best measurement, although obviously it's not like every household is a receipient of the rice scheme. Domestic credit to private sector has been rising since 2006, but more strongly since 2010: http://data.worldbank.org/indicator/FS.AST.PRVT.GD.ZS/countries/1W-TH?display=graph but obviously that includes all of the private sector, so perhaps not that useful here.

The Forbes piece posted here before though, says: "Thailand’s household debt grew at an alarming 13.6 percent per year since 2008, bringing the country’s household debt-to-GDP ratio to 77 percent from 55 percent, which is up radically from just 45 percent a decade ago. Total lending to Thai households increased at a 17 percent annual rate from 2010 to 2012, while household credit provided by credit card, leasing and personal loan companies rose at a blistering 27 percent annual rate."

But then there were contigent reasons in the last couple of years why borrowing might have increased. Mainly the first car scheme, and to repair flood damaged homes I guess but then with the wages increase, disposal income may have risen for many of the poorest so they might be able to afford to borrow more?

[GeorgeO]

Commerce says rice scheme raises farmers earning, clears debts

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the governments rice pledging scheme helped to increase farmers earnings and clear their debts, though it would inflict loss of over 100 billion baht a year.

Niwatthamlongs assurance of the rice subsidy scheme came after he was asked to comment on recommendation by the International Monetary Fund (IMF) to terminated the scheme and look to other stimulus measures that could enhance economy instead

The commerce minister who is also deputy prime minister said that he has not yet informed of such recommendation from authorities and therefore could not make a comment on it.

However he said that he did not know of which sources the IMF has managed to obtain the information from.

He admitted that the rice pledging scheme had inflicted loss of about 80 billion baht a year on every government in the past, saying that this year was high of over 100 billion baht a year or 20 billion baht more, due to the amount of rice the government bought from farmers was high.

But he insisted that the rice pledging scheme did benefit the farmers because they obtained high revenues that enabled them to pay off their debts

Source: http://englishnews.thaipbs.or.th/commerce-says-rice-scheme-raises-farmers-earning-clears-debts/?utm_source=rss&utm_medium=rss&utm_campaign=commerce-says-rice-scheme-raises-farmers-earning-clears-debts

--Thai PBS 2013-11-13

How do you tell if a Thai politician is lying and bulls****ing ......... He has a pulse!

It is embarrasing to read sometimes. I think over to world news for me.

What small farmer (the actual ones that voted PTP in power) benefitted ???

Because he NEVER quote" benefitted the farmer because they obtained high revenues, enabling them to pay off debts"

This small voter obtained high revenues ?????

I think someone somewhere is bypassing this little voter.

One other factor missing from the equation is that the increase in the CPI has more than negated any increase in the wealth of the farmers.

It may well be that they have more disposable income as a result of the scheme, but all of that simply disappears when they pay their monthly grocery bills!

[indyuk]

Now we are just waiting for darling Yinglucks comment: "IMF is not my father!!"

Right on SOI41.

After all PM Yingluck is a 'Brazen Liberal' and the Prime Minister of Thailand, lao dtair Poo.

[ozyjon]

Quote "40% premiums on rice won't be enough to save this government from falling on its sword." so will we see many hardly used Toyota pick up for sale soon?

[rubl]

The nice graph seems to come from the "Economist Intelligence Unit" ( http://www.eiu.com/ )

After a bit of searching I found the graph in an October 2011 article which also has

"It remains unclear how much Puea Thai's pledges will cost, but public finances remain strong enough to withstand some countercyclical fiscal expansion. After hitting a high of 57.8% of GDP in 2000, public debt declined throughout Thaksin's six-year term of office, falling to 41.1% of GDP by 2006; it crept up in 2009, but remained relatively low, at 43.1% of GDP, in 2010."

http://www.aig.com/Thailand-Political-Confrontation_2590_385784.html

A more recent article from September 2012 has

"Fiscal policy is set to remain expansionary and public debt will rise relative to GDP. On August 28th the House of Representatives (the lower house) approved the government's Bt2.4trn (US$76.4bn) budget for fiscal year 2012/13 (October-September), representing a spending rise of almost 10%."

http://www.reportbuyer.com/countries/asia_pacific/thailand/country_risk_service_thailand_september_2012.html

Previously unknown?

== nice graph ==

[Gonsalviz]

Commerce says rice scheme raises farmers earning, clears debts

Commerce Minister Niwatthamlong Boonsongpaisarn reiterated today that the governments rice pledging scheme helped to increase farmers earnings and clear their debts, though it would inflict loss of over 100 billion baht a year.

Niwatthamlongs assurance of the rice subsidy scheme came after he was asked to comment on recommendation by the International Monetary Fund (IMF) to terminated the scheme and look to other stimulus measures that could enhance economy instead

The commerce minister who is also deputy prime minister said that he has not yet informed of such recommendation from authorities and therefore could not make a comment on it.

However he said that he did not know of which sources the IMF has managed to obtain the information from.

He admitted that the rice pledging scheme had inflicted loss of about 80 billion baht a year on every government in the past, saying that this year was high of over 100 billion baht a year or 20 billion baht more, due to the amount of rice the government bought from farmers was high.

But he insisted that the rice pledging scheme did benefit the farmers because they obtained high revenues that enabled them to pay off their debts

Source: http://englishnews.thaipbs.or.th/commerce-says-rice-scheme-raises-farmers-earning-clears-debts/?utm_source=rss&utm_medium=rss&utm_campaign=commerce-says-rice-scheme-raises-farmers-earning-clears-debts

--Thai PBS 2013-11-13

How do you tell if a Thai politician is lying and bulls****ing ......... He has a pulse!

It is embarrasing to read sometimes. I think over to world news for me.

Sound like politicians from most any country.

[Gonsalviz]

Antone with a pulse and a brain knew that from the beginning.