Thai Finance says it cannot pay rice farmers by January 15

[LivinLOS]

If they force the bank to use depositors money to pay the farmers it could trigger a run on the bank.

As in get your money out quick before there's none left.

Like the farmers leader said, they are not stupid, they know whats going on.

Again.. What do you think bank loans are ??

[casualbiker]

If they force the bank to use depositors money to pay the farmers it could trigger a run on the bank.

As in get your money out quick before there's none left.

Like the farmers leader said, they are not stupid, they know whats going on.

Again.. What do you think bank loans are ??

The point is they are using the banks money to pay the government debt because the government do not have it.. What does that tell you! And we are talking about Thailand were honestly I'm not sure that everyone understands how to use an ATM let alone how the banking system works.

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

[Basil B]

The point is they are using the banks money to pay the government debt because the government do not have it.. What does that tell you! And we are talking about Thailand were honestly I'm not sure that everyone understands how to use an ATM let alone how the banking system works.

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

It tells me the country is bankrupt, thank god I switched all my funds with any Asia connection the weekend.

[Crushdepth]

good advice would be to exercise extreme caution in voicing any outrageous position on this topic

Why? You going to send the goon squad around?

From its very announcement the rice scheme was obviously going to be riddled with corruption. It was obviously going to destroy the export trade. It was obviously not financially sustainable.

It was also obvious to anyone with half a brain and any experience of Thailand who the primary beneficiaries would be and that the poor farmers would be waaaay down the list.

But shhhh...

[Prbkk]

good advice would be to exercise extreme caution in voicing any outrageous position on this topic

Why? You going to send the goon squad around?

From its very announcement the rice scheme was obviously going to be riddled with corruption. It was obviously going to destroy the export trade. It was obviously not financially sustainable.

It was also obvious to anyone with half a brain and any experience of Thailand who the primary beneficiaries would be and that the poor farmers would be waaaay down the list.

But shhhh...

One thing is certain: no-one ever got good advice from any 'contribution' you ever made. Short-changed.

[fleeing]

Another few days and Sootie and 'the mob' in Bangkok will be able to go back home again.

If the rice farmers block the main North-South roads, that will shut down Thailand and not just Bangkok.

Bon voyage Yingluck and friends.

[tomacht8]

"Earlier the bank union Prasit Pahome threatened to take the case to the National Anti Corruption Committee, the Election Commission, and the Constitutional Court if the bank’s board insisting on using the bank’s 180 billion baht liquidity to pay the rice as requested by the government."

Previously, the BAAC has made good profits, as the money flowed freely.
But the friendship stops when they forced to use there own money.
So bankers are.
They roll out the red carpet when you bring money.
But, no banker would finance the whole idiotic rice scheme with the Bank's equity in advance.

Amateurish here, what the government representatives demand from the Bank.

The Bank has no desire to let herself drift through the political nonsense into the abyss.

Edited January 15, 2014 by tomacht8

[Crushdepth]

good advice would be to exercise extreme caution in voicing any outrageous position on this topic

Why? You going to send the goon squad around?

From its very announcement the rice scheme was obviously going to be riddled with corruption. It was obviously going to destroy the export trade. It was obviously not financially sustainable.

It was also obvious to anyone with half a brain and any experience of Thailand who the primary beneficiaries would be and that the poor farmers would be waaaay down the list.

But shhhh...

One thing is certain: no-one ever got good advice from any 'contribution' you ever made. Short-changed.

That the best you can do? Admit it, this scheme was obviously doomed to failure from the start. Or do you lack the intellectual flexibility to admit your political heroes did something wrong?

[Thait Spot]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

No it couldn't

Sent from my Nexus 4 using Thaivisa Connect Thailand mobile app

[icare999]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

You poor misguided fool.

The shutdown has no bearing on whether there was money to pay farmers or not. There was and is no money.

That's why someone had to make a stand.

Think.

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

must be same place Yingluk got her degree - your atonal cretin in my humble opinion and a pompous ass yo boot

[robblok]

I hope they do not drive the bank into bankruptcy as there must be millions of country people who have savings with them which are now being used to pay for the rice.

I am sure that would not happen, because the PTP would never ever win an election if they did. They would touch private saved money of their own. They can't be that stupid can they ?

Someone needs to understand how banks work.. Fractional reserve banking means that the bank creates money based on deposits, there is no big vault of customer money somewhere, its already out invested in the economy as loans, such as this one being requested.

If 1 from 10 people pulls their account, theres a run on the bank and its over.

Thai capital ratios are a lot higher than western ones too.

I understand how it works, but what i mean with touching.. i should have written risking. Because if you go on you can loose it all.

[Loles]

Really ? Unbelievable !

[Chao Lao Beach]

BAAC's Vision
"To be a secured rural development bank with modern managerial technology focusing on the uplift of small-scale farmer’s quality of life."

Oh Dear, From their Website home page: http://www.baac.or.th/baac_en/

[ggold]

good advice would be to exercise extreme caution in voicing any outrageous position on this topic

Why would that be?

[LivinLOS]

If they force the bank to use depositors money to pay the farmers it could trigger a run on the bank.

As in get your money out quick before there's none left.

Like the farmers leader said, they are not stupid, they know whats going on.

Again.. What do you think bank loans are ??

The point is they are using the banks money to pay the government debt because the government do not have it.. What does that tell you! And we are talking about Thailand were honestly I'm not sure that everyone understands how to use an ATM let alone how the banking system works.

Sent from my XT1032 using Thaivisa Connect Thailand mobile app

The bank doesnt have money.. the bank creates money..

When someone puts money in the bank its not lent back out 1:1.. the bank can simply create many many times the amount of the deposit as long as it adheres to whatever minimum lending ratio is the law of the land.

It always amazes me how peoples perception of banking, and what banking really is, is so wildly divergent.

[thailiketoo]

good advice would be to exercise extreme caution in voicing any outrageous position on this topic

Why would that be?

Ya why?

[LivinLOS]

"Earlier the bank union Prasit Pahome threatened to take the case to the National Anti Corruption Committee, the Election Commission, and the Constitutional Court if the bank’s board insisting on using the bank’s 180 billion baht liquidity to pay the rice as requested by the government."

Previously, the BAAC has made good profits, as the money flowed freely.

But the friendship stops when they forced to use there own money.

the bank is free to create new money.. Literally just create new money in 1 and 0s.. Up to its reserve ratio.. It it has free liquidity against its reserve ratio its not the bank assets its lending, its merely creating more new currency against its credit book.

Generally money supplies are limited not by the central banks but by the ability to find credit worthy borrowers within the economy.

[ggold]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

You poor misguided fool.

The shutdown has no bearing on whether there was money to pay farmers or not. There was and is no money.

That's why someone had to make a stand.

Think.

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

Wow and you had to go to university to learn that!

[tomacht8]

"Earlier the bank union Prasit Pahome threatened to take the case to the National Anti Corruption Committee, the Election Commission, and the Constitutional Court if the bank’s board insisting on using the bank’s 180 billion baht liquidity to pay the rice as requested by the government."

Previously, the BAAC has made good profits, as the money flowed freely.

But the friendship stops when they forced to use there own money.

the bank is free to create new money.. Literally just create new money in 1 and 0s.. Up to its reserve ratio.. It it has free liquidity against its reserve ratio its not the bank assets its lending, its merely creating more new currency against its credit book.

Generally money supplies are limited not by the central banks but by the ability to find credit worthy borrowers within the economy.

1. The creation of money the bank is limited in the minimum deposit requirement at the central bank, in this case 30%.

2. The bank gets the money not for nothing, the bank must also pay interest.

3. Money creation makes sense only if the bank can obtain a higher interest rate in the market as the draw is priced at the central bank.

4.The Bank initially adheres itself with its capital in case of insolvency of the credit participants.

The state has an account at the bank and pay on that (deposit) .

When farmer's get paid the account is debited (paying out).

The state rice account at the bank is now empty (Balance=0)

Now the bank could/would grant the state a loan.

The interest rates must be negotiated and collateral shall be provided.

But the Government can not take out additional loans (No warranty authorization) because the budget limit in the household is reached.

That is the situation.

Edited January 15, 2014 by tomacht8

[sonar6ca]

Dear farmer

On Feb. 2nd don't forget to vote for us again so we can stick it up your rear end again. By the way a fresh crisp bill is in the mail.

Thanks for your support.

[GentlemanJim]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

You poor misguided fool.

The shutdown has no bearing on whether there was money to pay farmers or not. There was and is no money.

That's why someone had to make a stand.

Think.

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

Well I am calling BS on you. I do not believe for one nanosecond that anyone who is remotely literate in accounting and economics would write such a ridiculous ill-informed comment such as you did.

"The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers. " If you are indeed a graduate from Melbourne in the subject you claim your fellow alumni must be aghast that the Universities reputation lies in the hands of people like yourself. The comment was idiotic. Please explain to us all the mechanics of how the protests are causing money to be lost that would otherwise have been diverted towards paying the rice farmers, I am eagerly awaiting the explanation from an accounting and economics graduate from Melbourne, or have you got it like Australia....all upside down?

[BillyBobThai]

.I'll gladly pay you Tuesday for a hamburger rice today.

[Gweiloman]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

You poor misguided fool.

The shutdown has no bearing on whether there was money to pay farmers or not. There was and is no money.

That's why someone had to make a stand.

Think.

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

must be same place Yingluk got her degree - your atonal cretin in my humble opinion and a pompous ass yo boot

Sorry, your lack of proper punctuation, spelling errors and overall ignorance of geography does not permit me to make an educated reply

[Gweiloman]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

You poor misguided fool.

The shutdown has no bearing on whether there was money to pay farmers or not. There was and is no money.

That's why someone had to make a stand.

Think.

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

Well I am calling BS on you. I do not believe for one nanosecond that anyone who is remotely literate in accounting and economics would write such a ridiculous ill-informed comment such as you did.

"The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers. " If you are indeed a graduate from Melbourne in the subject you claim your fellow alumni must be aghast that the Universities reputation lies in the hands of people like yourself. The comment was idiotic. Please explain to us all the mechanics of how the protests are causing money to be lost that would otherwise have been diverted towards paying the rice farmers, I am eagerly awaiting the explanation from an accounting and economics graduate from Melbourne, or have you got it like Australia....all upside down?

Don't blame me. Blame Bob Hawke who was the Premier at the time that I graduated - obviously, he must have been responsible if less than adequate students like me are allowed to graduate from what was then, one of the top unis in Oz?

Incidentally, which part of the "Revenue less COGS (cost of goods sold) = GP (gross profit)" equation don't you understand? Government finance is essentially no different from corporate finance. Or at least that is what I was taught when I first worked for one of the Big Eight which subsequently became Big Six, the Big Five and as of now, Big Four (I happened to be a partner which accounts for why I can afford to pay Bht 45k rental a month in an apartment overlooking Soi Cowboi even when retired and drawing no further income).

[Gweiloman]

The shutdown bangkok plan is clearly not achieving its objectives of shutting the govt down and forcing the resignation of YL. What it is achieving however is losing Thailand millions and millions of baht daily, money that could have gone to paying the rice farmers.

You poor misguided fool.

The shutdown has no bearing on whether there was money to pay farmers or not. There was and is no money.

That's why someone had to make a stand.

Think.

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

Wow and you had to go to university to learn that!

Yes, because I could

[BillyBobThai]

So will someone please explain to me what all this means as far as the Thai baht goes? Are we up to 42 baht to the USD?

[Thaddeus]

Sorry, your lack of proper punctuation, spelling errors and overall ignorance of geography does not permit me to make an educated reply

Are you sure that they are the only reasons?

[icare999]

must be same place Yingluk got her degree - your atonal cretin in my humble opinion and a pompous ass yo boot

Fortunately, I am neither poor nor misguided nor a fool. My accounting and economics degree from Melbourne University, Victoria, Australia taught me that a dollar earned is a dollar extra in my account and a dollar lost is.... well, a dollar lost 5555

Sorry, your lack of proper punctuation, spelling errors and overall ignorance of geography does not permit me to make an educated reply

oh dear my english is bad must mean i have no intelligence do you not realise what a prat you have made yourself with all your nonsense. You will note several seem to agree. I repeat what a useless pompous twit you seem to be. If your level of understanding is as you show then your university in Australia must be on par or below standard of one its claimed our dear PM attended in one of our other fort her colonies. As regard grammar sorry not only am a dyslexic but my degrees are in Maths, BMA and teaching with many years in real world running my own business's. I always found it amusing when some who worked for me thought they deserved a higher position because they has some petty qualification and of course were much better at english than id ever be.

Its great to find world is still full of ignorant folk who have no clue but believe they know all since they have some claimed piece of paper.

thanks for laugh

[EricBerg]

About time to stop the silly dispute pointed at the wrong person.

Please target either Suthep, Abhisit, the missguided fugitive, his lil sis, jutaporn, the lonely little ricefarmer, the underpaid corrupt policeman, the soi cowboy hooker (especially when you live there), or any other person remotely or closer related to the horrible rice scheme.

Or me, coz I have a masters too...

Edited January 15, 2014 by EricBerg

[Bkkbound]

This has all the makings of a deliberate move on the Shins part to slash and burn as they finally leave the political and power games, whoever picks up the mess created will have long term problems on their hands. It seems improbable that they would continue with the 2nd Feb elections and have so many disaffected supporters, but then again so many odd things and issues are never what they seem. Whats clear is we are seeing the end game of the shin dynasty.