Thai Government Pushes for Money-Easing Policy

[Jacob Maslow]

The committee of economic ministers is pushing for the Thai central bank to consider a financial-easing policy. The committee, chaired by PM Gen Prayut Chan-o-cha, is hoping that the policy will bolster the export sector.

Arkhom Termpittayapaisith, Deputy Transport Minister, stated that the committee asked the Thai central bank to manage the baht to ensure it didn’t strengthen against the US dollar and harm businesses. Mr. Arkhom also stated that the committee was briefed on Thailand’s current economic situation. During the first quarter, gross domestic product was up 3% year-on-year thanks to increased automotive exports and the rebounding tourism industry.

The committee will still maintain its economic growth forecast of 3.5-4.5%. Despite a sluggish recovery in the export sector, Mr. Akhom stated that a 3.5% growth in exports is still possible.

The BOT (Bank of Thailand) and the Finance Ministry had originally forecasted a 3.9-4.5% growth range for gross domestic product this year despite a 4.82% decline in exports during the first two months of the year.

The committee has also approved a new budget for the National Health Security Office to the tune of Bt165.09 billion for 2016.

Meanwhile, the prime minister is expected to announce the government’s six-month achievements during a press event today.

-- 2015-04-18

[61guitarman61]

Apparently Thai economists are not learning anything from the failures of the west, USA in particular. Quantitative easing is being abused and creates currency supplies based on nothing. Now in Thailand as well? Say goodbye to all your easy and now fleeting riches Thailanders. This will create a bubble not unlike the bubbles that occur in America, the latest being the housing bubble created through the easing under the Clinton admin.

[Pib]

Apparently Thai economists are not learning anything from the failures of the west, USA in particular. Quantitative easing is being abused and creates currency supplies based on nothing. Now in Thailand as well? Say goodbye to all your easy and now fleeting riches Thailanders. This will create a bubble not unlike the bubbles that occur in America, the latest being the housing bubble created through the easing under the Clinton admin.

If I remember right the housing bubble was in the 2004-2006 timeframe which lead to the near financial collapse in 2007-2008. According to history records the George W. Bush Administration was in power from 20 Jan 2001 to 20 Jan 2009. Bill, Hillary, and Monica had long left the White House.

[suzannegoh]

Apparently Thai economists are not learning anything from the failures of the west, USA in particular. Quantitative easing is being abused and creates currency supplies based on nothing. Now in Thailand as well? Say goodbye to all your easy and now fleeting riches Thailanders. This will create a bubble not unlike the bubbles that occur in America, the latest being the housing bubble created through the easing under the Clinton admin.

If I remember right the housing bubble was in the 2004-2006 timeframe which lead to the near financial collapse in 2007-2008. According to history records the George W. Bush Administration was in power from 20 Jan 2001 to 20 Jan 2009. Bill, Hillary, and Monica had long left the White House.

That's correct, Clinton's bubble was the dotcom one.

[ColdSingha]

Apparently Thai economists are not learning anything from the failures of the west, USA in particular. Quantitative easing is being abused and creates currency supplies based on nothing. Now in Thailand as well? Say goodbye to all your easy and now fleeting riches Thailanders. This will create a bubble not unlike the bubbles that occur in America, the latest being the housing bubble created through the easing under the Clinton admin.

thai economists are learning everything from the west. they and their monied masters will of course be loading up on assets and awaiting the wealth effect

the poor however will suffer the same fate as the developed world. runaway inflation in food, rent, education and healthcare..

oh well cant win em all

[Pib]

Apparently Thai economists are not learning anything from the failures of the west, USA in particular. Quantitative easing is being abused and creates currency supplies based on nothing. Now in Thailand as well? Say goodbye to all your easy and now fleeting riches Thailanders. This will create a bubble not unlike the bubbles that occur in America, the latest being the housing bubble created through the easing under the Clinton admin.

If I remember right the housing bubble was in the 2004-2006 timeframe which lead to the near financial collapse in 2007-2008. According to history records the George W. Bush Administration was in power from 20 Jan 2001 to 20 Jan 2009. Bill, Hillary, and Monica had long left the White House.

That's correct, Clinton's bubble was the dotcom one.

I told Bill not to listen to all the dotcom hype by the inventor of the internet...that is, his Vice President Al Gore.

[soalbundy]

Look on the bright side, it would devalue the Baht

[caughtintheact]

A little research reveals that Bill Clinton signed the Community Reinvestment Act in 1995 (aka, the Affordable Housing Act). That law put pressure on mortgage lenders to make loans in high risk areas. "Community activists" also went around putting pressure on mortgage lenders to make high risk loans in the name of 'helping the poor'. Bubbles take some time to build up. Look up "lag time". Check this time line for more on the housing bubble:

http://www.wikiwand.com/en/Timeline_of_the_United_States_housing_bubble

Bush, Alan Greenspan and others warned about the bubble, but the warnings went unheeded by others. But Bush also exacerbated the situation in 2002 with more "compassionate" lending. The bottom line is that when a law forces lenders to make high risk loans, if the risks come to fruition, those loans will not be paid and the bubble will burst. Some government policies are good at helping the poor to go deeper into poverty.

Edited April 19, 2015 by caughtintheact

[nong38]

Its about time they realized that strong baht hurts exports and puts tourists coming, pretty simple really and they have the power to do something about it, but will they?

A strong baht is vanity for one, for people who dont understand economics.

However, if you were rather well off, as some Thais are then traveling abroad and having a spend up would be to your liking. Surely they dont keep the baht high for the chosen few? Surely not.

[worgeordie]

Quantitative easing,why don't they call it what it really is printing more money.

regards worgeordie

[Srikcir]

"During the first quarter, gross domestic product was up 3% year-on-year thanks to increased automotive exports and the rebounding tourism industry....The committee will still maintain its economic growth forecast of 3.5-4.5%."

A bit of MISDIRECTION here. The GDP was DOWN to 3% from the projected 3.5%-4.5% largely thanks to the collapse in export growth that contributes 70% of the GDP.

The Center of Economic and Business Forecast just yesterday revised this year's growth projection to 3.2% from 3.5 to 4%. Looks like it was too optimistic.

I never have seen a government so willing to take credit for its economic failures as if they were actually successes.

[pendingo]

Debt creation by any other name.

The bank creates money from nothing to lend and when the borrower cannot pay their debt seizes their assets which are real.

Simples.

[TheAppletons]

"During the first quarter, gross domestic product was up 3% year-on-year thanks to increased automotive exports and the rebounding tourism industry....The committee will still maintain its economic growth forecast of 3.5-4.5%."

A bit of MISDIRECTION here. The GDP was DOWN to 3% from the projected 3.5%-4.5% largely thanks to the collapse in export growth that contributes 70% of the GDP.

The Center of Economic and Business Forecast just yesterday revised this year's growth projection to 3.2% from 3.5 to 4%. Looks like it was too optimistic.

I never have seen a government so willing to take credit for its economic failures as if they were actually successes.

Not exactly. It was still 3% growth year over year - that's "up", not down. Were the growth estimates too high? Yes. But to characterize 3% growth as down is inaccurate.

[morrobay]

Its about time they realized that strong baht hurts exports and puts tourists coming, pretty simple really and they have the power to do something about it, but will they?

A strong baht is vanity for one, for people who dont understand economics.

However, if you were rather well off, as some Thais are then traveling abroad and having a spend up would be to your liking. Surely they dont keep the baht high for the chosen few? Surely not.

That exports are 70% of Thai GDP and are down 4% And by way the ' chosen few ' are the 'they'

[i claudius]

Debt creation by any other name.

The bank creates money from nothing to lend and when the borrower cannot pay their debt seizes their assets which are real.

Simples.

Talking about siezing assets ,there is a house close to us that the bank owns ,its been on the market for about 9 months ,out of interest i phoned to see how much it was 31 million was the reply , well at a pinch i reckon they may if lucky get 12 million ,but still a hard sell , so the bank has at least 19 million baht on paper only which they will never get back ,so how many other properties do they have that are vastly overpriced? just like last time.