Urgent measures launched to stimulate Thai economy, PM says

[phoenixdoglover]

There are about 75,000 villages in Thailand. At 1,000,000 baht per village, that's 75 billion baht.

The Navy will have to wait a bit more for their toys.

The Thai GDP is about USD 375 billion ( about 13 trillion baht).

Thus, this stimulus scheme represents about 0.6% of annual GDP.

As a point of comparison. When the US pushed a stimulus program in 2009, to combat the 2008 recession, it was USD 800 billion, in an economy the size of USD 15 trillion. That stimulus was 5.3% of the annual GDP.

I am thinking the Thai stimulus is not serious.

[Jon Wetherall]

"the government has launched urgent measures to stimulate Thai economy"

even though the Thai economy isn't tanking.

"He said that the measures are expected to create more job opportunities,"

Even though there is zero unemplyment.

They include useful projects which truly respond to the public demand.

But they're not 'populist'.

According to the loan criteria, each village will receive one million baht in loan with free interest for the first two years. Village committees will take responsibility to oversee the loan management and encourage public participation in their project under a mutual monitoring basis.

Where do I remember that from? Oh yes, the great Satan, I remember now...

He's about due for his doctorate in kidology I suspect, but I don't know which University will give it to him. It will be Thai though.

[Jon Wetherall]

16 months into their self-appointed control of Thailand, with the country in a huge self-induced slump at the time so they could have an excuse to grab power, and NOW this moron comes out with "urgent" economic measures...

He just makes me want to puke every time he opens his mouth.

At our house, he has a new nickname, ... nothing to do with "Uncles", he's just Khun Gohhok.

In my house the Thais don't call him a 'Khun' anything, They just call him a lying piece of <deleted>. Khon Gong.

[Spleen]

Cheap loans to villagers , where on earth did he get that idea ?

[Spleen]

This is vote buying is it not ? though he doesn't need the votes obviously

[Jon Wetherall]

If the PM RESIGNED I think everyone in the kingdom would be very very happy !!!!

I'm absolutely convinced you are right. Certainly there would be many parties close to where I am...

[Praematura]

He keeps acting like he represents the people with that slogan "our home country stronger together." These deeply in debt people are unlikely to put the money into the economy, look at what happened in the USA after the financial crisis, banks sat on the funds they were to make available. Best thing he can do for the economy is get rid of its incompetent leader.

[Jon Wetherall]

Urgent measures ought to include:

1. Clean out corruption from top down, include bounties

2. Hold elections

3. Replace all military and police brass, make them subservient to civilian elected government

Should do but won't. They can't clean out corruption from the top down because the guys at the top have painful amounts of clout.

They can't clean out corruption from near the top because they are the corruption near the top.

Prayuth would have been better to avoid the subject of corruption completely, as it is, nobody believes a word he says about it. Maybe some of the tree-huggers in TV but no Thais believe him, not even the relatively few that love him.

Edited September 8, 2015 by Jon Wetherall

[timewilltell]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

[Jon Wetherall]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

And how many of the loan sharks are 'connected'?

Maybe 80%

Where will they start and how far will they get before they get bumped? Easy questions.

[lostoday]

He keeps acting like he represents the people with that slogan "our home country stronger together." These deeply in debt people are unlikely to put the money into the economy, look at what happened in the USA after the financial crisis, banks sat on the funds they were to make available. Best thing he can do for the economy is get rid of its incompetent leader.

As I understand it these deeply in debt people will now go into debt one million baht more with this program. They won't have to pay interest for a couple of years.

No new money will come into the system only old money pushed around a bit. From the rich people to the poor people to use for a couple of years and then the rich people get the money back plus interest. If the poor people have been wise with the money they got for two years interest free they will do well. Of course one has to consider if they were wise why would they be poor?

[roamer]

What would old po face know about happiness ?

[Srikcir]

This plan defies economic sustainability.

It is acknowledged as a quick injection of capital at the grass roots level intended to merely perk up domestic consumption. Within one month the money will be spent as required under the fiscal budget on household products and services. Consumer confidence will temporarily spike for fiscal fourth quarter and Prayut will declare the nation is on the road to recovery.

[Jon Wetherall]

This plan defies economic sustainability.

It is acknowledged as a quick injection of capital at the grass roots level intended to merely perk up domestic consumption. Within one month the money will be spent as required under the fiscal budget on household products and services. Consumer confidence will temporarily spike for fiscal fourth quarter and Prayut will declare the nation is on the road to recovery.

All joking and teasing aside, I really think Mr P is going to come seriously unstuck. For all his bravado and bravery when backed by guns, he is basically a talentless individual who believes he is superman. He is showing signs of serious stress now, in unconscious ways, losing weight, sagging jowels and increasing belligerence. All signs that things are far from what they should be. Yingluck wasn't perfect but she had a quiet demeanour and was very hard to rattle. Of the 2, she is by far the better PM except she allowed dishonest people to prey on the Thai people by virtue of the patronage of her brother. A tragedy really, for Thailand and Thais.

This whole current mess is both a mess and a tragedy for the Thai people, even if they have the government they deserve and are prepared to accept. No army can rule against the will of the majority of people. Not if the majority of people decide not to let them.

[rubl]

hahahahaha.....the infamous one village, one million baht scheme!!!

Seems the military are smart enough to know they are stupid. So they just copy policies that works - the same policies by the guy they blamed for the country's problems

This really is a comedy. And people still believe Thaksin is no longer running the country.

Sorry to have to say this but I'm sure you're right.

With the kind of electoral advantage he had (many eaters of sour grapes would say 'bought' but that's been repeatedly shown to be nonsense), it's pretty much inevitable. In all probability, the next election will see another Thaksin government, which is why Mr P continues to poo in his pants and thrash about protecting people and institutions all over the place, Pity really, he so badly wanted to ride in out of the sunset and save Thailand with his own peculiar brand of wit and wisdom. A legend in his own mind.

So yes, Thaksin probably still does run the country, for good or ill. Actually, I'm quite glad about that because it's a better longer-term prospect than any of the chicken-poop alternatives that have so far presented themselves.

I doubt Thaksin has any say in this. Thaksin is still sulking about his former police rank having been stripped off him. Also I find your logic somewhat 'wishful thinking' like. You're sure someone says the right thing (none of you gives proof, or even circumstantial evidence), following you add 'probably still running" and you're glad about that. Strictly speaking you're glad about the few percent chance your combined assumptions are correct.

Now the village funds idea is itself has good aspects. What was missing in the past was proper guidance, accounting. Some of that has been improved by various government and I assume this government continues that trend.

BTW with growing population, increasing prices, it should be no surprise village funds may need some extra money. The fund is meant to help people to (relatively) cheap loans. That means the funds will not really grow as it's not aiming at growth for itself.

PS the rumour that Thaksin couldn't care less about his former police rank seems untrue. He seems mightily peeved, same like his supporters. Imagine taking a police rank away from a criminal fugitive.

Edited September 8, 2015 by rubl

[CWMcMurray]

It's not in this article but listened to PM on the Radio tonight and he was talking about giving tax incentives to new SMEs and saw an article about adding more areas for BOI..

Like his ideas on focusing on bringing more Investment into Thailand

A rising tide floats all boats...

[rubl]

This plan defies economic sustainability.

It is acknowledged as a quick injection of capital at the grass roots level intended to merely perk up domestic consumption. Within one month the money will be spent as required under the fiscal budget on household products and services. Consumer confidence will temporarily spike for fiscal fourth quarter and Prayut will declare the nation is on the road to recovery.

All joking and teasing aside, I really think Mr P is going to come seriously unstuck. For all his bravado and bravery when backed by guns, he is basically a talentless individual who believes he is superman. He is showing signs of serious stress now, in unconscious ways, losing weight, sagging jowels and increasing belligerence. All signs that things are far from what they should be. Yingluck wasn't perfect but she had a quiet demeanour and was very hard to rattle. Of the 2, she is by far the better PM except she allowed dishonest people to prey on the Thai people by virtue of the patronage of her brother. A tragedy really, for Thailand and Thais.

This whole current mess is both a mess and a tragedy for the Thai people, even if they have the government they deserve and are prepared to accept. No army can rule against the will of the majority of people. Not if the majority of people decide not to let them.

... and all this because he stripped a criminal fugitive of his former police rank. To some that makes him looking 'unstuck'. Especially those who seem to disagree with having a criminal fugitive stripped of his former police rank. It seems to hurt so much, that forces need to be mobilised to denigrate the 'perpetrators', like the PM.

Anyway, government measures to help improve the economy. Surely to be praise.

PS since you mention Ms. Yingluck. Hard to rattle indeed, she hardly ever shed a tear, hardly ever just smiled and walked away, hardly ever answers questions not asked.

PPS 'she allowed dishonest people to prey on Thai people by virtue of the patronage of her brother"? Now that's really discriminating. A criminal fugitive having influence on a democratically elected government and negative influence at that?

[ozyjon]

I don't believe it.

[coulson]

What can you build for a million baht? Maybe buy one taxi? Maybe a bamboo beer bar? Anyone have any ideas for the villages on what infrastructure projects can be accomplished for one million baht?

They aren't supposed to build anything, they just need to throw the money around on local commodities. It is not a stimulus. It's like buying sweets or toys to keep your kid from whining.

[VIPinthailand]

if they send me a stimulate cheque of 1 million bahts, I will buy a condo to stimulate the economy.

where is the money?

Edited September 8, 2015 by VIPinthailand

[Thai at Heart]

It's not in this article but listened to PM on the Radio tonight and he was talking about giving tax incentives to new SMEs and saw an article about adding more areas for BOI..

Like his ideas on focusing on bringing more Investment into Thailand

A rising tide floats all boats...

Ridiculous that they had to get Somkid in to do this. Getting more foreign investment is the best way to get gdp moving.

[somo]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

And how many of the loan sharks are 'connected'?

Maybe 80%

Where will they start and how far will they get before they get bumped? Easy questions.

Both of you have no idea what you are talking about. I live in a small farming village and know who lends and borrows. No one is "connected" and the local economy would not function without the loans. They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms. The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!) which is understandable considering the financial status of the borrowers who would be rejected by any credit card company even if they agreed to 10%/month! I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

[Time Traveller]

What can you build for a million baht? Maybe buy one taxi? Maybe a bamboo beer bar? Anyone have any ideas for the villages on what infrastructure projects can be accomplished for one million baht?

irrigation systems, crop seedlings, fertilizer, scholarships for children and teenagers to attend trade schools.

Use your imagination. Something is better than nothing

[tigermoth]

A real populist project, the village head mans will like it.....this gonna be much worse than the the (so called) rice scam...

And btw, why need job opportunities , the numbers of unemployment your government presented where ridiculous low at 0.56% ...... Oh sorry, that where also populist statements...

If the so called PM?? thinks that he can fool people with the release of funds to the villagers he must be joking. That is exactly one of the reasons which made Thaksin so popular with the country people. I had not realised it had ceased. Who stopped it, the Junta???

[Jon Wetherall]

It's not in this article but listened to PM on the Radio tonight and he was talking about giving tax incentives to new SMEs and saw an article about adding more areas for BOI..

Like his ideas on focusing on bringing more Investment into Thailand

A rising tide floats all boats...

Ridiculous that they had to get Somkid in to do this. Getting more foreign investment is the best way to get gdp moving.

Not going to happen. Be honest. If you had the choice of investing money under Prayuth (him being both Thai and Prayuth - a real quinella) or not, - would *you* invest? Because I bloody well wouldn't, no more than I would have invested in the Philippines under Marcos, another completely mad hatter.

Edited September 9, 2015 by Jon Wetherall

[Jon Wetherall]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

And how many of the loan sharks are 'connected'?

Maybe 80%

Where will they start and how far will they get before they get bumped? Easy questions.

Both of you have no idea what you are talking about. I live in a small farming village and know who lends and borrows. No one is "connected" and the local economy would not function without the loans. They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms. The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!) which is understandable considering the financial status of the borrowers who would be rejected by any credit card company even if they agreed to 10%/month! I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

Both of you have no idea what you are talking about.

Really...

I live in a small farming village and know who lends and borrows.

As do I.

No one is "connected"

BS. Did you ask what I meant by 'connected'? No. Yet you presume to understand it anyway. You don't, and I don't much care where you live.

and the local economy would not function without the loans.

Agreed, but now everyone knows your missus is a local loan shark.

They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms.

Jesus. Seriously? You don't understand the difference between prviding credit (as an informal loan) and a loan shark? Truly? Jesus.

The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!)

BS. The usual loan-shark rate is 10% per month, with big boys commonly charging 20%

I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

I don't agree, in fact I think the whole post is either a joke (in poor taste) or just complete crapola. You need to get out more.

[coulson]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

And how many of the loan sharks are 'connected'?

Maybe 80%

Where will they start and how far will they get before they get bumped? Easy questions.

Both of you have no idea what you are talking about. I live in a small farming village and know who lends and borrows. No one is "connected" and the local economy would not function without the loans. They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms. The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!) which is understandable considering the financial status of the borrowers who would be rejected by any credit card company even if they agreed to 10%/month! I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

3%/ month is still shocking! and what bank charges 10%/month ?

[somo]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

And how many of the loan sharks are 'connected'?

Maybe 80%

Where will they start and how far will they get before they get bumped? Easy questions.

Both of you have no idea what you are talking about. I live in a small farming village and know who lends and borrows. No one is "connected" and the local economy would not function without the loans. They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms. The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!) which is understandable considering the financial status of the borrowers who would be rejected by any credit card company even if they agreed to 10%/month! I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

3%/ month is still shocking! and what bank charges 10%/month ?

So the rates charged by credit card companies are also shocking at about the same and they will only lend to those with the required ratings never to a Thai farmer. The 10% is just an example rate that even they would not lend to the farmers at being too risky.

[somo]

If you want to help the poor then set the police to work on rounding up the loan sharks and increase the penalty for illegal loans from 1 year to 5 years in prison. Make an example of a few and the practice will die out releasing these poor people from their circle of debt and the money they are paying these scum lenders to be spent on caring for their children and feeding themselves. It is a priority - why does every successive government avoid the issue if it is not that many of these illegal lenders have friends in high places. The solutions to many of Thailands problems really are so simple yet corruption keeps on feeding through every feeble excuse not to enact policies that will work. Like the rice scheme this is doomed to failure through inherent corruption and in any case does not even stand up to scrutiny that it will inject anything into the economy other than an initial burst. Can people really be THIS dumb?

And how many of the loan sharks are 'connected'?

Maybe 80%

Where will they start and how far will they get before they get bumped? Easy questions.

Both of you have no idea what you are talking about. I live in a small farming village and know who lends and borrows. No one is "connected" and the local economy would not function without the loans. They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms. The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!) which is understandable considering the financial status of the borrowers who would be rejected by any credit card company even if they agreed to 10%/month! I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

Both of you have no idea what you are talking about.

Really...

I live in a small farming village and know who lends and borrows.

As do I.

No one is "connected"

BS. Did you ask what I meant by 'connected'? No. Yet you presume to understand it anyway. You don't, and I don't much care where you live.

and the local economy would not function without the loans.

Agreed, but now everyone knows your missus is a local loan shark.

They are mostly provided by the owners of companies or shops that do business with the farmers and provide the vital cashflow needed to finance the farms.

Jesus. Seriously? You don't understand the difference between prviding credit (as an informal loan) and a loan shark? Truly? Jesus.

The rates charged are similar to those charged by credit card companies (3%/month but payable annually or whenever possible!)

BS. The usual loan-shark rate is 10% per month, with big boys commonly charging 20%

I bet neither of you would take such risks with your money but you criticise others for doing so. By the way there is no mafia here enforcing such loans.

I don't agree, in fact I think the whole post is either a joke (in poor taste) or just complete crapola. You need to get out more.

So what do you mean by "connected"? If by that you mean have powerful friends I stand by what I say. No lender here needs them they just need to have money.

No one here needs to borrow at 10% or above. There is plenty around at 3%

So you know there is mafia in my village but I don't is that what you are saying? Or did you mean that you would risk

lending to farmers at 3%??

By the way leave my wife out of it. Getting personal is a sign of desperation in any discussion. We don't need the money.

[lostoday]

I just bought a Thai CD at 1.68%