Major Economic Issues For Thailand

Local Hua Hin and regional Thailand news articles and discussion.
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caller
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Re: Major Economic Issues For Thailand

Post by caller »

I think this article by Chartchai Parasuk is worth a few minutes of everyones time. It explains how the crisis has reached the stage it has, the current major issue, but sadly no real viable solution for a fix. It's hard for Thailand to see a way out of the mess they are in.


Zombie banking deepens economic woes
The most popular question nowadays seems to be, "Where has all the money gone?" Some even accuse the Bank of Thailand (BoT) of running a tight monetary policy by syphoning money out. The facts are to the contrary. Broad money growth in July 2024 was 3.1%, compared to 1.6% in July last year.

Unfortunately, the money supply never fully reaches producers and consumers as financial institutions do not utilise the money to expand loans.

This article aims to demonstrate the economy is already at the "end of the rope" as its banking system is no longer functioning -- it's in a silent crisis.

A non-functioning banking system is the key cause of most economic crises, such as the Great Depression of 1930, Thailand's Tom Yum Kung crisis of 1997, and the crisis of 2008.


https://www.bangkokpost.com/opinion/opi ... nomic-woes
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Re: Major Economic Issues For Thailand

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It is clear that without a properly functioning banking system, the BoT's monetary policy would become ineffective as there is no vehicle to channel the money supply. The BoT could print as much money as it wanted, but the money would get stuck at banks and would not reach Thai producers and consumers, which is happening right now.
I've said all along that banks are usually the cause of most economic turmoil.

Banks/govt printing money > increase supply/devalue currency > increased inflation > surging prices for everything > galloping household debts > cost of living and economic crisis.
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Re: Major Economic Issues For Thailand

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Consumer confidence slips to 14-month low
Thai consumer confidence dropped for a seventh consecutive month in September to a 14-month low, attributed to concerns over a global economic slowdown and the floods in the country.

In addition, the ongoing conflict in the Middle East could exacerbate Thailand's sluggish economic recovery, according to a survey by the University of the Thai Chamber of Commerce (UTCC).

Thanavath Phonvichai, president of the UTCC, said the consumer confidence index dipped to 55.3 in September, down from 56.5 in August.

Consumers view the economy as recovering slowly and the cost of living as high, the university said.

"Consumers are less confident the economy will recover quickly, even following the 10,000-baht cash handout to vulnerable groups," said Mr Thanavath.

https://www.bangkokpost.com/business/ge ... -month-low
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Re: Major Economic Issues For Thailand

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buksida wrote: Thu Sep 19, 2024 12:51 pm
It is clear that without a properly functioning banking system, the BoT's monetary policy would become ineffective as there is no vehicle to channel the money supply. The BoT could print as much money as it wanted, but the money would get stuck at banks and would not reach Thai producers and consumers, which is happening right now.
I've said all along that banks are usually the cause of most economic turmoil.

While the rest of the world's central banks are cutting rates to combat inflation ...

Bank of Thailand to hold rates steady on Oct. 16
https://www.reuters.com/markets/rates-b ... 024-10-11/

More profit for the banks and less spending power for the people.
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Re: Major Economic Issues For Thailand

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And the baht gets stronger!!!
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Re: Major Economic Issues For Thailand

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Indeed, central bank manipulation ... also the USD, GBP and EUR have weakened as they have dropped rates, which doesn't help matters when the BoT refuses to.
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Re: Major Economic Issues For Thailand

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Well, another article from Chartchai Parasuk, exposing the lies in financial data used to hide the truth about the state of the Thai economy. Somewhere along the line, the whole facade must surely come tumbling down? I don't understand why the opposition don't pick up on these? In this article, he even tells you where to find them.

https://www.bangkokpost.com/opinion/opi ... ce-figures
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Re: Major Economic Issues For Thailand

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Scary reading ... Parasuk always says it how it is. It just shows how deep the layers of bullshit are from ministers and the central bank (which seems to be above the government and a law unto its own).

It's amazing that there haven't been any bank collapses here yet, like in the US - but as we know, pretty much everything to do with finance is manipulated here.
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Re: Major Economic Issues For Thailand

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buksida wrote:Scary reading ... Parasuk always says it how it is. It just shows how deep the layers of bullshit are from ministers and the central bank (which seems to be above the government and a law unto its own).

It's amazing that there haven't been any bank collapses here yet, like in the US - but as we know, pretty much everything to do with finance is manipulated here.
But there was a huge bank collapse in the 90s. Due in no small way to shenanigans and fraud. But ever since then the Thai regulators have been very wary about banks and their reserves. Possibly one reason for the huge borrowing/lending interest rate gap. Then in the GFC I think there were banks and other financial institutions quite close to being in big trouble.

Anyway, for many years after, perhaps even until today, "BBC" didn't mean to Thais what it means to us.

Google: Bangkok Bank of Commerce Scandal
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Re: Major Economic Issues For Thailand

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Economists warn about meddling in Bank of Thailand
More than 800 Thai economists, including four former governors of the Bank of Thailand, warned on Saturday of political interference in selecting the central bank’s board chairman, saying it could damage long-term economic stability.

The government’s nomination of former commerce minister Kittirat Na-Ranong, a Pheu Thai Party loyalist and critic of central bank governor Sethaput Suthiwartnarueput, has sparked concerns over the central bank’s independence.

Since taking office last year, the Pheu Thai-led government, now under Prime Minister Paetongtarn Shinawatra, has been at loggerheads with the BoT, pressuring the central bank to cut interest rates and raise its inflation target.

The central bank unexpectedly cut rates last month for the first time since 2020, but Mr Sethaput signalled that there would not be another cut at the final meeting of the year in December.

Should the BoT “carry out the wishes of the political group, then it would tarnish the credibility of the central bank, which must maintain a strong economic stability for the country in the long term”, the 830 economists said in a statement on Saturday.

https://www.bangkokpost.com/business/ge ... f-thailand
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