interestrateripoff Posted September 12, 2011 Share Posted September 12, 2011 http://www.bloomberg.com/news/2011-09-12/thailand-shouldn-t-use-rates-for-climbing-commodity-costs-kittiratt-says.html Thailand’s five-week old government signaled it wants the nation’s central bank to stop raising interest rates as Prime Minister Yingluck Shinawatra seeks to stoke growth in Southeast Asia’s second-biggest economy.“I did not agree with high interest rates to handle inflation if it’s not demand-pull inflation,” Deputy Prime Minister Kittiratt Na-Ranong said in an interview in Bangkok today. Yingluck’s administration has pledged to almost double the minimum wage in parts of the country and buy rice from farmers at above-market rates after winning the July 3 election with support from lower-income voters. The Bank of Thailand has boosted borrowing costs six times this year to damp inflation, raising rates by the most in Asia outside India. Kittiratt’s remarks signal a conflict with the central bank’s stance that may lead to a stalemate in policy making, with one side’s attempt to lift growth undermined by monetary tightening by an authority whose independence is protected by law. Yes doubling peoples wages that's going to bring down inflation, more money chasing the same amount of goods?? Good job they don't have the vigilant Mystic Merv in charge he knows the only inflation you have to be concerned with is nasty prole wage inflation, just like Thailand is doing. Quote Link to comment Share on other sites More sharing options...
bkkandrew Posted September 12, 2011 Share Posted September 12, 2011 Thailand feels right now like in '97. Unreal, surreal and the economics of the madhouse. Its just that our madhouse is not as mad as yours. Quote Link to comment Share on other sites More sharing options...
culvers Posted September 12, 2011 Share Posted September 12, 2011 Thailand feels right now like in '97. Unreal, surreal and the economics of the madhouse. Its just that our madhouse is not as mad as yours. Whats the situation with house prices over there looking like? When i was living there what struck me was the sheer number of condos being built, and the hefty price tag accompanying them - guessing it aint gonna be pretty? Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted September 12, 2011 Share Posted September 12, 2011 Whats the situation with house prices over there looking like? When i was living there what struck me was the sheer number of condos being built, and the hefty price tag accompanying them - guessing it aint gonna be pretty? Aren't the condos allowed to be bought by foreign buyers ( on 25 year leases !!!)...but houses/land are not. You'd need to be a right mug to fall for that one. I love you long time...25 years to be precise. Quote Link to comment Share on other sites More sharing options...
Timak Posted September 12, 2011 Share Posted September 12, 2011 Yes doubling peoples wages that's going to bring down inflation, more money chasing the same amount of goods?? Not sure that definition of inflation really holds true any more. With a global commodity trade then I can buy 1kg of basmati from Tesco for £1 or the Thai villager can buy it for 50bht. If he has twice as much money (and the currency holds firm) then he'll still be able to buy the rice for 50bht. If there is a global shortage of rice then the price will go up but that will be a supply/demand issue rather than anything to do with the money supply. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted September 12, 2011 Author Share Posted September 12, 2011 Not sure that definition of inflation really holds true any more. With a global commodity trade then I can buy 1kg of basmati from Tesco for £1 or the Thai villager can buy it for 50bht. If he has twice as much money (and the currency holds firm) then he'll still be able to buy the rice for 50bht. If there is a global shortage of rice then the price will go up but that will be a supply/demand issue rather than anything to do with the money supply. Possible true especially if the bankers get their first and offer them attractive loans to buy goods they can't normally afford.... Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted September 12, 2011 Share Posted September 12, 2011 Thailand feels right now like in '97. Unreal, surreal and the economics of the madhouse. Its just that our madhouse is not as mad as yours. I've been reading a bit about Thailand and it seems like New Labour have got in power. Lots of promises on the credit card. Quote Link to comment Share on other sites More sharing options...
GeordieAndy Posted September 12, 2011 Share Posted September 12, 2011 (edited) She is only in power due to her brother who was only in power because he promised riches to the country folk - inevitable the poorer rural voters will get there rewards. House price wise - we had a house on a Thai Island and sold it for almost the same amount in THB that we had bought if for 3 years earlier. However we bought it in the middle of a military coup, off plan on an Island where all the residents (earliest from 60s) only had a form of squatters rights but made a tidy profit due to the fall in GBP in that time and had an amazing experience Edited September 12, 2011 by GeordieAndy Quote Link to comment Share on other sites More sharing options...
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