Debt menace looms | Bangkok Post: news

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Flying baht prompts top brass meet

Former ministers warn of looming debt menace

Published: 24 Jan 2013 at 00.00
Newspaper section: News

The soaring value of the baht prompted Prime Minister Yingluck Shinawatra to meet top government officials yesterday.

After the meeting Ms Yingluck played down fears over the currency's rapid appreciation, saying so far the strengthening of the baht posed no risks to the economy.

Ms Yingluck met Finance Minister Kittiratt Na-Ranong, Bank of Thailand (BoT) governor Prasarn Trairatvorakul and National Economic and Social Development Board (NESDB) secretary-general Arkhom Tempitayapaisit.

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spiceman
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Discussion 35 : 24 Jan 2013 at 18.4835
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Everything is relative & when the Dollar is being inflated at an unprecedented rate by the trillions 24/7 indefinitely, its value will continue to decline. There is nothing fancy about it, just basic international Economics. The US is now between a rock & a hard place & there is absolutely no political will to even stop running huge $1.5 trillion a year deficit, let alone starting to retire its $16.4 trillion debt. When Obama said his economic stimulus plan was "too big to fail" 4 years ago, a number of Economists asked the ultimate question, what if it fails. Now, more than 4 years later, his stimulus plan is clearly failing. Now what?
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Bangon
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Discussion 34 : 24 Jan 2013 at 17.3534
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The Baht IS a HUGE 'bubble': when the Thai banks would depreciate the millions of 'unproductive' loans in their books to the actual REAL value of the land property titles they hold as collateral, it would create a financial tremor of magnitude 9, dwarfing 1997, and the weak USD would trade at 50 to the Baht...! Can't understand the IMF is apathic about this, or don't they know?
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faranginkorat
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Discussion 33 : 24 Jan 2013 at 15.3633
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Answer to Zorgag: Yes

Thailand imports nearly as much as it exports and a strong THB makes those imports cheaper, but nobody complains about that.
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Eric
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Discussion 32 : 24 Jan 2013 at 15.0932
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Some economic trivial.
1. Yes we have a trade deficit which is only a component of the current account which is positive.
2. Yes our public debt is slightly higher but well within a healthy range. Look for signs of credit down grade if ever our public debt is unmanageable.
3. The '97 crisis was a result of too much borrowing of off-shore USD for real estates and when the bubble burst and currency had a free fall, we had more USD debts and could not defend as our reserve was very small. Our investments now are for infrastructures which will generate returns unlike property speculation. We have also build up our USD reserves.
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jck
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Discussion 31 : 24 Jan 2013 at 14.5031
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mr. meldrew. The Baht has surged in value making it more expensive than a year ago for North Americans or Europeans paid in the currency of their country to live here or to visit on vacation. eg less Baht for their Dollars or Pounds.
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cadcolin
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Discussion 30 : 24 Jan 2013 at 14.1030
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its rock and a hard place time
stronger bhat makes exports expensive but inporting raw materials cheap
makes thais going abroad cheaper but tourist coming to thailand expensive for them

weak bhat obviously has the opposite affect

someone is going to have to decide whether a strong bhat or weak bhat is the right way to go ?
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jeru

Discussion 29 : 24 Jan 2013 at 13.3129
Let us revolt gentlemen! An all out taxpayers revolt against this free-spending country indenting Yingluck govt is what is needed, yes?
from iPhone application.
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thailife69
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Discussion 28 : 24 Jan 2013 at 13.1928
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The Baht is not getting stronger, the USA dollar is failing, as is it's culture and it's country.

Britain lost it's empire due to 2 wars it could not afford, so not long to go before we are all looking at the back end of a self serving selfish country.

Let's hope China is not as opinionated or pathetic!
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zorgag
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Discussion 27 : 24 Jan 2013 at 13.0827
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Could someone please give me a quick lesson in economics? It seems that the baht getter stronger means more global buying power for the baht. Why is this a bad thing? Is it that it increases the cost of Thai products to overseas buyers and therefore discourages exports?
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bkkfarang1
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Discussion 26 : 24 Jan 2013 at 12.4526
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We all the bad decisions made by the government costing billions of baht, now this, here comes 1997 again. The Thai's caused it before and it looks like history will repeat itself!
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Former ministers warn of looming debt menace

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