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jon46

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  1. Now that Trump has won and is the president-elect, let's see in the coming months what he does for the disaffected-largely white workers in the "rust belt" and other places in America. That was his core message---of his help to bring back jobs, which is a departure from Republican orthodoxy. Will the rejection of TPP and the renegotiation of NAFTA do that or will he start a trade war with China? Below is Senator Elizabeth Warren's letter to her supporters. This wasn’t a pretty election. In fact, it was ugly, and we should not sugarcoat the reason why. Donald Trump ran a campaign that started with racial attacks and then rode the escalator down. He encouraged a toxic stew of hatred and fear. He attacked millions of Americans. And he regularly made statements that undermined core values of our democracy. And he won. He won – and now Latino and Muslim-American children are worried about what will happen to their families. LGBT couples are worried that their marriages could be dissolved by a Trump-Pence Supreme Court. Women are worried that their access to desperately needed health services will disappear. Millions of people in this country are worried, deeply worried. And they are right to be worried. Today, as President-Elect, Donald Trump has an opportunity to chart a different course: to govern for all Americans and to respect our institutions. In his victory speech, he pledged that he would be “President for all†of the American people. And when he takes the oath of office as the leader of our democracy and the leader of all Americans, I sincerely hope that he will fulfill that pledge with respect and concern for every single human being in this country, no matter who they are, no matter where they come from, no matter what they believe, no matter whom they love. And that marks Democrats’ first job in this new era: We will stand up to bigotry. There is no compromise here. In all its forms, we will fight back against attacks on Latinos, African Americans, women, Muslims, immigrants, disabled Americans – on anyone. Whether Donald Trump sits in a glass tower or sits in the White House, we will not give an inch on this, not now, not ever. But there are many millions of people who did not vote for Donald Trump because of the bigotry and hate that fueled his campaign rallies. They voted for him despite the hate. They voted for him out of frustration and anger – and also out of hope that he would bring change. If we have learned nothing else from the past two years of electioneering, we should hear the message loud and clear that the American people want Washington to change. It was clear in the Democratic Primaries. It was clear in the Republican Primaries. It was clear in the campaign and it was clear on Election Day. The final results may have divided us – but the entire electorate embraced deep, fundamental reform of our economic system and our political system. Working families across this country are deeply frustrated about an economy and a government that doesn’t work for them. Exit polling on Tuesday found that 72 percent of voters believe that "the American economy is rigged to advantage the rich and powerful." 72 percent of ALL voters – Democrats and Republicans. The polls were also made clear that the economy was the top issue on voters’ minds. Americans are angry about a federal government that works for the rich and powerful and that leaves everyone else in the dirt. Lobbyists and Washington insiders have spent years trying to convince themselves and each other that Americans don’t actually believe this. Now that the returns are in and the people have spoken, they’re already trying to wave their hands and dismiss these views as some sort of mass delusion. They are wrong – very wrong. The truth is that people are right to be angry. Angry that wages have been stagnant for a generation, while basic costs like housing, health care, and child care have skyrocketed. Angry that our political system is awash in barely legalized campaign bribery. Angry that Washington eagerly protects tax breaks for billionaires while it refuses to raise the minimum wage, or help the millions of Americans struggling with student loans, or enforce the law when the millionaire CEOs who fund our political campaigns break it. Angry that Washington pushes big corporate interests in trade deals, but won’t make the investments in infrastructure to create good jobs right here in America. Angry that Washington tilts the playing field for giant corporations – giving them special privileges, letting them amass enormous economic and political power. Angry that while Washington dithers and spins and does the backstroke in an ocean of money, while the American Dream moves further and further out of reach for too many families. Angry that working people are in debt. Angry that seniors can’t stretch a Social Security check to cover the basics. President-Elect Trump spoke to these issues. Republican elites hated him for it. But he didn’t care. He criticized Wall Street and big money’s dominance in Washington – straight up. He supported a new Glass-Steagall. He spoke of the need to reform our trade deals so they aren’t raw deals for the American people. He said he will not cut Social Security benefits. He talked about the need to address the rising cost of college and about helping working parents struggling with the high cost of child care. He spoke of the urgency of rebuilding our crumbling infrastructure and putting people back to work. He spoke to the very real sense of millions of Americans that their government and their economy has abandoned them. And he promised to rebuild our economy for working people. The deep worry that people feel over an America that does not work for them is not liberal or conservative worry. It is not Democratic or Republican worry. It is the deep worry that led even Americans with very deep reservations about Donald Trump’s temperament and fitness to vote for him anyway. So let me be 100% clear about this. When President-Elect Trump wants to take on these issues, when his goal is to increase the economic security of middle class families, then count me in. I will put aside our differences and I will work with him to accomplish that goal. I offer to work as hard as I can and to pull as many people as I can into this effort. If Trump is ready to go on rebuilding economic security for millions of Americans, so am I and so are a lot of other people—Democrats and Republicans. But let’s also be clear about what rebuilding our economy does not mean. • It does not mean handing the keys to our economy over to Wall Street so they can run it for themselves. Americans want to hold the big banks accountable. That will not happen if we gut Dodd-Frank and fire the cops responsible for watching over those banks, like the Consumer Financial Protection Bureau. If Trump and the Republican Party try to turn loose the big banks and financial institutions so they can once again gamble with our economy and bring it all crashing down, then we will fight them every step of the way. • It does not mean crippling our economy and ripping working families apart by rounding up and deporting millions of our coworkers, our friends and neighbors, our mothers and fathers, our sons and daughters. And if Republicans choose that path, we will fight them every single step of the way. • Americans want reform to Obamacare – Democrats included. We must bring down the costs of health insurance and the cost of health care. But if the Republicans want to strip away health insurance from 20 million Americans, if they want to let cancer survivors get kicked to the curb, if they want to throw 24-year-olds off their parents’ health insurance, then we will fight them every step of the way. • Americans want to close tax loopholes that benefit the very rich, and Donald Trump claimed to support closing the carried interest loophole and other loopholes. We need a fairer tax system, but if Republicans want to force through massive tax breaks that blow a hole in our deficit and tilt the playing field even further toward the wealthy and big corporations, then we will fight them every step of the way. The American people – Democrats, Republicans, and Independents – have been clear about what economic policies they want Washington to pursue. Two-thirds of people support raising the federal minimum wage. Three-quarters of Americans want the federal government to increase its infrastructure investments. Over 70 percent of people believe students should have a chance at a debt-free education. Nearly three-quarters support expanding Social Security. These are the kinds of policies that will help level the playing field for working families and address the frustrations felt by millions of people across the country. The American people sent one more message as well. Economic reform requires political reform. Why has the federal government worked so long only for those at the top? The answer is money – and they want this system changed. The American people are sick of politicians wallowing in the campaign contributions and dark money. They are revolted by influence peddling by wealthy people and giant corporations. When Bernie Sanders proved his independence by running a campaign based on small dollar contributions and when Donald Trump promised to spend his own money, both were sending an important message that they could not be bought. And once again, if Donald Trump is ready to make good on his promise to get corruption out of politics, to end dark money and pay-to-play, count me in. I will work as hard as I can and to pull as many people as I can to end the influence of big money and return democracy to the people. Donald Trump won the Presidency under a Republican flag. But Mitch McConnell, Paul Ryan and the Republicans in Congress – and their way of doing business – were rejected – rejected by their own primary voters, rejected during the campaign, and rejected in Tuesday’s election. Regardless of political party, working families are disgusted by a Washington that works for the rich and powerful and leaves everyone else behind. The American people have called out loudly for economic and political reform. For years, too many Republicans and too many Democrats have refused to hear their demands. The majority of Americans voted against Donald Trump. Democrats picked up seats in both the House and the Senate. And yet, here we are. Republicans are in control of both houses of Congress and the White House. And that makes our job clear. As the loyal opposition we will fight harder, we will fight longer and we will fight more passionately than ever for the rights of every human being in this country to be treated with respect and dignity. We will fight for economic opportunity, not just for some of our children, but for all of our children. We do not control the tools of government, but make no mistake, we know what we stand for, the sun will keep rising, and we will keep fighting – each day, every day, we will fight for the people of this country. The time for ignoring the American people is over. It’s time for us to come together to work on America’s agenda. Democracy demands that we do so, and we are ready.
  2. In five states Sanders won where exit polling data is available — Indiana, Michigan, Oklahoma, West Virginia, and Wisconsin. I doubt that Sanders if he ran against Trump, he would win in Indiana (Trump's running mate, Pence is the governor of that state), Oklahoma and West Virginia....all "red" states. I agree Sanders has a better chance than Clinton in Michigan and Wisconsin...both states went to Trump! As a side note, Trump's home state...New York went to Clinton by a 1.5 million vote margin. In Manhattan, more than 500,000 votes went to Clinton vs. 58,000 for Trump. In terms of the popular vote, nationally, Clinton beat Trump by over 200,000 votes! I believe the final vote tallies will be out in the coming days!
  3. Assault Rifle (AR-15) should be banned but the powerful NRA successful lobby to Republicans prevents any legislative from passing. I hope the filibuster by the Democrats will have some positive effect on the upcoming vote in the Senate.
  4. Coming to Bangkok (Thailand) for over 25 years, I have noticed that prices are higher but still inexpensive compared to US standards like living in NYC or San Francisco. On my first visit to Bangkok on business, I stayed at the Intercontinental hotel, got taken to the "NO HANDS" restaurant and to a massage place....all paid by my company or by the host. At the massage place, the host did not pay for a "happy ending" which the girl noted was an extra 500 baht. Back in those days and as a "handsome" man, I did not believe in paying for sex and I declined paying...even though the girl saw my excited physical condition! lol I took the girl from the "NO HANDS" back to my hotel and we had a good time. To this day, I regret not "tipping" her. I was young and did not know what was expected from me. Nevertheless, I visited the restaurant again and the girl did not seem to mind me not paying her as she was very friendly. Over the years, prices have gone up...drinks at Patpong, Nana Plaza, Soi Cowboy are high and prices paid to take girls are even higher, making me think twice before accepting the girl's invitation to bring them out. I now frequent freelance places more often than Nana Plaza/Soi Cowboy. If you know where to go, a short time girl can be had for 700 baht. Massages are only 200 baht for 2 hours. I find that there are a two tier price system...one for the tourists/expats and the other for locals. If you live like a local, then things are still very much affordable. A simple but very tasty street food meal can be had for under 80 baht. A large beer at the local 7-11 costs around 75 baht. Buses are relatively cheap and the baht buses are even cheaper at 7 baht for short distances and they come more frequently and stop anywhere along their route. On my last visit to Bangkok (in Feb 2016), I got a haircut at a local place for 80 baht, including a shave. The girl asked me in Thai what I wanted and I pointed to the guy who had his haircut before me and she understood. I am glad the guy did not get a crew cut...lol. Hotels range from over 100 US $ to 20 something. I stayed in a hotel paying $25 a night. You can not find a $25 hotel in the US. Housing (apt rentals) are affordable compared cities in the US, especially NY/SF. I have thought abut living in Thailand full time in the near future but ruled it out due to the weather, I visit Bangkok only during the dry/cool season which is from Nov to early Feb. I find the other months (like April which temperatures are as high as 41C) just too hot for me.
  5. Can someone recommend the best and an inexpensive place to repair an electric (Philips) shaver. I believe I shorted out when I tried to replace the battery. Here in the states, the repair cost usually exceeds the value of getting a new shaver. I know there are shops (phones) at MBK and at Pantip Plaza (computers) but not a place specifically for small electrical items. I plan to visit Bangkok in Nov/Dec so any help will be appreciated.
  6. Trickery and False Promises in Thailand By THE EDITORIAL BOARDAPRIL 10, 2015 [i think it might be best to read the article on the New York Times site rather than here - KS]
  7. I remembered going to that restaurant and it was billed as the world's largest restaurant with employees travelling on skates! Another restaurant that is gone is the "No Hands" restaurant! On my first trip to Bangkok which was a business trip, my host took me there and his girl was the most beautiful person I ever saw. She was quite popular going from one room to another by customer requests. Food was very good. I ended up taking my girl to the Intercontinental hotel. Days later when I checked out, an extra charge appeared for having a guest which I protested and got the manager to take the charge off from my bill!
  8. allow me to make a suggestion...there should be a program on each aircraft that prevents a person from "crashing the airplane" such as flying into a mountain!
  9. fyi... The best selling book about Steve Jobs indicated that as a young man, he would be without shoes and to clean his feet, he would put them in the toilet bowl. Last week, during the day time, I drove on the highway and I saw a guy who pulled over and rather than hide behind a tree, he took a piss for all to see! And this is America with Americans doing uncivilized things?
  10. It is not just Chinese tourists that Thailand is wooing: China is a top trading partner. The government has sought to strengthen ties with Beijing since some Western countries downgraded diplomatic ties when the military seized power last year. Raising revenue from tourism is a government priority to compensate for weak exports, said Colonel Sansern Kaewkamnerd, the country's deputy government spokesman. Thailand, therefore, has to tolerate bad behavior for the sake of its vital tourist industry, he said. "We have to endure because having tourists is better than having no tourists at all," Sansern told Reuters. "Our exports are dependent on the economic situations of other countries. So we are focusing on tourism. This is something we can control." At the Erawan shrine in the heart of bustling downtown Bangkok, Kanlaya Yimpreeda, 29, a garland vendor, reels off a list of complaints about Chinese visitors. "I recently saw a Chinese couple take their kids' underwear off so he could pee near the shrine," she said, a look of horror on her face. "Right there in the corner next to one of Bangkok's holiest places." Tourism took a hammering during months of protests last year that saw parts of Bangkok shut down. Many countries issued warnings against non-essential travel to Thailand. The Chinese market was one of the first to bounce back, said Srisuda Wanapinyosak, Executive Director of East Asia Region at the Tourism Authority of Thailand (TAT). TAT has Chinese-language specialists manning its official account on Chinese microblogging site Weibo around the clock to communicate with Chinese travelers, Srisuda said. Over 560,000 Chinese tourists visited Thailand in January, accounting for over a fifth of tourist arrivals, according to the tourism ministry. That was up nearly 60 percent on the year. Korn Ornprasert, a veteran tour guide, said he preferred guiding visitors from elsewhere. "They have no discipline. They throw cigarette butts and spit in public," said Korn. "I would rather give a tour to other nationalities than to mainland Chinese." China's Mei Zhang, 39, who was on a five-day tour of Thailand, said she was unperturbed by the way her countrymen are perceived. "We have a bad reputation abroad but people probably said the same thing about Japanese and, before them, Americans. When there are many tourists coming from one country it is easy to criticize," she said. China is acutely aware of its tourists' image abroad and in January started work on a national database to help rein in some of its unruly sightseers and monitor the behavior of habitual offenders. Sansern said both countries needed to be flexible. "We as the housekeeper have to adapt and our house guests have to adapt."
  11. BANGKOK (Reuters) - Drying underwear at a temple and defecating in public, kicking a bell at a sacred shrine and washing feet in a public restroom: that's a sample from a litany of complaints about the behavior of Chinese tourists in Thailand. Public outrage forced the Thai government to issue thousands of Chinese-language etiquette manuals last month in an effort to ensure sightseers behave themselves. Feathers were ruffled anew in March when a Thai model posted a video on Facebook accusing Chinese tourists of jumping the line at an airport, prompting heated debate from Thai and Chinese bloggers. But with Thailand struggling to revive a stagnant economy after a military coup ended months of political unrest last year, tour operators in the 'Land of Smiles' say they have no choice but to grin and bear it. Tourism accounts for nearly 10 percent of the country's economic output and Chinese holidaymakers are Thailand's largest group of overseas visitors.
  12. The news also reported that the pilot had 6,000 hrs of flying on the Airbus 320 while the co-pilot started the job in 2013 and had only 630 hrs of flying time. It is a good thing that the voice recorder was recovered while the data recorder has yet to be located. The information that one of the pilots was locked out is very troubling. While it is very early to know all the facts, I now believe evidence strongly points to the pilot behind the control caused the crash.
  13. "Patagonian toothfish", aka snow fish...is also known in the US as Chilean Sea bass and is still available in the states. I have had it in the past and I must say it is delicious. Too bad, it is overfished. I am not sure if the trendy restaurants in the states are still serving it. Also here in the states, California and NY have outlawed "shark fins soup".
  14. In January the junta forced a German foundation to cancel a forum on press freedom saying Thailand was at a sensitive juncture. Since taking power, the junta has made full use of martial law, which also bans all political gatherings. Prayuth was particularly critical of the Thai-language Matichon daily newspaper, accusing the paper of siding with ousted former Prime Minister Thaksin Shinawatra and his allies. "Don't think I don't know that your writing is pro the previous administration," he told a Matichon reporter shortly before boarding a plane to Brunei. "The previous Interior Ministry bought many advertising spaces from you." Since the army toppled Thaksin, Yingluck's brother, in a previous coup in 2006, Thailand has been sharply divided. Thaksin support comes largely from the rural and urban working class, but traditional establishment in the capital and the south loathe Thaksin and accuse him of nepotism, cronyism and republican leanings, accusations he denies. Shortly after taking power Prayuth launched a year-long road map aimed at reconciling
  15. BANGKOK (Reuters) - Thai junta leader Prayuth Chan-ocha lashed out at journalists on Wednesday, saying he would "probably just execute" those who did "not report the truth", in the latest outburst aimed at Thailand's media. Last month Prayuth said he had the power to shut down news outlets. On Wednesday, he took an even harsher line. "We'll probably just execute them," said Prayuth, without a trace of a smile, when asked by reporters how the government would deal with those that do not adhere to the official line. "You don't have to support the government, but you should report the truth," the former army chief said, telling reporters to write in a way that bolsters national reconciliation in the kingdom. Prayuth, who is also prime minister, heads the ruling junta or National Council for Peace and Order. He toppled the government of Prime Minister Yingluck Shinawatra in a coup last May, that followed months of protests aimed at ousting Yingluck.
  16. As reported by CNBC (US cable network) in 2014 Chinese tourists have become some of the biggest spenders abroad, according to a new report, averaging over $1,000 a day. According to Hotels.com's Chinese International Travel Monitor (CITM) report published Wednesday, the average Chinese overseas traveler spends a whopping 6,707 renminbi ($1,086) per day while on vacation, excluding accommodation costs. However, in the data breakdown, the report, which surveyed 3,000 Chinese tourist and 3,000 hoteliers worldwide, showed that an extremely wealthy segment of traveler was responsible for pushing up the average. Around 15 percent of respondents said they spent 10,000 renminbi ($1,619) a day, while 2 percent spent 50,000 renminbi ($8,095) a day. But the bulk surveyed were at the lower end of the scale, with 28 percent spending between 2,001 and 5,000 renminbi ($324-810) and 36 percent spending between 500 and 2,000 renminbi ($81-324). Chinese travelers have been the biggest spending group among the countries surveyed by Hotels.com surveys since 2012. Total spending by this group has increased to $129 billion in 2013 from $27 billion in 2012, according to data from the United Nations. The CITM report didn't delve into the specifics as to what the travelers were spending their cash on, but according to analysts at research house CLSA, hitting the malls and casinos were largely to blame. "We've done a survey of 41 cities in China and people say they want to go sightseeing or experience different cultures, but ultimately all they want to do is shop and gamble," said Aaron Fischer, CLSA's head of consumer and gaming research.
  17. here in the states, it has been reported that Chinese tourists are big spenders, spending on average much more than tourists from other nations. While a majority of them come in groups and their lack of manners presents problems for the host country, their contribution to the economy is nevertheless appreciated.
  18. Having visited Thermae during my last trip to Bangkok, I can report that there are changes. First, the neighborhood has changed somewhat with fancy new upscale hotels located all around. The girls have gotten younger and prettier than earlier years and yes, Japanese clientele are the majority customers. With that, prices have gone up to 2,000 baht st and some girls would not do long time because they can do 2-3 customers or possibly 4 or more time an evening. Also, it is important to note that action starts early with customers coming in around 9pm and by 9:30pm, the best girls are picked. About an hour or so, they come back for a second round. Years ago, action would not start until 11:30-midnight but that is not the case nowadays. While I have not come during late hours, I believe prices might come down for girls/women who have not been selected. It is also interesting to note that I recognize a girl/woman who I took out years (perhaps as long as 10 years ago) who was plying her trade. These working girls/women tend to have a set place where they stand with the best looking ones in the middle of the room and on the left side as you walk in from the front door.
  19. I took the bus from Ekaimai to Pattaya and at the bus station, I took the baht bus the name of the hotel, he said 50 baht. Had I not said anything and got on the baht bus, it would have been 20 baht to stop at any location on beach road. On my return to the bus station, I waved a baht bus and took him that I needed to go to the bus station, he said 100 baht. Another driver said 200 baht. I saw a tourist paid that amount. I simply took a bus who proceeded to where I needed to connect to another bus. That was 10 baht and my connecting bus was also 10 baht! The bus from Ekaimai to Pattaya and vice versa costs 119 baht one way. Can't see paying 100 baht from the hotel to the bus station!
  20. As an experienced traveler, I travel lite with mostly carry on luggage. If my flight arrives early, I take the train but most of the time, my flight from the US arrives late and by the time, I get through immigration, it is near midnight which requires me to take a taxi into town. I always tell the driver that I have been to Bangkok many many times which is true and they think twice in scamming me. Taxi into Bangkok should be in the 400 baht range, including the 75 bath highway toll and 50 baht surcharge!
  21. The White House has little to no control over the agency that puts out the unemployment data. That fact became clear when the former CEO of General Electric, a well regarded figure, made comments suggesting that the White House "cook the books" on unemployment rates.
  22. The US dollar is at or near its high against the euro with the Euro to the $ around $1.04-$1.06 range. Because the US $ has appreciated against most currencies, real estate prices in Europe are now less expensive than a year or two years ago. Unemployment rate in the US is down to 5.5%. The US stock market is doing very well. I believe the US dollar will remain strong as long as crude oil prices remain at today's prices...about 50% less than a year ago. Yes, I wish the Thai baht to be 40 to the $ on my return visit to Thailand next year.
  23. fyi...As reported by Barrons March 16, 2015, 1:39 A.M. ET . Which Asian Currencies Will Be Vulnerable As Dollar Gets Stronger? . By Shuli Ren Last week, the U.S. dollar index, which benchmarks against a basket of major currencies, hit a milestone of 100, the highest level since 2000. The U.S. economy is stronger, but the Federal Reserve Bank is also set to tighten rates this year, while the rest of the world is walking the other way. The dollar has already gained over 10% this year. Without question, emerging Asia’s currencies have weakened. We’ve had six central banks easing policies this year, and at least half of them surprised the markets with their timing, if not the direction. I am counting India, Indonesia, Australia, Thailand and Korea. Singapore loosened its pseudo-peg against the dollar too. But compared to the Euro or emerging markets outside Asia, emerging Asian currencies have not done that badly. The Malaysian ringgit and the Indonesian rupiah are the worst performer so far, down 5.4% and 6.5% respectively. By comparison, the Brazilian real has slumped 22.7% and the Colombian peso has retreated 12.3%. It could be a show of Asia’s strength, or that the worst has not come yet. Deutsche Bank‘s strategist Sameer Goel is worried about the latter possibility, because Asia’s central banks are not done with their easing cycles yet. As such, which currencies are the most vulnerable? According to Goel, the Singapore dollar is vulnerable because of its high-beta semi-peg status, the Taiwan dollar too because it is a proxy to China play. The Malaysian ringgit and the Thai baht are weak because of poor domestic economy. Deutsche said it would not bet against the Indian rupee because of the strong growth story there. Deutsche forecasts the Taiwan dollar to weaken to 33.5 per dollar. It is now trading at 31.64. Thai baht will break out the key 33 level to 35. It is now trading at 32.86. Month-to-date, the iShares MSCI Singapore ETF (EWS) retreated 6.2%, the iShares MSCI Thailand Capped ETF (THD) gained 1.1%, the iShares MSCI Taiwan ETF (EWT) rose 3.4%, the iShares MSCI Indonesia ETF (EIDO) dropped 3.9%, and the iShares MSCI Malaysia ETF (EWM) fell 5%.
  24. Below is from today, New York Times article... HONG KONG — Central banks across Asia are racing to cut interest rates, but they may not be doing it fast enough to stave off economic malaise. The problem is weak inflation. Policy makers appear to have been surprised by how slowly prices are rising, and the slowdown is starting to weigh on economic growth across the region. If prices drop for too long, companies invest less and people’s pay shrinks. Asia is not experiencing such outright deflation yet, but the risks are rising. Inflation began weakening last year in the region, with the drastic drop in the global prices of oil and other commodities. Those declines now appear to be spreading throughout the Asian economy, and growth is slowing as a result. “Asian central banks in general have been very relaxed in recent years about the economic outlook and risks around price stability,†Frederic Neumann, a head of Asian economic research at HSBC, said in a telephone interview on Thursday. “China is an obvious example where deflation pressures have taken hold, but if you look everywhere from Korea to Southeast Asia, inflation is coming off much more rapidly than expected.†Central banks in Asia have been lowering rates in recent months, but not quickly enough to offset deflation. Interest rates, when deflation is taken into account, are rising as a result. South Korea’s central bank on Thursday reduced its benchmark rate to a low of 1.75 percent, a day after Thailand reduced rates for the first time in a year. Last week, India lowered its benchmark interest rate by 0.25 percentage points to 7.5 percent, with the central bank’s saying the cut, its second between scheduled policy meetings, had been tied to easing inflation and weakness in the economy. In recent months, China has cut interest rates twice and freed its banks to lend more. The rush to lower rates in Asia is notable because the region is breaking with tradition and moving in a direction opposite to that of the United States. With the American economy rebounding smoothly and the job market appearing increasingly healthy, the United States Federal Reserve is expected to begin raising interest rates. In previous years, many central banks in Asia have tended to align their monetary policy with the Fed’s. That they are now moving in the opposite direction “brings home the strength of the disinflationary force that’s gripping Asia,†Mr. Neumann said. “It’s relentless.†In China, data released this week showed a sharp deceleration in the already slowing economy, raising the pressure on policy makers to do more to stimulate growth. But China’s central bank governor, Zhou Xiaochuan, defends his response. “There must be prudence,†Mr. Zhou said to reporters in Beijing on Thursday. The bank’s actions so far, he said, were “maintaining appropriate liquidity in the financial markets, and they haven’t overstepped the bounds.†His approach, he added, “remains unchanged, as steady and neutral.†In China’s case, the picture is complicated because the country is still moving forward with several overhauls to its financial system. Mr. Zhou said Thursday that the government would introduce the country’s first deposit insurance program in the coming months. Continue reading the main story Continue reading the main story Continue reading the main story He also reiterated a pledge to deregulate interest rates charged by the country’s banks. Limits on some of those rates have already been lifted, although deposit rates on savings accounts remain capped. Photo China’s central bank governor, Zhou Xiaochuan, defended his deliberative stance. Credit Feng Li/Getty Images In statements released after they moved to cut rates, the central banks of South Korea and Thailand cited the slowdown in China — previously the main engine of growth in the region and a major trading partner of both countries — as a reason for their decisions. There are signs that China’s own recent easing actions, which since November have included two interest-rate cuts and a lowering of the amount of cash that banks are required to keep on reserve, have resulted in more lending. China’s new credit growth in February was stronger than economists expected, with new local-currency loans rising 14.3 percent from a year earlier to 1 trillion renminbi, or $165 billion, according to figures released on Thursday. But in China, as with elsewhere in Asia, being too neutral for too long may have led to problems. “Intensified policy easing can help cushion, but unlikely reverse, the downtrend in China’s real economic growth,†Tao Wang, the chief China economist at UBS, wrote Thursday in a research report. Part of the problem is that the real cost of credit in China, after factoring in inflation, remains persistently high despite the recent easing measures. Li-Gang Liu, the chief economist for greater China at the Australia and New Zealand Banking Group, estimates that real borrowing rates for Chinese companies are more than 10 percent a year. That is based on an average bank lending rate of around 7 percent, and includes producer price inflation of around 4 percent. Many companies in China have turned to even more expensive borrowing from the country’s sprawling shadow banking sector, which includes players as diverse as trust companies and online lenders. But authorities, worried over spiraling amounts of loosely regulated credit, have been seeking to curtail such lenders. “Bank lending is getting more important as shadow banking activities have been cracked down on,†Mr. Liu wrote in an email. “Banks have become more risk averse in lending to trust companies, and shadow banking financing has dropped.†And then there is the uncertainty that could be introduced by the Fed. Rising interest rates in the United States and falling rates in Asia raise the risk that Asian nations could begin to see a shifting away of foreign currency. In China, there have been signs in recent months that this is taking place, as locals sell renminbi for dollars and move money offshore. Mr. Zhou, the Chinese central bank governor, said this was to be expected if the Fed raised rates. “People in the financial markets may certainly consider now whether to buy more dollars, or to have some dollars stored abroad.†“But the signals from the U.S. Federal Reserve are that this move will be quite cautious and prudent,†he said of the anticipated rate increase. “So from what we can see for now, we believe that this doesn’t constitute a huge threat.â€
  25. Here in the US, it was reported that unemployment rate reached a low of 5.5%...good news? Well, the stock market dropped due to the news because it might prompt the Fed in raising interest rates earlier than expected, in June instead of Sept/Oct. Since the reported unemployment news, the stock market has been retreating.
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