cheekyboy Posted February 19, 2009 Report Share Posted February 19, 2009 they swore after the debacle of 97 that they would never devalue again or let such a thing happen again hence they will prop up the baht come what may .. Link to comment Share on other sites More sharing options...
Neon Ninja Posted February 19, 2009 Report Share Posted February 19, 2009 Why, instead of giving loads of money to companies, don't the governments just give xK euros to every citizen to spend? Ack! Give me dollars! None of that Monopoly money you have over there! -=/NN Link to comment Share on other sites More sharing options...
unit731 Posted February 19, 2009 Report Share Posted February 19, 2009 I suggest a view of PBS Inside the Meltdown. LINK Link to comment Share on other sites More sharing options...
HeartThais Posted February 19, 2009 Report Share Posted February 19, 2009 Why, instead of giving loads of money to companies, don't the governments just give xK euros to every citizen to spend? This would certainly help people with debts/mortgages -> it will help the economy pick up again as people would start spending more.... Nah, sorry, stupid idea.... Actually, the idea was already proposed by nobel winner Milton Friedman. You've got good company. Link to comment Share on other sites More sharing options...
HeartThais Posted February 19, 2009 Report Share Posted February 19, 2009 Increasing the money supply is inflationary but with the economy shrinking, consumer spending falling, companies failing, people losing their jobs and the official rate of inflation plummeting (CPI stands at 3%, it's destined to overshoot the target rate of 2% and may well turn negative) they've decided it's time to dust off their Weapon of Mass Destruction. A fine point needs to be made. Increasing the money supply is only inflationary if it gets lent out. If it is being hoarded by the banks and kept in reserve as is being done today, it isn't inflationary. Right now, the BoE is probably not printing money fast enough. This is argued by William Buiter on his maverecon website. Link to comment Share on other sites More sharing options...
cavanami Posted February 20, 2009 Report Share Posted February 20, 2009 The Baht and Japanese Yen have weakened this week, now at: USD/JPY 94.0500 U.S. $ = 35.7300 Baht More like the US Dollar has gotten stronger... Link to comment Share on other sites More sharing options...
Mentors Posted February 20, 2009 Report Share Posted February 20, 2009 Pridiyathorn expects 2-3 years of sufferings Former Bank of Thailand Governor MR Pridiyathorn Devakula expects the economy to take at least 3 years to recover, due to subdue global economy which could lead to the fall of a few more US banks. In his speech at "Rainbo Fair" in Chiang Mai, he said that the 1997 crisis abruptly emerged and was cured in a fast manner as then US, European and Japanese markets - of which contributions accounted for 42 per cent of the world's gross domestic product - were strong. However, the current crisis has intensified over time, sparked by the housing crisis in mid-2007 which led to a fall in housing prices, defaults in debt instruments and financial losses to financial institutions. He noted that in September, if any more US banks collapse, it would make it harder for the global economy to recover. "Exports in the first quarter could shrink 25 per cent on year and worsen in the second quarter. They could head up in the fourth quarter. Tourism is also affected, with contraction from the third quarter in 2008 due to global economy. It was also hard hit in the fourth quarter of 2008 due to the Bangkok airports closure," he said. Pridiyathorn commented that the world economy prospered due to consumerism. This boosted Thailand's capacity utilisation to 76 per cent, but it fell to 62 per cent in December and could fall below 60 per cent. "It should take at least 2-3 years to recover. This means more workers would lose jobs in the period. The government is in dire need of measures to handle unemployment," he said. Thailand's exports dropped 26.5 per cent in January. Prime Minister Abhisit Vejjajiva said that the sharp drop in January exports is not beyond expectation, following the negative figures witnessed by some countries. He said before boarding the plane to Indonesia that now there is hope that the economic stimulus measures would sustain the economy in the second quarter. He added that the government has closely monitored the situation. http://www.nationmultimedia.com/2009/02/20/business/business_30096206.php Link to comment Share on other sites More sharing options...
zen4dummies Posted February 20, 2009 Report Share Posted February 20, 2009 Why, instead of giving loads of money to companies, don't the governments just give xK euros to every citizen to spend? This would certainly help people with debts/mortgages -> it will help the economy pick up again as people would start spending more.... Nah, sorry, stupid idea.... Last year 'W' sent 600USD to me when he decided I needed it to give the US economy a boost. I spent it on women and beer and look where the US economy is now. I take the blame for it all. Link to comment Share on other sites More sharing options...
playtheblues Posted February 20, 2009 Report Share Posted February 20, 2009 Increasing the money supply is inflationary but with the economy shrinking' date=' consumer spending falling, companies failing, people losing their jobs and the official rate of inflation plummeting (CPI stands at 3%, it's destined to overshoot the target rate of 2% and may well turn negative) they've decided it's time to dust off their Weapon of Mass Destruction.[/quote'] A fine point needs to be made. Increasing the money supply is only inflationary if it gets lent out. If it is being hoarded by the banks and kept in reserve as is being done today, it isn't inflationary. Right now, the BoE is probably not printing money fast enough. This is argued by William Buiter on his maverecon website. This infamous "liquidity trap", when even zero interest rate has no anti-deflationary effect due to hoarding and deflationary expectations wasthe main monetary policy challenge in Japan during the ninetees. I was working in Tokyo during this period and this was THE central issue being discussed at meetings and seminars. Paul Krugman and others are now observing this ominous phenomenon appearing in the US. At that time, I will remember from a lecture by him, Krugman advocated attempts to create inflationary expectations by immensely increasing the money supply even more, just as a psychological tool to make the public believe that prices might start rising after all and thus initiate spending again. As you have read in the press, Krugman is now instead strongly urging president Obama to push massive Keynesian stimulus measures instead, worrying that the actual package is too small. It is quite interesting to note how the Republicans totally sabotaged Obamas bipartisan approach in their resistance to massive public spending. Link to comment Share on other sites More sharing options...
Bangkoktraveler Posted February 20, 2009 Report Share Posted February 20, 2009 Why' date=' instead of giving loads of money to companies, don't the governments just give xK euros to every citizen to spend? This would certainly help people with debts/mortgages -> it will help the economy pick up again as people would start spending more.... Nah, sorry, stupid idea.... [/quote']Last year 'W' sent 600USD to me when he decided I needed it to give the US economy a boost. I spent it on women and beer and look where the US economy is now. I take the blame for it all. Did you piss most of the money away, or did you spend it on more practical things such as getting laid? Link to comment Share on other sites More sharing options...
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