Thailand's Inflation Rate

[Crash999]

In short, does anyone really know what is going on with the Thai economy or the US Economy,. or any economy for that matter? and does anyone really know how to "fix" it?

 

I think the answers are out there but unfortunately we're reaching a stage where the answers may be too painful for politicians to tackle. As soon as anyone proposes any difficult changes there is violent opposition from the other side. Things can get pushed through but at the cost of political clout- just like the US healthcare reforms which have been so badly needed.

 

So no one wants to fight the difficult fights- they want to remain popular enough to be re-elected or become cozy enough with big business so they can move into consulting or other business ventures.

[Old Hippie]

Yeah, but it also seems that a lot of these guys have too much power. I mean 1-2 wrong words and the markets could go south...or up until reality kicks in...then that turns to shit and starts over.

 

I was watching one of the news shows with the know it alls with opposing views, and they were arguing back and forth, making intellectual asses out of themselves, and in the end, I doubt either will be right. I'll blow my own horn here, and so should some others...all of those who said "...shit gonna get a lots worst, this mess isn't over..." So where is our Nobel prize for economics?

[shygye]

OH, I reckon economics is like thermodynamics. A system moves toward an equilibrium state, but how it gets there and when or how individual molecules act is not known.

 

For example, I predicted the housing crash back in 2004. I saw interest only loans being made, and housing prices increasing by 15%+ per year but median incomes stagnant. However I would have lost my shirt betting on the crash because I didn't know how long the bubble would last.

[Old Hippie]

A lot of people called the crash, and the problems caused by interest only loans long before a lot of the "experts did." To me, the banks were just too eager to loan money they knew they would never get back...0% interest for 1 year, it was like they were all just trying to see how fast and how bad they could fuck themselves up.

[cavanami]

Back to the inflation...example, the (non) security service here in the moo baan was 200 Baht a month bot has gone up over the past two years to 350 Baht...WTF...pay for some azzhole to be drunk and asleep at the entrance...I can do that!!!

Almost doubled in two years, fark that, I refuse to pay!!! fark their bullshit security scam!!!

[shygye]

... but does the security guy even get the increase.

[cavanami]

From the bamboo telegraph, just a very meager raise, certainly not double, which is a bummer for him!

[doxx]

I wonder what is the effect of every single Thai -rich or poor- now sporting an American credit card! Surely buying power is up tremendously (albeit its borrowed buying power but I doubt Thais understand this) and so it should push prices up as a consequence. I think these people and the economy will crash HARD at some point soon.

 

Real estate/housing is a different beast altogether here. One big ass bubble if you ask me.

[LizardKing]

What do you mean an American credit card?

[chelseafan]

LK and FM, that is exactly my point, it is at best an educated guess based on what is happening at that exact moment...maybe...so when I hear all the theories on economics being presented as fact, it just sort of seems well...wrong.

 

In short, does anyone really know what is going on with the Thai economy or the US Economy,. or any economy for that matter? and does anyone really know how to "fix" it?

 

I remember my economics class in uni...the proffessor was going on about a ,eomon aide stand "...if one guy is selling his lemon aide for 5 cents a glass and the other guy down the block is selling his for 15 cents, the guy selling for a nickel will put the 15 cent guy out of business, then he can sell for what ever he wants until someone sells for less..."

 

So I asked her, or stated "...well what if the 15 cent guy is offering a cleaner better bigger product, safer neighborhood, better seating...?" She said "...oh no, in economics we always assume ALL things are equal..." I asked "...so when and where are things ever ALWAYS equal?" SHe said "Only in economic theory" and smiled...I got a c+ I think...just don't get it...

 

I disagree, economics is based on not only what is happening now but also what is going to happen both short-term and long-term. I agree there is no exact science as there are too many variables, who knew for example the economies would suffer due to the American mortgage problems. Short term forecasting is generally easier and more accurate, Long-term forecasting leaves too much room for error. The same could be said for global warming...thats another thread....