Abhisit’s admission : we are seeking loans abroad… but we don’t know how much

Abhisit is indeed a perfect thai politician : he has a skill for non-sensical statements, blurred in the famous thai fog of war.

Consider this piece :

Thai Prime Minister Abhisit Vejjajiva on Friday conceded that the Ministry of Finance was considering foreign borrowing as a channel to bring funds to stimulate the country’s economy.

Admitting that his government is looking for loans abroad, Mr. Abhisit said that “seeking offshore loans must take into account terms, conditions, and procedures. It takes time,” he emphasised, and “the finance ministry is considering the matter with caution.”

Mr. Abhisit said offshore loans need not only be used to finance mega-project implementation, but could also support smaller projects.

However, he cautioned, the ministry could not yet reveal how much capital it will seek, because it must first review Thailand’s overall economic performance data.

The premier admitted the government’s tasks to solve the current economic problems are especially demanding because it must face political conflict at home and the global economic crisis abroad.

The economy will remain in disarray in the first and second quarters of this year, he stated, but should begin to improve in the third quarter after the government’s economic revitalisation plan is put into practice. (TNA)

We have several admissions here :

-the coffers are empty. The government needs more money.
-they are looking outside Thailand…
-but they don’t know (ah ah ah ah) how much they need or how much they could ask.

How much and to do what exactly ? Nobody knows. And Abhisit doesn’t know himself. It’s the “wet finger” policy. 😉

Change with Abhisit ? Yes we can’t.

2 Responses to “Abhisit’s admission : we are seeking loans abroad… but we don’t know how much”

  1. 1 Insanity 12 January 2009 at 12:33 pm

    Came across this interesting article in Energy Bullitin (http://www.energybulletin.net/node/47157). It is well worth a read as it affects ALL NATIONS & ALL their citizens.

    Orlov’s specialty is in thinking about and, unfortunately, predicting collapse. His method is based on comparison: He watched the Soviet Union collapse, and, since he is also familiar with the details of the situation in the United States, can make comparisons between these two failed superpowers.

    Stage 1: Financial collapse
    Stage 2: Commercial collapse
    Stage 3: Political collapse
    Stage 4: Social collapse
    Stage 5: Cultural collapse

    Stage 1 in Orlov’s scenario is well underway. The vast majority of investment and commercial banks are now insolvent, propped up and still in business only because of recently granted government guarantees designed to prevent workers from realizing their life savings are in imminent danger.

    Stage 2 in Orlov’s scenario will follow in the wake of Stage 1. Stage 2 is closer today than it was yesterday. The end game predicted by some will now become the reality for all. The predicted events have no basis in recent memory for those who will be affected.

    The three hundred year old world founded on credit-based paper money is ending. The world’s central banks which substituted paper for gold are finding themselves unable to solve the problems their fiat money has created. The consequences are far greater than people can imagine—a limitation that will not prevent them from happening.

  2. 2 chinesethai 12 January 2009 at 2:45 pm

    Most construction projects (water & power plants, recycling centres, subways, giant bridges, airports) usually come with strings attached (foreign loans and contractors) because Thailand doesn’t have its home-grown technology to make it …. until Thailand has a leader who sees the importance of technological transfers and R&D to develop its own technology on top of what they have learned.

    China has huge foreign reserve but still it needs to borrow from abroad on many hi-tech projects.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

%d bloggers like this: