Abhisit goes orbital : penultimate “stimulus” plan… now 1,4 trillions !


What is happening to Abhisit ? Jet lag after his small trip in the UK ? Anyway, something is seriously wrong, because the Prime Minister is going totally orbital.

Thailand plans to borrow Bt1.4 trillion to finance investment in infrastructure during fiscal years 2010-12, when foreign direct investment and exports will remain subdued, says Prime Minister. (Nation)

Paf ! Like the cork of a Champagne bottle. Like a Scud missile. Like a north-korean “satellite”. Like a supersonic fart.

Why 1,4 trillions THB (39 billions USD) ? Why not 5 trillions ? Or even 10 trillions ? I mean at this point of insanity… why should we put some limits ?

-Thailand does not have this money. Period.The government is broke. They must already borrow 2 billions USD to pay for the CURRENT “stimulus” plan… so who is going to give Abhisit 39 billions USD ? Where ?

It’s vaporware. Like the mega-projects that Thaksin and then all his followers endorsed. Where are the HUNDREDS of kilometers of new train lines all those clowns did promise to the people ? On the paper.

-Abhisit does not learn. He doesn’t learn from the mistakes of other people. The japanese spent mountains of money during the 90s crisis to build… everything… bridges to nowhere, roads to nowhere… Did it stop deflation ? Of course not.

The US are doing the same… stimulus with money that doesn’t exist. Bush, Paulson and now Obama and Geitner… they all follow the same pattern. It’s a failure. But the USA have a BIG ADVANTAGE. They can print… money. Thailand could not do that (at least not on a large scale).

-Abhisit looks -once again- like an amateurish fool. In january, his “stimulus” plan was 180 billions THB (or 200, or 300 no one really knew).

3 months later… he presents another one… of 1,4 trillions ? What happened in 3 months ? Ah yes I forgot : he visited my blog and he eventually understood that the thai economy was in deep trouble… πŸ˜‰

I remind you that the Bank Of Thailand saw “signs of recovery” in january… Another bunch of clowns.

Abhisit himself announced last week a recovery... during the fourth quarter. So why a new stimulus plan ?

You think I’m harsh when I use the words “amateurish fool” ? I give you the gran finale :

“The projects are small, but collectively they are large. Even though schools and hospitals are small, when a large number of them emerge, totally they will require a huge sum of investment,” Abhisit told reporters yesterday.

He said it was not yet clear how many jobs would be created.

I didn’t make up. Maybe Nation did. πŸ˜‰

So to summarize : Abhisit wants to spend 1,4 trillions THB he doesn’t have and will not have, on projects he doesn’t know (“small but collectively large“), and he doesn’t even know how many jobs would be created…

So what’s the point of such plan ? I should even ask : what is the purpose of the thai Prime Minister on this earth, excepted flying to Davos, to the UK, making ridiculous comments and launching crazy ideas like stones in the water, exactly like all his glorious predecessors did (Thaksin, Surayud, Samak…) ?

Change with Abhisit ? Yes we can’t.

And good luck.

[to understand how the thai debt market is seen and why Thailand won’t be able to borrow big, on the long term… Lack of confidence… click here. More on that later]

6 Responses to “Abhisit goes orbital : penultimate “stimulus” plan… now 1,4 trillions !”

  1. 1 Fonzi 18 March 2009 at 9:07 am

    If you really think about it, this will make Abhisit the most corrupt Thai prime minister in history, because a good chunk of that money will go to corruption.

    Since the Thai media is enamored with Obamamark, they won’t care if the ministers siphon off billions, as long as he isn’t Thaksin.
    Newin could be become a multibillionaire over night and the Thai media would still be chasing the Thaksin phantom under every rock.

    Remember talking point: Thaksin is evil, Abhisit is the Maitreya.

  2. 2 ThaiCrisis 18 March 2009 at 9:21 am

    Fonzi… it’s like the spoon of Neo…. There is no money.
    It’s totally virtual.

    However, we can’t deny that some parts of “stimulus” are real. And there will be real opportunities and real incentives… for the regular corrupted people to do some business…

    I mean look at the latest scandal of the Government Pension Fund (GPF) …

  3. 3 Bangkok Pundit 18 March 2009 at 9:52 am

    Two things:

    First, it was meant to be 2 trillion baht so they have cut back.

    Second, most of the spending is future spending and well it is quite possible that the Democrats won’t be in government then. It is more to show they are doing something so they can announce a big figure.

  4. 4 ThaiCrisis 18 March 2009 at 11:24 am

    I don’t really agree. This amount is new. The first stimulus was around 180 billions (the 2000 THB per people, continuation of Samak plan with free water, electricity, tax cuts on property, and many other stuff etc.).

    I didn’t hear Abhisit saying, previously : “we need 2 trillions”. Or “1.4 trillions”.

    Or maybe you found something in thai media ? Thank to your translation work, we can see that in several occasions, a different tone and stories are given in the media in thai and in the media in english.

    Maybe that’s the case for this penultimate “stimulus” plan (the hysteria of “stimulation”, we shall not forget, started last year with Samak).

  5. 5 Bedwyr 18 March 2009 at 11:45 am

    Didn’t he say the economy would recover in Q4 this year? Or was that yesterday’s wisdom? I suppose in 10 days time nobody will remember so everything will be hunky-dory again, Thais being Thais and all.

    Why bother walking the walk when talking the talk is enough for the Kwai community? Sorry, that should have been the *Thai* community.

    But Kwailand is a much better name I think. More consistent with the reality.


  6. 6 Prokster 19 March 2009 at 7:54 am

    All the pork will do little to sort things, and even less to create LT value. Now if they would go and create a new administrative capital in say Pak Chong and rid BKK of the millions of ka rachakan, I’d almost agree to the inevitabe increase in debt. Just dont pout in a high speed rail link because we never want to see another uniform again.

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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.

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