Panic mode : the government needs to borrow 800 billions

Et voila !

The trap is closing. Korn the Clown (alleged Finance Minister) and his boss, Abhisit the Bozo, are in panic mode.

After insane expenses, after stupid forecasts about tax collections (everything is explained here and there)… The government is naked.

Naked AND ridiculous. 😉

The government faces borrowing another 800 billion baht to stabilise its finances and pay for the second stage of its economic stimulus scheme.

The latest heavy borrowing was made necessary after tax collection receipts fell sharply in the first half of fiscal 2009.

Finance Minister Korn Chatikavanij yesterday said he was confident the borrowing would not jeopardise the country’s fiscal stability.

Mr Korn said the 1.43 trillion baht second stage stimulus scheme would spur economic growth and create from 1.6 million to 2 million jobs.

Called the Thai Khem Khang (Thai Strength) action plan, it will run until 2012.

It was earlier planned to inject 1.56 trillion baht into the economy, but the figure was revised.

All ministries were asked to revise their plans in keeping with the reduced spending, with only education and public health spared. (Bangkok)

You have to decipher : in the 800 billions the key word is “stabilizing finances” of course… The other word (stimulus whatever) is only for the show.

Sure, they will probably build 1 or 2 train lines… but investment is definitly not a proper way of thinking for the current government. Too complicated for them.

Furthermore, a few weeks ago… their grand plan was to borrow… 1400 billions !

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.

March 18. Abhisit, the alleged Prime Minister of Thailand… Do you understand now, why I call those people “clowns” ?

1400 billions… 2 months later… like a child caught smoking in the toilets… 800 billions…

In the world of adults and intelligent people… this is called the reality principle.

Abhisit was living in Lalaland… He eventually understood that NO ONE would give him 1400 billions.

And like an epitaph, I would like to remind you what Korn said :

Finance Minister Korn Chatikavanij insisted that the government will have enough cash to pay salaries of government officials and finance on-going projects although the treasury reserve dropped to Bt52 billion.

February 1.

Let’s see if the government has really the cash.

To pay itself. 😉

3 Responses to “Panic mode : the government needs to borrow 800 billions”


  1. 1 antipadshist 16 May 2009 at 2:43 pm

    TC

    do you know who are they going to borrow from ? I’ve heard about JICA only …

    here is one fresh news report, very sobering – the TRUTH about IMF loans :

    Borrowing into submission?

    “Bankrupt governments are finding the IMF an unfit lender, but alternatives are developing”

    hopefully Thailand is not gonna borrow from IMF again.

  2. 3 antipadshist 18 May 2009 at 7:47 pm

    House puts off Bt400-billion foreign loan legislation
    http://www.nationmultimedia.com/2009/05/18/politics/politics_30102909.php

    “Economists believe foreign investor’s confidence in the country would be adversely affected if the lesgislation to bring about an economic stimulus package faces over two weeks delay.

    And if the Constitution Court rules against the legislation, the government’s effort to pull the country’s economy out of the doldrums will be stalled even longer.

    Finance Minister Korn Chatikavanij insisted that the government had to issue a royal enactment in order to secure Bt400 billion in foreign loans because the matter was urgent since the country urgently needed the funds to stimulate the slowing-down economy.”

    Korn and Dems are in hurry to “stimulate” 😀


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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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