Recovery Green Shoots Salad : producers told to freeze their prices… for 3 months

Ironic beauty of the thai political system : Thaksin ? The Junta ? Samak ? Somchai ? Abhisit ? Different views and bitter political feuds ?


The same lunatics, the same family, as far as the economy is concerned.

Let’s take the latest example. The current (ah ah ah) Commerce Minister (check here for her impressive background)

“Although the economy is already beginning to recover, this is not the right time to adjust the product prices yet because it would increase people’s spending burden,” Mrs Portiva said.

“I would like the producers to freeze their product prices for at least three more months to maintain the inflation rate at 3.5 to four per cent.” […]

Mrs Porntiva said her ministry would ask the cabinet to watch price movements of 40 items under the goods and services control programme plus more than 200 other items on a special watch list to prevent manufacturers from raising prices unnecessarily to the public detriment. (Bangkok Post)

It’s a cut and paste of the inane and short sighted policies designed by Samak, during the Great Inflation Fear (in 2008, remember with peak oil prices at 140 USD in july 2008) ?

Miss Porthiva is as stupid as her predecessors (check my inflation category in 2008, it was a true festival at that time, read here and there and here).

What’s the point to save “3 more months” ? Oh yeah… you remember, we are supposed to endure scary political fightings before april ? How convenient. 😉

Anyway. Porthiva should stop talking, and should stop mixing economy with cheap politics and with issues she obviously doesn’t understand.

She wants  more prices controls ? Sure, have a look at Venezuela. Same causes will lead eventually to the same effects.

Anyway 1 year and a half after the fall of Samak, and after a deep economic crisis, the so called Abhisit government is doing exactly the same than their alleged political opponents :

-stimulus, subsidies
-free programs, hands outs
-mega projects as red herrings
-prices controls

etc. It’s easy : take the headlines of newspapers and just change the names of the so called ministers.

Oh and by the way… It would be interesting to hear some comments from Korn, the smart, young, witty (Abhisit’s buddy) and so modern Finances Minister (of the year !).

How can he look himself in the mirror while the Commerce Minister supports prices controls, like in a good old style soviet country ?

4 Responses to “Recovery Green Shoots Salad : producers told to freeze their prices… for 3 months”

  1. 1 Pricilla 17 January 2010 at 6:46 pm

    Politicians rarely improve a problem, in fact they generally make things worse. All the idiots here, as in overseas, are trying to be seen to be doing something, and generally the population likes to see them “doing something”. I even suspect half the time they know they are doing nothing, but believe their grand actions of complete inaction will help at the next election.

    Of course it also helps having a population completely ignorant about economics, in fact most economists seem ignorant. That comment doesn’t apply to exclusively to Thailand. In fact it amazes me that so many western countries also have populations educated to profound levels of ignorance, and easily manipulated by fake promises and handout bribes. Ah well…

  2. 2 Lloyd 17 January 2010 at 8:05 pm

    I think the more obvious reason is that if prices start to rise with inflation and market fluctuation, as they should, then the “Government” will be seen to be at fault.

    Seems more to do with about political manouvering than sensible fiscal policy!

  3. 3 African Nomad 18 January 2010 at 2:47 pm

    It would be interesting to contrast the negative views taken on price controls in Thailand, to the total lack of controls in a certain Stalinist Communist country on its borders.
    The prices ratchet up each time someone decides they need more profit. Everyone then blindly follows suit. Some products almost double in a year. The irony is that they do not come down again.
    Could gross corruption of some 50-100% be an inflationary factor?

  4. 4 ThaiCrisis 18 January 2010 at 3:14 pm

    Don’t try to oppose… what is exactly the same.

    Corruption + monopoly = inflation. Always. But it’s just another version of price controls.

    One doesn’t excuse the second. Because they rely on the same twisted logic : manipulation of markets.

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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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