Consider this headline from the Nation :
The Bank of Thailand yesterday officially signalled a policy-rate hike in the second half of the year but promised to take into account the pace of economic recovery and inflation before making any move.
Then, read what was really said by the Bank Of Thailand :
He said monetary policy could return to normalcy this year if the private sector and the economy saw stable expansion. If core inflation rises above 2.3 per cent in the third or fourth quarter in the wake of higher oil and commodity prices, the central bank may consider the possibility of increasing the policy rate.
First : the current monetary policy is abnormal. 😉 We knew it. But it’s good to repeat it for the sheeps.
Second : the BOT never said It would increase rates. They just repeated what the textbooks are saying : if inflation remains low, if the economy is growing… if… if… if then the central bank “may consider” increasing rates.
Let’s put it that way, for the morons at Nation : text books and fantasies are useless.
And since people who are able to connect at least 2 neurons know that there isn’t any sustainable recovery, just several dope fixes injected to the world economy, then the situation will get worse, then any rate hike is likely to remain a fiction. A fantasy.
Now, let’s study the own fantasies of the thai Central Bank. And you’ll find out why I call them “morons”.
Consider this striking sentence :
At a press conference yesterday, BOT Assistant Governor Paiboon Kittisrikangwan said inflation would remain low this year, because the government had extended its measures to ease the cost of living until the end of the first quarter. Headline inflation, without volatile items like energy, could be 3-5 per cent, while core inflation could be 1.3-2.3 per cent.
The BOT official states that inflation will remain low… BECAUSE THE GOVERNMENT SUBSIDIZES PRICES OF SEVERAL GOODS AND SERVICES.
Breath. Five minutes. And then read again. Voila 😉
A magistral proof that those so called “officials” are totally moronic, indeed. It’s even an understatement.
If we follow their twisted logic, then inflation couldn’t exist anymore on earth (and the solar system). Just declare it illegal, and/or subsidize ALL the prices. Case closed.
Damned ! I’m wondering why Germany didn’t find this magical cure in the 1920s. Or more recently Zimbabwe. 😉 Or Venezuela.
But let’s be clear : this insanity is absolutely not an exclusivity of thai central bankers… I mean, if you look around, the FED, the BOJ, the ECB… it’s even worse. Much worse.
With such clowns driving our car… the crash against the 2010 Great Wall is likely to be bloody. And really messy.