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Thailand
Discussions of a Thai Patriot.
Permalink : http://blog.nationmultimedia.com/Patriot
Tuesday , April 29 , 2008
Thailand: Economic stimulus.
Posted by Patriot , Reader : 917 , 13:47:22  
Print

The global economic slowdown is becoming more prevalent and is knocking on Thailand’s door.  Many economist blame the credit crisis on the United States mortgage markets as the trigger, others such as myself, see this downturn as a correction in saturated global personal debts as the root cause.

 

On a grand scale it is credit that substantiates global trade and economics, but on a more perceivable scale I believe it is the personal debt crisis that is deeply rooted in consumption through borrowing that is causing this world wide crisis.

 

As the governments of leading economic powers spearhead economic stimulus packages and tax reductions I fear they are missing the point.  Many of the so called strongest economies are built on the foundation of consumption, this in itself is normal supply and demand, however, when consumption is built upon artificial value such as credit cards and borrowing, at some point interest payments will supercede personal income, which is what I believe is occurring today.

 

Tax rebates, tax cuts, and lower interest rates are all geared towards stimulating the economy through spending.  This I feel will only procrastinate the crisis and not address the real problem. 

 

I am of the view that extraordinary problems require extraordinary solutions.  To develop a true stimulus program we have to address the underlying issue which is the lack of personal liquidity.  A primary goal of stimulus for Thailand should be to put more personal income in the hands of our citizens to reduce debts other than personal loans and credit card payments.  One method is to legislate a program that temporally suspends payments on legitimate personal loans and credit cards for a defined period of time.

 

Please hear me out, I am not suggesting that we deprive creditors of their business, I am suggesting that we provide a systematic plan to provide the population with some time to address and reduce other more pressing debts thus providing immediate financial relief.  Included in the legislation would be some form of  government subsidy to offset losses for creditors which would have been provided anyway through tax cuts and interest rate adjustments. 

 

Thailand has an opportunity to be a model for other economies by taking a proactive approach towards economic stimulus and initiate programs with the intention of producing results that are measurable. 

What are your thoughts?

Read comment

comment 50
wch date : 14/05/2008 time : 08.32

In a word, Thai PPP is one of successful case, in comparison with other Asean member countries.
They had regulated the standard contract and justifiable settement system. This was possible by way of correctional adoptations from many successful or failed systems from EU, Argentina, Japan and Korea.

Power generation, Laem Chabang Port are those successful although minor corruptions were involved. Enron came too, Tri-Energy in Ratchburi province using Burma-Thai gas transmission line.

The enemy of PPP is corruption.
Enron was downed by cosmetic booking practise.
PPP investment is not fancy investment. They start from the planned, fixed profit but it is guaranteed for long term (25-30 yr). The investor needs to expand more investment and need to raise more fund. That makes them to easily resort to make-up financial report -, infamously, Drawing forward the future profit. This seems likely and legally.
Earlier there were many cases of cosmetic bookings incidents in Europe, Japan and Korea.
US firms later learned it.
So Enron episode hit strong to US firms' malpractises.

Coming back to Thailand, in communication industry, Thaksin changed the law to rescue his dying asset.

AIS was deemed to invest huge 4 billion dollars 3-4 G wireless infra investment as the world goes in.
He was not confident as Thai market is not such exciting like SK. Gap of info is wide. He must deal barely 3-5 million educated populace.
he made up the asset value over AIS by various new concession licenses of TV, air transportation, and secretly negotiated with a minor shareholder, SINTEL and dumped all.

This is equivalent to enron's cosmetic booking.

New metro PPP is now on working to produce better sealed system. Hoping it will come out
ironic system where no poli-thugs could teeth into.

A graffiti, sort of, this gloomy morning, good day/night,
wch
comment 49
Patriot date : 13/05/2008 time : 15.18
http://blog.nationmultimedia.com/Patriot

Khun Tawan and Wch: Interesting that you both mention history and how relevant or irrelevant its impact is on Thailand and its economy. I feel historically we have been fighting change for hundreds of years.

On one side we have the established institution which is in imposition towards any type of reform or change that affects the self interest of individuals, their interpretation of change is, loss.

On the other side we have individuals whom have forced change diplomatically, economically, and socially through vision, prudence, self sacrifice and determination, their interpretation of change is, we must change as the world changes in order to survive for the greater good.

Relating to the topic in discussion, Thailand is in trouble and we must unify and use every available resource to protect our people from the economic hardship that is about to come. This in my opinion is the true defining quality of strong leadership. What we are experiencing today is a very morbid version of a renaissance Government operating in modern day 2008.

This administration must do more to address and provide solutions to our economic concerns.
comment 48
wch date : 10/05/2008 time : 09.19

"Not much interested in History as it repeats every ten years."

If it is, I trust history.
comment 47
Tawan date : 10/05/2008 time : 07.26
http://blog.nationmultimedia.com/tawan3

Thai PPP, I will wait for Phase III TA to be completed in June I believe. Not much interested in History as it repeats every ten years. Enron in not even 10 years and we have the Financial version of Enron going on right now as the Bankers, Investors, Lawyers, politicians and the whole chain continue the game.
I agree the structure is the problem with financial incentives given to a few for short term gains no long term shareholder value is rewarded.
Until there is a balanced financial incentive for everyone in the pyramid for increasing long term shareholder value no amount of regulation, political reform, or good corporate governance is going to work no amount of required ethics classes are going to work as long as the quarter system is in place.
comment 46
wch date : 09/05/2008 time : 11.24

Miss Tawan,
are you interested in Thai PPP ?.
This was started in early 1990s in trend of global infrastructure investment.

From this initiation, the drama have been continuing in Thailand. and,
The most dramatic episode is,

Thaksin Saga.

Earlier Thai PPP seemed successful in area of the so called, independant power producers, IPP's and SPP's (in fact almost of all of them were promoted by FDI's and today successful).

Hopewell episode was the start,
Kumigai's second phase ring road resulted in the bankruptsy of the firm - investor and constructor),
Another elevated highway was forayed by infamous politician by nominee share holder, that is recently reported as 'official asset', seemingly 'Laundered successfully ??'.

Then come the telecommunication concessions and
now whole nation is hostaged by a man.

the examples are not short.
wch
comment 45
Tawan date : 08/05/2008 time : 07.57
http://blog.nationmultimedia.com/tawan3

Khun Danuj

Thank you for the link yes that is the correct detailed link.
For our readers it has a nice chart comparing Thailand's PPP to Japan, Korea and UK legal framework.
comment 44
Patriot date : 07/05/2008 time : 13.33
http://blog.nationmultimedia.com/Patriot

Khun Tawan: I am not familiar with this proposed legislation to overhaul the 2535 Act on Private Participation in State Undertakings. Your analysis of information is impeccable.

I am absolutely open to the views of professional consultants, however, to truly address the problems of the Act relevant to TA we must first address and understand the layers of bureaucracy that exist such as in the structure of mass transit in Thailand.

There are currently three major agencies in charge of concessions to private participants for development and operation of our mass transit system in Bangkok, the MRTA and SRT both state enterprises under Ministry of Transport and the BMA. The first MRT called the Sky Train or Green Line possesses 2 transit lines. Concessions were awarded by the BMA to the Bangkok Transit System Plc., (BTS) on a Build Transfer Operate (BTO) including the infrastructure and rolling stock investment. The second MRT is a subway line called Blue Line contract. Concession was awarded by the MRTA to the Bangkok Metropo Company Ltd., (BMCL) on a BTO also with a requirement to procure rolling stock. The Government has plans to invest in 7 additional lines in the mass transit system in Bangkok: Three belonging to MRTA, two to SRT and two to BMA. Talk about keeping business in-house. If there is any reform that has to take place I believe it must begin with revamping this outdated system of business.

As I mentioned, although I do not support the Act, Thailand has a reasonable climate for PPP. According to UNESCAP there are some significant challenges that face Thailand such as an Unclear Governing Framework, Fragmented Authorities, Time consuming Procedures, Insufficient Institutional Support, Lack of Rules and Capacity with respect to Risk Allocation.

If you are interested in the Consultants Report: http://www.adb.org/Documents/Reports/Consultant/40138-THA/40138-01-THA-TACR.pdf

The challenges we face as a Nation require more proactive approaches towards economic development than what has been displayed to date.
comment 43
Tawan date : 07/05/2008 time : 09.28
http://blog.nationmultimedia.com/tawan3

Khun Danuj

This is the proposed legislation I was reffering to:

Near the final phase of TA, the Government requested ADB to extend the scope of work for consultants in two areas. First, the Government identified a need to overhaul the current legislation governing the review and approval of public-private partnerships (PPPs), namely the 1992 Act on Private Participation in State Undertakings. As a result, the financial specialist and the legal expert were retained to provide the analytical, technical, and legal advisory services requested by MOF. The two consultants prepared a report that defined the required legal procedures and institutional mechanisms for drafting new legislation to govern the structuring, financing, and implementation of PPPs in Thailand. Second, the Government requested additional support from ADB in increasing the awareness and understanding of staff from OTP and other relevant Government agencies about the procurement of integrated ticketing systems. Accordingly, the transit ticketing specialist delivered a number of focused presentations to ensure that staff from OTP and other relevant Government agencies fully understood their respective roles and responsibilities in the process of procuring an integrated ticketing system. Both extensions of the TA were considered to be minor given their consistency with the overall scope and objective of TA, and the additional costs were drawn from the remaining balance of TA funds.
Overall, the Government was very satisfied with the performance of the consultants. The performance of the IAs and ADB
comment 42
Patriot date : 06/05/2008 time : 13.19
http://blog.nationmultimedia.com/Patriot

Khun Tawan: Apologies for the delay in response, went fishing, no internet. Regarding your question, I am not aware of any amendments or changes currently.

In my opinion the Public Private Partnership has been effective for quite sometime and has had some substantial achievements. Particularly in providing public infrastructures for the telecom, energy, shipping ports, and transportation sectors.

I was not a supporter of this program due to the potential conflicts of interests that could occur if monopoly opportunities were present. For example: in the telecom sector, MICAT through two state enterprises, TOT Corporation Plc. and CAT Telecom Plc. And, NTC as the independent regulating body which was responsible for licensing created several independent operators such as, TT&T Plc., AIS, DTAC, and TRUE. These were all PPP structured initiatives Today we know what can happen when there are structural deficiencies in syndication of such programs in the name of progress.

My position has always been to have a clear, comprehensive deregulation of state owned enterprises and allow free open competitive markets to operate.

Pomjuk: Great question! In the long run, I feel the focus has to be on the general population. It will be the general population that sustains this market in consumption and in investments in the future. Here is the caveat, the general public is very limited in options as compared to government or high net worth investors. In my view the general public will invest locally and consume locally, while government, institutional and high net worth investors possesses non captured funds and will look at opportunities wherever the market cycles dictate and that most often is in the international fixed income and international equity markets. I do not disagree with you that governmental, institutional and high net worth spending is the fastest way to stimulus but because of Thailand’s relatively small market capitalization I feel we need to focus on long term sustainable stimulus within the general population.
comment 41
Tawan date : 04/05/2008 time : 09.18
http://blog.nationmultimedia.com/tawan3

Khun Danuj
Have you hear anything on the new legislation or a rewrite of the 1992 Act on Private Participation in State Undertakings PPP Public- Private Partnerships .
comment 40
Pomjuk date : 03/05/2008 time : 22.06
http://blog.nationmultimedia.com/pomjuk

Danuj: Yeah, I heard the term “Robin Hood” used to address illegal aliens. In my case I’m addressing government that rob the rich and give it to the poor, like in the movie. Shifting money from Mr. Rich’s pocket and put it in Mr. Poor’s.

Now one more thought, if the following conditions and behaviors exist in the economy.

1.One can stimulate the economic growth by increasing consumption, investment, government spending and export.

GDP = C + I + G + (X-M)

2.Lower income consumers have more propensities to consumer than higher income levels.
3.By negating the statement number 2, higher income levels trend to save more.
4.Higher level of national savings implies higher level of investment.

My question is, to whom would you want to allocate the income to stimulate the economy. To the rich where you’ll get higher investment, the poor where you’ll get higher consumption or the government who is not only a big spender but also the originator of the currency.

If you prefer to allocate the fund to the rich since it will create higher investment, then you prefer the “supply side stimulation” otherwise known as “trigger down economic theory” or “Reganomics” (which some economists call it not only misconception but also dangerous.)

If you prefer stimulating the consumption you would then allocate the fund to lower income consumer or you are a “Keynesian”.

If you like big government recklessly spending your tax money you are “socialist”.

For me personally I prefer “free market capitalism”.
comment 39
Tawan date : 03/05/2008 time : 19.55
http://blog.nationmultimedia.com/tawan3

Khun Danuj

Sorry I have been lazy today in follow up. There is so much information out there sometimes difficult to put together to offer helpful direction.
comment 38
Tawan date : 03/05/2008 time : 12.50
http://blog.nationmultimedia.com/tawan3

Economic Policy is not Thailand in the middle of the 2005-2010 Economic Development Policy?
comment 37
Tawan date : 03/05/2008 time : 12.47
http://blog.nationmultimedia.com/tawan3

I remember coming late to that blog. Funny with record high oil prices in USD terms I have not heard very much calls to change the foreign exchange policy in Thailand recently.

I think you must be referring to the establishment of a Micro Financial Proposal from MOF.
comment 36
Patriot date : 03/05/2008 time : 12.32
http://blog.nationmultimedia.com/Patriot

Khun Tawan: Yes, I read that also. I have been wrong before, and on this issue I would be happy to be wrong.
comment 35
Patriot date : 03/05/2008 time : 12.30
http://blog.nationmultimedia.com/Patriot

Pomjuk: The last time I heard Robin Hood being used in the same sentence with government was when INS was trying to locate illegal aliens that escaped their tourist visas : )

I am not an economist, but I will take your word for it that your formula is correct. What is your opinion on suspending debt through mandate or legislation?

BTW: While in NY last month I visited a fantastic new Thai restaurant in Jackson Heights, next time I am in town we should eat there.
comment 34
Tawan date : 03/05/2008 time : 12.27
http://blog.nationmultimedia.com/tawan3

Her proposals must have some threat to it as The Federal Reserve moved today to implement a watered down version of her bill.

This can be seen in other industry also such as telecom contracts that consumers must signs recent one line laws passed for example consumers getting a pro-rated refund on 2 year contract fees.
comment 33
Patriot date : 03/05/2008 time : 12.18
http://blog.nationmultimedia.com/Patriot

Khun Tawan: I am familiar with Rep. Carolyn Maloney’s Bill of Rights for credit card holders. As Chair of the Financial Services Subcommittee on Financial Institutions and Consumer Credit she advocates more balance between credit card companies and consumers.

The problems she faces in lobbying for support to pass H.R. 5244 is the strength and financial backing that credit card companies have. As you are aware most financial institutions today have some form of credit based products as a profit center and that includes margin accounts, leasing as well as other credit driven programs. The approach to address abuse towards consumers by credit card companies is a valid argument but in reality it is also a very emotional approach towards reducing national debt which is good for votes but I doubt very much if it will ever pass. To reform an entire established mainstream industry would require much more than what is being proposed.

As in the case of Thailand, we are in a position to reform our debt systems due to the limited size and value of our debt consumer market.

We discussed some viable options for stimulus in a previous blog: http://blog.nationmultimedia.com/thanong/2007/07/18/entry-1

Wch: Funny… Krab Khun Krub… I fear the worst is yet to come, we have a default leadership and proxy administrators leading us down an old and painfully familar path. They promised us greener grass on the other side but failed to tell us that the water bill was a lot higher.
comment 32
wch date : 03/05/2008 time : 09.27

Here,
I found a maoist, a recent convert.
He tries to organize the peasantry.

a peasant brings him a hen,
another brings him his 13 years old daughter,
"Liang Du Na !",
another brings him his just-divorced, 33 years old daughter,
"Fark Wai Na !".
another,,,,
another,,,,

Hahahaaaaaaa
volume full
comment 31
Tawan date : 03/05/2008 time : 07.13
http://blog.nationmultimedia.com/tawan3

This is one proposal by a politician doing her job. Could be a framework for Thailand to start protecting consumers with credit cards.

Rep. Carolyn Maloney’s Credit Cardholders’ Bill of Rights
The Credit Cardholders’ Bill of Rights takes a moderate and balanced approach to reforming major credit card
industry abuses and improving consumer protections without resorting to price controls, rate caps, or fee setting.
1. Cardholders Deserve Protections against Arbitrary Interest Rate Increases.
􀂾 Requires card companies give cardholders 45 days notice of any interest rate increases.
􀂾 Gives cardholders the right to cancel their card and pay off their existing balance at the existing interest rate and
repayment schedule if they get hit with an interest rate hike; gives cardholders 3 billing cycles after the rate
increase to say no to these new terms.
􀂾 Prevents card companies from retroactively increasing interest rates on the existing balance of a cardholder in
good standing for reasons unrelated to the cardholder’s behavior with that card (the so-called “universal default”
rate increase).
􀂾 Prohibits card companies from arbitrarily changing the terms of their contract with a cardholder, banning the socalled
practice of “any-time, any-reason repricing.”
2. Cardholders Who Pay on Time Should Not Be Penalized.
􀂾 Prohibits card companies from charging interest on debt that is paid on time during a grace period. This prevents
the so-called “double-cycle billing” practice.
􀂾 Prohibits card companies from slapping fees on the remaining interest-only balance of a cardholder who has paid
his/her bill on time.
3. Cardholders Should Be Protected from Due Date Gimmicks.
􀂾 Gives cardholders time to pay their bills by requiring card companies to mail billing statements 25 calendar days
before the due date (14 days is the current minimum).
􀂾 Requires that payments made before 5 p.m. EST on the due date are considered timely.
􀂾 Directs card companies to provide on every statement, a phone and internet address that a cardholder can access
for payoff balances.
􀂾 Prohibits card companies from charging late fees when a cardholder presents proof of mailing his/her bill within 7
days of the due date.
4. Cardholders Should Be Protected from Misleading Terms.
􀂾 Prevents card companies from using terms such as “fixed rate” and “prime rate” in a misleading or deceptive
manner by establishing single, set definitions of those terms.
􀂾 Gives cardholders who get pre-approved for a card the right to reject that card up until the moment they activate it
without having their credit adversely impacted.
5. Cardholders Deserve the Right to Set Limits on Their Credit.
􀂾 Requires card companies to offer consumers the option of having a fixed credit limit that cannot be exceeded.
􀂾 Prevents card companies from charging over-the-limit fees on a cardholder with a fixed credit limit.
6. Card Companies Should Fairly Credit and Allocate Payments.
􀂾 Directs card companies to fairly allocate payments on balances at different interest rates. Many card companies
currently require cardholders to pay off a lower interest rate balance first.
7. Card Companies Should Not Impose Excessive Fees on Cardholders.
􀂾 Limits the amount of “over-the-limit” fees card companies are allowed to charge to 3. Some card companies
currently charge limitless fees for going over credit limits.
8. Vulnerable Consumers Should Be Protected From Fee-Heavy Subprime Credit Cards.
􀂾 Requires that all fees for subprime cards, whose total fixed fees over a year exceed 25 percent of the credit limit,
be paid up front before the card is issued. These cards are generally targeted to vulnerable consumers.
9. Congress Should Provide Better Oversight of the Credit Card Industry.
􀂾 Improves existing data collection on industry profits, as well as card fees and rates; requires this information to be
presented to Congress every year.
comment 30
Tawan date : 03/05/2008 time : 06.59
http://blog.nationmultimedia.com/tawan3

This is what the industry says after collecting 18 billion USD in unfair fees.

The banking industry was expected to fight.

"This is a very aggressive regulatory intervention in the marketplace that will lead to higher prices and less credit options for everyday consumers," Ken Clayton, the senior vice president of card policy of the American Bankers Association, told The Washington Post. "It basically says that we can't price for risk and we can't in a cost-effective way provide these low-cost options like balance transfer opportunities at zero percent interest because of the way they're mandating how these loans get paid back. We won't be able to make the loan."

The new regulations now face a 75-day public comment period and could be completed by the end of the year. Similar steps have been proposed in both houses of Congress.
comment 29
Tawan date : 03/05/2008 time : 06.49
http://blog.nationmultimedia.com/tawan3

Crack down as 3 federal agencies move to reverse years of increasingly aggressive penalty fees, demanding more time for cardholders to pay and fewer tricks and hidden fees.

dit Card Headline news today.
comment 28
Pomjuk date : 02/05/2008 time : 20.34
http://blog.nationmultimedia.com/pomjuk

unless the government is acting in the name of Robin Hood, shifting money from the pocket of the rich to the pocket of the poor.
comment 27
Pomjuk date : 02/05/2008 time : 20.12
http://blog.nationmultimedia.com/pomjuk

Sorry I was busy talking about female orgasm.

http://blog.nationmultimedia.com/veen/2008/04/29/entry-1

How government structure related to the consumers’ spending? I’d assume you mean government’s fiscal spending related to consumers’ spending.

If the government income is finite and is a factor of import-export tariff, personal income tax and corporate income tax. Now do you remember the good old GDP multiplier from economics 101?

GDP = C + I + G + (X-M)

Government may increase the Consumption and Investment in the private sector by reducing its’ own expenditures. Unfortunately in Thailand the “G” seems to be the big factor in the near future.

Any economist please correct me if I am incorrect.
comment 26
Tawan date : 02/05/2008 time : 12.35
http://blog.nationmultimedia.com/tawan3

So true. I see this Thai boomerrang generation in Udon Thani everyday.
comment 25
Patriot date : 02/05/2008 time : 12.27
http://blog.nationmultimedia.com/Patriot

Khun Tawan: I have not read the book you mention. It seems to be an interesting read, I will make an effort to do so. It is not just the young in America but also in Thailand where there exists a boomerang generation. Education is a very big deal but financial education it is not of major interest to the younger generation.

There is a huge generational gap in understanding the value of money. In general, this younger generation has very little respect for money. Financial education has to start in the home, in schools, at the work place, and in governement. This next generation will be in trouble and they truly have monumental challenges ahead because the examples that were set by parents and economic prosperity have not prepared them for the potential of economic turmoil.

There are no easy answers. What ever the answers are, it has to start from the top down either though legislation or through mandate and it has to specifically address the issues and not continue to pass the problem it to the next generation or next administration. Bottom line, it has to start though leadership by example.
comment 24
Tawan date : 02/05/2008 time : 08.19
http://blog.nationmultimedia.com/tawan3

Maybe you have read Bob manning’ Credit Card Nation. I have found an excellent discussion about the trends and problems but no real answers. After a survey of American young people 20’s and 30’s 52% failed a financial literacy test. This has led to State laws requiring financial course in High School. The conclusion is education is the only answer but a long term answer.
American young people the “boomerang” generation which means they will be living in their parents’ basement. A lot of the blame is there are more financial choices today that our parents never had and most young people were sheltered by their parents from financial responsibility.
Beyond credit cards the house mortgage is the main problem with debt. 20 years ago there was just one choice a 30 year mortgage with 20% down then came 0-2% down and home equity loans to finance consumer purchases. The home ownership percentage in America is impressive but the scary part is most people cannot afford their own home.
Beyond educating the educated in Thailand no one else has a better solution and no short term solution. The only short term solution has come from industry databases that black list consumers forever.
comment 23
Tawan date : 01/05/2008 time : 15.40
http://blog.nationmultimedia.com/tawan3

Yes, since coming back I have found too many common characteristics in Thailand with the US quarter system. I must start making a list.
comment 22
Patriot date : 01/05/2008 time : 13.27
http://blog.nationmultimedia.com/Patriot

Wch: I had a feeling it was you sir, it has been many years. Glad to see you sharp as always. No, I am assisting in the resettlement of the refugees from the crisis. The numbers are more substantial than I estimated. We can discuss this in more detail later. “Silk-like soft touch” agreed.

Khun Tawan: The major difference in economic stimulus between Thailand and other more progressive Nations around the world is very simply this, Thailand thinks and plans in fiscal quarters or political tenures while the rest of the world thinks and plans in decades.

Ian: I am not aware of any legal violations that would apply to your generosity. It is very true that the small amounts that you mention can make a difference. If it is within your capacity to continue to do so and you are not expecting anything other than good will, by all means please continue. The problem still remains, how many Ian’s are there in Thailand?

The reason I pinpointed a specific demographic of wage earners is because there needs to be a way to statically measure progress or failure of such an initiative.
comment 21
wch date : 01/05/2008 time : 09.25

Danuj,
Yes, I agree on NPL of personal credit. The mothod will be two ways.

One is to default personal credit unserviced to freeze individual credit (sort of personal bankruptcy) and later give amnesty (Korean style - hard landing).

Another is, the government to purchase the personal NPL as Chuan government did for thai corporates. (soft landing).

Each method has its own pros and cons. Korean culture is to teach people in shocking way.
Thai style is 'Silk-like soft touch',

vol 3
Yes, I am a watcher, Danuj,
Are u still in the forgotten valley ?
comment 20
Tawan date : 30/04/2008 time : 15.43
http://blog.nationmultimedia.com/tawan3

I understand the meaning of government structure now thank you.
Before China's success in market socialism Japan was often cited as the only country in the world where communism worked in describing Japan Inc.

Maybe it is time for Thailand Inc.
comment 19
Ian date : 30/04/2008 time : 14.43
http://blog.nationmultimedia.com/anterian36

Danuj, not only is there a limit to my benevolence but I suspect I'm probably breaking one or more laws:-)
I don't lend major sums, my largest was 1000Baht, most are 100Baht. Sometimes it comes back in a month, sometimes several, in other words to me they are loans I can afford to write off.
Yet these trifling sums can literally be life or death to some people.
Actually one way of reducing the debt of poor people would be to price beer beyond their reach
comment 18
Patriot date : 30/04/2008 time : 13.25
http://blog.nationmultimedia.com/Patriot

Khun Tawan: How is governmental structure connected to domestic consumption? My opinion is that the socialist market economy that is practiced by the People’s Republic of China creates a unique internal competitive consumption market that forces major industries to compete with each other within a pricing system set by the market.

China's domestic consumption grew by 11.7 percent in 2006 and is projected to enjoy sustained growth as the country has laid out a batch of measures to boost farmers' and urban low-income group's earnings.

China is striving to maintain fast economic growth while shifting to domestic driving forces, especially consumption, in order to reduce the heavy reliance on exports.

A demand-led model is stressed in the guiding proposal for the 2006-2010 period which was passed in early 2006, and this would have a direct effect on consumption growth in the future.

Chinese farmers' income rose substantially, due to the good harvest across the country. Following a string of gradual income increases, the continuing growth will make Chinese farmers more willing to spend.

In the cities, the lift-up of the minimum wage will also increase their spending power and more measures are expected in 2006 through 2010.
Also, the Chinese government s move to raise the threshold of the personal income tax will improve the income of ordinary citizens. According to a proposal, China will lift the threshold from 800 yuan (98.8 US dollars) to 1,500 yuan (185 US dollars) or higher soon. Source: Xinhua

I do believe that governmental structure and domestic consumption are related.

Wch: Your writings are very familiar. I hope you are my old friend Watcher. If you are not, very good points never the less.

Ian: That is a difficult question to answer. You’re a benefit to your village. What you are doing is a wonderful exception to the rule rather than the normal practice. You may impact your local community in a positive way but how far reaching can your benevolence extend.

My comment regarding the change in mindset with monthly income is addressing a particular group of wage earners that drive a certain portion of debt such as credit cards and personal loans. Not withstanding, I absolutely agree with you regarding taxi drivers, casual workers, and other daily wage earners.
comment 17
Ian date : 30/04/2008 time : 11.52
http://blog.nationmultimedia.com/anterian36

Danuj, when you write, "Currently most of the population is paid on a monthly basis and budgets on a monthly basis" you are dealing with a different sector of the Thai population than the one I was referring to:-)
I am talking about taxi drivers, stall holders, casual workers, cottage industry workers. These people live from day to day with an indeterminate daily income. If a sudden bill appears or hospitalisation then they turn to the Indian moneylender and start to slide downhill.
I currently am lending money at zero interest in an attempt to break this chain for a few. Why cannot the government do the same?
comment 16
wch date : 30/04/2008 time : 10.37

Land price must be appraised but in controlled speed, that must be incorporated into the whole national production. Land price does not cheat the people. Stock asset and its tech needs training for a time and teach the house wives how to run them in between, from this basket to that basket. They must be taught how to read a firm's financing reports, more importantly what the substance economy and what the service economy is.
Two do not go always, so they must move their asset.

In some country, Oil crisis is called "oil boom". Rice problem in world is new investment opportunity.
However they are not panic, but put it into critical thinking, considerate, careful and try to find what the first wrong botton is.

here in Thailand, seventythreer spits off, such vulgaric word to the serious UN chief who is running for the starved Africans.
comment 15
Tawan date : 30/04/2008 time : 10.34
http://blog.nationmultimedia.com/tawan3

How bad is the debt problem a quote from MSN this morning and the American solution.

"NEW YORK - The for-sale listings on the online hub Craigslist come with plaintive notices, like the one from the teenager in Georgia who said her mother lost her job and pleaded, "Please buy anything you can to help out."

Or the seller in Milwaukee who wrote in one post of needing to pay bills — and put a diamond engagement ring up for bids to do it.

Struggling with mounting debt and rising prices, faced with the toughest economic times since the early 1990s, Americans are selling prized possessions online and at flea markets at alarming rates."
comment 14
Tawan date : 30/04/2008 time : 10.25
http://blog.nationmultimedia.com/tawan3

Also may I ask another question how is governmental structure connected to domestic consumption?
comment 13
Tawan date : 30/04/2008 time : 10.17
http://blog.nationmultimedia.com/tawan3

I think all Asian economies prefer hard assets to paper assets. paper assets require constant monitoring to achieve compounded growth or compouded lose as the case may be.
comment 12
wch date : 30/04/2008 time : 09.51

They stimulate other part always.
comment 11
Tawan date : 30/04/2008 time : 08.41
http://blog.nationmultimedia.com/tawan3

The problem with public confidence indexes it only takes into account individual circumstances which is a lagging indicator. Shoring up public confidence is not as it used to be when information was