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Bank of Thailand Says European Crisis Won’t Affect Thailand – Clueless Much?

 

It’s always fascinating reading what the latest Thai official has to say. Not only are they wrong nine times out of ten, but some of the things that come out of their mouths have to be the dumbest things said by anyone on the planet. The lastest clueless remark was made by the Bank of Thailand’s Office of Macroeconomics director, who said today the European crisis will have little effect on Thailand’s economic recovery. (And if you believe that, I have an elephant I can sell you……)

Not only do more than 3 million tourists come to Thailand from Europe every year, but 40 percent of Thailand’s investments come from European investors.

Oddly, the Bank of Thailand seems to think, if the European crisis gets worse, these European investors will head to Thailand to invest their money. Guess they’re not taking into consideration that, if the Euro collapses, which it likely will, European investors won’t have the money to invest in Thailand.

Then again, the Bank of Thailand’s directors don’t seem to be the brightest bulbs in the box. Remember these are the same people who decided in December, 2006 to announce foreign investors had to leave all their investments in Thailand for at least a year without being allowed to withdraw it, or they’d pay a 10 percent withdrawal fee.  (They were trying to combat speculators and, nope, it didn’t work).

Then they seemed surprised when Thailand suddenly lost billions of dollars in foreign investment overnight as investors said “Hell no, we’ll just leave Thailand”. The “plan” was canceled the day after or they would have risked an even bigger loss of foreign capital.

So, that I don’t believe the European crisis will have little effect on Thailand’s economy….well, put it this way, I’ve lived in Thailand too long to believe much of what is said here, as little of it ever comes true.