Posted on 12/20/2006 7:53:29 PM PST by Kitten Festival
Foreign Exchange: Thailand's ham-fisted capital controls, announced Tuesday, sought to halt the baht's rise. But all that did was knock $23 billion in value from Thai stocks and rattle world markets. It's not the answer.
What it actually shows is that the caretaker military regime, in power since its September coup, isn't quite up to the task of running Thailand's economic powerhouse.
Thailand's markets, which have done well this year, don't need new controls. What they really need are the same thing Thailand's people need — more freedom, economic and political.
Thailand's government Tuesday told foreign investors they would no longer be free to repatriate 30% of their nontrade or service-linked investments in the country less than a year.
That triggered a 14.8% plunge in Thailand's SET stock index, leaving Thais $23 billion poorer. The move spread through world markets, as investors worried that other Third World governments could do the same, just as oil-rich petrostates have followed each other in going after the assets of foreign oil companies.
To their credit, the Thai generals rapidly recognized their error and rescinded part of the decree on stocks. But they left the decree on bonds, and we don't think the matter is closed.
(Excerpt) Read more at investors.com ...
Cue the 80s "One Night in Bangkok" song...
You mean like prohibiting individuals from melting pennies and nickels because the metal content (due to gov't created monetary inflation) is worth more than the face value of the coins?
Thailand?
No, its not like that at all.
Crazy things happen in Thailand. Happened in 1997 when they caught the measles and took the whole world financial system down with them. Now that they are run by tinpot generals, it might be worse this time.
IAT'T???'P
The stupidity of this move is recognized by the middle class Thai but the ruling class cannot get the ghost of 1997 George Soros out of their heads. Result, they shoot their own feet off while aiming at the evil foreigner.
One more reason to detest Soros. Too bad we all get the blame when it all belongs to him.
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