Debt – Page 14 – Sure A Not

PM picks Thaksin’s loyalists as policy advisers

On: September 18, 2024

PUBLISHED: 18 Sep 2024 at 11: 54

Prime Minister Paetongtarn Shinawatra chairs the first cabinet meeting of her administration at Government House, Bangkok, on Tuesday. (Photo: Chanat Katanyu) — Prime Minister Paetongtarn Shinawatra presides Tuesday’s primary government appointment of her management at Government House in Bangkok. ( Photo: Chanat Katanyu )

After her leadership pledged to address the South Eastern nation’s plethora of financial issues, Prime Minister Paetongtarn Shinawatra has appointed a group of economic and legal professionals as advisors. &nbsp,

The board of experts is headed by Pansak Vinyaratn, who served as an economic policy director to Paetongtarn’s father, former top Thaksin Shinawatra during 2001-2006. Surapong Suebwonglee, who was the finance secretary in a Thaksin-backed authorities in 2008, was named the deputy president, according to an order dated Sept 16. &nbsp,

Supavud Saicheua, a well-known economist and current head of the National Economic and Social Development Council ( NESDC ), was also chosen as an advisor. Other people included Tongthong Chandransu, previously an adviser to Ms Paetongtarn’s father Srettha Thavisin, and Phongthep Thepkanjana, who has headed many ministries in several institutions of Thaksin and his girlfriend Yingluck Shinawatra.

According to the interview order, the board of advisors will assist Ms. Paetongtarn in conducting analysis and research of opportunities to improve the nation. They will also make recommendations related to authorities laws, it said.

Phongthep Thepkanjana, left, and Surapong Suebwonglee. ( Bangkok Post file photos )

Ms. Paetongtarn, the next Shinawatra leader in Thailand and a relatively stranger to elections, is turning to Thaksin supporters to assist her in navigating the economic and legal difficulties facing her multi-party coalition government. The decision also demonstrates how good it is that the former leading has a significant influence over his sister’s government. &nbsp,

Thailand’s youngest excellent secretary, 38, has vowed to revive Southeast Asia’s second-largest business that is stifled by near-record household debt and high cost of living. Her government has suggested a comprehensive debt reform to address the burden of household debt, provide small businesses with financial aid, and bolster fiscal stimulus to boost the region’s lagging development rate. &nbsp,

The visit of the advisory board was made after Ms. Paetongtarn appointed Pichai Chunhavajira as finance minister as a sign of legislation continuity from Mr. Srettha’s waning administration. In a surprise decision, the Constitutional Court found him guilty in an ethics infraction case, which was expected to be announced last month.

Mr Paetongtarn also recently appointed Prommin Lertsuridej as the Prime Minister’s Secretary-General, a article he had held under former officials Thaksin and Srettha.

Srettha Thavisin, then-prime secretary, honors Thaksin Shinawatra at his Bangkok residence during the Songkran festival in 2024. ( Photo: Srettha Thavisin X account )

Still reeling from crisis, Sri Lanka holds pivotal election

By: Marcus Ching

On: September 17, 2024

In: Asia

BBC News/Aakriti Thapar President Ranil Wickremesinghe's rally in the town of Beruwala

” I believed I would fight a crooked state my entire life around,” the younger generation said,” but they did something.”

Samadhi Paramitha Brahmananayake is examining the area where she and thousands of other protesters spent months camping out in the capital of Sri Lanka in 2022.

She is puzzled as to how the hundreds of rebel tents that occupied the field directly opposite the political secretariat have been replaced by lush green grass.

” I feel we’re now more lively, more powerful”, says Ms Brahmananayake, a 33-year-old businessman based in Colombo.

BBC News/Aakriti Thapar Samadhi Paramitha Brahmananayake

Two years ago, a sizable crowd imposed the country’s deeply unpopular leader in power; then voters are really days away from deciding who to elect for president.

It’s the first vote since the large protests- called the “aragalaya”, Sinhalese for battle – which were sparked by Sri Lanka’s worst financial problems. 70 % of cpi was attained. Basics like foods, cooking oil and medication were limited.

Gotabaya Rajapaksa, the president at the time, and his state were blamed for the disaster. Only before audiences stormed his home, he fled the country. Pleasant protesters took victory laps and darted into the presidential pool.

Mithun Jayawardana, 28, was one of those athletes. ” It was awesome”, he said thinking again. Jobless, with no fuel or energy at apartment, he says he joined the aragalaya for a lark.

He acknowledges how important the Saturday election is now by stating,” We need a leader who is elected by the people. The people did n’t elect the current president”.

Ranil Wickremesinghe, the man who presently holds the work, was appointed to the position after Gotabaya Rajapaksa resigned. Mr Wickremesinghe, who’s been tasked with wheel Sri Lanka through a period of painful economic transformation, is running for re-election as an indie.

He’s stood for president twice previously but not succeeded, and his social potential appears uncertain.

Getty Images Anti-government demonstrators play cricket at a protest camp tent near the Presidential Secretariat in Colombo on July 23, 2022.

Many associate Wickremesinghe with the Rajapaksas, a social kingdom that has ruled Sri Lankan politics for years. Some attribute this to the years of financial incompetence that caused Sri Lanka’s economic woes.

Yet the country’s top judge ruled that Gotabaya Rajapaksa and his brother Mahinda, another former senator, were among 13 former officials accountable for the financial problems.

A Rajapaksa has entered the political fight in these elections despite the democratic baggage that comes with the brand. There are still areas where the family has strong support.

A region like this is located only over an hour from Colombo. Namal Rajapaksa greeted by music, fireworks, and the applause of supporters as he approached the podium to handle the hundreds of people who had gathered for his speech on Monday in the Minuwangoda town. Yet his father, Mahinda joined him on level.

Namal Rajapaksa denied his mother’s role in Sri Lanka’s economic decline.

He told the BBC,” We know our arms are clear and that we have never wronged this nation or the people.”

The government can choose what they want and who to vote for, according to the statement.

BBC News/Aakriti Thapar Mahinda Rajapaksa at a rally with his son Namal in the town of Minuwangoda

In all, a document 38 candidates are contesting the 21 September vote, none of them women. In 2019, Sajid Premadasa, head of the country’s main opposition group, won 42 % of the popular vote, losing to Gotabaya Rajapaksa. He is thought to have a chance this time round.

For individuals looking for change, many are looking to Anura Kumara Dissanayake. The applicant for the communist National People’s Party alliance has emerged as a likely pioneer.

Thousands of people flocked to a niche in the little town of Mirigama, two time north-west from Colombo, to speak Mr Dissanayake speak last Saturday, some wearing bright red hats or T-shirts with his experience.

” Yes 100 % sure, okay”, he tells the BBC, when asked if he can win. Campaigning as the tone of the working class, he is hoping to destroy Sri Lanka’s political establishment.

BBC News/Aakriti Thapar Rangika Munasinghe (mother) Nehan (son) Thatindu Gayan (father)

In this election, the business is at the forefront, unlike previous votes in Sri Lanka.

Holding her four-year-old child Nehan, Rangika Munasinghe laments the higher income she presently pays.

” It’s very difficult. Incomes are being reduced, taxes on products and foods are great. Kids foods, milk powders, all more expensive. Taxes are so high, we ca n’t manage it”, the 35-year-old told the BBC at a busy market in Colombo.

Thanks to mortgages from the International Monetary Fund and nations like China and India, Sri Lanka was able to avoid debt in 2022. But now everyone is feeling the pressure from the country’s enormous$ 92bn ( £69bn ) debt burden, which includes both foreign and national debt.

” I’m doing two jobs”, says Mohamed Rajabdeen, who’s in his 70s. He is selling spoons at a stall in a busy road. Once this is done, he will go to his next work, working in safety.

” We should find great salaries, college students may find jobs, and people may be able to live in peace and tranquility. Our state must fulfill all of those, in our opinion.

BBC News/Aakriti Thapar Melani Gunathilaka

Some people in Sri Lanka find it unusual to be so vocal about what they want from elected representatives. That shift has been brought about by the opposition movements, says Buwanaka Perera, a youth social advocate.

” People are more courageous in confronting the condition or in confronting what’s wrong”, the 28-year-old said. ” It’s not just the position, it’s trickled down to common things- it can be in your home, it can be in your roads. to speak out and watch out for one another.

Ms. Brahmananayake agrees, claiming that it is the result of her work and those of the hundreds of others who took part in the rebellion two years ago.

” People are now talking about politics,” he said. They are asking issues. Folks, in my opinion, possess the same level of power. They may vote”.

Like her, environment and social activist Melani Gunathilaka, 37, knows the way ahead will not be easy for Sri Lanka, but they have promise.

There has n’t been a change in the political and economic culture, she claims, but there has been a significant change in society.

” For the first time citizens took command, people exercised their political rights to do what’s appropriate for the state”.

Who are the prospects?

Ranil Wickremesinghe, a six-time former prime minister, was appointed president after Gotabaya Rajapaksa was ousted in 2022.

The 75-year-old, who faced the huge process of trying to direct Sri Lanka out of economic decline, has been accused of protecting the Rajapaksa family, allowing them to recover, while shielding them from prosecution- claims he has denied.

Anura Kumara Dissanayake is the candidate of the leftist National People’s Party alliance.

His claims of strong anti-corruption steps and good leadership have boosted his election, positioning the 55-year-old as a serious candidate.

Sajith Premadasa, the runner-up last time, is the leader of the country’s main opposition Samagi Jana Balawegaya (SJB).

He earlier this month stated to AP that he would make sure that the wealthy would pay more taxes and that the poor did see their circumstances improve if he won.

Namal Rajapaksa comes from a powerful political clan that produced two presidents.

The 38-year-old’s plan has been focused on his father’s tradition, who is still regarded by some Sri Lankans as a hero for guiding the terrible end of the civil war against the Tamil Tiger rebels. However, he needs to appeal to citizens who accuse the Rajapaksas of being the cause of the country’s economic crises.

BRIC by BRIC, de-dollarization only a matter of time – Asia Times

By: Bolen C

On: September 17, 2024

In: Asia, Finance

Donald Trump, the candidate for president of the United States, stepped up his America First campaign earlier this month by promising to impose 100 % tariffs on goods from any country that deviates from the dollar. &nbsp,

Trump did not explain to his supporters that the dollar-protection measure did cause American households to suffer as some consumer goods are likely to cost more than double. Around 70 % of products sold at Walmart and Target are sourced from China, the country at the forefront of de-dollarization.

Trump made his announcement on the day of the very anticipated monthly BRICS conference, scheduled for October 22-24 in Kazan, Russia. The appointment may make an announcement regarding a strategy for the creation of a viable alternative to the current dollar-centric global financial system.

Although more information are still being provided, some observers anticipate that the conference will make an announcement regarding a multicurrency payment system. Some BRICS watchers even anticipate the release of a blueprint for a trading currency with gold backing.

Bretton Woods

For a number of reasons, the development of an alternative to the current money method would be traditional. It may mark the initial legitimate attempt to depart from the Bretton Woods Agreement of 1944, which established the post global financial system.

The money was subject to the predetermined price of gold under Bretton Woods, while all other currencies were fixed at the money. At the so-called golden windows, countries with dollar-denominated trade deficits could exchange their money for gold with the US central banks.

Financial security was achieved by the money system, but almost all of it was controlled by the US. US businesses evolved into the hubs of international commerce. A Chinese company that purchased products from India had to purchase dollars to spend its Indian dealer. The US was able to impose any man, business, or nation on the global financial system thanks to the unified system.

When US President Richard Nixon decoupled the dollar from silver in 1971, Bretton Woods began to unravel. The US chose to close the silver screen rather than compromise its business, efficiently defaulting on its Bretton Woods responsibility, as the country faced rising trade deficits.

The choice had big implications. The US government lost its fiscal discipline after being freed from the restrictions imposed by the gold standard and embarked on a decades-long spending binge. From 1971 to 2024, the US national debt grew from$ 400 billion to$ 35 trillion.

A growing number of prominent economists and business officials have sounded the alarm because servicing the national debt has grown to be the most important line item on the US federal budget, even more so than yearly defence spending. Tesla CEO Elon Musk just warned:” At current levels of government saving, America is in the fast lane to bankruptcy”.

More precisely, the US may immediately work out of lenders willing to buy its debts. In recent years, China has sold US Treasuries worth hundreds of billions, and foreign investors have recently become online retailers of US loan. ( The commonly used term “printing money” actually means issuing debt. )

BRICS versus G7

Even without the US incurring its huge debt, continuous de-dollarization is obvious. The National share of the world economy is rapidly declining.

In 2016, BRICS states overtook the G7 in combined GDP. The group now accounts for 35 % of the world’s output, compared to the G7’s 30 %. China contributes almost twice as much to the world’s industrial output as China alone, nearly twice the US.

There are many different themes, but it’s challenging to design a financial or monetary structures for nations as varied as the BRICS members. Sergei Ryabkov, the deputy foreign secretary of the Russian Federation, just demanded a financial unit akin to the Western Currency Unit (ECU), the euro’s precursor.

The ECU was conceived in 1979 in response to Nixon’s decision to close the silver screen. The German dollar started to shift wildly as it was no more pegged to gold. Therefore, the ECU established a common unit of account that stabilized forex markets.

The “bancor,” a dollar system that economist John Maynard Keynes suggested during the Bretton Woods Conference, is another example of how things are being used.

The bancor was conceived by Keynes as a global unit of account tied to a pantheon of essential goods like oil and grains. This would guarantee that the bancor’s value was determined by real financial resources more than fluctuating national economies.

In an effort to promote healthy global trade, Keynes even suggested sanctions for nations with prolonged trade surpluses or deficits. The US criticized the bancor as troublesome and preventing free business. But today’s severe imbalances—particularly the US’s huge trade deficit with China—validate Keynes’s vision.

An mBridge not too far

China is working with a number of other nations on mBridge, a blockchain-based platform that supports fiscal transactions in several currencies, despite the possibility of a BRICS frequent money in the near future.

Simultaneously developed by the central bankers of China, Thailand, the UAE and Hong Kong, mBridge helps fast, peer-to-peer deals without third-party presence. According to reports, the platform supports Central Bank Digital Currencies ( CBDC ) and uses blockchain technology that is similar to Ethereum.

Cross-border business finance is made more cost-effective and affordable by the mBridge. A Thai firm may exchange rice for a businessman in Singapore in Thai ringgit or any other agreed-upon money. Transactions are quick and do n’t involve third parties. In mBridge, institutions of participating nations are the nodes in the network.

BRICS now comprises nine countries, the initial five members of Brazil, Russia, India, China and South Africa plus Egypt, Ethiopia, Iran and the UAE. Some have speculated that the gathering might eventually expand to include more than 100 nations, while over 40 extra nations have expressed interest in joining.

However, the BRICS surprised the world last month by announcing that it would quit accepting new people for a short time. No justification was given, but the ice might be related to the difficulty and awareness of developing a new financial infrastructure and its possible worldwide influence.

BRICS has plenty of reasons to tread carefully. Global financial markets could become unstable if only a new monetary system’s future roadmap was announced. Obviously, the group will want to avoid accusations of triggering a financial crisis.

The direction BRICS will take from here will depend on several factors. How aggressively will the US defend the dollar? How will the US address the country’s growing trade and debt problems? What will the country’s increasingly dysfunctional political system do next?

While Trump’s pledge to sanction de-dollarizing nations could be campaign rhetoric, an escalation of America’s sanctions war could trigger a financial reset in response.

BRICS might decide to establish a currency unit that is partially supported by gold and other natural resources, including oil, minerals, and metals. Given that it controls a sizable portion of the world’s natural resources and is able to influence global prices, the group has considerable leverage.

One way to tell BRICS is gearing up for a similar financial reset is its unheard of hoard of gold. BRICS members have purchased gold at record prices in the past two years. Following a financial or monetary crisis, the monetary metal has historically been used to rebalance currencies.

To be sure, a transformation of the now 80-year-old global financial system is inevitable. In a neo-colonial transformation of the British Empire, Bretton Woods modernized the banking system and moved London to New York as the seat of power.

On the other hand, the BRICS will likely work from the ground up to create a new financial system that is based on the demographic and economic realities of the 21st century, rather than the 20th.

PM says handout will give ‘jolt’ to economy

By: Barkar Nash

On: September 17, 2024

In: South-East Asia

Next week, the government will formally approve the first-phase submission to 14.5 million needy people.

Employees at a chicken rice shop in Bangkok's Phra Nakhon district register for the digital wallet scheme on the first day of registration on Aug 1, 2024. (Photo: Apichart Jinakul) — On August 1, 2024, people at a chicken rice shop in Bangkok’s Phra Nakhon city record for the online budget plan. ( Photo: Apichart Jinakul )

As her government promised more stimulus measures in the coming weeks, the launch of a 145-billion-baht handout program to the poor people is certain to bring a” jolt” to the market, according to Prime Minister Paetongtarn Shinawatra on Tuesday.

Starting on September 25, the government on Tuesday officially approved the supply of 145 billion baht, or roughly one-third of the total planned under the initial “digital bag” system.

The first to benefit from the lauded trigger effort will be low-income individuals and vulnerable groups, which only increased by 1.9 % next year, far below peers ‘ growth rates.

According to Finance Minister Pichai Chunhavajira, 12.4 million people with state security cards and 2.15 million people with disabilities will be among the beneficiaries, according to a lecture following the case meeting.

Less than 40 million Thais over time 16 are then expected to sign up to receive payment of 10, 000 baht each, generally via a device program, to be spent within six weeks in their communities. That is over from 45-50 million estimated before.

Prime Minister Paetongtarn Shinawatra arrives at Government House on Tuesday to lead her second case meet. ( Photo: Chanat Katanyu )

About 14.5 million people will receive payment next year, directly to their bank transactions via PromptPay, according to the Ministry of Finance.

According to what we discovered, the initial prone group receiving 10,000 baht has a high spending rate, which will undoubtedly cause the economy to sag,” Ms. Paetongtarn told reporters.

The initial treatment will increase economic progress by 0.35 percent points, said Pornchai Thiraveja, mind of the Fiscal Policy Office.

The Pheu Thai Party’s flagship policy is the one that is opposed to the coalition’s leadership, which is trying to revive an export-stucking economy that is stifled by great household debt, poor spending, and a slow recovery in exports.

The Bank of Thailand anticipates a 2.6 % annual growth in the economy this year.

The modern component of the flyer, according to deputy finance secretary Julapun Amornvivat, will continue as it is a result of the government’s plan to establish a modern economy, which would include a blockchain-backed payment system.

According to Mr. Pichai, the second phase of the grant is already being reviewed, and additional stimulus measures will be introduced in the future.

Ms. Paetongtarn, who took office earlier this month, faces the difficult task of stifling growth in an economy that is stifled by near-record home loan, an flow of cheap goods from China, and subpar imports.

Mr. Pichai stated that the 122-billion-baht supplementary resources and a portion of the annual expenditure for the 2024 fiscal year ending on September 30 will be used to finance the handout. &nbsp,

The government plans to increase borrowing by 8 % to about 2.6 trillion baht for the 2025 governmental time starting on October 1, according to relevant information, market options, and a government display seen by Reuters.

According to the options, who declined to be identified because the data was not made public, 1.06 trillion baht may be new loans and 1.53 trillion will be loan being rolled around.

In the 2025 fiscal year, the government intends to sell about 1.25 trillion baht of government bonds and 520 billion baht of Treasury bills, which will provide more than two-thirds of the target amount of borrowing, according to sources.

Sri Lanka: Chased out by protesters, a political dynasty plots its comeback

By: Marcus Ching

On: September 16, 2024

In: Asia

Exuberant young men splashing around in a pool with one theatrically soaping himself as a crowd cheered. Sri Lankans dancing in an opulent hallway as the iconic papare bands played festive tunes with trumpets and drums.

On July 13th, 2022, after crowds overran the political palace, these images spread all over the world, causing then-leader Gotabaya Rajapaksa to escape the nation.

It was a triumphant time for them.

Hundreds of thousands of people from all over Sri Lanka had defied a national curfew, calling on Rajapaksa to step over and marching happily to the national house.

Yet though his elder brother Mahinda Rajapaksa had now left as prime minister to try to alleviate public outcry, he had repeatedly resisted requests to withdraw.

Decades of protests- called the “aragalaya” ( fight ) in Sinhala- had culminated in the activities of July 2022, leading to Mr Rajapaksa’s degrading, hurried exit.

Just a few weeks before, for events would have been inconceivable.

Getty Images People wait in a queue for gas at the Pellawatte Litro Gas filling station in Colombo, Sri Lanka, on Sunday, May 22, 2022. S

For decades, the Rajapaksa family – led by Mahinda- held a vice-like hold over Sri Lankan elections.

In his first term, Mahinda Rajapaksa presided over the bloody end to Sri Lanka’s civil war against Tamil Tiger rebels. That victory helped him establish himself as a national “saviour” among the island’s majority Sinhalese – his most ardent supporters compared him to an emperor.

As he grew more effective, but did his family. He appointed his younger brother, Gotabaya, as defence minister- a place he wielded viciously, critics say. Basil and Chamal, the other brothers, both acquitted the positions of finance minister and political speech, both.

The home appealed to a majority-Sinhalese republican center. But, for centuries, they survived allegations of corruption, financial despotism, widespread human rights abuses and reduction of opposition.

That changed in 2022, when a slew of procedures set off the government’s worst-ever financial problems.

Seventeen years after Mahinda first became president, Sri Lankan crowds celebrated the Rajapaksas’ fall, certain the family was finished.

But was it?

Reduce to two years later, and Mahinda Rajapaksa’s child, Namal, has thrown his hat into the band for the presidential election to be held on 21 September.

” It is bad enough that the people who were driven out after the aragalaya]mass protests ] are contesting these polls”, Lakshan Sandaruwan, a university student who took part in the demonstrations, told BBC Sinhala. What’s even worse is that some people may actually voting for a member of that family.

Rajapaksa is back on the scene alongside Namal.

Gotabaya Rajapaksa, the unhappy protesters who were chased out of the land, did not stay for very long.

He returned only 50 days after his ignominious departure, primary to Singapore and therefore Thailand. On his return, he was given the protections of a previous leader: a comfortable home and protection, all of it paid for by the government.

Getty Images Protesters and ordinary people outside the Presidential Palace in Colombo, Sri Lanka, on Sunday, July 10, 2022.

Ranil Wickremesinghe, an opposition politician, was appointed as president for the remaining two decades of Rajapaksa’s career. The family-led Sri Lanka Podu Jana Peramuna Party ( SLPP ), which has a two-thirds majority in parliament, threw their support behind him.

Before his unexpected elevation, Wickremesinghe, a six-time former prime minister, was the only MP from his United National Party after their abysmal showing in the 2020 parliamentary elections.

He has focused on rebuilding the business. However, he has been accused of shielding the Rajapaksa family from prosecution by allowing them to recover while allowing them to reorganize. His claims have been refuted.

The army was called in to clean the crowds at Galle Face in Colombo, which had been the epicenter of the protests, shortly after Wickremesinghe became president.

Dozens of soldiers swooped on the site, dismantling tents and other belongings of demonstrators. In the following months, those who had stormed the presidential palace and were seen walking out with “souvenirs” – such as bed sheets or the odd keepsake to remember a historic day – have been jailed.

” Ranil protected the Rajapaksa family from the wrath of the people, ensuring the stability of the SLPP-led parliament, government and the state, and not doing anything to stop problem, and actually suppressing the development of any research against the Rajapaksa family people”, said political professor Jayadeva Uyangoda.

He also shielded them from global force by demanding that they answer questions about serious human rights violations and claims relating to war.

Many Sri Lankans are suffering more hardships as a result of reforms intended to reinvigorate a sluggish economy, which has irritated some.

Getty Images Ranil Wickremesinghe swears in Dinesh Gunawardena as his prime minister in 2022

Although there are no scarcity or power cuts, rates have sky-rocketed. The government has also scrapped incentives on necessities such as energy, and reduce security spending.

Income, however, have gone up as Wickremesinghe has sharply increased tax charges and widened the internet to shore up public income.

Some economists believe that the terrible measures are required to restructure Sri Lanka’s global debt and adhere to the bailout terms agreed with the International Monetary Fund in order to restore its macroeconomic stability.

The country’s foreign reserves have risen to around$ 6bn from a mere$ 20m at the height of the crisis, and inflation is around 0.5 %.

But the real-world effects on millions of regular Sri Lankans has been devastating.

A study from policy research organisation Lirne Asia, which surveyed 10,000 households, estimated that as many as three million people fell below the poverty line in 2023, pushing the number of poor from four million to seven million.

These individuals are putting their kids to school because they are starving and need more money.

The Rajapaksas have denied any wrongdoing, but the government’s Supreme Court ruled in 2023 that Gotabaya and Mahinda were directly to blame for the economic incompetence that caused the problems between 2019 and 2022.

According to Nimesha Hansini, a student at a Colombo university, the Rajapaksas were “directly responsible for the financial crisis due to the economic thefts carried out under the pretense of development projects during their tenure.”

” But nothing has changed for them – just their political strength has decreased”, she added.

” I do n’t have much to say about them”, says Rashmi, a farmer in the traditional Rajapaksa stronghold of Hambantota. We are suffering as a result of their actions. We voted for them before, but that will never arise again”.

Namal Rajapaksa wants to change these people’s minds; he wants to bring the foundation up.

His strategy has been focused on his father Mahinda’s reputation, who is still revered by some Sri Lankans as a warrior.

Despite global pressure, some countries have called for him to be charged with war crimes. The UN estimates that 100, 000 people, including 40, 000 Tamil civilians, were killed by Sri Lankan military forces in the last stages of the fight, but Mahinda Rajapaksa has never been found guilty of any crime and refutes these claims.

Mahinda’s campaign rallies are adorned with his pictures, and his social media posts feature pictures of him alongside his parents when he was younger.

He also tried to draw attention to how similar they are to one another, growing out his moustache and sporting Mahinda’s signature dark shawl.

Some of his promotion posts strike a note of rebellion:” We do not concern challenges, in reality, we welcome them. That’s everything I learned from my parents”.

Another blog refers to him as “patriotic, valiant and forward-thinking”.

” It seems to me that Namal Rajapaksa thinks, no wrong, that representing the reputation of his parents will help him to defend his father’s voting center and profit from it”, Prof Uyangoda said.

” One way to repair the SLPP’s shattered political bases is through this.”

Many voters do n’t seem to be buying it, and polls do n’t suggest Namal is a legitimate contender for the top position.

Getty Images A scion of Sri Lanka's Rajapaksa family, presidential candidate Namal Rajapaksa (C) gestures as he receives ticket from the Sri Lanka Podujana Peramuna (SLPP) party in Colombo on August 7, 2024.

The most vile comment was made on a promotion post on Namal’s Instagram bill,” The latest heirs of the Rajapaksa family taking a shot at the presidency” Quite the home business is n’t it”?

Responses on the ground were more vociferous. ” I did not vote for Namal Rajapaksa. The years of hardship we have lived are a plague on that home”, HM Sepalika, a farmer who’s been resettled in Vavuniya in the northeast, told BBC Sinhala.

The people of this nation banded together to start this conflict because they did n’t want the Rajapaksas. However, they continue to aspire to the presidency because they are trying to retake office and ask voters to support them, according to Nishanthi Harapitiya, a store associate in Hambantota.

People say they don’t get Namal significantly.

” Why should he ask for our ballot? He is a baby with no knowledge. Who may support him in the election? Unless one vote for him out of sympathy for his parents, he may be elected leader”, said Mohammed Haladeen, a seller from Kathankudy in northeast Sri Lanka.

Interest is now mostly focused on three individuals: opposition head Sajith Premadasa, the communist National People’s Party group’s Anura Kumara Dissanayake and Wickremesinghe, who is running as an independent candidate.

However, Namal Rajapaksa might have played a longer sport.

New elections have demonstrated that people or supporters of once-unpopular strongmen can actually generate significant political comebacks, like Prabowo Subianto of Indonesia or Bongbong Marcos of the Philippines.

” He wants to remain socially related, protect the SLPP’s voter base, and be politically active till 2029″, Prof Uyangoda said.

Lakshan Sandaruwan, the college student who took part in the marches, agrees.

Namal is running for president this period, according to him,” to prepare the necessary qualifications for 2029.”

” But if the individuals do not act sensibly, the people themselves will make a Rajapaksa leader again”.

Why ‘King Dollar’ could scoff at Fed rate cuts – Asia Times

By: Bolen C

On: September 16, 2024

In: Asia, Finance

If and when anticipated Federal Reserve rate reduces fail to undermine the US dollars, the upside-down nature of the global economy could accomplish new variations.

Granted, there are as many reasons as there are for the global reserve currency to get plunging.

They include: the US federal loan topping US$ 35 trillion, slowing economic development, the Fed about to relax its 2022-2023 tightening period, powerful political fragmentation imperiling Washington’s credit score, and efforts to reduce the dollar’s omnipotence are gaining traction.

All eyes are on the activities by – and impulses from – Fed Chairman Jerome Powell‘s group, which is commonly expected to begin slashing prices at this year’s September 17-18 plan meeting.

Yet even though” King Dollar” is losing some brightness, it remains stubbornly strong. One great reason: the global framework.

Isabella Rosenberg, a money analyst at Goldman Sachs, claims that making up a dollar performance using just one variable — the direction of Fed policy in this instance — is not typically extremely effective. ” Plainly, the comparative landscape for FX matters little more”.

In response to that situation, many other major central banks around the world are easing, also, keeping the dollar’s attractiveness in relation to other currencies. They include the European Central Bank, the&nbsp, Bank of England, People’s Bank of China and possible the Bank of Korea in the months ahead.

Rosenberg points out that “if most central bankers are easing up, we can anticipate that that will lessen the impact of Fed easing on the money.” We also believe that other central banks would relieve plan more if the Fed gave them the opportunity to do so, despite the market’s pressure allowing for a quicker Fed tilt.

However, it’s not obvious that the ongoing strength of the dollar is good news for the global financial system in the year 2025. The economy’s “wrecking&nbsp, game” tendencies have been shaking up markets in recent years. It’s hoovered up enormous waves of international capital, disadvantaging emerging markets in specific. &nbsp,

Gary Ross, chief executive officer of Black Gold Investors LLC, has been warning since as far back as mid-2022 that “upward pressure on the money is a&nbsp, wrecking&nbsp, ball&nbsp, for assets”.

The dangers of this wrecking basketball dynamic are “particularly severe in emerging areas” because” they rely heavily on assets and have debt in money,” according to Tom Dunleavy, a partner at MV Capital.

Oil, as well as most trade and debt, are still priced in dollars. And, he says,” the denominator of everything is going up”.

Regardless of the dubious logic behind it, the more crowded a continued-dollar-strength trade becomes, the bigger the global fallout when depressed punters flee for the exits. &nbsp,

Washington’s political polarization could lead to unexpected risks that would restore the laws of financial gravity. That’s especially true as former US President Donald Trump campaigns for a second term.

The insurrection&nbsp, Trump fomented on&nbsp, January&nbsp, 6, 2021, dragged Washington’s credit rating down with it. When Fitch Ratings last year yanked away Washington’s AAA status, it cited the insurrection as a key variable.

As Fitch put it, the chaos on&nbsp, January&nbsp, 6, 2021, was a “reflection of the deterioration in governance” imperiling US finances. The US national debt is now twice the size of China’s gross domestic product, imperiling Washington’s last remaining AAA rating from Moody’s Investors Service.

The Tokyo piece of the puzzle is quite different, of course. Since 1999, the Bank of Japan has been working to normalize short-term rates, which have been near zero. On July 31, the BOJ raised rates to 0.25 %, the highest since 2008.

That sent the yen surging 8.5 % versus the dollar. However, since then, the team led by BOJ Governor Kazuo Ueda has seen a lot of data points that could prevent it from tightening any more anytime soon.

One was the initial$ 6.5 trillion rout in global asset markets. Another: agitated Tokyo lawmakers concerned that the central bank is playing too much. Japanese wages are n’t surging in 2024 as hoped. &nbsp, Lawmakers also worry that deflation has n’t yet been officially defeated.

Recent “data confirm that Japan’s economy is not yet out of the woods”, says&nbsp, Stefan&nbsp, Angrick, economist at Moody’s Analytics. The second-quarter rebound, which has been negatively revised, comes in response to a number of subpar GDP reports that showed output dropping for the majority of the year.

And, Angrick adds,” the headwinds facing the economy are substantial. Before the end of the year, exports are struggling and unlikely to significantly improve. Household finances are stretched”.

Monthly cash earnings, Angrick notes,” saw a big jump this summer, but this was driven largely by stronger bonus payments, so we look for more evidence that wage growth will stick. Despite the disparate data, the BOJ seems determined to tighten monetary policy. At best, further rate hikes will be an added drag on growth. At worst, they could precipitate a broader downturn”.

The dollar would regain some of the ground lost against the yen in recent weeks if the BOJ stops halting rate increases for the moment.

Though contrarian for sure, Goldman Sachs is n’t a complete outlier. Count Daragh Maher, an economist at HSBC Securities, among those who think the dollar’s strength could prove impervious to Powell’s pivot toward easing. According to Maher, the “exceptionalism theme” that surrounds the US economy still “feels like it has got its arms around the dollar.”

It’s no coincidence that the dollar is at its highest levels since the dot-com economy of the late 1990s, according to Joe Brusuelas, chief economist at advisory firm RSM. The dollar has risen despite threats of a trade war, the pandemic, and the government funding standoffs, which we credit to the US’s renewed leadership in global affairs and the strength and innovation of its economy.

It’s also a coincidence that the major US trading partners included in the dollar index also happen to be the major international financial centers, according to Brusuelas. And it’s the rising demand for US long-term securities from those institutions that most accurately reflects the dollar’s long-term strength. Anyone can make an investment in a Treasury bond or a corporate bond of the highest caliber in the US.

That liquidity is important in a time when the global economy is in great uncertainty.

Kathleen Brooks, research director at advisory XTB, says that “without a doubt, the No 1 driver of the dollar is going to be relative interest rate differentials”. She notes that “any scaling back of bets on Fed rate cuts is likely to give the dollar some breathing room.”

The election and the Fed’s rate increase may be at odds with one another. On the one hand, US inflation continues to be slightly higher than the Fed might prefer.

Although the consumer price index increased by only 2.5 % year over year in August 2024, which is the lowest level since February 2021, inflation continues to be stubbornly high in housing and other important industries.

” Overall, inflation appears to have been successfully tamed but, with housing inflation still refusing to moderate as quickly as hoped, it has n’t been completely vanquished”, says Paul Ashworth, chief North America economist at Capital Economics.

Some Fed officials worry that Joe Biden’s Democrats might be aided by the proposed rate increases ahead of the November 5 election by using them as leverage. If traders begin looking at US finances in the run-up to the contest, the dollar could be affected by this.

While Vice President Kamala Harris ‘ popularity appears to have shifted, the growing US federal deficit is likely to be the subject of discussion regardless of who wins the White House, according to analysts at UBS in a recent report.

According to UBS,” Indeed,” the Congressional Budget Office recently predicted that US interest costs will overshadow defense spending this year. Fears about the US fiscal deficit’s size, in our opinion, will have a long-term impact on the US dollar. We anticipate the US dollar to maintain pressure, according to UBS.

Brooks, though, is less worried that politics will trump interest-rate differentials. ” I do n’t think the election is a key factor in the FX market yet”, she says. ” We’re at this precipice of monetary-policy change and that’s so much more important than politics for the market at the moment”.

For now, Michael Zezas, Morgan Stanley’s head of US public policy research, argues that” King dollar does n’t really have any challengers”. China’s yuan, he argues, is n’t liquid enough to challenge the dollar, while cryptocurrencies are n’t ready for anything approaching global prime time.

Yet hubris is its own danger. That’s particularly so as Brazil, Russia, India, &nbsp, China&nbsp, and&nbsp, South&nbsp, Africa, the BRICS, lead efforts among Gulf region and&nbsp, Global&nbsp, South&nbsp, nations to dethrone the dollar. These de-dollarization efforts are making notable progress.

In Beijing, Xi Jinping’s “yuanization” push is gaining traction. In March, China’s currency hit a record high of 47 % of global payments by value. Last year, the yuan topped the yen as the currency with the fourth-largest share in international payments, according to financial messaging service&nbsp, SWIFT.

However, many people’s perceptions may not be as straightforward as they think about how those changes affect the dollar. Rumors of a predictable cause-and-effect decline in the dollar may prove to be exaggerated as the Fed finally pulls the trigger on rate cuts.

Follow William Pesek on X @WilliamPesek

The Middle East crisis that wasn’t – Asia Times

By: Bolen C

On: September 15, 2024

In: Asia

Subscribe now&nbsp, for access at a special price of only$ 99/year.

The Middle East crisis that was n’t one.

According to David P. Goldman, Iran has no retaliated against Israel for the murder of Hamas chief Ismail Haniyeh because of China’s and Russia’s pressure on them and its inability to fight Israel. Israel continues to struggle with military staff training and labor.

Brandenburg’s Election and the Draghi Report

Diego Faßnacht reports that the impending Brandenburg election is a result of social shifts seen in other Northeast German states. The Draghi Report, on the other hand, has strong recommendations for considerable Union investments but is opposed by European financial leaders who oppose the growing EU debt.

Does Ukraine hold the line or start symbolic offensives?

According to James Davis, Ukraine may wait until spring to make for a 2025 battle or engage in metaphorical operations to keep Western support while Russian forces have stabilized the scenario in Kursk. Increase challenges remain as Ukraine seeks long-range arms.

Japan is concerned about US Steel by American officials.

According to Scott Foster, all US national and vice-presidential individuals have voiced opposition to Nippon Steel’s proposed merger of US Steel, straining relations with Japan as political leaders voice worry about the effects on the US-Japan empire.

Long road ahead for Paetongtarn

By: Barkar Nash

On: September 14, 2024

In: South-East Asia

Prime Minister Paetongtarn Shinawatra, centre, visits flood-affected Chiang Rai province on Friday. (Photo: Government House) — Prime Minister Paetongtarn Shinawatra, heart, trips flood-affected Chiang Rai state on Friday. ( Photo: Government House )

The Paetongtarn Shinawatra administration’s policies have possible, according to economists and political economists, but the government will have to rush and see how they turn out.

Ms Paetongtarn next Thursday delivered her administration’s policy speech to congress, focusing on measures to improve person’s monetary well-being and increase the government’s income.

Mr Paetongtarn outlined plans for debt restructuring, especially concerning home and auto loans, alongside assistance for unofficial debtors. Long-term procedures were also mentioned, such as developing pleasure compounds, which include casinos, and a water management initiative to combat consistent flood and drought.

Before beginning job, the government must first present its policy speech to parliament.

Focus on financial comfort

Nonarit Bisonyabut, a senior research fellow at Thailand Development Research Institute ( TDRI), backed the policy statement, although he pointed out that 20–30 % of key elements appeared to be missing.

” We must realize that this is still only a plan news, essentially an idea. We’ll have to see whether or not these tips can be put into practice, he said.

According to him, complete debt restructuring is a wise and necessary decision, especially given the country’s skyrocketing household debt levels. The key problem, however, is to find an effective strategy, as previous attempts, including bill suspension and dialogue, have met limited achievement.

He claimed that while it is vital to pay off household debts, the government must figure out a way to do so without transferring the burden onto future generations.

Mr Nonarit welcomed the government’s revision of its 10, 000-baht digital budget system, although the plan also requires large spending.

During the first stage, the signal money will be first distributed to 14.5 million susceptible people, or 12.4 million with state security accounts and 2.1 million disabled persons, with each receiving 10, 000 ringgit.

The second phase, which is for registered ready consumers, depends on the preparation of the settlement program itself. In the fiscal year 2025, a budget of 187 billion ringgit has been designated for transmission.

Giving out money to the most vulnerable groups, according to Mr. Nonarit, may have the desired effect because it targets the most in need. The transition to money payment, which is expected to be relatively simple, is expected to have a significant impact.

The second phase would assist those who are still in need despite not having any monetary issues.

Nonarit: Handbook for vulnerable groups simply

Thanaporn Sriyakul, chairman of the Political and Public Policy Analysis Institute, said the Paetongtarn state focuses heavily on economic plans, which address the person’s lives.

He urged the government to speed up loan restructuring and finish it in 15 days because the issue is directly under the president’s control with the release of the 10, 000-baht flyer later this month.

Mr. Thanaporn cited as an illustration the success of housing bill reform initiatives where cost contributions to the Financial Institutions Development Fund were lowered to help consumers from state institutions.

Although the bank’s principle is good, he said,” The monitoring may need to be improved to see if the banks use the funds to pay off their debts rather than to fund their ordinary projects.”

” This should not be hard for the Finance Ministry to solve, given the obvious economic characteristics involved”, he added.

Thanaporn: Total debt restructuring then

Project problems

Mr. Nonarit described legalizing some underground financial activities as part of a casino-entertainment advanced as intriguing but difficult. While it could bring financial benefits, there are also cultural downsides to acquire.

” As a notion, it’s interesting and has potential. The actual question is how to render it work”, he said.

Megaprojects like the Land Bridge have substantial economic repercussions, and his problem is with the state’s budgetary constraints.

There are economic risks if the government ends up paying a significant portion of the project’s expense, he added, and it is unclear how much funding may be made by the position and the private market.

” Undoing it, there is talk about a land reclamation project and the construction of nine artificial islands to combat rising sea levels,” he said. None of these topics were covered in the election campaign.

According to Mr. Nonarit, natural disasters are getting worse as a result of climate change, and institutions have only a few days to deal with the issue. Moreover, even long-term planning may be outdated because of frequent changes.

The most recent strategy, similar to the” Sponge City” strategy, focuses on designing cities to allow people to live with water rather than try to combat it, he said, noting the state has been slow to take this approach into account.

He argued that local organizations and communities must work together to stop climate change and that the government only don’t stop it.

Mr. Thanaporn claimed that the government’s new megaprojects are in line with the vision of former prime minister Thaksin Shinawatra, who is frequently referred to as the “big manager” of the decision Pheu Thai Party. Thaksin is Ms Paetongtarn’s parents.

Thaksin is known for smuggling big concepts into people’s minds to pique interest and draw attention, but he claimed that more often than not these plans fall short of expectations.

Given prior projects tainted by irregularities, like the Baan Ua-arthorn cover security system and the rice-pledging job, megaprojects today often boost concerns about possible corruption, he said.

” Let’s wait and see how the Land Bridge and casino-entertainment complex projects develop”, he said.

Deal with debt first

Chaiwat Sathawornwichit, a list-MP of the opposition People’s Party, said the government must prioritise tackling household debt as some families are struggling financially and resorting to non-formal loans.

Despite declaring debt to be a national priority, the Srettha Thavisin administration failed to address it, he claimed.

He suggested that the government might consider lowering interest rates and payment obligations as well, and that lowering income and lowering the cost of living may not be sufficient.

He claimed that because there are n’t enough effective measures, the government needs to find solutions to the problem.

” If the government keeps on relying on superficial activities like holding press conferences and hosting]promotional ] events, the problem will persist”, he said.

The digital wallet scheme, according to Mr. Chaiwat, should be put on hold because it is unprofitable. He claimed that the 450 billion baht program funding would be better spent on pressing issues like providing soft loans to those in need.

He also criticised the government’s foreign policy as being rather weak, saying Thailand is the second-largest economy in Asean and should position itself more strategically.

Additionally, he claimed that the government should strengthen cooperation with other countries in light of the rapid rise in call-center scams.

Chaiwat: Downplays ‘ Baan Pa ‘ threat

Potential risks

When asked about the challenges the government faces, Mr. Thanaporn stated that amending the charter is not a pressing issue and that there are indications that the situation may continue. He claimed that the Senate may be dragging its feet with the proposed public referendum.

If the government is determined to rewrite the charter before the next general election, he said, the prime minister will need to talk with the Bhumjaithai Party, which is thought to have ties to the majority of senators.

The political analyst noted that the risk to the government is low despite the legal conflict and intense scrutiny from the Palang Pracharath Party following the removal of a PPRP leader’s faction from the cabinet.

” I do n’t think there are significant risks for the government, which has the overwhelming majority. Legal threats from Baan Pa will likely fall as the political landscape is shifting]to Bhumjaithai]”, he said.

” Baan Pa” refers to the Five Provinces Bordering Forest Preservation Foundation, at the 1st Infantry Regiment in Bangkok’s Phaya Thai district. The foundation is believed to be Gen Prawit’s unofficial office.

According to Mr. Chaiwat, the government has a “family cabinet” mentality, which leaves state officials unsure of who is actually in charge and unsure about policy continuity.

The opposition MP also expressed doubt that the government is interested in rewriting the charter because it is a broad topic. He expressed doubts about the efficacy of the drug control policy as a result of the government’s inconsistent stance on marijuana.

According to Mr. Chaiwat, having several coalition partners does influence the formulation of the government’s policy, which is reflected in the cabinet lineup.

According to him, the stability of the government will likely depend on how interests are divided and divided among the coalition partners.

Long road ahead for Thai PM Paetongtarn

By: Barkar Nash

On: September 14, 2024

In: South-East Asia

Prime Minister Paetongtarn Shinawatra, centre, visits flood-affected Chiang Rai province in northern Thailand on Friday. (Photo: Government House) — Prime Minister Paetongtarn Shinawatra, heart, visits flood-affected Chiang Rai state in northern Thailand on Friday. ( Photo: Government House )

The Paetongtarn Shinawatra administration’s policies have possible, according to economists and political economists, but the government will have to rush and see how they turn out.

Ms Paetongtarn next Thursday delivered her administration’s policy speech to congress, focusing on measures to improve person’s financial well-being and increase the government’s income.

Mr Paetongtarn outlined plans for debt restructuring, especially concerning home and auto loans, alongside assistance for casual debtors. Long-term procedures were also mentioned, such as developing pleasure compounds, which include casinos, and a water management initiative to combat consistent flood and drought.

Before beginning job, the government is required to provide its policy speech to parliament.

Focus on financial comfort

” We must realize that this is still only a plan news, basically an idea. We’ll have to see whether or not these tips can be put into practice, he said.

Comprehensive debt reform is a wise and essential course of action, particularly given the country’s skyrocketing rates of home debt, he said. The key problem, however, is to find an effective strategy, as previous attempts, including loan suspension and dialogue, have met limited achievement.

He claimed that while it is vital to pay off household debt, the government must figure out a way to avoid delaying the process for generations to come.

Mr Nonarit welcomed the government’s revision of its 10, 000-baht digital budget system, although the plan also requires large spending.

Giving out money to the most vulnerable parties, according to Mr. Nonarit, may have the desired effect. The transition to cash payment, which is expected to be relatively simple, is expected to have a significant effect.

The second phase would assist those who are still in need despite not having any monetary issues.

Nonarit: Handbook for vulnerable groups simply

Thanaporn Sriyakul, chairman of the Political and Public Policy Analysis Institute, said the Paetongtarn state focuses heavily on economic plans, which address the person’s lives.

He urged the government to accelerate its debt restructuring and finish it in 15 days because the issue is immediately under the president’s control, with the release date set for later this month.

Mr. Thanaporn cited as an illustration the success of debt reform initiatives for cover in which cost payments to the Financial Institutions Development Fund were lowered to help consumers from state businesses.

The banks ‘ “principle is sound,” he said, but “improvements may be needed to make sure they use the funds to restructure debts for those in need rather than to fund their regular projects.

” This should not be difficult for the Finance Ministry to handle, given the clear financial parameters involved”, he added.

Thanaporn: Complete debt restructuring now

Megaproject concerns

Mr. Nonarit described legalizing some underground economic activities as part of a casino-entertainment complex as intriguing but difficult. While it could bring economic benefits, there are also social downsides to consider.

” As a concept, it’s intriguing and has potential. The real question is how to make it work”, he said.

Megaprojects like the Land Bridge have significant economic repercussions, and his concern is with the state’s budgetary constraints.

There are financial risks if the government ends up paying a significant portion of the project’s cost, he added, and it is unclear how much investment will be made by the state and the private sector.

According to Mr. Nonarit, governments have a tight window of time to address the long-term issues that are causing natural disasters to become more severe as a result of climate change. Furthermore, even long-term planning may become obsolete because of constant changes.

The most recent concept, similar to the” Sponge City” concept, focuses on designing cities to allow people to coexist with water rather than try to combat it, he said, noting the government has been slow to take this approach into account.

He argued that local organizations and communities must work together to stop climate change and that the government alone cannot stop it.

Mr. Thanaporn claimed that the government’s new megaprojects are in line with the vision of former prime minister Thaksin Shinawatra, who is frequently referred to as the “big boss” of the ruling Pheu Thai Party. Thaksin is Ms Paetongtarn’s father.

Thaksin is known for smuggling big ideas into people’s minds to pique interest and draw attention, but he claimed that these tactics frequently fall short of expectations.

Given previous projects tainted by irregularities, like the Baan Ua-arthorn housing welfare scheme and the rice-pledging project, megaprojects today often raise concerns about potential corruption, he said.

” Let’s wait and see how the Land Bridge and casino-entertainment complex projects develop”, he said.

Deal with debt first

Despite declaring it a national agenda item, he claimed, the Srettha Thavisin administration failed to address debt issues.

He suggested that the government might consider lowering interest rates and payment obligations as well, and that lowering income and lowering the cost of living may not be sufficient.

He claimed that because there are n’t enough effective measures, the government needs to find solutions to the problem.

” If the government keeps on relying on superficial activities like holding press conferences and hosting]promotional ] events, the problem will persist”, he said.

He also criticised the government’s foreign policy as being rather weak, saying Thailand is the second-largest economy in Asean and should position itself more strategically.

Additionally, he claimed that the government should increase cooperation with other countries in light of the rapid rise in call-center scams.

Chaiwat: Downplays ‘ Baan Pa ‘ threat

Potential risks

If the government wants to have the charter changed before the next general election, he said, the prime minister will need to talk with the Bhumjaithai Party, which is thought to have ties to the majority of senators.

According to Mr. Chaiwat, the government has a “family cabinet” mentality, which leaves state officials unsure about who is actually in charge and unsure about policy continuity.

Mr. Chaiwat noted that having several coalition partners does influence the formulation of the government’s policy, and this is evident in the cabinet lineup.

According to him, the stability of the government will likely depend on how interests are divided and divided among the coalition partners.

Commentary: The Fed Is making Hong Kong’s billionaire landlords anxious

By: Jing Write

On: September 14, 2024

In: Asia

HONG KONG: Among those looking forward to the US Federal Reserve’s interest rate cuts, some are as anxious as&nbsp, Hong Kong’s home tycoons who are now dealing with slow home sales, unoccupied office buildings, and insubordinate tenants demanding contract renegotiations. &nbsp,

About 60 per share of listed property businesses ‘ loan is&nbsp, borrowed at floating rates. Banks &nbsp, charge New World Development an&nbsp, average 1.1 to 1.2 per cent over Hong Kong Inter-bank Offered Rate ( HIBOR ), whose movements track the fed fund rate&nbsp, because of the Hong Kong dollar peg.

A one percentage-point&nbsp, rate cut is keep chief executive officer Adrian Cheng, a third-generation heir&nbsp, from a billionaire home, HK$ 1.1 billion ( US$ 141 million ) &nbsp, and increase revenue by a third, according to Morgan Stanley quotes.

New World, &nbsp, one of Hong Kong’s most obliged engineers, paid HK$ 2.5 billion in funding costs&nbsp, in the second-half of 2023, &nbsp, eroding 44 per share of the firm’s working income. &nbsp,

But more importantly, the Fed’s easing cycle may begin to support large landowners make an investment case for the goods they try to sell, or use as collateral&nbsp, for institution money. Now, the city’s overall real estate market -&nbsp, from personal to financial to&nbsp, offices -&nbsp, suffers from bad carry, in that the rent an owner may expect to collect is nothing close to paying for financing costs.

Leasing&nbsp, out Grade-A offices, for instance, yields on average only about 3.2 per cent, not enough to cover the one-month HIBOR’s 3.9 per cent. &nbsp,

Debt (Page 14)

Who are the prospects?

Bretton Woods

BRICS versus G7

An mBridge not too far

Focus on financial comfort

Megaproject concerns

Deal with debt first

Potential risks