PP’s Parit tries to turn govt policy statement into censure debate

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PUBLISHED: 15 Sep 2024 at 04: 33

Prime Minister Paetongtarn Shinawatra announces government policies in parliament on Sept 12. (Photo: Chanat Katanyu)
Prime Minister Paetongtarn Shinawatra makes the announcements of state initiatives in legislature on September 12. ( Photo: Chanat Katanyu )

As ministers demanded public support for the government’s ability to implement its policies, the president’s policy statement came to an end on Saturday with a promise to boost the country’s weak economy and address persistent debt issues.

According to Deputy Prime Minister Phumtham Wechayachai,” the authorities is asking the public to possess confidence in its ability to apply these laws that have been declared in parliament.”

He addressed the coalition state in a final statement released at the conclusion of the two-day legislative session, which ended at 1:00 a.m. on Saturday. The meeting’s entire time was two hours more than the meeting’s original 29 hours.

According to Mr. Phumtham, the policies announced are intended to improve people’s quality of life and build on the job of the previous government over the past month, including tackling family debts, lowering living costs, preventing crimes, and enhancing the government’s ability to compete on the international level through several projects, including workers skill development and supporting the green and electric economies.

During the debate on Friday, the opposition People’s Party ( PP ) turned the policy declaration into a censure debate when Parit Wacharasindhu, a PP list-MP, told those present that this represented a forum to assess the government’s work in the past year.

Even though a new government was established, he claimed, it is still run by essentially the same social events and individuals.

He claimed that no progress had been made by the Srettha Thavisin management, and none of the five policies he promised to put immediately into action had been regarded as successful.

For instance, the digital handout program has n’t yet been implemented while no new measures have been put in place by the Srettha government to lower household debt, according to Mr. Parit.

He said measures aimed at bringing down electricity costs were only temporary, while the president’s bid to improve the country’s tourism industry had yet to offer as much monetary value as expected.

Mr Parit said he could n’t have any confidence in the new government to achieve any of its policies, albeit nicely worded, over the next three years.

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The tragedy of American wealth – Asia Times

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What I may do, in all its forms.

If I had a little cash

It’s a wealthy boy’s earth

– ABBA

” Paid them off”, he said. That was the strategy for globalization’s losers that a young Washington Consensus priest who was then teaching at one of America’s imperial education jails more than 20 years ago.

He intended that the benefits of globalization would be significant, more than enough to pay off Ohio shop workers whose jobs would be delegated to China. &nbsp,

This young priest founded a auditing firm, rode the industrialization wave to its height, reversed course perfectly, and now advises British businesses and state organizations as a China hawk, achieving higher priest status in the New Washington Consensus.

” Give them off”. We all bought it finally. But simple, so elegant, so reasonable, so quick. Democracies and socialism had undoubtedly discover a way to operate. It was n’t our problem. Our issue was getting past the Goldman Sachs interview’s first square.

Of course, we presently know that there was not going to be a pay-them-off system. The finalists of globalization were going to battle tooth and nail for every last thing the Washington Consensus threw our manner, including those who won shells two and three.

If we had actually sat down and considered it, it ought to have been absolutely crazy right away. Give them off? similar to food stamps and security checks? Or tell them servers? However, nobody actually sat down and thought these items through.

In the end, the losers of globalization were kept afloat in America by debt and lower prices for consumer goods while the Washington Consensus ‘ impact troops hoarded sizable sums of newly created lucre. And I mean huge.

So here we are. The beliefs of the New Washington Consensus are just as well thought out as “pay them off,” as they are. Although professional policy may not interest you, it does bother you.

This brand-new phrase aims to bring attention to the fact that America is a place where everyone must increase up. We are entering the business plan time.

Free business leaves open markets like the US at her disposal because China has been a proponent of industrial policy for a long time. Yes, Japan, Germany, Korea and Taiwan have practiced industrial policy for decades but given China’s scale and ambition, the economic distortions threaten to swamp the world, if they have n’t already.

That’s the tale, anyhow. Let’s get to the idea of the story, though, for the sake of argument: China has been subverting households ‘ needs for decades, juicing consumption while simultaneously lowering manufacturing, all of which ultimately causes China’s exports to flood global markets and deindustrializing America through recalcitrant trade deficits.

National efforts to calm China’s exports while stimulating local production have not yet had the desired effects. China’s exports have grown some 50 % since the Trump levies of 2018. Although substantial quantities are being spent on the CHIPS Act and the Inflation Reduction Act, the first symptoms are not encouraging.

Due to reports of hiring difficulties and cultural conflicts between Chinese supervision and American workers, result from TSMC Arizona has been delayed by at least a month to 2025.

Intel’s collapse is much more troubling. From the appearance of it, the CHIPS Act played a major role in the company’s latest crisis – which may prove philosophical.

Seduced by ambitious industrial policy – which seemingly anointed Intel as America’s semiconductor national champion with a promised US$ 8.5 billion in grants and$ 11 billion in loans – Pat Gelsinger, Intel’s CEO, bet on his company’s ability to quickly challenge TSMC’s foundry dominance. However, it is proving more difficult than hoped, with Intel’s furnace company reporting higher-than-expected costs.

The business is then a victim of a ridiculous Catch 22 situation. Because Intel failed to meet performance goals, the Department of Commerce has delayed the distribution of CHIPS Act money. Intel relies heavily on CHIPS Act cash, but the Department of Commerce appears to have lost faith in the agency’s ability to deliver.

Without making professional policy commitments, Gelsinger would never have abandoned the furnace industry. Without having royally hacked those efforts, the business would n’t be in crisis and the Department of Commerce would n’t have to delay the release of earmarked funds.

A conflicting Catch 22 also applies to the Inflation Reduction Act. The president’s main objective is to lower energy costs by increasing renewables capacity. However, the only way for clean companies to endure in the US is to shut off the British market to China’s producers.

The US increased tariffs on China’s EVs from 27.5 % to 102.5 % and solar cells from 25 % to 50 %. Although the action has mercantilist significance, its potential for reducing inflation is much less certain.

The drama, however, is that America’s fundamental property investment is at the root of trade imbalances, no China’s business policy. China is only altering the situation rather than causing disparity. &nbsp,

A America that has been leaning increasingly harder toward monetizing its plentiful assets and other advantages, tapping the world’s productive power for domestic consumption ( and global military adventures ) has been what the world has been through since the 1970s.

The US arbitrarily abandoned the Bretton Woods system on August 15, 1971, which unpegged the US dollar from gold as spending on Great Society welfare initiatives and the Vietnam War soared in the 1960s and 1970s.

Overeating and subsequent prices threatened to discharge America’s gold reserves. By floating the money, the US could more freely leverage its reserve money with the country’s huge assets, defense might and strong financial markets.

The US money is the world reserve currency for a number of very fine and deserved reasons. With two coastlines, strong property rights, lower population density, and a temperate climate, America is a safe western continent.

Utilizing this investment for investment and consumption is not just financially moral but mostly essential because the nation is a deep pit of attractive assets.

Is it financially feasible for our band of conquistadors to trade coconuts and bananas for building materials and consumer goods if I captained an oceanographic research vessel ( pirate ship ) and discover an exquisite tropical island (uninhabited, I swear )?

Or would it be better for us to sell beachfront properties to Club Med and Sandals Resorts so that our merry band of real estate moguls (vanquishers ) can blitz around tropical paradise in Porsches and Ferraris?

A mismatch between assets and labour contributed to the business imbalance on our exotic island. Our intrepid adventurers (ethnic creams ) were asset-rich but labor-poor.

Unbalanced trade is n’t unbalanced at all. We are converting assets into merchandise. As it should have done, the United States has since formally withdrew from Bretton Woods to finance home use and the Vietnam War.

The US has since increased its leverage on international production by selling claims against its vast array of ever-increasing assets. These transactions do n’t require trivial skills.

Consulting, investment bank, legislation, marketing and real property employ some of America’s brightest minds. Although over-financialization is truly distort value, some might assume that the trade is property for goods rather than assets created by printing dollars.

When the discovery of oil withers various companies on a western level, this is the French condition. The assets with which America is best able to sell are the most useful items.

After World War II, it actually was no place in expanding US manufacturing when foreigners were willing to trade in trade for a small part of America.

The latest noise to stop this deal will unavoidably lead to the “having one’s bread and eating it to” conundrum.

If the US really wants to make solar panels and electric cars at reasonable prices, bankers, consultants, lawyers and promotion managers will need to voluntarily take 40-50 % give cuts to be process engineers, shop foremen, technicians and tube fitters. Is it possible that Intel and TSMC are struggling so much?

Economists frequently forcefully distinguish between products and resources. The only time a commodity trades nets zero does Riccardo’s type of comparative advantages apply to widget trade, which implies that the concept is only applicable to widget trade.

Trade is constantly balanced because distinctive goods from assets necessitates to some value judgments, and as a result, analytical advantage applies to everything.

Thus, asset-rich America develops all the skills necessary to package assets for sale, including those in finance, law, marketing, and consulting.

And it’s perfectly acceptable for a labor-sparing China to acquire manufacturing expertise in exchange for those assets. Although it is undoubtedly possible to halt this trade ( someone might force our island conquistadors to trade coconuts for supplies ), it will cost.

This assets-for-goods trade is, ultimately, the great tragedy of America’s political economy. Although it makes perfect economic sense because there are tons of assets to monetize, it has some issues politically.

The bankers, consultants, lawyers, marketing managers and real estate agents employed to peddle assets are not running semiconductor fabs, EV factories or solar farms. And, as such, the US also does not employ the semi-skilled labor in those nonexistent semiconductor fabs, EV factories and solar farms.

Those workers either make do in lower rungs of the service sector ( i. e. retail, gig work, home health aid ) or are not in the labor market entirely.

Reversing globalization would result in a significant decline in US asset prices because sales to foreigners are artificially constrained. The theoretical impact on GDP could be contained, but the wealthy would have to emigrate to the middle class as process engineers and factory workers for the sake of bringing low-income people back to the middle class.

How likely is it that the incredibly wealthy will willingly accept the fact that a political economy could n’t figure out a way to pay-them-off as globalization produced enormous riches?

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PwC hit with fine and six month China ban over Evergrande audit

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Due to its function on the crumbling Chinese property large Evergrande, PwC’s Chinese subsidiary has been suspended from the state for six weeks.

After Chinese authorities claimed the Big Four’s accountancy firm had helped cover up fraud at Evergrande, it is also facing fines of more than$ 62 million ( £47 million ).

The real estate company filed for bankruptcy in January due to a mountain of debt.

PwC said it was “disappointed” by its Chinese unit’s labor, which it said had fallen “unacceptably below the requirements” expected within PwC.

The Chinese government said PwC knew there were “major mistakes” in Evergrande’s economic statements when it audited the company.

As a result, the Chinese Ministry of Finance has imposed “administrative sanctions” and suspended PwC’s company for six weeks.

Additionally, China’s securities regulator has seized the Evergrande audited profits that PwC earned and has also fined.

According to an investigation by the regulator, PwC had” really eroded the basis of law and good faith, and damaged buyers ‘ interests.”

PwC said it had taken” a number of responsibilities and restorative actions” in response to the sanctions, including the sack of six colleagues and the start of a method to great resolute team leaders.

Hemione Hudson, PwC’s global threat and governmental president, has been parachuted in to lead the Chinese system temporarily after leaving five more employees.

PwC acknowledged that the Evergrande audit’s work had been” well below” the standards set by the business.

There is no room for this at PwC, according to the firm’s global chair Mohamed Kande, who said,” It is not representative of what we stand for as a network.”

” That is why, following a thorough inspection, we ensured that actions were taken to keep those responsible to account.

” I remain convinced in the China agency’s partners and employees as we work up to restore trust with partners, “he added.

Evergrande, which built house in more than 280 Chinese places and branched out into other business industries, teetered, next finally collapsed in January.

Evergrande and its founder, Hui Ka Yan, have been charged by the Chinese authorities with falsely inflating revenues of$ 78 billion ( £61.6 billion ) and have imposed sanctions on him and the company as well.

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Sri Lanka economy posts 4.7% growth in Q2

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COLOMBO: Sri Lanka’s market grew 4.7 per share year-on-year from April to June this year, official data showed on Friday, as the island country made progress in emerging from its worst economic crisis in years. Sri Lanka’s agriculture sector grew 1.7 per cent from a year earlier, industrial output expandedContinue Reading

Emerging markets soon-to-be back in vogue – Asia Times

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For over a century, the narrative around emerging markets has been one of disappointment. Some emerging countries now find themselves trailing behind the developed world, especially the United States, despite being again hailed as the future development vehicles of the global market. &nbsp,

Many of these developing countries have experienced economic slowdown or even analysis as China’s rapid rise has slowed and global commodities prices have slowed. &nbsp, Concurrently, the US market, bolstered by record-breaking gains in its tech field, has retaken middle stage in the world markets. &nbsp,

But, now on the verge of a new global financial cycle, the sea is shifting once again in emerging markets ‘ pursuit. This writer believes should n’t be overlooked or missed because savvy investors are beginning to notice the resurgence of emerging markets.

The emerging earth holds a lot of promise for the upcoming five times. One recent study found that the proportion of emerging businesses poised to surpass the United States in per capita GDP growth is expected to rise to almost 90 %, a high not seen since the early 2000s. &nbsp,

The underlying economic wellbeing of many of these economies is what makes this resurgence so convincing, not just the rate of growth. &nbsp, Unlike in the 2000s, when the emerging world was generally buoyed by China’s increase and a product supercycle, today’s restoration is probably built on stronger economic basics.

A number of reasonable economic policies that many emerging markets have adopted over the past ten years have laid the groundwork for this reversal. &nbsp, Countries that were once plagued by monetary instability, such as Argentina and Turkey, are now embracing transformation. &nbsp,

The times of excessive government saving and accumulating debts are over. Alternatively, many emerging nations have reduced their current accounts inequities and budget deficits, giving them the financial support needed to propel their economic growth in the future.

However, in contrast, the United States appears to be grappling with overstimulation. The long-term viability of American financial dominance is being questioned by record budget deficits combined with rising debt. &nbsp,

For decades, the US has leveraged its position as the country’s supply money lender, allowing it to fund deficits and promote growth with several fast consequences. However, this approach is beginning to show flaws.

The growing stigma of America as a responsible gap contributor may include a wide-reaching impact, especially on the value of the franc.

Generally, periods of US dollars weakness have been positive for emerging industry. As the dollar declines, money tends to flow toward higher-growth markets with lower prices, exactly where many emerging marketplaces stand now. &nbsp,

The US share industry, especially its tech industry, has been a magnet for shareholders over the past 15 years. However, with the revenue growth of big tech companies expected to decline considerably, the appeal of National equities is waning. &nbsp,

In contrast, many emerging markets ‘ revenue growth is picking up, but their share prices are still significantly undervalued in comparison to US. This presents a unique opportunity for investors who are willing to look beyond the typical suspects in international stocks.

Despite these positive developments, the majority of international buyers have not yet recognized the potential in emerging markets. In many of these areas, trading volumes have fallen to their lowest levels in the last two decades, which suggests a general encounter of their improving fundamentals.

This may be due in part to lingering suspicion after the previous season’s weakness. However, the charm of emerging marketplaces is becoming too overstated as the US struggles to meet its growing governmental challenges and the dollar loses heat.

Among the emerging markets with powerful effectiveness are Saudi Arabia and India. Both countries benefit from a stable and expanding base of home buyers, which protects their marketplaces from the dictates of foreign capital flows. &nbsp,

India, in particular, has emerged as a new industrial powerhouse with a rapidly expanding middle class, while Saudi Arabia, driven by its ambitious Vision 2030 program, is making substantial achievements in diversifying its market beyond oil.

However, the opportunities extend far beyond these two nations. Southeast Asia, Latin America, and some of Africa’s economies are the backbone of economies that are not only expanding rapidly but are also improving in terms of governance and financial stability. &nbsp,

Investors who want to capitalize on this growth story should take into account a diversified strategy that targets a broad range of emerging markets as opposed to just one region.

Exchange-traded funds ( ETFs ) and mutual funds focused on emerging markets provide an easy way to gain exposure to a wide array of high-potential economies.

Now is the ideal time to diversify portfolios and position for the future. Despite the fact that they have been obscure for the past ten years, emerging markets are now enjoying a significant recovery.

Global investors must pay attention otherwise they run the risk of missing out on the upcoming boom and bust.

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Can China’s export surge save the day? – Asia Times

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The best economic news President Xi Jinping’s country has received in a while comes from the 8.7 % increase in Chinese imports in August.

The data, which came in significantly higher than the 6.5 % increase most economists anticipated, points to a crucial growth driver for the world’s largest trading country, which is now in desperate need.

According to Nomura Holdings ‘ experts,” the continued strong run of export may really delay near-term policy help.”

China appears to be a clear winner from persistently high global prices, which is boosting the country’s attractiveness in foreign markets. Wei Yao, an economist at Societe Generale, stated that “it truly offers some help to China’s growth.”

The question, of course, is whether the trade engine may continue firing to mitigate robust domestic headwinds. They include a deepening home issue that’s undermining company and home confidence, stagnant wages, negative pressures and great youth unemployment.

The bad news is that export gains do n’t appear to be sufficient to offset the long-term downward pressure on other parts of the economy. The good news: in the short work, rising exports could supply Xi’s staff greater latitude to employ much-needed structural changes.

Finding strategies to regulate real estate markets, repair the stability sheets of large property developers, and balance regional government finances is still a challenge for Xi’s team. Mainland property markets, noted Standard Chartered Bank CEO Bill Winters, have n’t yet found a floor.

The property market has been a slow grind over, according to Winters, who is aware that the property market is the underlying cause of many of the trust concerns.

He continued,” there are some signs from time to time that we’re seeing an increase in activity, but it does n’t feel like we’ve really found a bottom in terms of price.”

Ringing Zu Yu, the president of Shanghai CRIC Info Tech Co, makes another point about the sluggish pace among municipalities in terms of bolstering property markets around the country. ” Regional governments have made gradual headway”, Ding noted.

Imports, process, are proving to be far less strong than exports, a sign that island desire may require a policy-delivered jolt. Although a rate cut from the People’s Bank of China is possible, many academics believe a fiscal boost would have a bigger impact.

According to the Financial Times, investment banks economists believe that China has acquired a US$ 1.4 trillion signal program over the next two decades to rekindle economical growth and prevent deflation from ingraining its roots.

If that number is best, it would be more than double the economic “bazooka” Beijing deployed after the 2008 Lehman Brothers problems. ” The longer that depreciation sits, the bigger the process in terms of reflation”, Robin Xing, general China analyst at Morgan Stanley, told the Financial Times.

Some people think the China-cratering narrative has been a little too much, according to experts and economists.

As Louis Gave, scientist at Gavekal Dragonomics, observes, “it’s hard to find information in the&nbsp, Chinese&nbsp, information that home energy need has taken a noticeable change for the worse”. China’s crude oil imports were up in August, he noted.

” And talk that China’s fuel consumption is down because construction is cratering does n’t stand up well, either”, Gave said. ” Even at its height, the construction sector accounted for less than 4 % of&nbsp, China’s diesel – or gasoline – consumption”.

However, the softness of Chinese exports suggests home demand remains sleepy. The 2 % increase from the previous year on average in August is insignificant in comparison. Lethargic goods, noted analyst Raymond Yeung at Australia &amp, New Zealand Banking Group, “mirrors its poor private demand”.

China’s” strong” trade surplus, Yeung added, may exacerbate” concerns” about mainland “overcapacity”, intensifying the blowback already fomenting among lawmakers in the US, Europe and elsewhere.

Pan Gongsheng, the government of the PBOC, faces a special issue as a result of all of this. Internationalizing the renminbi was a major concern for the Communist Party during the Xi era.

Beijing could become a bigger vote problem in the US, where both presidential candidates have taken harsh aim at China’s trade policies, if more drastic rate cuts are implemented. This will unnerve world markets and cause unrest in the country. Additionally, it may raise the risk of default for Chinese property developers who are unable to pay offshore loan.

Appearing at next year’s Bund Summit in Shanghai, Pan’s PBOC father, Yi Gang, urged Beijing to work with greater policy necessity to maintain customer charges. They should concentrate on battling the negative force, he said.

Yi emphasized that” the key words are: how to boost domestic desire, how to properly deal with the situation of the real estate business, as well as the local authorities debt problem, and how to control the confidence of society.”

The former PBOC head remarked that “at this point, proactive fiscal policy and accommodative monetary policy are important.”

One option is for Pan’s team to further lower reserve requirement ratios for banks further, said Zou Lan, director of the PBoC’s monetary policy department.

The challenge for Chinese policymakers is to manage the housing crisis and ensure that there is enough domestic demand to maintain the high level of economic growth, according to economist Jeffrey Schott of the Washington-based think tank.

According to Schott,” that is so crucial for the Chinese economy and for moving more and more people toward higher standards of living.”

China’s performance so far in 2024 is still marred by weak consumption. In July, for example, retail sales in Beijing dropped 3.8 % year on year. In Shanghai, sales fell 6.1 %.

According to economist Zhang Zhiwei of Pinpoint Asset Management,” the country continues to show divergent trends with weak domestic demand and strong export competitiveness, both reflecting the domestic deflationary pressure.” ” The question is how long exports can continue to grow given the deteriorating US economy and rising trade tensions,” the quote reads.

Strategist Yeap Jun Rong of IG International stated that” the lack of conviction around China’s economic recovery continues to leave investors shunning.”

Consider the$ 6.5 trillion in market value lost from Chinese and Hong Kong stocks since their peak in 2021, a loss comparable to the size of the entire Japanese market.

The issue is that the economy is in a worse place than I thought six months ago, according to Lazard Asset Management strategist Ron Temple, who quoted Bloomberg as saying: “it’s been an incredibly bad period for markets. The longer the government stays silent about initiating significant demand increases, the longer the consumer confidence damage will persist and the harder it will be to stop.

Count Carlos&nbsp, Casanova, economist at Union Bancaire Privée, among those who worry China’s “export momentum in August remains unsustainable”. He stated that” we do not anticipate this trend to continue even though net exports will positively contribute to GDP in August.” Additionally, weak imports suggest that domestic demand is softening.

The export portion of the equation is a positive force for the time being. So are trends in foreign direct investment ( FDI) vis-à-vis top economies like Germany. FDI from Germany into China rose to a record in the first half of 2024, reaching 2.48 billion euros ($ 2.72 billion ) in the first three months of the year and 4.8 billion euros ($ 5.28 billion ) in the April-June period.

This dynamic contradicts German Chancellor Olaf Scholz’s warnings about “growing geopolitical risks” between China and the European Union. Ursula von der Leyen, the president of the EU, has been encouraging European companies to “de-risk” their positions in Xi’s economy.

” The trend is particularly notable for big German corporations, which have ramped up their investments in the Chinese market, which has long been their largest, most profitable single market”, Zheng Chunrong, director of the German Studies Centre at Tongji University, told the Chinese Communist Party-run Global Times.

According to Maximilian Butek, executive director of the German Chamber of Commerce in China, “our data shows that more than half of German companies plan to increase their investments in the country and the vast majority do n’t plan to leave.” This is particularly true for large corporations and the electronic or automotive industries.

Even so, noted UBP’s Casanova, some of the August export surge may reflect a “front-loading response” to the EU’s impending tariffs on Chinese electric vehicles. ” These provisional tariffs”, he said,” will last for a maximum of four months, during which a final decision on definitive duties must be made”.

If adopted, Casanova said,” these duties would be in effect for five years. Additionally, exports of aluminum ( 24.1 % vs. prior 20.5 % ), chemical fertilizers ( 31.6 % vs. prior 15.2 % ) and steel products ( 6.8 % vs. prior -2.4 % ) also saw significant increases”.

According to Casanova,” this trend is understandable in the context of upcoming EV tariffs and a rise in demand for chemical fertilizers in the wake of sanctions against Russia.” Exports to the United States slowed to 4.8 %” versus 7.6 % in the prior month, while demand from ASEAN countries also showed a slight recovery.

The problem, he concluded, is that” a slowdown in major economies, particularly the US and Europe, may diminish demand for Chinese exports in the coming months. Additionally, rising geopolitical tensions in the weeks leading up to the US election in November may lead to uncertainty that could affect trade agreements and market access.

Thanks to geopolitical currents– including the November 5 US election–” China’s latest export push is backfiring”, claims economist Jeemin Bang at Moody’s Analytics. ” Its policy-led ramp-up in manufacturing has sparked protectionism abroad, potentially leaving China with few viable export markets”.

The end result is that while export growth is advantageous right now, it may not be a reliable engine until 2025. That will require more courageous actions to address China’s fundamental problems, such as a persistent property crisis and domestic demand-boosting measures that wo n’t go away.

Follow William Pesek on X at @WilliamPesek

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PM announces policies as opposition criticises progress

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Criticism describes the administration of Srettha as a time of misuse

Described: 12 Sep 2024 at 13: 36

Prime Minister Paetongtarn Shinawatra announces government policies at parliament on Thursday morning. (Photo: Chanat Katanyu)
At the beginning of the day, Prime Minister Paetongtarn Shinawatra makes an announcement about state laws in parliament. ( Photo: Chanat Katanyu )

Paetongtarn Shinawatra, the newly appointed prime minister, made her policy speech in parliament on Thursday night, focusing on measures to improve the state’s economic situation and boost the state’s money.

During her 58-minute-long plan statement, Ms Paetongtarn, who is the president of the decision Pheu Thai Party, outlined plans for complete debt restructuring, especially concerning home and car loans, alongside support for casual debtors. These measures do not sacrifice the country’s fiscal stability, she said.

Through the revision of electricity price structures and the development of new energy sources, the prime minister said her management will also offer measures to lower energy prices and public utility fees.

She stated that the government will continue with the digital pocket handout policy and start distributing assistance to vulnerable groups.

” We may provide equal opportunities for all Thais to eat and live with dignity,” said Ms. Paetongtarn, the youngest child of former prime minister Thaksin Shinawatra.

Following her speech, Natthaphong Ruengpanyawut, head of the opposition-core Women’s Power Party, criticised the Pheu Thai authorities for failing to utilize important guidelines since taking office after the general election on May 14, 2023.

He cited the previous state under former Prime Minister Srettha Thavisin as a time of spend for the people.

Mr. Natthaphong claimed that the digital wallet program had been delayed repeatedly and that the consumers ‘ requirements varied.

He claimed that the government had not yet started discussions with suppliers regarding energy cost structures.

After the Constitutional Court dismissed Mr. Srettha on August 14 for an honest infraction related to his determination to appoint former convict Pichit Chuenban as a secretary in the Prime Minister’s Office, Ms. Paetongtarn, 38, assumed the position of prime minister.

She now has about three years remaining in company, following Mr Srettha’s exit after eleven months and 21 days.

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Trump missed chance to call out Harris on inflation – Asia Times

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The US Bureau of Labor Statistics reported September 11 that” core” inflation ( excluding energy and food prices ) rose 3 % year-on-year.

Yet, nobody believes the display. Most middle-class families say that the same basket of essentials —house, car, food, utilities—costs 10 % more than it did a year ago.

Inflation tops the worry list of American voters, with 62 % saying it’s a “very big problem”, according to a recent Pew Survey. Too much money chasing very few products causes inflation, compounded by the Biden administration’s fiscal money.

If Biden had adhered to the long-term pattern, US national spending would have been roughly US$ 5 trillion. Biden instead offered an additional$ 3 trillion handout in 2021 as a result of a 20 % increase in overall spending over the trend line.

That’s where the income came from to fight the items.

Graphic: Asia Times

When Vice President Kamala Harris proposed a$ 6, 000 child tax credit, a$ 25, 000 home-buying credit and a$ 50, 000 small business credit at the September 10 debate with Donald Trump, the former president might have accused her of playing Santa Claus with an empty sled.

The more freebies for popular divisions, the faster prices will rise. Americans are currently in worse shape than they were in 2021, and if the saving spree continues, their condition will worsen.

Potato chips might not count for much in a middle-class family’s budget, but they now cost$ 6.25 for a one-pound bag, compared to just$ 4.94 when Joe Biden took office in 2021, an increase of 27 %.

A loaf of bread costs$ 1.95, compared to$ 1.50 in 2021. Medium fries at McDonald’s now cost$ 4.19, up 134 % since 2019, and a McChicken sandwich costs$ 3.89, a 202 % increase over the same period.

The cost of owning a new car rose by$ 115 in 2024 to$ 1, 024 a month, according to the American Automobile Association. That’s a one-year increase of 13 %, including the cost of financing and insurance.

If you kept your junk, you paid dearly for auto components to keep it running. A car battery costs 15 %-20 % more this year than last, according to a PBS survey. Car insurance costs 26 % more in 2024 than a year ago and 40 % more than before the pandemic.

In June 2024, Americans paid 16.4 cents per kilowatt hour of electricity, a 29 % increase in a single season. So how does the Bureau of Labor Statistics manage to calculate prices at only 3 %?

According to Lawrence Summers, former US Treasury Secretary, and a group of economists, it calculates inflation incorrectly. For one thing, it does n’t count interest costs.

In the above table produced by Summers and his coworkers, prices is at its highest point in 2022.

Because we ca n’t believe the figures coming out of Washington, we are unsure of the correct inflation rate. But 10 % is a fair guess, based on what middle-class people pay out every month.

Graphic: Asia Times

The private savings charge, which is currently only 2.9 % of disposable income, is a reliable indicator of the problems of US households. That is the lowest in history, aside from a brief period in the middle of the 2000s when Americans aggressively borrowed against what they believed were rising home prices. At the end of the quarter, communities have little left.

Credit card debt is another indicator of how much families are under stress. Since Biden took office, that’s up 40 %, to$ 1.4 trillion from$ 1 trillion. Americans who ca n’t make ends meet use their plastic.

Graphic: Asia Times

Americans are aware of their suffering, and it’s unlikely that a second attempt at shifting from Trump to Harris may improve things.

Observe David P Goldman on X at @davidpgoldman

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The West’s stealthy assault on democracy

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In: South-East Asia

Democratic institutions have been relying on key diplomacy to design or influence governments in weaker says, including by supporting or assisting regime change, with great-power rivalries once more at the center of international relations. These efforts, which are far from advancing politics worldwide, only serve to aggravate its flaws at a time when dictatorship is in decline.

Local army, whether internally or externally, continue to be the main forces behind regime change. In Pakistan, for instance, the military reasserted its standard supremacy over government in 2022, when it engineered the resignation of Imran Khan as perfect minister. In Bangladesh, the military just seized benefits of a violent student uprising to urge Prime Minister Sheikh Hasina to escape the nation before establishing an interval civilian-led administration led by Nobel laureate Muhammad Yunus.

However, frequently times, external forces are instrumental in influencing government change. Well, the procedures remain dark. Interventional powers can reasonably deny involvement, which makes independent analysts struggling to distinguish fact from fiction because strategic skullduggery often leaves any social fingerprints.

However, it is usually very easy to see where an additional power gets its liquidity. China, for instance, is the nation’s largest investing economy and standard creditor for developing countries. While the details of China’s payment agreements are far from open, there is no doubt that it attaches several strings to its financing, which increase its leverage over borrowers, perhaps actually driving them into sovereignty-eroding debt traps.

The United States, for its piece, dominates the global economic infrastructure, enjoys significant leverage over conventional lenders like the World Bank and the International Monetary Fund, and issues the world’s major reserve currency. With these pulleys, it has substantial power to reward or punish states, including by imposing unpleasant economic sanctions.

The US has much been accused of aiding in rebellion or supporting foreign governments, including by meddling in primaries or supporting rebellion. Some claim that the US played a role in the recent destroy of Khan in Pakistan and Hasina in Bangladesh, but they have denied any involvement.

What is the question: What does a democracy like the US hope to achieve by promoting routine change? The answer may be lasting political breakthroughs, which often arrive in the wake of common uprisings. Alternatively, countries are likely to experience political instability, cultural condition, and economic disruption.

A more probable explanation is that Western powers are attempting to improve their own geopolitical and economic passions by supporting “friendly” systems and excluding “unfriendly” people. Although Western powers prefer that there is a pretence of democracy, the regimes ‘ democratic credentials ( or lack thereof ) seem to matter little in this situation.

This helps to explain why military takeovers are usually followed by elections or the assembly, as in Bangladesh, of a government with a human face: military leaders hope to boost the new government’s global legitimacy and, in many cases, maintain access to Western monetary assistance. After all, the US is required by law to stop providing aid to a nation following a coup. US President Joe Biden’s administration imposed stringent sanctions on Myanmar after the military junta’s rule was overthrown in 2021 and, later, began providing non-lethal aid to anti-junta forces.

However, US leaders make the best decision regarding which military takeovers to label as” coups.” The US resisted condemning about half of the more than 20 military coups or indirect takeovers that have occurred in the last 15 years because it thought the regime change would benefit its regional interests. In this sense, the US has often sacrificed democracy at the altar of geopolitics.

Elections alone, even if competitive, do not guarantee the popular willpower or adhering to constitutional laws, especially when the military is in charge. While the international community might view a civilian-led government positively, domestic legitimacy may well be lacking, even when the coup-makers shed their uniforms and rebrand themselves” civilian” leaders, as the Thai army chief did after seizing power in 2014.

Democracy is in retreat globally. Many people are enduring the erosion of their civil liberties and political rights. Even the world’s top democracies are suffering from bitterly polarized politics and low public trust in governments. And closed autocracies now outnumber liberal democracies. Western powers will only help this trend by tolerating or accepting military rule, even under a covert military regime. ©2024 Project Syndicate

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