Investment projects seeking promotional privileges from the Board of Investment of Thailand (BOI) during the first six months of this year decrease by 22% from the same period of last year, according to the source from BOI.

Statistics showed 465 projects asking for investment promotion in the first six months of the year, against 596 projects last year. The total projects were worth 183 billion baht, a decrease by 7% from 197 billion baht last year.

Most of the projects are in service business and the public utility industry

Coming second was agriculture and agricultural products at 14.8 billion baht, an increase by 11% from 13.3 billion baht last year. (PRD)

It’s important to remember that we are talking about “applications”… The final figures (AKA the real investments) are likely to evolve.

I think the number of applications is much more meaningful than the total amount.

Anyway. It’s just another Green Shoots.

JANUARY

Bank of Thailand (BoT) deputy governor Atchana Waiquamdee on Wednesday voiced confidence that the country’s economy this year would not experience negative growth, despite the world economic situation, saying the central bank began to witness signs of recovery in the first quarter.

2 FEBRUARY

“We hope that the second and third quarter will be an improvement on the first and we still aim for the whole year to keep growth in positive territory, or at least not in negative territory,” Abhisit said.

27 FEBRUARY

Mrs. Tarisa [Bank Of Thailand governor] views the Thai economy in the first quarter this year as being better than its performance in the last quarter of 2008, and states that she believes the economy will not be in recession because state spending and investment had begun to accelerate.

14 MARCH

Thailand’s economic recovery will be delayed and positive growth might not be seen until the final quarter of this year, later than forecast, Prime Minister Abhisit Vejjajiva says.

30 MAY

The Thai economy began signalling recovery in April despite political unrest and long public holidays, according to the Bank of Thailand (BoT).

BoT Local Economy Division senior director Amara Sripayak said Friday that economic data released in April was better than expected.

10 JULY

The Thai economy is likely to take more than a year to fully recover, Prime Minister Abhisit Vejjajiva said yesterday at the annual meeting of the National Economic and Social Development Board (NESDB).

Voila.

The classic running path of incompetence and wishful thinking.

-stage 1 : denial : there is no recession

-quick admission but then grotesque lie (the BOT announcing recovery in january !)

-then forecasts : okay we are in deep shit, but recovery coming, Q3 will be better, or Q4. It’s coming. Sure. We promise.

-then the sophisticated propaganda machine is running full steam : the famous Green Shoots (I love this stage!).

-then admission of guilt : well… “recovery at least a year away”…

-then… the latest stage : “run Forrest, run”…

Not yet though.

Anyway : july 2009 + 1 year = july 2010. Ah… mister Abhisit that’s very different than “final quarter of this year” ! The question is : what the Prime Minister will say… in july 2010 ?

Alice is in Wonderland. And we are still inside the Rabbit Hole.

How do you say “credit crunch” in thai ? Well, you should start to learn, quick quick, leo leo, chop chop.

Nice, huh ?

(Source Bank Of Thailand, table FI_CB_015_S3).

If you’re new on this blog, or if you want to refresh your memory, read my article… about the data for april.

Credit : the party is over, growth is decelerating

I don’t want to bother people by repeating myself ad nauseam.

But I think the charts are easy to read.

The game is over…

Businesses are bleeding… since several months… Another proof : the explosion of bankruptcies (read my article)… This trend is going to continue… therefore banks will be less and less willing to lend. Too risky. And it makes no sense to lend in order to increase capacities during a recession.

Therefore, in a few months (as soon as next month for businesses ?), we will see a negative growth of total credit year on year.

It’s Economy 101. It’s basic. It’s simple.

And there is nothing Abhisit and all the other clowns can do about it.

This remark applies to virtually the whole world and to all our so called “leaders”… They’re all calling, with hysterical tone in their voice, for more lendings… as a way to solve a crisis created by reckless lendings and cheap money.

It’s of course totally absurd. Even a highschooler could tell. But it’s apparently too complicated to understand for the politicians.

It’s interesting to note that the total outstanding credit to the government… has increased by 57 % in may y-o-y (compared to may 2008), at 134 billions THB. Sounds impressive ?

It’s of course totally derisory compared to credit to businesses (total = 3 768 billions) and to invididuals (total = 2 173 billions)…

In other words, the government can’t fill the holes.… And the holes are just getting bigger and bigger.

Then after, you have to factor in… the negative feedback loop dynamic… less credit will cut the life support for many other companies… will lead to more defaults, unemployment will rise, leading to more defaults, less consumption, less taxes collections, creating more imbalances.

Again, it’s astonishing to see so many people living in Laland and who still believe that everything will be fine, that the crisis is going to disappear, thanks to some magic wand or invisible hand, thanks to Buddha (Jesus, Allah etc.) like it never happened, like if it was just a bad dream…

What is the purpose of Korn ? I mean on this Earth ? Because, on Lalaplanet (located around galaxy ZE 521), the answer is obvious : to make people laugh.

There is something warholian about Korn. Something Fox-Mulder-I-Want-To-Believe.

Korn is so obsessed with Green Shots and “Feel Good Dope Fix” that he’s ready, willing and proud to make totally inane statements. He’s a willing victim of self-hallucinations.

Consider the latest :

The swine flu outbreak has yet to hit the country’s tourism sector and overall economy, according to Finance Minister Korn Chatikavanij.

“The number of commercial airline flights in the country rose by approximately 20 per cent while hotel bookings were about 15 to 20 per cent higher during the five-day holiday,” Mr Korn said on Thursday.

He said fuel usage during the holiday from Saturday to Wednesday also increased.

These indicators showed that people were not worried about the flu outbreak and it did not discourage them from travelling, the minister said. (Bangkok Post)

The buddy of Abhisit (he went to Oxford too) is breaking, meticulously, the barriers of ridicule.

What the hell with those stupid “indicators” (ah ah ah) about flights and gasoline consumption… during the week end ! I mean, it’s breathtaking.

Thai politicians love to throw away figures… +15 % ? Oh la la la, that’s impressive. Of course, they have no idea what they are talking about. Base, comparison point… those are annoying concepts. Better to stick to figures that the plebes can understand. +15 % !

Soon, Korn will come on TV to say that someone bought a chocolate ice cream in a 7/11 on Sukumvit during the last hour, therefore it shows that the recovery is under way and the flu crisis is over !

I mean WTF !

I remind you that Korn is the (alleged) Finance Minister…

The Green Shoots Saga continues, unabated.

Number of “dissolved companies” (AKA = dissolved and bankrupt : LTD companies + LTD partnerships + Ordinary Partnerships) has exploded by 113 % in may, compared to may 2008 !

10 251 companies disappeared from the radar screens in may versus 4 811 the previous year (and 3 125 in may 2007).

It’s unprecedented…

And don’t forget : this is a very lagging indicator (dissolution of a company can take… months… even years to be completed…)… So it’s clearly not a good news.

But no one (even among clowns) should be surprised : businesses face very tough environment… therefore, it’s perfectly normal… many companies are closing. And it could even get worse.

As for the creation, we had -7 % in may year on year.

(Source Department of Business Development)

Anyway. Be cool. The clowns gang, Abhisit, the Bank Of Thailand… they all repeat that the thai economy has bottomed out… and the “recovery” is under way

Sleep well.

It’s the week-end. And like every week-end, we get a load of non-sense coming from Abhisit… thanks to his television address.

Thai Prime Minister Abhisit Vejjajiva said Sunday he is confident that the current five-day public holiday will help boost tourism and help lower the number of influenza A (H1N1) patients in the country.

Speaking during his weekly television address, Mr. Abhisit said the nearly week-long long holiday which began Saturday to mark Buddhist religious days — Asarahabucha Day and the Buddhist Lent Day which fall this Tuesday and Wednesday respectively — could boost tourism although entertainment places have been ordered not to sell alcohol drinks on both days.

The long holidays could also help lower the widespread of the deadly virus because a number of patients were recently found to be students and patrons of entertainment venues, he said.

As bars and nightclubs will be temporarily closed during the holidays, local administrative organisation personnel have been asked to help clean these places in an attempt to reduce the wider spreading of the disease, Mr. Abhisit added. (TNA)

Abhisit is obviously tired, or he’s running out of imagination. Because he said exactly the same absurdity about tourism 2 weeks ago (read here) !

Albeit there is a novelty : public holiday as a mean to fight… the spread of the flu A !

It’s huge.

Apparently, he missed a few classes during his education in Oxford…

People moving around is surely the best way to spread a contagious disease. People in large cities like Bangkok are going to visit their family upcountry… A very nice booster for the virus.

But no, in Abhisit’s Lala world, where honey and smiles are flowing and neurons are an endangered species, holiday will solve the economic crisis, will solve the problems in the South… What else ? Cure cancer ?

One thing is sure : the Prime Minister himself needs holidays… Very long holidays…

It has been long… The police took 7 months to investigate the blockade of Suvarnabhumi and Don Muang airports… Indeed, it was a difficult case, with very few witnesses.

Anyway, as we say : better late than never. Let’s just note that the Red supporters were charged a few days after the violences in april…

Abhisit was fool enough to name last december his good friend Kasit as Foreign Minister… an astonishing mark of contempt.

Kasit was one of the PAD supporters… He gaves speeches in Suvarnabhumi… and he said that the occupation “was a lot of fun”.

Now, let’s see how long it will take Abhisit to… let his friend down.

People’s Alliance for Democracy leaders and other key supporters have been charged with aviation law breaches for closing the city’s two airports, Don Mueang and Suvarnabhumi, during their drive to oust the government last year.

Among those charged with closing Suvarnabhumi airport is Foreign Minister Kasit Piromya.

According to the Manager Online website, 16 people, including PAD leaders Sondhi Limthongkul, Chamlong Srimuang, Somsak Kosaisuk, Somkiat Pongpaibul and Pibhop Dhongchai have been charged with criminal offences in relation to the airport blockades, the most serious carrying the death penalty. (Bangkok Post)

UPDATE

Foreign Minister Kasit Piromya will not stop working although police has obtained an arrest warrant against him, vice foreign minister Panit Wikitset said Sunday.

Panit said Kasit had informed Prime Minister Abhisit Vejjajiva that he would continue working.

Panit said Kasit would return from a foreign trip in one or two days and would report himself to police soon. (Nation)

Classic defiance and contempt coming from thai politicians. Afterall everything is possible in Thailand. A Foreign Minister, formally charged, representing Thailand abroad, would be perfectly normal…

At last a good negative stat !

The Producer Price Index is down 10,54 % in june, compared to june 2008.

I know… I didn’t speak about CPI and PPI… for a long time.

Regarding the CPI, I said why (here)… And for the PPI, well the trend was too obvious (explained here).

But I feel a little update is necessary.

I wrote in february about PPI :

Due to the base effect, we are going to get in the coming months extremely negative values (in % of difference, year on year)…

This is the -10,54 % we have had in june.

Remember, summer 2008…. the Peak Exports… the Peak CPI… the Peak Olympics…the Peak everything… before the big bubble burst… Oil prices were burning… and were infecting a whole range of products due to higher costs.

Barrel was at 150 USD… And today 70… So of course, PPI is going down, year on year.

The item “Petroleum Products” (8 % within the index) is crashing by 44 %. “Food products, beverages, tobacco” (15,9 % of the index) is down 0,8 %.

Only fools look at those figures with fear : lower prices are good for everybody.

What the fools do not understand is that our modern economy is by essence deflationary… it’s called productivity : we do more with less, therefore “prices” (per unit) should go down.

Only the fools are calling for “inflation” (of prices)… Just to save the current order… Just to save their positions and the banks…

Deflation is good. Deflation favors savings and work.

Inflation is for the messy politicians, the debts lovers, the addicted to bubbles and cheap money.

(Source Bureau of Trade and Economics Indices)

Data for may have been published. Time to update our charts.

Source Bank Of Thailand (table EC_XT_002).

First, I remind you that exports crashed 26 ,6% in may, compared to may 2008… in USD. But, thanks to the magic of exchange rate, the fall is “only” -17 % in THB (-16 % in april).

Why I have 2 series ? Because the first amount published by the governemnt (around the 20th of each month) is in USD. And then, 10 days after, the Bank Of Thailand publishes all the datas.

Personally, I prefer to speak about exports in THB. Why ? Because this is actually the real money that goes into businesses pockets… It gives a better view of the situation on the ground.

Now the chart per country of destination (or zones).

And now the X chart, the % of change compared to “Peak Exports” (july 2008). It’s getting better, albeit Japan is still off by 30 % and Asean by 20%.

About 20 members of the Metropolitan Electricity Authority (MEA) labour union went to the Finance Ministry on Wednesday to demand that the ministry play its outstanding electricity bill of 7.53 million baht, which fell due on May 31.

Head of the MEA labour union Pien Yongnu said his members would cut off the electricity supply to the ministry if it fails to pay the bill within seven days.

He said he was acting in the interests of the MEA.

The union would also send representatives to other government agencies, all of which have failed to pay their bills. The total amount outstanding was 1.02 billion baht.

Mr Pien said that the demand had nothing to do with the government’s foot dragging on paying a 2,000-baht a month cost of living allowance to MEA staff. (Bangkok Post)

There are several important information in this article…

-1- the government is broke. Cash flow problems... Can’t pay the bills.

-2- it’s proven now : Thailand has also inane labour unions… for that matter, France, UK or USA don’t have the monopoly anymore. Bravo.

-3- thai labour unions think they own… the companies. So much that they are not afraid to act like the managers of those companies.

-4- thai labour unions consider perfectly normal to use blackmail… even against the state !

-5- thai labour unions have a great sense of humor… No the threat to cut the power has nothing to do with the scandal of the monthly living allowance….

Just another perfectly normal day in Thailand.