Day: December 19, 2006

Thailand in the economic news

No idea what to make of this, but in case it’s of interest to any of my readers:

Thailand Abandons Limits on Foreign Stock Investments (Update6)

By Suttinee Yuvejwattana and Margo Towie

Dec. 19 (Bloomberg) — Thailand scrapped currency controls on international stock investors one day after their imposition by the central bank prompted the biggest stock market plunge in 16 years.

The government lifted a requirement that banks lock up 30 percent of new foreign-currency deposits for a year for funds earmarked for stocks, Finance Minister Pridiyathorn Devakula said in Bangkok. The rule, intended to slow a 16 percent gain in the Thai currency this year that threatened exports and economic growth, sparked investor selling that wiped out $23 billion of market value in Thai stocks.

“It’s the economy, stupid.”

Via AMERICAblog:
Wholesale prices surge; Housing rebounds

WASHINGTON – Inflation at the wholesale level surged by the largest amount in more than three decades in November, reflecting higher prices for gasoline and a host of other items.

The Producer Price Index, which measures inflation pressures before they reach the consumer, was up 2 percent last month, the biggest advance since a similar increase in November 1974, the Labor Department reported Tuesday.

Economists had been expecting a rebound in wholesale prices following two months of big declines. However, the 2 percent jump was four times bigger than the 0.5 percent increase they had forecast. Even excluding volatile energy and food prices, core inflation posted a 1.3 percent advance, the biggest jump in 26 years.

Emphasis above is mine. What a great economy we’ve got, eh? Between this and the quagmire in Iraq war, Bush is looking like he is trying to out-Nixon Nixon.

%d bloggers like this: