Bank of Thailand Governor Tarisa Watanagase preddicted double-digit inflation later this year as consumers spend money fast to compete with rising prices rather than lose value by saving.

This spending spree may sound great to mall owners, however the common folk will find themselves struggling to make ends meet, while the mega-rich piss and moan about the deflation of their wealth thanks to the baht’s devaluation. The bank governor also warns that lowering interest rates will only increase inflation, which is a policy the present Federal Reserve Chairman in the USA has repeated to save the stock market at the expensse of consumers.

Prices in Thailand have increased 7.2% during the month of May. Income is flat. I’m living in Palm Beach in a mansion. My earning power has zeroed out for this low season, but the few rich people left on the resort island are hardly worried about the present downturn, sicne they have earned extra billions under the Bush regime’s tax cuts. only problem is that they have too much money to spend.

So now the banks intercede to save the economy.

But for whom.

“If the American people ever allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the people of all their property until their children will wake up homeless on the continent their fathers conquered.”

Thomas Jefferson.

Bank of Thailand Governor Tarisa Watanagase is the first sane voice I’ve heard at the helm of the Thai Bank, however you can read the Thai Visa crowd ranting about the price of beer in the forum.

A Tower of Blather.