Tighten your belt, a meltdown is going to hit the globe - and Thailand

It is reassuring to read that Thailand has net reserves of almost $80 billion, but the global financial maelstrom will certainly affect its economy. Other Thai newspapers and pundits have been almost incredulously naive in this respect, with one Thai banker stating that the "global financial crisis won't adversely affect local banks". Horse droppings, in my humble opinion. Every country and every bank the world over will soon be adversely affected.

Let's look at two aspects of the meltdown that is deeply worrying for the Thai economy: the bad publicity Thailand has received recently has caused international arrivals to drop by 70 per cent, according to the Thai Tourism Services Association; the Thai Hotels Association says that occupancy has fallen by 40 per cent; and the fact that tourism brought in close to $17 billion last year from more than 14 million foreign tourists is almost gone. That is just one aspect of the global meltdown already affecting Thailand and its future.

And when you look at the solutions it doesn't get much better; you only need to read about the Tory Party conference in Britain.

The deeply uncomfortable fact remains that the party depends for its very existence on the financial support of well-disposed private equity tycoons, investment bankers and hedge-fund managers - the self-same men and women who have brought Britain to its knees.

A number of them, indeed, were sitting in the special treasurers' seats in the audience as the shadow chancellor denounced their greed and incompetence.

Without exception, these Conservative financiers will no doubt have been more than happy to be on the receiving end of this mild abuse - just so long as no tough action follows. Like Thailand, the shadow chancellor failed to do enough to confront the money men who, like sharks, surround all political parties. The hypocrisy is mind-boggling.

The worry is the world over that the presence of the financiers who, at the heart of power, will continue to retard politicians from acting effectively to solve the financial crisis, and Thailand should start to prepare for the worst to come.

It is belt-tightening time, for the fall-out will be unprecedented, with no remedy in sight.

MICHAEL BISHONDEN

BANGKOK

PM must explain why Chaiwat was arrested

Prime Minister Somchai owes us the people an immediate and clear explanation on why the police have arrested Chaiwat Sinsuwong, one of the Peoples Alliance for Democracy core leaders, just when political reform is starting.

True, there's an arrest warrant out for him on a charge of treason, but the warrant's been out for weeks now, and for the other PAD leaders as well, so why arrest Khun Chaiwat now?

If there's some clear and present danger from letting him stay free, what is it? Surely Khun Chaiwat cannot do much by himself, so are the other PAD leaders co-conspirators? If so, why not serve the warrants on them, too?

The timing of the arrest, and lack of justification for that timing, makes me think that it was done to heighten tensions, sabotage the building up of trust, and slow down or wreck the efforts to have more public participation in government decisions, which is the alleged goal of our political reform.

I call for PM Somchai to immediately explain the timing of the arrest and either release Khun Chaiwat or arrest his |co-conspirators and put them on trial.

All the best,

BURIN KANTABUTRA

BANGKOK