The year 1997 is never far from the thoughts of many Thai businessmen and economists. That was the year financial markets forced Thailand to abandon its currency peg, and the Thai baht fell from 26 baht per dollar to 56 baht per dollar. In the US, this devaluation is mainly remembered–if at all–as precipitating the collapse of the once high flying hedge fund Long Term Capital Management. Here in Thailand it is remembered for its domestic consequences, especially the transformation of the Thai economy into one heavily dependent on tourism.
For Thais, 1997 is ripe with meaning–psychological, financial and even metaphysical meaning. The Thais view the events of 1997 in religious terms, as demonstrating the cosmic justice central to Buddhism. Years of unsound economic policy had resulted in the accumulation of bad karma. The painful adjustments that followed were the working out of this imbalance, making merit for past excesses.
It’s not quite standard monetary theory but before you laugh at the Thais for their superstitions, remember that a Red Sox fan recently attempted to curse the new Yankee Stadium by burying a David Oritz jersey in the foundations. And the Yankees, as if in competition to prove they are even more superstitious than Sox Nation, formally “excavated” the jersey. And while it might seem odd that the Buddhist Thais have defied the market process that forced them to devalue their dollar, they are hardly the first to incorporate Mammon into their holy pantheon. And the lessons about monetary excess that they’ve learned serve them well. In fact, sitting in a cafe in Chiang Mai, listening to this theory of time, money and karma, I couldn’t help but be reminded of the work of both the Chicago and, especially, Austrian schools. And I wondered if Ben Bernanke might want to take a couple of lessons in Buddhism.
–John Carney, who is in exile in Thailand, thinks superstitions are bad luck.
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- Use the Bloomberg command
NH BLG_DEALBREAKER <GO>
to access Dealbreaker
Yaaawn. Why are you running with this garbage when you could have been running with the Richard Quest scandal. Two days and nothing. You have given up some very low hanging fruit.
Yaawwwn. I can’t believe you are writing about this drivel with low hanging fruit like the Richard Quest scandal available. Two days after the fact and nothing on this. Very disappointing.
Sex and drugs has no place here at DB.
John seriously if this is the kind of thing you are doing on your vacation you may as well come back to work.
(but it is interesting. just looking out for you big guy)
JC was high on pot writing that…bet a sixpack on it
I still like it. Johny boy, I’ve missed you.
Give the guy a break. He needs to post something so his vacation gets paid by DB.
I’ve always found Austrian Business Cycle Theory to be very Middle-Way-esque.
I would’ve preferred something on Thai baths than Thai bahts.
Thadius R. Rogers
Financier/Evaluator of Talent
Thank God Carney is not reporting on the Vietnamese (SP?) Dong. I just could not bear the dumb jokes and comments.
BTW – PE is doing a great job, careful Carney! You are missed but, damn, your replacement is good.
Though I see your angle, vaca in the Far East, next thing you know it, you are Far East correspondant.
Hope it works out mate.
JC, when you order pizza and the bar girl asks if you want your pizza “happy”, say YES. They bake weed into the pizza. “happy happy” pizza, on the other hand, is spiked with shrooms…
Don’t listen to the buzzkills, Carney, I liked this post. I demand more trippy anecdotes from abroad.
I can only eat Thai whenever I’m in Thailand. Thai food in the States really, really sucks. Even the high end places do not serve the real thing.
Please don’t tell me you’ve been eating pad thai while you’re there.
I love this salad made of crispy catfish and green mangoes. I forget its name.
And tapioca dessert wrapped in banana leaves shaped like a little cupcake.
@3:12. You are so sophisticated. What’s it like being so cool?
The derivative of the Vietnamese dong is the American schlong. Many Viet women will intervene in the market to lower the size of schlong value as a function of elevated dong payments. If you are long dong expect a shortened schlong. The index is called the OLDS, or One Long Dong Schlong.
A man’s in bed with his Thai girlfriend.
After having great sex, she spends the next hour just stroking
his willy, something she had lovingly done on many occasions.
Rather enjoying it, he turns and asks her, ‘Why do you love
doing that?’
She replies: ‘Because I really miss mine’.
The baht is now traded at 31.3/USD. It has 50% appreciated against USD since the peak of 1997 crisis.
Latest pictures of Bangkok.
http://www.thailandbilder.se/bangkok…d_panorama.jpg
http://farm3.static.flickr.com/2132/2421153838_0b22b9b049_b.jpg
wrong link
http://www.thailandbilder.se/bangkok-thailand_panorama.jpg
@ 9:36, wow, had no idea, thanks! (no sarcasm this time)