Richard Werner
speaker
4,694 appearances
9 recordings
3 series
first heard Jul 2025
last heard 22 May
Richard Werner’s voice in public audio — every appearance, attributed to the second.
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recordings per month · last 12 monthsRecordings per month over the last 12 months — 8 in all, peaking in Apr 2026 with 6.
Appearances
And at the same time, as I could show in my work on this, they raised the domestic interest rate above the dollar interest rate and allowed companies, you know, current account open, deregulated, allowed companies to raise money in dollars.
Well, if there's a fixed exchange rate, the dollar interest rate is lower than the domestic interest rate,
They're basically, the Thai central bank was telling Thai companies, borrow in dollars, please, which doesn't make sense.
It's not a good idea.
Even short-term borrowing in dollars was increased by the central bank in this setup.
And then all you need as then foreign debt increases and increased and increased, all you need is a bit of a setback in the economic growth in exports, for example, foreign exchange reserve going down a bit, international investors, this is not sustainable, building up this debt pile for no good reason.
And that's what happens.
Then, of course, speculators attack the Thai baht.
And the central bank defended the baht, which meant it was selling foreign exchange reserves, selling dollars, buying the baht.
Of course, the dollar pile went smaller and smaller until you run out.
They defended the baht, they said, until the last dollar.
And then what?
Well, then the bar collapses, and this is what happened.
So it was a crazy strategy.
I also found out that during the same time, the central bank even imposed loan growth quotas.
You know, this is the window guidance central bank...
informal guidance of bank credit, which when used properly is part of the high growth system.
You can make sure that bank credit goes to productive business investment, leads to growth.
But you can also use it for bad things, as I show in my book, Princes of the Yen.
The Bank of Japan used this mechanism to force banks to increase real estate speculative loans, create a real estate bubble, which you can use to bust the system.
Showing 441–460 of 4,694 · page 23 of 235
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