[THE NEW MYANMAR TIMES] JUST STOPPED OIL!!!

Throughout heaven and earth, Myamnar's greatest strength and weakness has been its major export — OIL. The Burmese Student Warriors, recognising the environmental impacts of sustained oil drilling on their beloved Sumatran Rhinosaurus have recognised this time of chaos as the perfect opportunity for enacting their plans of demolition on Myanmar's largest oil refinery... and they have succeeded. 


It just so happens that the Central Bank of Myanmar had loaned USD 1 Billion to this very company that got struck. With the oil refinery on the brink of bankruptcy, default on the loan is widely expected. Investors on Wall Street see this issue as a potential chance of a bank run running across the entire nation, with the stock market seeing repercussions echoing across all sectors — not just oil. 


With the stock market dropping by 5,8% within 1 day and the exchange rate for the Kyat falling by 4%, severe issues plague once the protected nation of Myanmar in this time of crisis. 


Crises don’t always need chaos — sometimes, they just need smart economics. When strategy meets scarcity, solutions begin to scale

Directors, we sincerely hope that the smartest economist comes out standing from these troubling times... 

Comments

Post a Comment

Popular posts from this blog

[Financial Times] Thai Baht Loses its Peg, Value Plummets

The beginning of an exchange rate-induced crisis in what was a tiger economy  A shocking tragedy befalls the Kingdom of Thailand as the state proceeded to float its currency following its perceived inability to sustain its peg to the greenback. A series of speculative attacks amounted to a sharp depreciation of the Thai baht, sending ripples across interlinked financial systems in the Asia-Pacific region. Notably, huge current account deficits, growing real estate asset bubbles, lax regulations in the financial sector, and dwindling foreign exchange reserves diminished investor confidence in the currency and the economic strength of the country. Inevitably, compounded with rumours of a currency devaluation, speculative attacks largely undermined the Bank of Thailand’s ability to defend the baht, ultimately floating the currency. 
Read more

[Financial Times] Global Economic Crisis: 1-Year Review

We’ll be looking at the current Global Financial Crisis – How it started  and got out of hand and the current situation December 1st, 1998 Once a regional crisis limited to Asia, the current financial crisis has spread across the world like an  infectious plague, like a wildfire ravaging a rainforest. And citizens around the world have all been asking  the same question – why isn’t anyone doing anything about it?   The inaction or sometimes “mis-action” of countries has led to the financial state in countries such as  Thailand and Myanmar to worsen, with Thailand’s economy in complete disarray, with the unemployment  rate climbing as high as 9%. Some Thai youth have, unbelievably, offered to work as janitors in the Royal  Palace to secure employment for themselves. In nearby Myanmar, its desperate pleas for IMF intervention  in its oil crisis were initially heeded, despite infighting and squabbles over technicalities punctuating the  negotiat...
Read more

[Asia Times] Thai Imports at Record Low, Worry Brewing

Trade conditions worsen, exporters panic while domestic producers celebrate   With the further depreciation of the Thai baht, Thailand’s quantity demanded for imports has declined  due to a diminishing external value of the Baht (and hence more expensive foreign goods for Thai locals).  This has led to a fall in export demand for trade partners like Japan and Indonesia, with this impact being  the worst in South Korea. In the past month, South Korean exports of electronics, manufacturing materials,  and even basic construction materials like wood and cement have declined by 10.2% as these  export-oriented industries see their long-term profitability being threatened. Smaller enterprises have been  pushed to the brink of insolvency, with a few companies barely breaking even.  Thai manufacturers are ecstatic about such uncompetitive markets, however the general consumer does  seem to think differently. Prices are slowly rising as well, with the...
Read more