HOT: Thailand Military Declares Martial Law

This is getting to be very interesting. Thailand has a credit bubble and has been now suffering from an economic slowdown in the face of an escalating political crisis from contending parties aiming for complete control over Thai politics. And now the Thai army intervenes and imposes a nationwide martial law while saying “Martial law is not a coup,”

From Bloomberg:

Thailand’s army imposed martial law nationwide after months of political turmoil that brought down an elected government and tipped the economy into a contraction.

“The military wants to keep order in the country and asks people not to panic and lead normal lives,” according to a ticker running on Channel 5, which is owned by the Thai army. “Martial law is not a coup,” it said.

The latest move is the army’s most direct involvement in the Southeast Asian nation’s politics since 2006, when then-premier Thaksin Shinawatra was removed in a coup. Martial law already is in place in parts of southern Thailand, and then-Prime Minister Abhisit Vejjajiva briefly declared it over Bangkok in 2010 to quell anti-government protests.

Political polarization has escalated in the past decade and a half over the role of Thaksin and his allies in a nation that’s seen 11 coups since the end of direct rule by kings in 1932. Thailand has been without a fully functioning government since December, when then-premier Yingluck Shinawatra, Thaksin’s sister, called snap elections in a bid to ease the unrest.

The February poll was disrupted by anti-government protest leader Suthep Thaugsuban’s followers and the government and election officials were unable to schedule a new one before Yingluck was removed on May 7 after a court ruled she abused her power in office. Anti-government protesters have derailed plans for a July 20 election and the army had said previously it may use force to counter any escalation of violence.

For the don’t worry be happy crowd, military takeover via a martial law or a veiled putsch will signify as a nonevent or even a positive development. Never mind if the Thai military may impose a dictatorship who might lay property rights at the altar of sacrifice in the name of stability. 

And funny but wasn't the recent lowering of interest rates by the Bank of Thailand suppose to support the economy (by helping solve the political crisis)? What happened? 

Nonetheless, for the hunky dory crowd, stocks has been preordained to go up.