FORMER prime minister Thaksin Shinawatra said via an online channel named Care Clubhouse on Tuesday (June 21) that it is advisable to hold onto cash and delay investment in high-risk assets such as stocks and cryptocurrencies amid the current global volatility, Sanook.com said.
He pointed to the war between Russia and Ukraine as causing difficulties in wheat exports with this cereal grain being the staple food for many people across the world. There are also concerns that this war could last for years and may escalate into World War III.
“Thirty percent of the world’s consumption of wheat is from the Russian-occupied zone of Ukraine combined with Russia itself. Therefore if wheat supply drops by 30% the world’s food supply will surely be scarce.
“And there are many other things that will follow with oil prices being high and farming not worth it because of low margin plus fertiliser becoming more costly through higher oil prices. Therefore where food is concerned, it is turning into a crisis.
“And then (former president Donald) Trump said, ‘Hey, sending weapons to Ukraine will eventually lead to World War III.’ And what missiles and other weapons is the US sending? If it falls on Moscow the situation will explode and it will drag on,” he said.
For these reasons Thaksin advised people to hold onto cash and liquidate their high-risk assets such as stocks and cryptocurrencies.
“So everyone, pack up and go home, embrace cash. Turn speculative budgets into cash, sell and save. All speculative assets are plunging in the country, across the world, stocks, even of big companies, are falling.
“This is why I recommend that speculators, dabbling in stocks, Ethereum or Bitcoin or whatever, if you can keep money in your pocket then do so. If you are losing a lot hold for now, if you don’t sell you won’t lose.
“If you ask whether you should buy now as the price has dropped to 21,145 (dollar to the bitcoin), it is quite low right, but don’t rush in because if it does not drop further it will go sideways for a while,” he added.
Top: Thaksin Shinawatra now lives in self-imposed exile. Photo: PA and published by BBC
Front Page: Former Prime Minister Thaksin Shinawatra speaks before the press in Tokyo in August last year. Photo: CNN