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Debt Management and Measure For State Output

In an ancient story, a beautiful woman with a male partner wants superpandai. The hope, one day to live comfortably, have descended gracefully as smart as his father and mother. This road was taken because it's so tempting. Instant, fast and efektif.Seperti decision to cover the gap owes the state budget deficit that was allegedly capable of being a fiscal instrument that can create economic multiplier. So can the debt be the solution to build the capital? Would not be the determinant of the effectiveness of the allocation of construction debt itself?

End of March 2009 Indonesia's total debt reached 151 billion U.S. dollars. This debt is equivalent to 33.9 percent of GDP. In terms of volume, the debt is within the safe threshold. But in terms of usage, 66 percent used to finance non-tradable sector, where 59 percent is used by governments, by 5.8 percent and 1.5 percent of the banking sector by the monetary authorities. Only 33.4 percent are used for the tradable sector.

From this we understand why it owed so much controversy. This means that debt policy is not matched by effective allocation of debt are not able to push the tradable sector. Indicators are in line with the ineffectiveness of debt using the weak visible absorption of labor in the manufacturing sector is only 420 thousand workers. Compare with absorption beyond the social sectors that 1.82 million workers.

Investment Multiplier

So why is owed? Debt can still be justified when it aims to boost national output by improving the capacity of national production. Thus debt can be likened to take advantage of future profits as current or capital Investment multiplier.

Unfortunately this is precisely the ideal excuse not apply. The new debt is much more absorbed by the government allocated to cover the debt burden of the past which in turn would increase the budget deficit. The circle has been running budget deficits for a long time and still seem to regard government debt is the only way out to get out of the crush of the deficit. Though the crush of the deficit will not be resolved with the allocation of debt owed if it is not effective.

Some say the purchase of debt securities and government bonds by foreign institutions on a large scale often aims to reduce their exchange rate and strengthen the domestic exchange rate. In turn, the strengthening of the rupiah through the effect of external factors that would intimidate the domestic industry. As a result, exports will weaken and fertilize imports. Strengthening of the rupiah should be formed of the better domestic skills and not because of external factors.

Increase in domestic investment should also be balanced by an increase in domestic savings. The phenomenon of home bias should continue to be able to continue to strengthen. Home bias is the tendency of small investors to invest his savings in the country even though it means missing investment opportunities abroad. When the correlation coefficient close to 1 means that home bias state savings would be equivalent to investment.

At this point the debt will be able to be a fiscal stimulus that stimulates an increase in investment financed by domestic savings, businesses and governments. Investment to build the plant, equipment, spare and housing will be able to suppress the external imbalance. From this point reduced the deficit and debt will go down by itself.

In addition, the debt needs to be pursued in order to become prohibitive factor of domestic capital flight abroad. Conditions such as this in itself will create more competitive markets so that investment risk is reduced.

Comparative Equivalent

Regardless of the pros and cons of debt, which must be addressed instead focuses on the effectiveness of its use. Capability that is created by comparing the apparent proportion of Indonesia's debt to the proportion of debt to GDP of developed countries like Japan, which reached 170.4 percent of GDP, Germany (62.6%), United States (60.8%) or Canada (62, 3%) would trap us in the longer an error on the allocation of resources for development expenditures. This error will also create a vicious cycle of budget deficit.

It seems it would be wise if we are comparing the proportion of debt to our GDP by emerging market countries such as India (18.9%), China (11.6%), Brazil (18.7%), Thailand (26.5%), Malaysia (29.4%) or South Africa (15.8%). Even the ratio of interest and principal payments of debt to export earnings (debt service ratio) of these countries is far below us. If Indonesia has a ratio of 10.5 percent, India, China and Malaysia is only 4.8 percent, 2.2 percent and 4.6 percent.

Basic decisions are indebted emerging market countries to increase national production capacity through investment in tradable sectors. Debt, for them, would reinforce macroeconomic stability so that policies do not lead to increased debt risk premium. But the debt remained their place as the final settlement to cover budget needs.

Then what about Indonesia? If the debt difficult to avoid, make sure the allocation does not deviate. Deviations from the original purpose of the allocation of the debt trap us in government instead of more severe failure. Investment multiplier is expected to actually change the direction of a debt trap which upsets the balance of the domestic economy.

We all hope that the debt policy failures caused by improper disalokasi debt, did not happen as the story of beautiful women who choose the super smart, if it eventually gave birth to a child stupid and ugly.
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World Bank For The New World

Now the world is at a crossroads. The choices are together against poverty, resource depletion, and climate change, or face war after war for resources, political instability and environmental degradation.

The World Bank, if properly led, could play a major role to avoid these threats and risks that brings. The stakes this summer is crucial, as the World Bank's 187 member countries to choose a new president, replacing Robert Zoellick whose term expires this July.

The World Bank was established in 1944 to promote economic development, and now may be said almost all countries belonged to this world body. The World Bank is the central mission of alleviating global poverty and the global construction ensures a healthy and inclusive environment in terms of the social side. Achieving this goal will not only improve the lives of billions of human beings, but also prevent violent conflict is fueled by poverty, hunger, and the competition to win the resource-scarce resources.

American officials, according to his custom, looked at the World Bank as an extension of foreign policy and commercial interests of the United States. With the location of the World Bank which is only two blocks from the White House on Pennsylvania Avenue, it is easy for the United States to dominate the institution. Now many members, including Brazil, China, India, and several African countries, have voiced support for a more collegial leadership and improvement strategies that bring benefits to all.

Since the founding of the World Bank to this day, the unwritten rule that applies is that the government was the Americans who appoint each new World Bank president: during this 11 President of the World Bank is an American, and none of them expert in the field of economic development a core responsibility of the World Bank, or tread career in the fight against poverty or promote environmental sustainability. In contrast, the United States selects the candidates of this World Bank President from among Wall Street bankers and politicians to ensure that World Bank policies in line with U.S. commercial and political interests.

But this policy has brought about a result that is not suspected by the U.S. and is very detrimental to the world. Because of the lack of strategic expertise in the leadership summit, the World Bank does not have a clear direction. Many projects have been directed to U.S. corporate interests, not to the sustainable development. The World Bank has completed many construction projects, but not a lot of resolve global problems.

Too long have the leadership of the World Bank to impose American concepts are often poorly suited for poor countries and poor people. For example, the World Bank have failed at all to handle the explosion of AIDS pandemic, tuberculosis, and malaria around the 1990s, failed to deliver aid where it is most needed to curb the explosion of these diseases and save millions of lives.

In fact, even worse, the World Bank recommends wearing fee and "cost recovery" for health services provided, thus placing health services to save lives is beyond the reach of poor people in poor countries, those most in need of assistance. In 2000, the AIDS Summit in Durban, I recommend the establishment of "Global Fund" to fight these diseases, it is the reason for the World Bank did not do a proper job done. Global Fund against AIDS, tuberculosis, and malaria was successfully formed, and since then has saved millions of lives, which in Africa alone, malaria has dropped at least 30 percent.

The World Bank also lost a crucial opportunity to help small farmers and promote integrated rural development more evenly among rural communities in Africa, Asia, and Latin America. For about 20 years, from 1985 to 2005, the World Bank against the use of aid to the target that has proven successful for small farmers to enable them to increase productivity and get out of poverty. Lately, the World Bank has increased assistance for small farmers, but still more that can and should do.

Personnel who manage the Bank's staff are people who are very professional, and will do more if freed from the domination of U.S. leadership and a narrow view. The World Bank has potential as a catalyst for progress in key areas that will give shape to the future of the world. Priorities should include agricultural productivity, the mobilization of information technology for sustainable development, the application of low-carbon energy systems, and quality education for all through greater reliance on new forms of communication for hundreds of millions of students who are not served.

Activities of the World Bank now touches all these areas, but he fails to lead effectively in those areas. Despite the ability of the World Bank staff is high, it is not in a strategic position or energetic enough to be effective change agents. Creating the World Bank to play its role properly requires hard work, which requires expertise in the top leadership.

Most importantly, the new President of the World Bank should have professional experience firsthand the many challenges of the development. World do not accept the status quo that exist today. World Bank leader who once again came from Wall Street or from the U.S. political circles will give a heavy blow to the world that require creative solutions to complex development challenges facing today. The World Bank requires a proven professional, ready to handle the challenges of sustainable development from the first day.

World Bank leader who once again came from Wall Street or from the U.S. political circles will give a heavy blow to the world that require creative solutions to complex development challenges facing today.
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Debt Management Tips

Debt between the rich and the poor have different characteristics: 1) The Rich owes to buy productive assets or property, while the debt to accumulate assets miskinber consumption, 2) the rich pay the debt mamakai income from productive assets (passive income) while the poor to pay the debt of its income (active income). Due to the strict management of debt, your life will be much more secure and comfortable, and able to invest for the future. Here are some tips you need to know to manage debt:
1. Payable only for unexpected needs and can not be postponed, for example a family member is sick or school purposes.

2. Debt to purchase productive assets and their value continues to increase, such as houses, land and gold. Try not owe it to buy mobile phones, shoes, electrical appliances, clothes, bags and accessories for body and home furniture. Because these items have a tendency to decline in value.

3. Debt limit is 30% of your income.

4. Pay your debts on time and pay attention to / trim administrative and documentation associated with the debt.

5. Do not cover the debt owed by another (closed hole dug holes). Unless you have taken into account properly all the excess and the fees charged.

6. You owe the order should be prioritized in the order starting from the safest, namely: spouse, parent, sibling, friend, pawn shops, banks, leasing and loan sharks. But if you need money and you are not comfortable to borrow money, sell assets sebainya sacrifice and you are still valuable (eg gold), than you borrow from a few places that will charge very high interest rates and hurt you.
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Debt Management Help You To Lead Lives Free Of Debt

Uncontrolled spending results in debt, which to some extent can be tolerated. But sometimes Debt needs to be managed to keep them in this level. The process involved is known as debt management that uses several techniques to reduce the amount of debt. Debt Management can be defined as an informal process of negotiating with creditors to get lower interest rates charged or to reduce the contractual payments. The negotiation process involves providing proof to the creditor that the debtor has sufficient funds to meet all debt obligations.
WASHINGTON - January 7: U.S. President-elect Barack Obama told members of the news media to remain seated as he arrives to announce his choice for Nancy Killefer 'chief performance officer "during a press conference at the transition headquarters January 7, 2009 in Washington, DC. A former Treasury assistant secretary of the Clinton administration, Killefer is a senior director for McKinsey & Company, a management consulting firm. Officials said Killefer will be key in putting the administration on the path to fiscal discipline, especially in the face of what Obama said could be trillion-dollar deficits for years to come.

Debt management is for anyone and every one of those good credit to people bad credit for people with bankruptcy. Debt management not only helps in reducing the borrower's monthly payments, but it aims to eliminate all debts. There are a number of debt management agencies in the financial markets today. They have a debt management plan for the debtor. This debt management plan helps the debtor to pay the debt on an affordable amount. There are plans available for the management of debt such as debt counseling, debt consolidation loans, debt consolidation mortgage to name a few. This plan was formulated by representatives or consultants debt management. Debt management plan incorporating all individuals unsecured debt into a single monthly payment which is then paid to creditors on a pro rata basis over an agreed period of time. debt management consultants are trained to calculate the amount of financial assesses the debtor. It may be a difficult task to choose the best debt management services. Always looking for debt managers who can offer these services at low cost with maximum benefits. You can search for debt management agency in your area are also on the Internet. In fact, debt management can make you debt free, but it is important for you to maintain discipline in your life so you may not fall into the trap of the same debt in the future.
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