Indonesia’s debt may not be as much as aforesaid if only the Government boost one of the potential for an enormous State revenue derived from underground economic activity or underground economy.

In economic theory, the underground economy is often also referred to as shadow economy, informal economy, parallel economy, or also the hidden economy. Therefore there are activities that are illegal, underground economy are often also known as the black economy.

The principals in this business makes a profit in a way not a healthy competition in the market, but by inviting power or power to affect the taking of a value that is not compensated.

Economic practices-rent also associated with the enterprises to set up the regulation of the economy through the lobby to the Government and Parliament. Ecstatic behavior poaching rent in theory can be distinguished by  hunting spiders, where a person seeks added value through profitable transactions.

Criticism of the concept, among others, is that in fact there is a difficulty in distinguishing the hunt for profits with poaching rent.

According to Gordon Tullock who was the first economist who discusses the “Theory of Economic Rent-seeking” that behavioral economics is likely to occur in those who are in control of monopoly structures. In the sectors of the economy he was hogging resources, distribution and markets while in the public sector to be in Government and policy control of the legislature.

In the early 1990s, Indonesia University economist Arief Sritua has raised a question of the black economy in Indonesia. That meant the black economy here is part of the underground economy (underground economy) containing the activities of the informal economy.

Potentially Very Large
When Indonesia experienced a prolonged crisis since the second half of 1997, the underground economy issues attracted attention again. Some studies show that during the period of transition and economic crisis, the underground economy in a region or country are likely to increase. In the developing world, the underground economy activity contribution to GDP reached 35-40%, and in developed countries reach 14-16%.

In Indonesia a potential underground economy as well as great as reflected in Table-2. If only the proportion of underground economy in the developing world reached the range of 35 to 44% of the total GDP of Indonesia, that means its value is greater than Indonesia’s debt by 2011 which only amounted to 26% of GDP.

If countries, in this case, the Government of the State earnings boost underground economy activities, either through a pardon or amnesty, tax relief and tax revenue we certainly increased very significantly, we certainly do not have to endure the debt piled up at a cost of USD $ 1,724 trillion a year.

So, we expect revenue in the State following years could rise from the underground economy activities that can be used for budget development, without having to borrow abroad again.

The Euro rose above the level of 1.30 dollars on Monday local time (Tuesday am PM 24/1), in the middle of the progress reported in talks Greece’s debt and traders are still covering a short run in European currencies. While traders said they did not predict the news that would boost the dollar from a two-day policy Board meeting of the Federal Reserve AS beginning on Tuesday.

At 22: 00 GMT (05.00 PM Tuesday), the euro traded at 1,3027 dollars, compared with 1,2933 dollars at the end of Friday.

The Euro rose to 100,31 yen 99,61 yen, while the dollar was flat at 76.99 yen.

Growing expectations for an agreement on “private sector initiatives” to trim Greece’s debt load after an outline deal on offer on Monday to the EU, that will bridge any deficiencies in finance Greece.

“I am confident that we can conclude negotiations as soon as possible, hopefully in PSI, this week,” Eu Economic Affairs Commissioner Olli Rehn said.

Some traders doubt the fundamental basis of rising euro, but said sentiment in politics can still be sent higher.

“From the perspective of pure fundamentals, I think the euro does not record events that mean before,” said John Kicklighter from DailyFX.

However, he added, “given the depth of the plummeting euro … rebound bigger won’t be too hard to facilitate.” Kicklighter shrink hope every action market harder than the Federal Reserve.

“This special Meeting is an event unique in that they will start generating the estimated interest rates along with their updates on the growth and policy stance,” he said.

But, he said, “the potential for real impact though came from an unknown-speculations and advances on QE3 ‘ hopes of revival ‘ to the euro.” Most analysts said they did not expect the Fed to start a “QE3″ – new bond purchase program aims to further depress interest rates.

22: 00 GMT the dollar was bought on 0,9269 Switzerland francs, down from 0,9340 francs on Friday. United Kingdom Pound slump to 1,5567 dollars from 1,5575 dollars

First, a company will divest (sell) a business that is not part of the main operational area so that it can focus on business areas can best do. For example, Eastman Kodak, Ford Motor Company, and many other companies have been selling a wide array of businesses that are not closely related to its core business.

The second motive for divestment is to gain an advantage. Divestment result in better profits for the company because it is an attempt to sell the business in order to earn money. For example, CSX Corporation divest to focus on its core business is the construction of the railway as well as aiming to make profits so that it can pay its debts at the moment.

The third motive for divestment is sometimes believed that the value of companies that have done it (selling a particular business them) is higher than the value of the company prior to divest. In other words, the amount of the value of the asset liquidation of the company exceeds the value of the private market when compared to the company at the time prior to divest. This strengthens the company’s desire to sell what it should be worth rewarding than terlikuidasi at the time before the divestment.

The fourth motive for divestment is a business unit is not profitable anymore. The business units that run away from the core competence of the company, then it is likely to fail in its operation.
[edit] Divestment method

Some companies use technology to facilitate the process of divesting a number of divisions. They publish information about divisions anywhere they want to sell on their official site so it can be seen by other companies who were interested in purchasing Division. For example, Alcoa has established an online showroom featuring the Division they are selling. By making online communication, Alcoa has reduced the cost to finance divisions on hotels, transportation, business and Affairs of the meeting.

It looks great, but the original price of the goods were actually expensive. Call it branded bags. The price there are tens of millions. However, because 50 percent discount you become hooked and also buy, for various reasons, including want to own branded goods as prestige. What ensues is a regret. Because, you do not actually need these branded handbags and more, is not included in your financial planning. Your financial decisions based solely emotional.

Second Impact, financial decisions should see the impact of short, medium, or long. Suppose you do not already have a house and still live in a rented house. On the other hand, the lease rental house was big enough. Then can the question arises, whether to continue contracting, while waiting for an increase in income and can afford to buy a house someday, or now you plan to buy a house with a bank loan.

The choice of contract or buying a home will obviously impact the long term. That is, if you buy a house, one of your financial goals will be achieved soon. However, on the other hand, you will also take on debt in the form of mortgage loans which are also long term.

So, which one is better? It’s simple. If you keep renting, you have no debt, but also do not have a home. While on the other hand, some of your earnings will be eroded to pay a rental fee or contract houses. As for if you buy a house, you need not pay rent anymore, but your expenses will be allocated to pay the loan installments. Expenditure on the one hand with assets on the other. Clearly this is a better choice.

There are still many people who make financial decisions not based on rational considerations, but rather is driven by emotional impulses or just sheer. There is also a financial decision that does not come from ourselves, but because of the encouragement the environment, whether it be family or friends. Is that wrong? It is not always wrong. Provided the decision is in line with rationality. But in practice, financial decision solely based on emotional usually end up with regrets.

financial objectives
There are several factors that should be considered before making a decision. First, the decision must be part of an effort to achieve financial goals. The most simple, for example, the decision to eat at the restaurant. Eating is part of the consumptive needs. In financial planning, of course there is the allocation of how much of your income to meet consumer needs. Well, when you decide to eat at a fancy restaurant, it must be ensured that these measures do not undermine the budget allocations that have been prepared.

Indeed, eating in a fancy restaurant might be trivial. For some people, the numbers do not amount to much. However, if it is done repeatedly, without any budgetary allocation, in turn, will inevitably disrupt the overall financial condition. Moreover, if such behavior is made ​​using a credit card. The number of new spending will be known when the credit card bill arrives.

Your investment will get maximum results if you can choose when the best time to buy and sell your investment assets. However, the method known as market timing, is not an easy thing, because you certainly will have difficulty in determining the right time to invest. For example, you feel that the stock price X yesterday was very cheap, because it fell 5%, so you buy it. However, today the share price of X falls again to 10%, so you regret why you did not buy it today only, while the money you’ve invested entirely.

To overcome this problem, you should use cost averaging method of investing in investing. Cost averaging is an investing technique routinely and periodically regardless of economic and market conditions. Thus, you should not panic if the prices of domestic goods rises or stock prices sag. By using the method of cost averaging, you simply invest a fixed rate on a regular basis each month in a certain period of time so that you will earn an average value of the principal investment is lower.

Why did it happen? because when prices are rising, the amount of your holdings in an investment will be less, whereas when prices are down, then the amount of ownership you will be more so if it is averaged, the purchase price you get will be lower. With the trend of an increased investment in the long run, surely you will benefit from this method.

All the steps that you apply will be useless if you do not do it with discipline and high commitment. The second important thing that will make things go smoothly. You want to honeymoon in Paris and enjoy your jaguar, is not it? Be patient! The more you discipline yourself and maintain the commitment, then it is the faster your dreams into reality.

Start Your Financial Plan as early as possible

The sooner you make your financial planning and begin to invest, the smaller the needed funds. This course will benefit you because the more needs you can plan. For example, we give illustrations of financial planning for your child’s education fund below.

You have a child, and you plan to send her to school abroad to take the S1, which at that age your child is 18 years old. You estimate the costs required to complete college amounted to 1 billion rupiah. If you deposit your money to earn $ 1 billion, assuming the deposit interest rate of 6% ​​per year (excluding taxes),

If something bad were to happen at a company receiving mezzanine financing, the lender stands little chance of getting his money back because his loan is one of the last to be paid.

Most often, mezzanine financing is only available to solid companies with a history of growth and predictable earnings.

How Mezzanine Financing Works
1. If a company that receives such financing falls behind on its payments or at the lender’s option, lenders can convert all or part of the debt to shares of the company’s stock at a price agreed upon ahead of time.

The lender then has the chance to make a significant profit if the company’s shares increase substantially in value. But the lender’s interest in the company is not collateralized so his risk is substantial.

Who Makes Mezzanine Loans?

2. Investors specialize in mezzanine financing and they include private investors, mutual funds, pension funds, financial institutions and insurance companies. Each are skilled in assessing the worth of companies and are willing to assume risk for the opportunity of making a huge profit on their investments.What’s Involved?
3. All mezzanine loans involve debt and equity in the form of shares of the company stock. Often, the loan is predicated on the company’s ability to sell additional shares of stock and a warrant for the lender to convert part or all of the loan in accordance with the agreement. Most, not all, of mezzanine financing is made for four to eight years.

When Is Mezzanine Financing Used?
4. Often, a company’s management intends to make a leverage Bbuyout of the company; and in many cases, it won’t have access to more traditional forms of financing such as from banks and other lenders.

Assuming that the company is financially healthy, mezzanine financing makes a lot of sense because, at some point in the future, the new management will take the company public at which point those traditional lenders will provide permanent financing and the mezzanine lender will get his money back at a substantial profit.

Pluses And Minuses
5. Mezzanine financing allows owners to operate their company, as long as it is profitable. If it falls on hard times, it can call on the expertise of the mezzanine lender to provide strategic assistance.

Also, most mezzanine lenders aren’t interested in making a quick profit, and the existence of such a loan tends to make the stock rise, not withstanding the depressing effect of the lender’s right to a certain number of shares.

On the negative side, the loan agreement may impose restrictions on how the money is to be spent. Also, mezzanine financing is expensive and the process of getting such a loan is burdensome.

Other GDS International scam successful investigation is Nigerian scam emails. For those who have receive an emails that state that they are Nigerian people who want to uses your bank account number to store some money, stay away from that email. Never reply anything that might sound suspicious for you.

More than 1,000 people claimed that they have received Nigerian scam email and some of them are become the victims of this scam. The most important key to prevent you from this scam is to always careful in replying email from person that you do not know. Nigerian scam emails are randomly sent and more than 400 people find out that their personal information is hacked by the sender of the Nigerian scam email.

1. Product Sales

* Affiliate Program
One of the most popular Internet E-Commerce sell products online and earn commissions is through the systems of partners and affiliates.

Many online companies have affiliate program and usually the subscription is free. Usually these companies provide promotional material, banners, etc.. and take control of the sales generated by the affiliate. Learn here how to work an affiliate program.

* Sell Your Own Products
You create your own web business to promote and sell your products and you can also sell through affiliate business model. In other words, you can harness the power of your affiliates on the Internet to sell your products on a commission basis.

* Mount your online store
There are many shopping cart solutions to take advantage of this form of Internet E-Commerce.

2. Sale of services

The Internet provides the perfect medium for many companies to make marketing and promoting the sale of services.

Practically any type of service than the Internet-related services, can be promoted online. More information on the sale of online services.

3. Online Training

Before the advent of the Internet, requiring employees to take a course, had to leave their work base and transported to the place where training is imparted. This procedure was not only costly but also lend itself to the unproductive.

But today, the web delivery of training courses directly on the desktop of every employee, with the obvious advantages that this entails.

4. Telecommunications
In some countries the telecommunications industry has flourished with deregulation and opening markets to competition. The opportunities in this model of E-commerce via Internet ranging from outright sale of equipment and services to the option of becoming a link in a telecommunications network via the Internet.

The protocol VOIP (Voice Over Internet Protocol) is a new technology to telephone communications via the Internet that allows long distance calls at very low cost. This is therefore an area of considerable potential.

5. Publication and Information

For writers and people who want to distribute content, the Internet provides the perfect vehicle. Everyone has the opportunity to create Web content or publication without investing in printing equipment, ink and consumables required in a printing press. As entrepreneurial pure info, you can dedicate to publish information and make money without selling products or services.