Grand Rapids, MI -- (ReleaseWire) -- 03/20/2013 -- For those of us who are too busy to stay on top of events in the world's economy, financial advisor Dennis Tubbergen lends a helping hand.
Tubbergen is a financial advisor, author, radio show host and CEO of PLP Advisors, LLC. Tubbergen does his best to give brief updates when it comes to some of the latest significant events in U.S. and world economics and politics and how these events may impact the average American.
Whether people enjoy his weekly newsletter at www.moving-markets.com or his blog at www.dennistubbergen.com, Tubbergen can be counted on to share his viewpoints and opinions. On March 14, 2013 his blog was titled More Cracks in the Euro's Foundation.
"I have maintained for a couple of years that the Euro will not survive in its current form for any significant period of time," began Tubbergen. "It now seems that some German citizens are converting their disgust for the Euro coalition to action prior to the upcoming German elections this fall."
Tubbergen quotes below from an article in The Telegraph that ran on March 10, 2013.
A new party led by economists, jurists, and Christian Democrat rebels will kick off this week, calling for the break-up of the monetary union before it can do any more damage.
"An end to this euro," is the first line on the webpage of Alternative für Deutschland (AfD). "The introduction of the euro has proved to be a fatal mistake, that threatens the welfare of us all. The old parties are used up. They stubbornly refuse to admit their mistakes."
They propose German withdrawal from EMU and return to the D-Mark, or a breakaway currency with the Dutch, Austrians, Finns, and like-minded nations. The French are not among them. The borders run along the ancient line of cleavage dividing Latins from Germanic tribes.
The plans draw on work by Hans-Olaf Henkel, former head of Germany's industry federation (BDI) and a chastened europhile -- the "worst of my professional life," he told me.
The appeal of German exit is obvious. It is the least traumatic way to end the 20pc to 30pc misalingment between North and South, the cancer eating Europe. Club Med keeps the euro. It enjoys instant devaluation, while still able to uphold euro debt contracts. The spectre of soverign defaults recedes.
The party hopes to contenst the federal elections in September, winning enough votes to scramble a tight race. Chancellor Angela Merkel suddenly has a "UKIP problem" on her right flank.
Should she sign off on a bail-out for Cyprus -- safeguarding the "dirty funds of Russian oligarchs," as the AfD puts it -- she will be raked by heavy fire.
The article goes on to say that AfD leader Bernd Lucke says Beppe Grillo's threat to default on the external debt of Italy has "demolished claims that Germany's rescue pledges will never be called."
"The Italian election shows how dangerous the whole euro crisis reall is. Whether countries can and will pay back their debts is dependent on the unpredictable voting choices of their peoples," he said.
The latest ZDF poll shows that 65pc of Germans think the euro is damaging, and 49pc think Germany would be better outside the EU. This is no doubt "soft," yet what is clear is that the all-party consensus on EMU gives voters nowhere to turn.
"This story may confirm what has been my most likely scenario in the Eurozone drama," concludes Tubbergen. "That the German electorate, which enjoys a better economy that most of the rest of Europe, would tire of the bailouts, throw in the towel and return to the Mark."
Tubbergen's bottom line here?
"This could be the eventual catalyst that drives markets lower."
To read the blog in its entirety go to http://www.dennistubbergen.com and select his March 14, 2013 entry.
Tubbergen’s syndicated radio show can be heard on metro Michigan stations WTKG 1230 AM and WOOD Newsradio1300 AM and 106.9 FM.
About Dennis Tubbergen
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in Grand Rapids, Michigan. Tubbergen is CEO of PLP Advisors, LLC and has an online blog that can be read at www.dennistubbergen.com. To view Tubbergen’s latest Moving Markets? newsletter, go to www.moving-markets.com.
The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.