Grand Rapids, MI -- (SBWIRE) -- 05/16/2013 -- With so much going on in the economy, it can be hard to keep up with everything that is happening in the world today.
Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC gives a hand.
Whether people enjoy his weekly newsletter at www.moving-markets.com or his blog at www.dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On May 6, 2013 his blog was titled European Bank Chief: More Wealth Confiscation Coming.
"The U.K. publication The Telegraph recently ran a story that had the head of a European Bank stating that more wealth confiscation is coming," began Tubbergen.
He quotes below from the April 30, 2013 article.
Savers and investors face further "wealth confiscation" in Europe as the continent struggles to resolve the single currency's problems, a bank chief has said.
European politicians will take the "easy option" of taking money from the rich rather than raising taxes and cutting spending to deal with the continent's debt problem, Lars Christensen, the head of Saxo Bank, said.
Asked if the raid on uninsured savings in Cyprus would be repeated, he told City AM: "There will be future bail-ins (loss of deposits) and others types of confiscation of wealth in the eurozone, without a doubt.
"There's no other realistic way forward if politicians continue to fail to deal with the basic indebtedness problem across Europe. They will either have to raise taxes and cut spending, or politicians will take the easier route and take money from the rich."
Earlier this week savers at Bank of Cyprus saw 37.5pc of their balances above €100,00 converted into shares, with a further 22.5pc at risk and 30pc frozen.
Following the Cyprus deal, several senior German economists proposed that wealth taxes be used to fund future bail-outs in the eurozone, with British owners of holiday homes potentially in the line of fire.
Senior advisers to Chancellor Angela Merkel pushed for better-off households to pay towards the cost of any future bail-outs for the weaker members of the single currency. The proposals, from members of Germany's council of economic experts, raised the prospect of taxes being imposed on property in a country such as Spain if its government was forced to seek a bail-out.
Mr. Christensen said confidence in currencies such as the euro, dollar and yen was being undermined and that the gold price would eventually recover as a result.
He said the measures being taken by central banks around the world were "undermining confidence in central banks, in the quality of their assets and in their respective currencies."
"The same thing is happening in the U.S. and Japan -- trust in the fiat (paper) currency system will slowly begin to disintegrate. We've seen it in gold. The recent sell-off was driven by buy and sell pressures in a market that is not as big as many people think. Eventually gold will pick up and go higher.
"It's all linked to evidence that the old principle of a prudent central bank has disappeared. We now have overt political influence of central banks, and that's dangerous."
"The term 'wealth tax' sounds better than confiscation, but that's what it is," states Tubbergen. "This is the bully on the playground stealing your lunch money for no reason other than you happen to possess it."
Tubbergen goes on to say that the Cyprus confiscation of assets will, in his view, not be confined to Cyprus but will instead, as Mr. Christensen suggests, become the modern day version of bank holidays.
In the prior economic season of the 1930s, bank holidays had banks closing and all depositors losing their money Tubbergen notes.
"In today's version of a bank holiday, policymakers and politicians will decide who loses their money and how much they lose," concludes Tubbergen. "Keep a careful eye on this trend and protect yourself as best you can. Tangible assets like some real estate, precious metals and limited debt are all things to carefully consider depending on your individual financial situation."
To read the blog in its entirety go to http://www.dennistubbergen.com and select his May 6, 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.
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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.