Grand Rapids, MI -- (ReleaseWire) -- 03/20/2013 -- 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 http://moving-markets.com or his blog at http://dennistubbergen.com, Tubbergen is dedicated to sharing his viewpoints and opinions. On March 13, 2013 his blog was titled Rogers: We Are Punishing Savers.
"Jim Rogers, a prior guest on my radio program, The Everything Financial Radio Show, made a very good point this week when he stated that whenever policymakers decide to punish savers so they can bail out those who are less responsible, bad things always happen," began Tubbergen. "His comments were reported in Business Insider."
Tubbergen quotes from the March 10, 2013 article below.
I own gold and silver and precious metals. I own all commodities, which is a better way to play as they debase currencies. I own more agriculture than just about anything else in real assets because of the reasons we discussed before. We were talking before about the risk-free or worry-free investment. Even gold: the Indian politicians are talking about coming down hard on gold, and India is the largest buyer of gold in the world. If Indian politicians do something -- whether it's foolish or not is irrelevant -- if they do something, gold could go down a lot. So I own it. I'm not selling it. but everything has problems.
To Rogers, the bigger danger that concerns him is the hollowing out of the 'saving class' resulting from this situation. Central planners' policies are punishing the prudent in favor of rescuing the irresponsible. This has happened before in world history, and the aftermath has always had grievous economic, social -- and often human -- costs.
Throughout our history -- any country's history -- the people who save their money and invest for their future are the ones that you build an economy, a society, and a nation on.
In America, many people saved their money, put it aside, and didn't buy four or five houses with no job and no money down. They did what most people would consider the right thing, and what historically has been the right thing. But now, unfortunately, those people are being wiped out, because they are getting 0% return, or virtually no return, on their savings and their investments. We're wiping them out at the expense of people who went deeply into debt, people who did what most people would consider the wrong thing at the expense of people who did the right thing. This, long-term, has terrible consequences for any nation, any society, any economy.
In the article, Rogers goes on to say that if you go back in history, you'll see what happened to the Germans in the 1920s when they wiped out their savings class. Not only did it not lead to good things for Germany, it also didn't lead to good things for the people in Italy, who ended up doing the same thing.
Rogers states in the article, "There were plenty of countries where it wiped out the people who saved and invested for their future. It's usually a serious, political reaction, desperation in some cases, and looking for a savior and easy answers is usually what happens when you destroy the people who save and invest for the future."
"Rogers' comments are interesting, and, in my view, right on target," adds Tubbergen. "The New Retirement Rules class that I've recently developed examines historical economies that are similar to our current economy."
Tubbergen notes it surprises many folks who have attended the class to learn that economies and economic cycles repeat themselves, just as Rogers states.
"If you've not taken time to educate yourself, I believe there is no better way to spend your time," concludes Tubbergen.
To read the blog in its entirety go to http://www.dennistubbergen.com and select his March 13, 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.