Grand Rapids, MI -- (ReleaseWire) -- 06/07/2013 -- It is difficult to stay abreast of everything that is happening financially in the United States today. Dennis Tubbergen, a financial advisor, author, radio show host and CEO of PLP Advisors, LLC can be counted on to give a hand when it comes to understanding the latest events in U.S. and world economics.
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 27, his blog was titled Bernanke: Premature Withdrawal of Stimulus Could Endanger Economic Recovery.
"Bloomberg reported that Federal Reserve Chairman Ben Bernanke stated that premature monetary tightening could compromise economic recovery," began Tubbergen.
Below he quotes from the Bloomberg.com article which was published on May 22, 2013.
Federal Reserve Chairman Ben S. Bernnake said the U.S. economy remains hampered by high unemployment and government spending cuts, and raising interest rates or reducing asset purchases too soon would endanger the recovery.
"A premature tightening of monetary policy could lead interest rates to rise temporarily but would also carry a substantial risk of slowing or ending the economic recovery and causing inflation to fall further," Bernanke said today in testimony to the Joint Economic Committee of Congress in Washington. Monetary policy is providing "significant benefits," he said.
Bernanke is leading the most aggressive economic stimulus in the Fed's 100-year history in an effort to spur growth and reduce an unemployment rate that stands at 7.5 percent almost four years into a recovery from the longest and deepest recession since the Great Depression.
"As has happened so many times in the past after the Fed Chairman's testimony, the stock market rallied," noted Tubbergen. "Money printing is good for stocks but hasn't been helpful in reducing the unemployment rate. That's because money printing benefits those closest to the printing press. The farther you are from the printing press, the less you derive in benefits from the money printing process."
According to Tubbergen, this fact becomes clear when you analyze the facts. He quotes below from a CNN Money article from April 24, 2013 that reports the rich are getting richer while everyone else is losing ground.
The net worth of American households grew by $5 trillion in the first two years of the economic recovery, but not everyone shared in the riches.
The top 7% of American families saw their wealth grow to $25.4 trillion in 2011, up from $19.8 trillion two years earlier. The remaining 93% of Americans experienced a decline in net worth to $14.8 trillion, down from $15.4 trillion, according to a new analysis by the Pew Research Center.
"While wealthy Americans are benefitting from the Fed's policies, Main Street isn't," concludes Tubbergen. "In an economic winter season, debt is purged from the system. Only after debt is purged from the system can real economic recovery occur. That is when the economic season changes from winter to spring. And that day is still a way off."
To read the blog in its entirety go to http://www.dennistubbergen.com and select his May 27, 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.