Grand Rapids, MI -- (SBWire) -- 12/28/2010 -- Financial advisor Dennis Tubbergen continues to discuss the decline of the U.S. Dollar against other major world currencies. Although the U.S. Dollar has shown some signs of strength of late, the overall trend of 2010 has been down.
Tubbergen, who is CEO of USA Wealth Management, LLC, a federally-registered investment advisory company, has been writing about this topic in his online blog and his financial newsletter, Moving Markets™.
“Of course the massive printing of money by the Federal Reserve has been met with some skepticism by those who believe the actions of the Federal Reserve will lead to inflation,” comments Tubbergen. He refers to a November 7, 2010 article in the San Francisco Chronicle in which Fed Chairman Ben Bernanke said the central bank will not allow inflation to rise more than it prefers and that the Fed’s purpose “is to avoid potentially additional disinflation.”
Disinflation?
“What Bernanke really means is deflation,” explains Tubbergen. “By stating that he wants to potentially avoid additional disinflation he’s saying two things, albeit not directly. First: There has been deflation. And secondly, by using the word ‘potentially’ in conjunction with the word avoid, he’s not sure we can avoid deflation.”
The continued printing of money by the Federal Reserve may seem like it could lead to inflation. However, in order for inflation to exist, Tubbergen states consumers have to be spending money.
“With the recent contraction of credit, inflation may not be the most likely outcome,” concludes Tubbergen. “Meanwhile, expect the worldwide devaluation of currency through the printing of money to continue. After all, monetization policies are a much easier course for politicians than austerity programs.”
For more information on Dennis Tubbergen’s views, visit http://www.dennistubbergen.com. To view his latest newsletter, go to http://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.
The Worldwide Devaluation of Currency Continues
Noted financial advisor Dennis Tubbergen takes a look at the devaluation of the U.S. Dollar.