Grand Rapids, MI -- (SBWIRE) -- 10/28/2013 -- Financial advisor Dennis Tubbergen can usually be found helping his own clients. When he has a few free minutes he is busy writing his daily blog or interviewing his next guest expert for his weekly radio show.
Tubbergen's guest last week was James Rickards. Rickards is an American lawyer, economist and investment banker. Rickards is also the author of the best-selling book Currency Wars.
Tubbergen, who is an author, radio show host, and CEO of PLP Advisors, LLC, spends a lot of time giving his opinions on the economy in his online financial blog. On October 25, 2013 his blog was titled Mauldin: Stronger U.S. Dollar Likely.
"This past week on my radio program I interviewed Dr. A. Gary Shilling, a very bright economic forecaster who has been a Forbes columnist for 30 years," began Tubbergen. "Dr. Shilling commented that he expects the U.S. Dollar to remain strong given that there is no viable alternative for a world reserve currency. John Mauldin agrees, and for a very interesting reason."
Below Tubbergen quotes from http://www.mauldineconomics.com.
I get the question all the time: when will the Chinese renminbi (RMB) replace the US dollar as the major world reserve currency? The assumption behind such questions is almost always that the coming crisis in US entitlement programs will force the Fed to monetize even more debt, thereby killing the dollar. Or some derivative line of that thought. Contrary to the thinking of fretful dollar skeptics, my firm belief is that the US dollar is going to become even stronger and will at some point actually deserve to be the reserve currency of choice rather than merely the prettiest girl in the ugly contest – the last currency standing, so to speak.
One of the prerequisites for a true reserve currency is that there must be a steady and ready supply of the currency to facilitate global trade. The United States has done its part in providing an ample supply of US dollars by running massive trade deficits with the rest of the world, primarily with oil-producing nations and with Asia (most notably China and Japan), for all manner of manufactured products. The US consumer has been the buyer of last resort for several decades (I say, somewhat tongue in cheek). Those dollars typically end up in the reserve balances of various producing nations and find their way back to the US, primarily invested in US government bonds. In an odd sense, the rest of the world has been providing vendor financing to the US, the richest nation in the world.
To read Tubbergen's take on this interesting topic, go to http://www.dennistubbergen.com and select his October 25, 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 http://www.dennistubbergen.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.