Grand Rapids, MI -- (SBWIRE) -- 08/24/2012 -- For over 6 years financial advisor Dennis Tubbergen has been hosting financial radio talk shows. In the past year, Tubbergen’s guests have included guest experts from around the world. His next guest, A. Gary Shilling, is a respected Bloomberg View columnist and president of A. Gary Shilling & Co., a consultancy in Springfield, New Jersey.
Shilling earned his master’s degree and doctorate in economics at Stanford University. While on the West Coast, he served on the staffs of the Federal Reserve Bank of San Francisco and the Bank of America. Before establishing his own firm in 1978, Shilling was senior vice president and chief economist of White, Weld & Co. Earlier, he set up the Economics Department at Merrill, Lynch, Pierce, Fenner & Smith at the young age of 29, and served as the firm’s first chief economist.
Shilling has been cited repeatedly by The Wall Street Journal as one of the top bond market analysts and stock forecasters. He is also the author of The Age of Deleveraging: Investment Strategies for a Decade of Slow Growth and Deflation.
Tubbergen, who is an author and CEO of USA Wealth Management, LLC, recently wrote on his blog at www.dennistubbergen.com an entry he titled, More Proof That Massive Debt Leads to Deflation.
“Greece, the original poster child for European sovereign debt problems, continues to sink economically speaking,” began Tubbergen in the blog. “The New York Times reported that the Greek economy shrank by over 6% in the second quarter of this year.”
Quoting from the August 13, 2012 Times article, “The Greek economy continues to contract rapidly, official data showed on Monday, a painful reminder of how Greece, the weakest member of the euro zone, was chasing a moving target in trying to meet its bailout obligations.
The nation’s gross domestic product slid 6.2 percent in the second quarter from a year earlier, the Hellenic Statistical Authority said. That follows a 6.5 percent year-over-year contraction in the first quarter.”
The article goes on to quote economist Sarah Hewing of the Standard Chartered Bank in London as saying the 18% 2008 April to June decline in that country’s economy “suggests an economic depression.”
“To call an 18% decline in the economy a ‘recession’ is kind of like calling a root canal a toothache,” notes Tubbergen. “It may be true but it’s hardly descriptive. As the economy shrinks, so do tax revenues. As tax revenues shrink deficits expand and that is a problem for Greece. The country has had stringent deficit targets imposed upon it as part of the bailouts that the country has received. The big problem facing Greece presently is the more that spending is cut, the more that GDP declines, further exacerbating the country’s economic problems.”
According to Tubbergen, in an economic winter season, debt must be purged from the system. Unfortunately for Greece (and many other countries around the world), the process is painful and ugly.
“By printing money, central banks around the world are simply delaying the inevitable, making the eventual problem worse in my opinion,” explains Tubbergen. “The eventual consequences of debt don’t go away, they just get postponed; and, when these consequences reappear, they’re more painful than they otherwise would have been.”
To read the blog in its entirety, go to http://www.dennistubbergen.com and select the blog for August 15, 2012.
Dennis Tubbergen and his Everything Financial Radio Show can be heard on Michigan’s WOOD 1300 AM and 106.9 FM stations, part of the Clear Channel network. The Everything Financial Radio Show can also be heard on WTKG 1230 AM Tuesdays from 8 to 9 a.m. Broadcast times for WOOD 1300 AM and 106.9 FM are Sundays at 9 a.m.
Tubbergen’s interview with A. Gary Shilling will be available soon as a podcast at http://www.everythingfinancialradio.com.
Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices at 961 4 Mile Road N.W. in Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog. His weekly talk show The Everything Financial Radio Show is syndicated on two Michigan metro stations.
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.