Grand Rapids, MI -- (SBWIRE) -- 05/03/2013 -- Many of us find it difficult to stay abreast of everything that is happening financially in the world 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 April 24, his blog was titled Germany's Top Banker: European Debt Crisis Could Last 10 Years.

"Germany's top banker, Mr. Jens Weidmann, was quoted in an article published in The Telegraph that Europe's debt crisis could last another 10 years," began Tubbergen.

Tubbergen quotes from the April 17, 2013 article below.

Germany's top central banker Jens Weidmann has warned that Europe's debt crisis couild last for a decade.

"Overcoming the crisis and the crisis effects will remain a challenge over the next decade," Mr. Weidmann, who is also a Governing Council member at the European Central Bank, told the Wall Street Journal.

"The calm that we are currently seeing might be treacherous" if reforms are not quickly taken across Europe, he added.

The euro fell sharply after Mr. Weidmann said the ECB could reduce interest rates further if economic data warrant it.

The ECB decided to leave interest rates on hold at its April policy meeting, but ECB President Mario Draghi said the bank would "monitor very closely" all data and stand "ready to act" to boost the recession-hit eurozone.

While the Bundesbank president cautioned that an interest rate cut might not have a huge impact on the economy, markets took his words to solidify the view that the 17-country block's central bank was ready to cut rates from the already record-low level of 0.75pc.

When asked about interest rates, Mr. Weidmann said: "We might adjust in response to new information" but added "I don't think that the monetary policy stance is the key issue."

"The article does not state what reforms Mr. Weidmann thinks should be implemented, but in my view, there is nothing that can ultimately hold off a massive deflation as a result of excessive debt levels," explains Tubbergen. "A study of history confirms this."

Tubbergen goes on to say the world faced this situation in the early 1930s as well as the 1870s. The events that ocurred in those two prior economic winter seasons closely resemble events occurring in today's economic winter season.

"Real estate price bubbles as a result of easy credit and free and easy money existed in the 1920s and the 1860s," notes Tubbergen. "Those bubbles burst and credit tightened. Deflation set in. Unemployment was at all-time record levels. Cash was a great asset to own."

According to Tubbergen, politicians, central bankers and policymakers did their best to try to combat the powerful forces of deflation, but to no avail.

"Arguably, some of the policies they enacted made matters worse," concludes Tubbergen. "Here we go again."

To read the blog in its entirety go to http://www.dennistubbergen.com and select his April 24, 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.