Grand Rapids, MI -- (SBWIRE) -- 12/15/2010 -- U.S. Treasury Secretary Tim Geithner recently stated that politicians, Republican politicians in particular, should not try to inject politics into decisions about monetary policy. Financial advisor Dennis Tubbergen, who is CEO of USA Wealth Management, LLC, gives us the facts as he sees them on this topic.

Tubbergen refers to an article on Bloomberg Businessweek.com on November 21, 2010 in which Geithner warns the Obama administration will oppose attempts “to strip the Federal Reserve of its mandate to pursue full employment. . .” Geithner goes on to state, “It is very important to keep politics out of monetary policy. You want to be very careful not to take steps that hurt our credibility.” In the same article, Geithner comments on Republican John Boehner’s criticism of the Fed’s announcement it will buy $600 billion in assets.

Tubbergen is quick to point out how he views the ‘facts’ in the above statements.

“Fact One: While Geithner is not specific as to who gave the Federal Reserve this ‘full employment mandate,’ one thing is sure – the actions of the Federal Reserve haven’t improved the employment picture,” explains Tubbergen. “So doing more of the same, a.k.a. printing money out of thin air to fund reckless government spending, isn’t likely to be successful the second time it’s tried either.”

And Fact Two?

“Geithner states that having politicians – some in both parties – oppose printing another $600 billion in money hurts our credibility,” continues Tubbergen. “That’s simply an unbelievable statement. What hurts our credibility as a nation is to continue to print money to fund reckless government spending. Given that the U.S. Dollar is the world’s reserve currency, at least for now, encouraging reckless spending that could eventually devalue the currency is what hurts credibility.”

Tubbergen wonders what would happen if President Obama were to stand up at a G20 meeting and say we are no longer printing money that we do not have.

“My guess is that it would be an instant credibility builder,” notes Tubbergen. “Other countries around the world are nervous that the world’s reserve currency could someday be something akin to monopoly money due to the actions of the Federal Reserve.”

What does Tubbergen suggest?

“Geithner, as Treasury Secretary, should put aside the very politics that he’s using to make his point and use his position to promote sound fiscal policy,” concludes Tubbergen. “And that sound policy should begin with responsible spending.”

For more information on Dennis Tubbergen’s views, visit 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.