If you haven’t caught Dennis Tubbergen’s radio show either in a live broadcast or as a podcast on his website at www.everythingfinancialradio.com, you should. Tubbergen, who is the CEO of USA Wealth Management, LLC in Grand Rapids, Michigan, is in his sixth year of hosting financial radio shows and this year’s guests have been newsmakers.
This week’s guest is American businessman Peter Schiff, who is CEO of Euro Pacific Precious Metals, LLC and host of The Peter Schiff Show, a radio show broadcast. In 2008 concerned citizens in Connecticut began a website encouraging Schiff to run for the Senate seat that was held by Christopher Dodd. Schiff eventually ran but was not selected at the Republican convention. However, his campaign received endorsements from the likes of Steve Forbes and Ron Paul.
Schiff also has authored several books on the economy and the stock markets, with his latest published this year titled The Real Crash: America’s Coming Bankruptcy – How to Save Yourself and Your Country. He also is a contributing commentator for Newsweek International and served as an economic advisor to the 2008 Ron Paul presidential campaign.
Tubbergen frequently discusses financial and political issues in his online financial blog and his Moving Markets weekly newsletter. In his June 8, 2012 blog Tubbergen talked about the world economy.
“Bill Gross, manager of the largest bond fund in the world, stated in his letter to investors this month that the world financial system is near a breaking point,” began Tubbergen.
Quoting a Reuters article from May 31, 2012, Tubbergen wrote, “The debt crisis and central bank policy responses have degraded the quality and value of debt markets and signal a ‘potential breaking point’ in the global economy, PIMCO’s Bill Gross, manager of the world’s largest bond fund, said in his monthly letter to investors.
“In his June outlook entitled “Wall Street Food Chain,” Gross said stimulus policies by the Federal Reserve and the European Central Bank have led to riskier government bonds with lower value and paved the way for higher inflation.”
Gross went on to say that fiscal and monetary authorities and their policies have prevented much trimming of the $200 trillion or so that makes up the global monetary system, “yet in the process have increased the risk and lowered the return of sovereign securities which represent its core.”
“Gross points out what is so unusual about the economic times in which we find ourselves,” notes Tubbergen. “Given the large amount of money sovereign debt that exists around the world, the quality of the bonds issued by countries has declined. Given the colossal level of money printing in which central banks have engaged, the stage is set, according to Gross, for inflation.”
However, Tubbergen does not necessarily agree with that statement.
“There are debt levels around the world including derivatives that are so large they can never be paid,” explained Tubbergen. “As a result, there will have to be, in my view, a major asset pricing reset. The question is whether that asset pricing reset will come in the form of inflation or deflation.”
To read this blog in its entirety go to http://www.dennistubbergen.com. His newsletter is available at www.moving-markets.com. The interviews with Laurence Kotlikoff and Peter Schiff will also be available soon as podcasts along with other recent interviews at www.everythingfinancialradio.com.
Dennis Tubbergen and his The 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 10.9 FM are Sundays at 9 a.m.
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.