Financial advisor Dennis Tubbergen wonders if Fed will intervene with new measures to control the economy.

Grand Rapids, MI -- (SBWire) -- 08/09/2010 -- According to a July 30, 2010 article in the New York Times, consumer spending in the U.S. has been leveling off and is at a low of 2.4 percent after expanding 3.7 percent for the past three months. The question now stands: Will the Fed intervene with new measures to try to control the economy?

Dennis Tubbergen, a noted financial advisor and CEO of USA Wealth Management, LLC a federally registered investment advisory company, is afraid such measures may be on the not-too-distant horizon. Tubbergen believes excessive debt is the reason for the economic mess we now find ourselves in and offers his opinions in his economic blog and monthly newsletter Moving Markets.

Tubbergen refers to a Bloomberg Businessweek.com posting from July 25, 2010 where Swiss fund manager Marc Faber stated in an interview, “I am convinced the Fed will soon implement further quantitative easing, and massively so.”

“’Quantitative easing’ is Fedspeak for pumping more money into the economy,” explained Tubbergen. “It is a tactic the Fed has been using with little success to stimulate the economy since the recession began. Pumping even more money into the economy may cause more eventual harm than good.”

To make his point, Tubbergen points out three important facts: 1) When the Federal Reserve pumps money into the economy, additional government debt is created; 2) Debt eventually has to be paid or defaulted upon; and 3) if the U.S. government confiscated every dollar in circulation, the national debt could not be paid.

“Adding more debt to an already debt-ridden economy could mean an eventual harder landing down the road,” concludes Tubbergen. “And that harder landing could be a default, even though, given that the U.S. currency is the ‘best of a bunch of bad currencies,’ that day seems a long way off.”

Tubbergen quotes Faber again and Faber’s belief the Fed may act in September or October with further action that could be called ‘crisis-era policies.’

“The Fed’s actions to turn on the printing presses over and over again could cause the day of reckoning to come more quickly,” Tubbergen warns.

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