Expert describes why interest rates in U.S. need to stay low for healthof national economy

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Grand Rapids, MI - Newswire - GHN News Editor- Financial advisor Dennis
Tubbergen takes a look at interest rates in the U.S. and tells us
interest rates need to stay low in order to continue economic recovery.

Tubberman goes on to say how the Federal Reserve made an error in starting out by keeping interest rates low for the economy to turn around.  Now foreign investment expects it.  And so does everyone else.

"Interest rates will have to remain low in order to finance the
excessive federal deficit spending," Tubberman says as he wonders if the
problem now has any good solution.

“An increase in interest rates would be too damaging to the national
budget and may cause many of our creditors to ‘pull the plug’ and cut us
off from credit,” states Tubbergen.  He is the CEO of USA Wealth
Management LLC, a federally registered investment advisory company.

Should
reducing the debt come first?  Tubbergen believes so and says the U.S.
must first deal with the excessive amount of debt we have accumulated
before any real progress can be made for an economic recovery.

“The massive level of U.S. debt that exists continues to mount,”
explains Tubbergen. “Debt by its very nature is deflationary and
deflation by its very nature causes recessions.”

Tubbergen uses as an example of how folks look at this issue outside
the United States in Bloomberg Businessweek article from September 28,
2010.  In it Yu Yongding, a former advisor to China’s central bank,
states that any appreciation of the U.S. dollar is temporary and a
devaluation of our currency is “inevitable” as U.S. debt rises.

“The problem outlined here has not gone unnoticed around the world,”
comments Tubbergen. “China and other U.S. creditors are concerned about
the long-term stability of the U.S. Dollar and the monetization of the
U.S. Dollar.”

Tubbergen believes the most serious problem concerning U.S. debt is our
ability to finance our current debt while spending more money than we
currently take in.

“How can the U.S. spend about $1.3 trillion more than it is taking in
this year and still be financing debt?” asks Tubbergen. He goes on to
state the U.S. either has to quit spending money we don’t have or print
more money in order to continue to operate.

“Should we choose Option B (printing more money) don’t we risk
alienating those who already own our debt by causing our currency to be
worth less when compared to other currencies?” asks Tubbergen.

Or is that already happening? he asks us.

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