Despite Accumulating Gargantuan Debt, Economy Remains Weak

Online, August 11, 2010 (Newswire.com) - Debt in the U.S. remains a significant obstacle to economic growth. Although it seems the deleveraging process has begun, noted financial advisor Dennis Tubbergen believes it is going to take a "significant amount of time" for the extensive level of accumulated debt to be dealt with properly.

Tubbergen, a noted financial advisor and CEO of USA Wealth Management, LLC, a federally registered investment advisory company, admits fiscal discipline would cause pain and, at least in the minds of many politicians, would result in election losses. 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.

"The massive amount of debt being accumulated by the U.S. government is an attempt by politicians to jump start today's economy by borrowing against tomorrow's production," explains Tubbergen. "The tax credit program for home buyers was just one way the government borrowed against future production."

Tubbergen compares politicians pushing the 'spending button' to a gerbil learning it gets food when it pushes a food button.

"Politicians keep pushing the spending button in hopes the massive infusion of cash into the economy will produce economic activity," notes Tubbergen. "When the spending button was pushed in the past, politicians were able to achieve, for the most part, the results they were seeking."

But at some point the gerbil runs out of food and the spending button quits working.

"The harsh reality is that pushing the spending button over and over again won't produce the short-term economic gains it once did, prior to the system reaching its debt capacity," concludes Tubbergen. "Because our system is now ridden with debt, it won't matter how hard or how many times Washington presses the spending button. To everyone's frustration, economic activity continues to be weak."

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.