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Re: NewJerichoMan post# 80450

Tuesday, 01/06/2015 4:20:13 PM

Tuesday, January 06, 2015 4:20:13 PM

Post# of 163716
This is such a fundamental discussion that it would take hours to explain either side but there is a quote that goes something like, "what cannot go on forever, wont." This is the case with government debt. Take the U.S. for example: roughly 20 trillion (not accounting for UNFUNDED LIABILITIES for future social security, medicare etc. which some say could easily be 200 trillion). But we'll stay conservative with about 20 trillion. Imagine if interest rates rose to just 5% which historically is not very high at all. You are talking about a trillion dollars in interest payments alone. The FED is not independent as stated by Alan Greenspan and has the interests of the U.S. government as a priority. The FED is very well aware of this situation and is why I strongly believe the FED will eventually continue another round of quantitative easing when the economy "forces" them to do so if prices (like oil or stocks or housing or CPI) begin to slide and we start to see the scary "deflation" every central banker is afraid of.

As entertaining as all this is, I like companies that can do well regardless of the marcoeconomics playing around the world, raising/lowering interest rates, currency appreciation/depreciation etc. and Sino Agro is that type of company. It is only a matter of time (and the company is continually moving in the right direction regardless of the pace some on here might prefer) before institutional investors notice this stock and blow it out of the water. That is why I don't think RealDutch's prediction of $200 is not unlikely in a few years at all.

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