Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20
Does the Stock Market Really "See" the Future? - 12th Sept 20
Basel III and Gold, Silver and Platinum - 12th Sept 20
Tech Stocks FANG Index Nearing Critical Support – Could Breakout At Any Moment - 12th Sept 20
The Tech Stocks Quantum AI EXPLOSION is Coming! - 12th Sept 20
AMD Zen 3 Ryzen 4000 Questions Answered on Cores, Prices, Benchmarks and Threadripper Launch - 12th Sept 20
The Inflation Mega-trend is Going Hyper! - 11th Sep 20
Gold / Silver Ratio: Slowly I Toined… - 11th Sep 20
Stock Market Correction or Reversal? The Jury Isn't Out! - 11th Sep 20
Crude Oil – The Bearish Outlook Remains - 11th Sep 20
Crude Oil Breaks Lower – Sparking Fears Of Another Sub $30 Price Collapse - 11th Sep 20
Inflation by Fiat - 10th Sep 20
Unemployment Rate Drops. Will It Drag Gold Down? - 10th Sep 20
How Does The Global Economy Recover After This Global Pandemic? - 10th Sep 20
The Best Mobile Casino - 10th Sep 20
QE4EVER! - 9th Sep 20
AMD Ryzen Zen 3 4800x 10 Core 5ghz CPU, Cinebench Benchmark Scores (Est.) - 9th Sep 20
Stock Traders’ Dreams Come True – Big Technical Price Swings Pending on SP500 - 9th Sep 20
Should You Be Concerned About The Stock Market Big Downside Rotation? - 9th Sep 20
Options Traders Keep "Opting" for Even Higher Stock Market Prices - 8th Sep 20
Gold Stocks in Correction Mode - 8th Sep 20
The law of long-term time preference and Gold ownership - 8th Sep 20
Gold Bull Markets: History and Prospects Ahead - 8th Sep 20
Sheffield City Centre Coronavirus Shopping Opera Ahead of Second Covid-19 Peak - 8th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

How to Profit from the Fed's Anti-Cash Stance

Stock-Markets / Banksters May 11, 2015 - 03:42 PM GMT

By: ...

Stock-Markets

MoneyMorning.com Peter Krauth writes: Savvy investors know that over short time periods, and especially during bear markets, the saying “cash is king” often holds true. It provides security and allows for bargain hunting when assets are cheap.

However, through times of financial repression and negative interest rate policies (NIRP), central planners, along with banks, are changing that precept into “cash is trash.”


That notion is a dangerous one that you can prepare for and prosper from….

A Troubling Development… But We Can Benefit

Not long ago we discussed how financial repression is the “new normal.”

With interest rates at zero or even negative levels, some banks are warning clients that they will begin charging fees on some deposits. Surely it’s driving some people to consider simply withdrawing their funds and stuffing their mattress.

That serves two purposes. It avoids any deposit fees, and it provides the flexibility of having physical cash in case of an emergency. But central planners don’t like that either; they hate the anonymity of – and their lack of control over – cash.

Academic vice president of the Mises Institute and professor of economics at Pace University Joseph Salerno recently highlighted a concerning development:

As of March, Chase began restricting the use of cash in selected markets, including Greater Cleveland. The new policy restricts borrowers from using cash to make payments on credit cards, mortgages, equity lines, and auto loans. Chase even goes as far as to prohibit the storage of cash in its safe deposit boxes. In a letter to its customers dated April 1, 2015, pertaining to its “Updated Safe Deposit Box Lease Agreement,” one of the highlighted items reads: “You agree not to store any cash or coins other than those found to have a collectible value.” Whether or not this pertains to gold and silver coins with no numismatic value is not explained.

And if you look around, the signs are clear and growing that they’d like to do away with cash… completely. Citibank chief economist Willem Buiter recently suggested that cash allows people to avoid NIRP. To counter that, he suggests abolishing or taxing currency as ways to deal with this “problem.”

Virtual Currencies Are Gaining Velocity

As bitcoin was hitting $1,000 back in November 2013, Bernanke told Congress that virtual currencies “may hold long-term promise, particularly if the innovations promote a faster, more secure, and more efficient payment system.” It’s possible he was thinking how replacing physical cash with a ‘trackable virtual currency’ would suit central planners much better than anonymous cash.

Think I’m exaggerating? Well consider this…

“Helicopter Ben” also said: “In general, the Federal Reserve would only have authority to regulate a virtual currency product if it is issued by, or cleared or settled through, a banking organization that we supervise.”

Central planners are not about to let the free market have rein over money. It’s just too lucrative.

That’s why in January last year I highlighted that JPMorgan had submitted a patent for their own form of digital currency called “Web-Cash,” likely in a bid to compete with bitcoin.

Based on its description, Web-Cash is similar to Bitcoin. It's a system to process Internet payments and conduct financial transactions over a payment network. Even its proposed directory sounds comparable to Bitcoin's blockchain.

Governments, meanwhile, are exacerbating the development of virtual currencies.

Back in 2011, Louisiana passed a law banning the use of cash in the transaction of secondhand goods. The Justice Department in the U.S. is now telling bank employees they should contemplate alerting law enforcement when customers withdraw $5,000 or more.

There are numerous examples across Europe, including France, Italy, Spain, Sweden and Denmark, but also in Israel and Mexico where cash transactions are being regulated to limit their size and frequency. Curious, I took up the issue at my local bank branch in Canada. Lo and behold, they’re no longer allowing the payment of municipal taxes, driver’s license renewals, and a host of other transactions in cash.

So there’s little doubt that the push toward a cashless society is well on its way.

Here’s what you can do about it.

This Stock Will Help You Cash In

In the “fight ‘em” category, while you still can, consider sitting on at least a little cash to prepare for possible emergencies. Besides, it’s not like you’re going to lose a lot of interest on it meanwhile.

In the “join ‘em” category, consider investing in the industry that facilitates and processes electronic payments.

Founded in 1967 and based in Atlanta, Georgia, Global Payments Inc. (NYSE: GPN) is a leader in electronic payment processing services and is a targeted way to play the move towards electronic money.

GPN processes billions of checks, payment cards, and e-commerce transactions annually for more than 1.5 million merchant locations around the world. It’s little wonder Global Payment's revenue and earnings estimates continue to trend higher.

The company boasts over 4,300 employees worldwide, is a member of the Fortune 1000, and has merchants and partners in 29 countries. Just recently, GPN announced the launch of a turnkey mobile point-of-sale solution. Ingenico Companion Mobile Payment (iCMP) offers full debit and credit EMV (chip enabled) and contactless payment acceptance. By using a secure Bluetooth-enabled reader paired with the merchant’s Apple, iOS or Android device, customers can transact in a simple, quick, and secure on-the-go way.

In fiscal Q3 (ending Feb. 28, 2015) Global Payments reported earnings up 19% to $1.14 on an 8.2% increase in revenue to $666.9 million. That concluded seven consecutive quarters of earnings growth that beat analyst forecasts. GPN will also forge ahead with a $100 million share buyback plan.

Global Payments is a $6.7 billion market cap leader whose shares are in a steady climb and look headed firmly higher (I’d suggest using a 25% trailing stop on the stock). And given the momentous trend towards a cashless society, its future is looking pretty bright indeed. If you’re going to benefit from the virtual payment wave, and you might as well, GPN stock is a great way to do it.

Source :http://moneymorning.com/2015/05/11/how-to-profit-today-from-this-sweeping-global-trend/

Money Morning/The Money Map Report

©2015 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules