Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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.


© 2005-2022 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