Best of the Week
Most Popular
1. Five Charts That Show We Are on the Brink of an Unthinkable Financial Crisis- John_Mauldin
2.Bitcoin Parabolic Mania - Zeal_LLC
3.Bitcoin Doesn’t Exist – 2 - Raul_I_Meijer
4.Best Time / Month of Year to BUY a USED Car is DECEMBER, UK Analysis - Nadeem_Walayat
5.Labour Sheffield City Council Election Panic Could Prompt Suspension of Tree Felling's Private Security - N_Walayat
6.War on Gold Intensifies: It Betrays the Elitists’ Panic and Augurs Their Coming Defeat Part2 - Stewart_Dougherty
7.How High Will Gold Go? - Harry_Dent
8.Bitcoin Doesn’t Exist – Forks and Mad Max - Raul_I_Meijer
9.UK Stagflation Risk As Inflation Hits 3.1% and House Prices Fall - GoldCore
10.New EU Rules For Cross-Border Cash, Gold Bullion Movements - GoldCore
Last 7 days
Government Shutdown Ends – Markets Ignore Looming Debt and Bond Market Threat - 23rd Jan 18
Stock Risks to Watch: Choose Your Bear Market Dashboard - 23rd Jan 18
Worse than Watergate - Release the Memo - Investigate Uranium One - 23rd Jan 18
CAT Stock Bouncing after JPM Upgrade How High and How Long Can This CAT Jump? - 23rd Jan 18
Why Banks Will Be Slammed In The Next Crisis—And That May Be Good News - 23rd Jan 18
Medicare Premiums Are A Shared Pool - Coming Changes That Will Transform Retirement - 23rd Jan 18
Charged Atmosphere of Heavy Police and Security Presence at Sheffield Street Tree Felling Protests - 23rd Jan 18
Pension Crisis And Deficit of £2.6 Billion At Carillion To Impact UK - 22nd Jan 18
Two Factors for Gold That You Don’t Want to Miss - 22nd Jan 18
Why You Must Own Silver in 2018 - 22nd Jan 18
This Could Be The Hottest Mining Stock Of 2018 - 22nd Jan 18
Stock Index Trend Trade Setups for the SP500 & NASDAQ - 22nd Jan 18
Stock Market Deceleration / Distribution - 22nd Jan 18
US Markets vs Govt Shutdown: Stock Markets at all time highs - 22nd Jan 18
Land Rover Discovery Sport - 1 Month Driving Test Review - 22nd Jan 18
Why should you use high-quality YouTube to mp3 converter? - 22nd Jan 18
Silver As Strategic Metal: Why Its Price Will Soar - 21st Jan 18
Stocks, Gold and Interest Rates Three Amigos Ride On - 21st Jan 18
Why Sometimes, "Beating the S&P 500" Isn't Good Enough - 21st Jan 18
Bunnies and Geckos of Sheffield Street Tree Fellings Protests Explained - 21st Jan 18
Jim Rickards: Next Financial Panic Will Be the Biggest of All, with Only One Place to Turn… - 20th Jan 18
Macro Trend Changes for Gold in 2018 and Beyond - Empire Club of Canada - 20th Jan 18
Top 5 Trader Information Sources for Timely, Successful Investing - 20th Jan 18
Bond Market Bear Creating Gold Bull Market - 19th Jan 18
Gold Stocks GDX $25 Breakout on Earnings - 19th Jan 18
SPX is Higher But No Breakout - 19th Jan 18
Game Changer for Bitcoin - 19th Jan 18
Upside Risk for Gold in 2018 - 19th Jan 18
Money Minute - A 60-second snapshot of the UK Economy - 19th Jan 18
Discovery Sport Real MPG Fuel Economy Vs Land Rover 53.3 MPG Sales Pitch - 19th Jan 18
For Americans Buying Gold and Silver: Still a Big U.S. Pricing Advantage - 19th Jan 18
5 Maps And Charts That Predict Geopolitical Trends In 2018 - 19th Jan 18
North Korean Quagmire: Part 2. Bombing, Nuclear Threats, and Resolution - 19th Jan 18
Complete Guide On Forex Trading Market - 19th Jan 18
Bitcoin Crash Sees Flight To Physical Gold Coins and Bars - 18th Jan 18
The Interest Rates Are What Matter In This Market - 18th Jan 18
Crude Oil Sweat, Blood and Tears - 18th Jan 18
Land Rover Discovery Sport - Week 3 HSE Black Test Review - 18th Jan 18
The North Korea Quagmire: Part 1, A Contest of Colonialism and Communism - 18th Jan 18
Understand Currency Trade and Make Plenty of Money - 18th Jan 18
Bitcoin Price Crash Below $10,000. What's Next? We have answers… - 18th Jan 18
How to Trade Gold During Second Half of January, Daily Cycle Prediction - 18th Jan 18
More U.S. States Are Knocking Down Gold & Silver Barriers - 18th Jan 18
5 Economic Predictions for 2018 - 18th Jan 18
Land Rover Discovery Sport - What You Need to Know Before Buying - Owning Week 2 - 17th Jan 18
Bitcoin and Stock Prices, Both Symptoms of Speculative Extremes! - 17th Jan 18
So That’s What Stock Market Volatility Looks Like - 17th Jan 18
Tips On Choosing the Right Forex Dealer - 17th Jan 18
Crude Oil is Starting 2018 Strong but there's Undeniable Risk to the Downside - 16th Jan 18
SPX, NDX, INDU and RUT Stock Indices all at Resistance Levels - 16th Jan 18
Silver Prices To Surge – JP Morgan Has Acquired A “Massive Quantity of Physical Silver” - 16th Jan 18
Carillion Bankruptcy and the PFI Sector Spiraling Costs Crisis, Amey, G4S, Balfour Beatty, Serco.... - 16th Jan 18
Artificial Intelligence - Extermination of Humanity - 16th Jan 18
Carillion Goes Bust, as Government Refuses to Bailout PFI Contractors Debt and Pensions Liabilities - 15th Jan 18
What Really Happens in Iran?  - 15th Jan 18
Stock Market Near an Intermediate Top? - 15th Jan 18
The Key Economic Indicator You Should Watch in 2018 - 15th Jan 18
London Property Market Crash Looms As Prices Drop To 2 1/2 Year Low - 15th Jan 18
Some Fascinating Stock Market Fibonacci Relationships... - 15th Jan 18

Market Oracle FREE Newsletter

6 Critical Money Making Rules

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.


© 2005-2018 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