October 8, 2013 – Christopher's Business Blog

A debate that has been going on for many many years may finally begin to come to a close. A new poll showing that more that 50% of Americans support the legalization of Cannabis for medical and recreational use. A whooping 93% of people on the Economist believe that the legalization of Cannabis would be beneficial. As the truth about Cannabis comes out in medical journals more and more people are becoming to open to the idea of legalization. Even the United States has decided not to intervene in the the two states that have already legalized Cannabis for recreational use, Colorado and Washington.

In addition to support from the general American population there are also many economic effects the potential new market would create. For instance in the United States alone the market is estimated to be anywhere from 10 billion to 120 billion USD. This could create a new economic opportunity for the government because they will be able to control the amount imported and exported from the country (if any). Also the Government will be able to impose a tax rate on Cannabis very much like the one on cigarettes and alcohol. It will also be a substitute for cigarettes, meaning that there will be competition within companies. Over time this will benefit the consumer because it will lead to lower prices for the good.

There are several stocks at the moment that would grow a considerable amount if Cannabis were to become legal. They are Cannabis Science (CBIS), Terra Tech Corp (TRTC) and MediSwipe Inc. (MWIP). All of these companies focus on the Cannabis industry. (CBIS) creates medical marijuana products for clients in Colorado and California and have a market cap of 32 million USD. There is great potential in this market not only for the consumer but also for producers and even the government. Not only that but it would eliminate one of the largest black markets in the world and create revenue for the country instead. So why haven’t we legalized cannabis yet?

Sources:

http://www.economist.com/debate/debates/overview/261

http://www.mainstreet.com/article/money/investing/marijuana-stocks-invest-stockpick-whiz-kid?page=2

http://www.theguardian.com/society/2013/sep/15/legal-cannabis-market-worth

Starting Tuesday October 8th a new 100 USD bill will be going into circulation. This marks the the latest change for US currency. Why would the United States go through all the trouble of making amendments to the current bill? The answer is simple, the US 100’s are and some of the most counterfeited bills in the world. There are so many of them in circulation that many Canadian establishments do not accept them at their stores.

The new bills have many changes to them. Most importantly a new security strip that is much harder to re-create. In addition to the security strip there is also a larger portrait of Benjamin Franklin. As well as, the rear of independence hall rather than the front.The average 100 USD bill usually lasts 15 years in circulation before ending back at the Federal reserve were it can be destroyed and new bills can be put into circulation around the globe. Initially the federal reserve has created 3.5 billion notes. There is about 1.15 Trillion $ in circulation around the world, with half to two thirds of it in 100$ notes. Therefore, these changes will help to prevent counterfeiting and control counterfeiting.