With Eye on Fiscal Armageddon, Texas Set to 'Repatriate' Its Gold To New Texas Fort Knox Texas wants its gold back. On Friday, Gov. Greg Abbott signed legislation that will create a state-run gold depository in the Lone Star State – one that will attempt to rival those operated by the U.S. government inside Fort Knox and the Federal Reserve Bank of New York’s vault in lower Manhattan. “The Texas Bullion Depository,” Abbott said in a statement, “will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.” Soon, Abbott’s office said, the state “will repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas.” In other words, when it comes preparing for the currency collapse and financial armeggedon, Abbott's office really seems to think Texas is a whole 'nother country. And the new depository will not just be a well-guarded warehouse for that bullion. The law Abbott signed calls for the creation of an electronic payments system that will allow gold, silver, platinum, palladium, and rhodium depositors to write checks against their accounts, making the depository into a bank – one that will create a metal-backed money supply intended to challenge the paper currency issued by the Federal Reserve - or "Yankee dollars" as one of the law's top supporters calls them. And in case the Fed or Obama wants to confiscate Texas's gold, nice try Fed and Obama! In keeping with this suspicion of the Fed and Washington, the new law also explicitly declares that no “governmental or quasi-governmental authority other than an authority of [Texas]” will be allowed to confiscate or freeze an account inside the depository. Gold that’s entrusted to Texas will stay in Texas. The depository law is the brainchild of a second-term state representative in the Texas legislature named Giovanni Capriglione, a 42-year-old Republican from Southlake, just northwest of Dallas-Fort Worth International Airport. A private equity manager with an MBA, Capriglione was elected in 2012 after beating an seven-term incumbent with the backing of Tea Party activists. . . . Fed critics herald Capriglione’s bill as a long-awaited and much-needed assault on the government’s printing press. Ryan McMaken at the libertarian Mises Institute (named after Austrian economist Ludwig Von Mises) wrote that “while the Texas depository is a government-owned enterprise, it nevertheless is an improvement since it is a case of decentralization (and arguably nullification)” that will present “alternatives to the Federally-controlled monetary and banking systems.” In what Capriglione – the depository bill’s sponsor – called “an easy to read summary of the specifics” of the law, a Tea Party site described the depository as a “game changer.” The author of the piece, a metals dealer named Franklin Sanders, wrote that “since at least 1991 I have firmly believed that whenever an electronic payments system could be established using silver & gold, it could supplant fiat currencies worldwide within two years at most, less time given a crisis. Now Texas steps forward to make it stick. And if Texas has the nerve to carry though, it will make Texas a center of world finance to rival New York and London better than Switzerland, because it contains 27,695,284 Texans and all but two of ‘em are armed & serious.” (Sanders favors the term “Yankee dollars” to describe paper currency.) Other gold enthusiasts go further in blowing the secessionist dog whistle. “If the Fed gets too carried away with its digital money printing, then Texas will already have some kind of system to work off of in terms of not using the dollar. I’m not saying it will come to this, but it is symbolic in retaining some liberty, similar to gun ownership in this country. It is not something that will likely be used against a tyrannical government because the symbolism itself keeps tyranny in check,” writes Geoffrey Pike at Wealth Daily. The Tenth Amendment Center, meanwhile, predicted that “while [the bullion depository] won’t nullify the Fed’s monetary monopoly on its own, it represents an important step forward in that direction.” The depository, then, will insulate Texans from a just-around-the-corner economic and geopolitical catastrophe brought on by paper money and cauterize the seemingly-still-fresh trauma of Franklin Roosevelt’s 1933 executive order making gold coin hoarding illegal during the Great Depression. ---------------- More at the link. I just wanted to comment on the bolded part: If I knew you could get an MBA and a job as a private equity manager without having any understanding of the concept of money and even while rejecting the concept of investment, I'd have taken over the world a long time ago.
Like Rome, we rot from within. The thing is Liet, we can't assume he doesn't understand the concept of money. He might just not care, so long as his supporters are dumb enough to get behind the idea. [edit]In fact, the whole thing might be specifically designed to create a conflict with the federal government.[/edit]
Isn't the thread title grossly misleading? From your posted text it sounds like this has nothing to do with apocalyptic, survivalist stuff and more to do with putting a shot across the bow of the Federal Reserve.
The thing is, gul, that he still works primarily as a private equity manager. In this day and age, if he managed equity in a manner grossly at odds with his publicly proclaimed beliefs, someone probably would cash in on that fact. I'm guessing he believes what he says and is not actually a competent equity manager. Fortunately for him there are lots of stupid rich people out there willing to hand their money over on the basis of ideology rather than investing acumen.
