Texas Governor Greg Abbott signed a bill into law on Friday, June 12, that will allow Texas to build a gold and silver bullion depository. In addition, Texas will repatriate $1 billion worth of bullion from the Federal Reserve in New York to the new facility once completed.
Abbott said.. 'I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store gold bullion and other precious metals. With the passage of this bill, the Texas Bullion Depository 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.”
We are not talking Fort Knox. But when I first announced this, I got so many emails and phone calls from people literally all over the world who said they want to store their gold … in a Texas depository. People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold.”
Secession Coming? Texas Pulls Gold!
Why does the state of Texas want to go through the trouble of building its own storage facility? There are precisely two important reasons. One involves distrust in the current storage system. The second threatens the paper money system as a whole.
Distrust of the Fed“In a lot of cases with gold you may not have clear title to the metal. You may have a counterparty relationship that makes you a creditor. If the counterparty has a problem unrelated to gold, they can default and then you become an unsecured creditor in bankruptcy,” said Keith Weiner, president of the Gold Standard Institute.
This means you get whatever is left after liquidation, often just a fraction of the initial value of your holdings.
This exact scenario happened with futures broker MF Global. Gold investors who had warehouse receipts to gold bars with a specific serial number. But that gold had an encumbered title and they became unsecured creditors in bankruptcy.
In Texas, two big public pension funds from the University of Texas (UoT) and the Teacher Retirement System (TRS) own gold worth more than $1 billion.
Being uncomfortable with holding purely financial gold in the form of futures and Exchange-traded Funds, University of Texas actually took delivery of the gold bars in 2011 and warehoused it with HSBC Bank in New York.
Think on this...
It is obvious to those who are paying attention... There is far more financial gold (Paper Gold) out there than actual physical bars of GOLD.
Texas is now going to be it's OWN Gold depository, the gold is going to be physically located in TEXAS.
Those in the know may be speculating that the FED may soon have a problem for which it is not prepared. The power brokers in TEXAS do not want to find out that their GOLD bullion investment is simply paper representing gold which is not actually real.
The Real Power behind this bill and I believe the true reason this bill was passed.
The TEXAS bill also includes a provision to prevent seizure, which is important for private parties who want to avoid another 1933 style confiscation of their bullion by Federal authorities.
Section A2116.023 of the bill states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the FED.
With that in mind, free from the threat of confiscation, private citizens can use gold and silver as money, completely bypassing the paper money system. Bypassing the FED.
“People can legally do that with gold contracts. The difficulty is the implementation. Now Texas has set up a mechanism with the TEXAS Gold depository. We have accounts in that institution and can easily transfer back and forth certain amounts. So, now TEXAS can run it's own money system using gold or silver as a basis. Again, bypassing the FED.