Texas goldJim Rickards joins Lauren Lyster with the Yahoo Daily Ticker to discuss gold, and plans for a Texas Depository run by the state of Texas that holds gold and will protect it from Federal confiscation under the 10th Amendment.
The proposed legislation would allow Texas pension funds to invest in PHYSICAL gold (such as the Texas Teachers Retirement fund, one of the largest pension funds in the world after CALPERS) and would create the Texas bullion depository- the Fort Knox of Texas!  
Furthermore, the bill contains a clause nullifying any confiscation of gold by the Federal government!

Assuming the legislation passes, it may be looked back upon one day as the first step in the State of Texas seceding from the USSA.

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    • That assumes they actually GET their gold. 
      Passing a law in Texas, and getting the FED to turn loose of gold are two completely different horses.
      They just told Germany to whistle Dixie for 7 years.

    • Does the Fed need to “turn loose of gold”?  I took this story to mean that Texas was changing its own laws such that it could BUY and STORE its own gold and that they would deny the Fed Gov any power to grab it as they did in 1933.

    • @Ed_B:  Yes, you’re correct.  This has nothing to do with gold at the Treasury or Fed.  It pertains to new gold bought by Texas or stored by private parties with an official depository Texas would establish inside Texas.  The latter, could in fact prove to be one heck of a catalyst for overall monetary system reform in the entire US.  Huge piles of pension fund money flopping around in the compromised GLD and similar vehicles would likely end up flowing into the Texas depository.  That would lessen the cartel’s ability to use ETF inventory to influence physical demand.  It would also lessen new flows into GLD outright.

    • Thanks for the confirmation, FW.  That’s what I thought was happening but it’s good to hear from another SDer on this.  I find this a VERY exciting possibility.  Makes me wonder what the Feds will do about it.  I can’t see them liking this very much but don’t know what they can do about it… other than bluster at the Governor of TX.  lol

  1. Wow !!  I was born, raised, and I live in West Texas and this is the first I’ve heard of that. That really makes me proud of my state. Texas may not always get it right every time, but our state sure seems to be doing a good job of looking after our citizens, our businesses, and our future. I would be glad to see our state with our own gold reserves and laws to protect our citizens from any future gold confiscation. On a side note here, Texas is one of the few states in the country with a rather substantial “rainy day fund” and not much of a clue on how to spend it. I have a suggestion – build more prisons and keep the crooks and the riff-raff behind bars instead of releasing them and giving them probation. That will go a long way to improving the unique quality of life we all enjoy here in THE GREAT STATE OF TEXAS. Now, if only we could get Magpul to move their operations out of the socialist republic of Colorado to Texas, that would really make my day. If that happens, I might have to put an extra scoop of ice cream on my cone.

    • I’m sorry Panther I was with you until you said more prisons, which would be more private prisons. Also under what conditions do we send people there? The war on drugs is completely unconstitutional and it’s amazing to me that people get 5 years for selling weed . They talk about people coming into prison for bank robbery or attempted murder and they get out on parole faster than the plant dealer.  Our prisons are over run with people that have been a victim of the war on drugs while our CIA guards the poppy fields in Afghanistan, HSBC and BOA have beeen caught out right laundering drug money  and the Mexican Drug Cartels say they are in cahoots with the CIA. They just want a monopoly on the drug game.
      More prisons is not the answer. Less BS laws and zero dependence on government would be a good fit for the citizens of Texas. Too many old neocons down here still love their war and prisons…

    • Orion, you certainly make some great points. I made the comment about prisons because we have an enormous influx of people coming into our state seeking work. And that’s great, most of these people are hard working and are much welcomed here. However, along with the good, you get the bad apples that want to bring their criminal element here and set up shop. Criminal activity surges whenever and wherever you have an economic boom. I certainly agree with you that there should be NO ONE who is above the law. Texas is big, but I don’t think  we could build a prison large enough for all of the alphabet agency class thugs you listed.

    • @Orion is right.  @Sagenhaft Panther…
      30+ years ago, it was frequently pointed out how evil those Red Chinese were, locking up a huge percentage of their population — and Russia and Eastern Europe too.  Well, now look at which country is on top.  The US has more people locked up — both on a per capita basis and in total.   It is now fair to say the US has a Prison Industrial Complex, complete with publically traded companies that provide incentive to lock more people up.  These companies make considerable money from the buildings, staff, and service and product offerings that are generated by what amounts to a class of slave labor well over a million in size and being paid a few tens of cents per hour.  Toss on the prison unions, law enforcement “complex” that sucks on the Federal and State and County (where possible) tit, the sizable value of assetes sized from busts and on and on and you end up with one fat, self-interest jealous monster that acts like a cancer in our society.

      Sure, there are a great many criminals and as a society, we have to deal with crime.  But the system is totally screwed-up and a great many have a direct economic interest in convincing good people like yourself that all that needs to be done is to lock more people up. 

      Sorry for the image format problem. I should have tweaked that before linking it. Here’s the original, where you can see China


    • @RocketsRedGlare – Thank you. Your point is well made by the fact that most of the “less purple” countries require some sort of extortion or other underhanded fulfillments in order to be set free. I’m completely fed up with the people that are perfectly willing to let their children hang out with the gang and then expect total mercy and forgiveness from the ones that are the real victims. That state above is purple for a damn good reason – because it’s just not legal for me to shoot the mother fu##ers !!!  Hell, it’s not even legal for me to take a swing at some bastard because the idiot should have been put in a cage a long time ago. If some sh!t for brains tried to sell my daughter a bag of weed, I think I should have the god given right to beat the sh!t out them !!!  Not give them a “Thank You” card and a gift card for $20 at Baskin Robbins !! The next time my neighbors house gets broken into by some meth addict (victim of the drug war), I’ll just explain to them that they live in a purple country and everything is under control. That should make them feel much better. The “poor victim” will have much less luck when he breaks into my house in the middle of the night in a drugged out haze. He will be met with nothing but my most precious metal – LEAD !!!  Panther

    • @Flying Wombat – While working for the big green machine as a loggie, I often had to deal with UNICOR, our governments ‘prison industry’. Certain classes of supply are ‘set aside’ specifically for ‘no-bid contracts’ that would go to UNICOR. Having the floor manger of the Federal prison production line tell me, ” if I wanted a better delivery schedule, I should send him a better quality prisoner”, was a real eye opener. From that day in 1992, while trying to deal with the devastation of hurricane Andrew, my views on the “War on Drugs” brought new meaning…free labor.

    • @RocketsRedGlare:  No doubt, you’re right on China and their probable extensive use of the “9mm parabellum non-judicial punishment system.”  So it goes. 
      Obviously, as I’m sure you’d agree, that doesn’t make what’s going on in the US excusable.  

    • @Flying Wombat: I do agree completely, It’s tyranny! Step out of line even a little in the U.S. and one will find themselves in a cage. While in that cage ones life is forever changed and not for the better!

    • @Sagenhaft Panther: I went through that VERY thing! Shot the guy! What can I say? He didn’t go to jail. I did. Well worth the price of 500 of FPS! He is in jail now, today. It din’t enter my mind to call the cops. It was my problem!!!Guess he sold to someone connected to TPTB.

  2. The question is – would Texas’ stockpiles of Gold from pension funds, etc. be allocated?  Sometimes a great idea (universal health care, for example) like this ends up being ruined by ‘over-bureaucracizing’ and just wait until the Big Banks like JP Morgan, Chase, etc. get their fingers into the pie.
    Better section some of those Gold bars in the Texas Depository to make sure they are not gold-plated bricks of cow-manure.

    • Knowing Texans, a big blade will likely come down on any JPM sticky fingers that try to get involved with this.  CHOP!
      As to bar quality, a simple ultrasonic test will determine whether or not a bar is solid gold… BEFORE it is signed in.

  3. I think we can see the movement gaining steam down here because a city like Austin which has been liberal as hell for 40 years is starting to change. In fact an old friend told me he heard a hippy describe it as “the libertarian cancer” eating Texas alive. LOL
    I love being a part of that malignant growth.

  4. Texas only needs to do what China has been doing these past few years, and that is, encourage all of the people of Texas to buy and invest in physical Gold and Silver (for example, by advertising on TV and by removing all taxes on Gold and Silver purchases).  A country (or state) is only as rich as its citizens, and having wealthy Texans will translate into a wealthy and glorious Texas.
    Isn’t Texas the only state where the State Flag can fly side-by-side and at the same level as the US Flag?

  5. I love the old Western song, “She broke my heart at Walgreens and cried all the way to Sears”.
    Bein’ a Texan and damned proud to say a born and raised Texan, You kill someone in Texas we will kill you back!
    Texas can be self supportive and independent of the US government. 18 million residents and 16 million cattle.
    Our State Motto is “Friendship” The economy against all other state economies is booming. Maybe we need to hoard Gold
    and maybe not, we have everything we need and can get it on a handshake!

  6. I sent the following letter (email) to Rep. Giovanni Capriglione ( http://www.house.state.tx.us/members/member-page/?district=98 ):
    I read with interest about your bill HB 3505:
    In general, I think it’s a fantastic idea.  Given news about Germany’s 7 year repatriation effort (is the gold actually there?) and recent news about central bank desperation (Cyprus bail-in), it seems only prudent to safeguard assets important to Texas.
    However, it appears that your proposed repository would only be offering pooled or unallocated accounts to the Texas public:
    “Sec. 2116.005 (f)
    Precious metal deposited with the depository by any person is the property of this state and is held by the depository outside the state treasury. On withdrawal and settlement, the precious metals become the property of the depository account holder.”
    I would prefer to see the proposed repository acting as a custodian only.  Ie. any gold deposited by the public is still owned by the depositor and is merely being held on account for the depositor.
    Is the state of Texas not willing to guarantee the gold 100%?  If they are, what is the objection to offering fully allocated (ie. depositor owned) accounts?

  7. @The Doc, WTF with that annoying pop-up video advertisement that appears on every single page as I navigate around your website?  I understand the need to advertise but this is annoying as hell!  Please get rid of it. I am gone for the rest of the day!
    See ya!

    • @Mammoth – wondered the same thing myself- our advertising company does not have permission to run that ad and did not contact us prior to starting it.  We have a meeting with them Monday to discuss.


    • So?  Let’em.  Texas can come right back with, “OK, so we won’t be sending ANY more tax money to DC, then”.  The problem with most Fed threats is that they are hollow… mostly bark, little bite.  The states created the Fed Gov and they can damned well un-create it, if necessary.

    • Add to that, “If it can be taxed, you don’t own it!”.  If you think otherwise, just try NOT paying the tax sometime and see what happens to both “it” and you.  :-O

    • Ed_B – You are 100% right.  I’ve had way too many arrogant “preppers” explain to me that they “own” their land/property. They have a small “clue” mailed to them in the form of property taxes that they really do not own what they think they own – they are only renting it and the rent, as long as it is in the gov’s hands could skyrocket and therefore confiscate what they once believed to be rightfullly theirs. Thanks for rightfully pointing this out Ed_B.

    • Yep, land ownership basically means that only we and the Gov own it, no bank involved.   This is, of course, an improvement over having a bank involved.
      One good thing in some places is that they have property tax relief for seniors and / or low income folks.  Some of these programs are pretty good.  The owners might not even have to pay any property taxes while they are alive but the Gov eventually gets theirs when the place is sold or the folks pass on.  That takes a bite out of the equity but for cash-strapped folks who have a place to live but not much free cash flow, it can work well.

  8. New info found!  Just today, I read on another web site that the 1 billion worth of gold purchased by the University of TX for their retirement plan was not physical gold at all but gold certificates for gold held by the Federal Reserve Bank in NYC.  While TX will no doubt be buying additional gold in time, they now want the NY Fed to cough up their gold… all 19+ tons of it… for repatriation to TX in physical bar form.  I strongly suggest that if any bars are forthcoming, they should be tested ultrasonically BEFORE they are accepted as legitimate 99.9% gold bars.  See the following for more details:

  9. If the SHTF, I have a feeling that Texans will be the safest Americans from criminals especially because they have guns to defend themselves which means they could become their own police. It looks like more states are waking up and are starting to understand our current financial situations.

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