fightin wordsBy Bill Holter:

There is a bill proposed to the Texas legislature that would allow various state pension plans to invest directly in PHYSICAL Gold.
The proposed bill would create the ability for the state to actually build its own depository where “state sovereign” Gold would be stored.  Can you imagine the response out of Washington if a bunch of redneck, backwoods Texans demanded their Gold be delivered?  Would Texas receive the same “7 year” waiting period response that Germany received when they requested their bullion be repatriated?  The bill would also allow for individuals to eventually store personal Gold in this depository.

If this bill passes, you can pretty much bet that “them’s fighin’ words” will be what we hear out of Washington.  I can already see the dust storm coming.  Were the federal government to spazz out and declare a confiscation and Texas was sitting on a “hoard” of Gold, this dust storm would be a bunch of military tanks rolling along on their way to make a “withdrawal” from the depository.  Say what you will but if you really think about it, other sovereign countries have been invaded and their Gold plundered many times for less.  What do you think happened to Saddam & Qaddafi’s gold?

 

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Cyprus is all the news right now, main stream media has a hush hush policy and deal after deal is trial ballooned yet no solution.  …Because there is no solution and it is only a matter of time before people figure out that Cyprus, as everything else since 2008 is a SOLVENCY crisis which more and more liquidity cannot fix or repair.  Rather than writing about the “topic du jour” which is currently Cyprus (and will be 24/7 this week), I’d rather write about a subject near and very dear to my heart.  “Texas”.  God bless Texas!

This link of an interview of Jim Rickards came out this past Friday.  Apparently there is a bill proposed to the Texas legislature pertaining to Gold believe it or not.  This bill would allow various state pension plans to invest directly in PHYSICAL Gold.  Currently the only way is through paper products that “allege” or claim to have Gold.  I also understand that the University of Texas purchased some $1 billion worth of Gold a little over a year ago.  If I recall, they made their purchase on the COMEX and are storing the Gold at the NY Fed… but this could change. (editor note: according to Kyle Bass, they have stood for and taken delivery of their physical gold bullion).
The proposed bill would create the ability for the state to actually build its own depository where “state sovereign” Gold would be stored.  Can you imagine the response out of Washington if a bunch of redneck, backwoods Texans demanded their Gold be delivered?  Would Texas receive the same “7 year” waiting period response that Germany received when they requested their bullion be repatriated?  The bill would also allow for individuals to eventually store personal Gold in this depository.  But wait, it gets even better…MUCH better!
This bill contains a section where if the US were to go all “1933″ on us again and order confiscation of Gold, Texas (if passed) is saying otherwise.  By using the 10th amendment (State’s sovereignty rights), this bill essentially says that “citizens” of Texas would be exempt from a federal confiscation if one were to occur!  Can you even imagine the gall, the nerve of Texas to do something, ANYTHING like this?  Having the forethought and seeing exactly what’s coming…and taking action AHEAD of time?  Doesn’t sound like normal politicians to me.
Actually if I had to guess, Ron Paul has his fingerprints in here somewhere.  I mean think about it, a bill being offered which is good for the state, good for its citizens in so many ways and has that “4 lettered word” Gold in it?  Ron Paul (or maybe Kyle Bass) is in the mix somewhere…somehow!  I would love to see this pass for so many different reasons BUT…(yes there’s always a “but”) can you figure out what would come next?  The military, the US military.  First, let me digress a little.  I read a story where someone claimed that “shipping it from NY to Austin would be difficult”.  Huh?  Difficult?  This (if my math is correct) is only about 20 tons, a pittance compared to Germany’s request size wise and this shipment doesn’t have to “cross the pond”.  The “difficult” part in my opinion would be actually coming up with the 20 tons in the first place but that’s another story for another day.
The “problem” as I mentioned, would go something like this.  Texas passes this law, starts to build a depository and requests its Gold from the bowels of the NY Fed.  I can already see the dust storm coming (and no it’s not a cold front kicking up some dry sand ahead of it).  Were the federal government to spazz out and declare a confiscation and Texas was sitting on a “hoard” of Gold, this dust storm would be a bunch of military tanks rolling along on their way to make a “withdrawal” from the depository.  Say what you will but if you really think about it, other sovereign countries have been invaded and their Gold plundered many times for less.  What do you think happened to Saddam’s Gold or Qaddafi’s? 

If this bill passes, you can pretty much bet that “them’s fighin’ words” will be what we hear out of Washington.  It is however noteworthy that Arizona and Utah have bills proposed to make metals legal tender.  Of course we will see a federal court try to strike anything like this down citing “counterfeiting”…which is exactly what the Fed does every single day.  They print notes of no value yet claim they are valuable…which is why us Americans really shouldn’t fear a replay of Cyprus here in the States. 
Counterfeiters never need to rob the banks…only the vaults! 

Regards,  Bill H.

buff 728

  1. Wish my state (Georgia) would do that.
    I wonder how the Texas based PM custodians will fare in this.  I could envision that these business would be granted the same benefits of protection from the federales.

  2. This story, as told in the Texas Tribune–

    http://www.texastribune.org/2013/03/21/perry-some-lawmakers-want-states-gold-back-texas/

    says that it would be so difficult to transport the gold bars from NY to Texas that it would be easier to sell the bars and buy back a similar amount within Texas. But, wait! Is there likely to be 20 tons of gold in Texas? Methinks not. Twenty tons of gold would have to be transported to Texas in order for it to be purchased there. And where is the nearest place from which 20 tons of gold could be sourced? NY perhaps? So why not transport Texas’s own gold bars? Could this be a deliberate obfuscation by someone who knows that the gold mayno longer be there or otherwise not available?
    From Harvey Organ’s Blog we get…
     
    ” The following is a big story.  Texas is considering “repatriating” its pension fund’s gold supply
    from New York to Texas.  The Federal Research Bank of NY only holds official gold for foreign nations and USA official gold.  Thus it looks like the only place that would house Texas’ gold would be official comex sites.  If the comex has been settling with paper obligations then this repatriation will be just as fascinating as the German request to relocate its gold back to Frankfurt.”
     
    I think he means “Federal Reserve” but the above is direct copy-and-paste. Now, Comex and the Fed would, by other stories I read, take great delight in selling this gold into the market if that is what Texas wishes, but if the above paragraph is right, then I could believe that the Fed is doing what some banker actually confessed to a few weeks ago (sorry – that’s hearsay, I haven’t got a link to that) but I remember reading that one banker said that, as long as an entity – Germany or Texas, say – is paying for the storage of an amount of gold, then they have title to that amount of gold whether the gold is there or not! And that the existence of the gold is immaterial, as if it were there it would be locked in a vault and no-one would see it anyway. — And if the gold is no longer ‘available’, then it couldn’t be sold!
    In fact, that brings us to another point. Why, if it’s going to take seven years for Germany to get back just half of its gold, why don’t they sell it and buy it back in Germany? If it would work for Texas, why not Germany?
     

  3. Not difficult at all to transport 20 tonnes of gold.  A few undercover truckloads and the job is done.  Texas needs to insist on collecting their gold from the Fed.  This could be very revealing considering all the excuses Germany was given.

    • Texas won’t. This is all about smiling for the camera.  Perry knows IF Texas formally asked for the States gold back from the New York Fed, he’d be in a short conversation that ended,  “….you can go to hell!”

    • @4 oz
       
      You’re probably correct. I’m quite convinced ‘crunch time’ is really upon us now. It’s ‘every man for himself’ … ‘dog eat dog’ … from here on out.
       

    • Yeah, Texas sometimes is all hat and no horse.  Case in point.  Last year Texas was all set to toss the TSA out of their airports.  The legislation had the votes.  Then at the last moment Texas caved to federal pressure.  Stated more correctly, Rick Perry sold them out.

    • Yeah, I remember that TSA thing.  I had high hopes that at least one state had not been neutered by the Fed Gov but my hopes were soon dashed.  My travel by air moratorium is still in effect.

  4. In recent years, Hong Kong has built a precious metals depository at the Hong Kong International Airport.  If Texas did the same, it would be a the Dallas-Ft Worth International Airport (DFW) or Houston Intercontinental Airport (IAH).
     
    The simplest reason for Texas to hold its own Gold in physical form is because, for every oz of Gold that exists, there are 100 different owners of that single oz!  Worse yet, in all likelihood that 1 oz of Gold is being held by a 3rd party that doesn’t even own that Gold.

  5. Yesterday or Saturday, a retired Army General in Texas wrote to his congressman, demanding that DHS be ordered thoroughly disarmed by force of Military authorization … forthwith!

    In response to that story and now with this in tow, I’m again inclined to declare, that if there’s any State in our Union where ‘the balls hang from’ … that’s Texas, without a moment’s hesitation!

    In fact, I can almost hear Aaron Copeland’s ‘Fanfare for a Common Man’ ringing out as I view the vastness of Texas in my minds eye.

    • Yes, there ARE some bulls among the many steers in Texas but, unfortunately, Rick Perry is not among them.  Until he gets the boot, Texas will remain ball-less, at least insofar as the TX Gov is concerned.

  6. Pat
    What little I know of Texas, when the Texans agreed to become part of the union in 1845, 28th state, largest to date, Polk was pres. By agreeing to become a state of the union they made it clear they would be respected almost the same as a sovereign country.  I think many of the laws dealing with their relationship with D.C. are formulated with that in mind 
    If there was a state that would secede first it would be Texas, with Alaska second.  The wording of Seward’s folly, the purchase of Alaska from Russia,  would probably not stand up to even a quick inspection.  I think your readings of the laws would find loopholes galore.  The same could be said for Texas. The way our Federal government has buggered things up, secession by those two wealthy states would be advisable.  They both have no income taxes, a feature both attractive to those ararchistic folks who like to keep the Fed at a distance, an anathema to the central government and a haven for us gun totin’ $#&$)(*&’s

    • the Truth of secessions lies in half truths for Texas. When we came into the union in 1845, we had the legal right to secede from the U.S. and used it to secede during the out break of the civil war but when we came back we lost that right. Texans still feel like we are a nation to our on so legal or not we just might leave union.

  7. Well I’m with them in trying and get the States back where they belong; More authority than the Government and it’s the people doing it.
    This                 NOT            This
    People                                 Government
    State                                   State
    Government                       People          

  8. There is more to this than meets the eye.  Texas is in good company with Virginia,
    which commissioned a feasibility study for issuing its own currency in case the dollar loses
    its status as an international currency.  This comes from a cover-up of corruption.  

    http://www.veteranstoday.com/2013/03/27/the-world-bank-rejecting-the-rule-of-law/

    Fortunately, the governors, attorneys general, and the Conference of Chief Justices
    [of state supreme courts] are all working the case.
     

  9. Therefore, the question is will Texas be able to do that? There are other countries around the world that weren’t able to redeem their gold bars from the New York Federal Reserve so will it be the same faith for Texas?

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