The Bill Has Been Signed
Some of our shield brothers might remember that 3 months ago, I wrote an article detailing how Texas was on the verge of taking steps that would put their state on the cusp of a silver and gold revolution. Well, over the weekend, we got some pretty unreal news on that front. As on Friday (June 12th), Texas Governor, Greg Abbot, finally signed the bill which would codify the establishment of a state-run depository for gold and silver bullion!
This is an enormously big deal, and the word of it is spreading rapidly. Furthermore, now that Texas has signed HB 483 into law, they’ve included some extra provisions, giving this bill some real teeth, which previously didn’t exist.
What does this mean for Texas stackers? Well, this has serious implications: some which are fairly obvious, but others which are rather more hidden. However, as I continue to read commentaries on HB 483, I’m rather amazed to see that the most serious things which the bill does, are not even being discussed at all!
Submitted by The Wealth Watchman:
The First Bail-In
But first though, let’s remember one thing that prompted this bill’s passage. Everyone makes the mistake of calling Cyprus the first, major financial “bail-in”, where depositors’ wealth was seized without recourse…but that’s not exactly true. If we’re simply talking about depositors losing their true wealth, due to being considered “unsecured creditors”, then the first major instance of that occurring was not in Cyprus, but somewhere else entirely…
For you see, this article was quite right: MF Global bullion depositors did indeed lose their allocated gold and silver bullion during that bankruptcy, as their receipts for their metals were not honored. For far too long, people have had a false sense of security about the safety of their cash in the banking system, due to “guarantees” from the FDIC(which as we’ve covered before, will not be honored in the next crisis whatsoever).
However, those guarantees cover cash and cash repayments only. They do not pertain to precious metal holdings within those same banks at all. To my knowledge, no one in any federal agency, is directly required by law, to make privately-owned, specie payments whole again, after a bankruptcy.
This bill aims to repair that damage, and restore the trust that was lost in gold and silver depositories, by guaranteeing its depository by the State of Texas itself. This is big news. No longer will bullion depositors have to be concerned about being treated as a the last, poor soul with a claim to their own money, should their depository’s clearing house fail for some reason.
“Yeah, yeah, Watchman, so I’ve heard, but even if you trusted the State of Texas to honor their agreement, you’ve gotta deal with the history of prior, Federal confiscation of your gold or silver!”
Right you are, friend, that’s precisely why this bill went even further than necessary, to spell out in plain English, that the State of Texas considers any and all outside laws or claims against the metal stored in its depository, as null and void.
This is an enormous blow against centralization of power, and for the power of local communities to determine their own financial futures.
Ever since the events at Sandy Hook, we’ve seen a long-overdo renaissance of states practicing the excellent doctrine of “nullification”, by passing gun bills, stating that any and all federal laws to seize or prohibit gun ownership within their borders are null and void. Now, with the passage of HB 483, we may very well see nullification being applied to gold and silver depositories as well.
Yet, while zerohedge and others have commented about the enormity of the decision to repatriate gold, or even create a state depository for bullion, no one has spoken about the real firepower behind this new law…
The Truly Revolutionary Provision
I’ve said it before, and I’ll say it again: the real, revolutionary provisions in this bill concern the enabling of those with state depository accounts, to use their gold and silver as a means of payment to one another, or to the State of Texas itself(either by physical delivery, check, or electronically)!
Don’t believe me? Read the text of the bill for yourself (it’s long, but worth it).
I’ve spent a great deal of time thinking about this, and I really think this is the biggest news for gold and silver in the United States in decades. Furthermore, I honestly think that this bill, if successful, will hasten other such bills being passed throughout the larger United States. Remember, it’s one thing to wax on vaguely about “empowering the people”, or “returning power to the States”, it’s quite another thing altogether, to say:
“Here’s our vault(which the Feds are banned from), and we’ll take your gold/silver in payment for your tax bill!”
“Watchman, I’m still skeptical, the banks have done such a number on precious metals owners, that I can’t trust a third party to hold my metal.”
Brother, I get that, believe me, and you’ve every right to be skeptical. For one thing though, this system will neither be backed, nor guaranteed, by any bank, but rather run by the office of the Texas Comptroller itself.
For another, they won’t just let anyone, willy nilly, join their system or handle the payments and accounting. They’re actually going to audit, train, and license anyone who deals in their depository clearing system. It’s all there, in black and white. The only thing left to see, is whether or not, the execution of it all will be pursued with the gravity it deserves. There is one other serious, hidden implication to all of this though, which zerohedge hinted at…
The Unseen Implication
Shield brothers who’ve followed me for awhile probably know by now, that my political sympathies are for the decentralizing forces, and local, nationalist movements in our world. That goes for the United States as well. I believe that the model the United States is run on, is a political dinosaur.
Insisting that it’s somehow necessary(or even a net-positive benefit) for roughly whole continents to be governed by one imperial city-state(like Brussels, or Washington DC) is becoming increasingly absurd. That archaic model(from the ancient Greco/Roman imperial times) is an outdated, outmoded holdover from the centralizing forces of 19th century politics, and is slowly being dismantled around the world.
Remember, gold repatriation is never simply about safety(though that’s always the public reason given). The real, hidden reason for repatriation is also sovereignty. Make no mistake: this move will enhance Texas’s monetary health & sovereignty.
“But Watchman, that’s ridiculous, Texas isn’t a country!”
Oh, how soon we forget, that it was at one point, friend. TheRepublic of Texas, not to mention the Southern Confederacy, which it later joined, have both left an indelible longing within the hearts of millions of Texans today, for the possibility of nationhood. In fact, groups like the Texas Nationalist Movement, have made fairly serious in-roads with many local politicians in their state. I believe it was presences like theirs which helped make this bill a reality, in the first place.
Ron Paul has talked about the emergence of secession and nationalist movements, becoming an enormous political force in our time, and has himself predicted the inevitable growth of such movements here in the States as well. From the Scottish vote(which boosted the idea of independence to the fore there), to the Catalonian secession vote, there can be no doubt: the century-long trend of devolution is now hitting its strides.
Think about it: in 1900, there were roughly 50 countries in the world.
Do you know how many countries there are now?
There are now nearly 200, recognized countries! This trend will continue, and leave virtually no country untouched.
People just think that the long-term ramifications of this bill, are solely that folks from around the world will seek to store(and spend!) gold and silver in Texas. They’re not thinking of the bigger picture, here. The US dollar is the source of US hegemony and empire, when that finally goes, so many other things, which folks take for granted, will go with it.
HB 483 proves that people like us are making an enormous difference! We are having a sizeable impact on the broader discussion and the laws being passed, and it’s just the beginning, folks. The idea that major Western exchanges and banks do not have responsible, honest safeguards in place to keep one’s gold and silver from being taken, is no longer relegated to alternative media circles. It is now slowly going mainstream. We are now slowly becoming mainstream.
Financial trust, once lost, is lost forever, and the MF Global and Cyprus bail-ins have shattered trust in both the Western banking, and bullion storage system.
When you’re talking to friends or family, and someone rolls rolls their eyes at your “conspiracy theories”, regarding the necessity of silver or gold as means of savings and payment, just casually remind them of what Texas just did,and watch their tone and countenance change.
While Texans have every right to pat themselves on the back for this bill’s passage, as it’s no small step to repatriate your gold, or establish a mechanism to use gold and silver for electronic & physical payments, they still shouldn’t rest on their laurels. If I was a Texas politician, my immediate concern now would be to guarantee a serious, armed escort to that $1 billion in gold, until it was safely locked down on Texan soil.
After all, there was recently an armed robbery of nearly $5 million of gold, being transported on the interstate, in broad daylight! Besides, from Ukraine to Libya, we also know that DC has launched many wars and operations, to get its hands on any gold they can find, in order to keep their price suppression scheme going just a little bit longer.
The last thing Texas needs after this bill’s heroic passage, is to be “Ukrained”, due to lack of vigilance. Wherever their state-run depository’s nexus is established, they should make sure it’s state-of-the-art security, and heavily guarded: because it’s not just the gold that’s on the line here, anymore. No, rather it’s Texas’s own reputation and possible future of being a hard-monetary hub, that’s on the line. Establishing the trust necessary to make this fledgling depository/payment system work effectively, will be a tricky thing. If successful though, it’ll be worth it. After all..
Who knows, one day, it could literally become a matter of “national pride” itself…