In a move to bypass the unconstitutional fiat system of the privately-owned Federal Reserve, the State of Texas is establishing a gold-backed bank. Legislation signed into law by Texas Governor Greg Abbott establishes the Texas Bullion Depository, which will allow anyone who wants to deposit and trade in precious metals the opportunity to do so, thus allowing them to retain the value of their money.
HB 483 reads in part:
(a) The Texas Bullion Depository is established as an agency of this state in the office of the comptroller.
(b) The depository is established to serve as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to or otherwise acquired by this state or an agency, a political subdivision, or another instrumentality of this state.
On June 12, 2015, Governor Abbott said, “Today 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.”
Rep. Giovanni Capriglione, author and sponsor of HB 483 said, “The really interesting part about this depository, which hasn’t been getting a lot of press,” is that “with this depository, private individuals and entities will be able to purchase goods, and will be able to use assets in the vault the same way you’d be able to use cash.”
“This is different than your traditional bank – a traditional bank lends money. Especially if you’re in Greece right now, you know that if you go to the bank, and everybody went to the bank to try to get their deposits out, there’s not enough paper money to cover it. That causes a whole bunch of concerns. What this depository does is, it doesn’t allow that – if there are 5,000 bars of gold in there, there will be 5,000 gold bars there, and you’ll be able to access your deposits directly upon demand,” Capriglione said.
“You can write checks to individuals who have gold depository accounts, and you’ll also be able to write checks to individuals and corporations who don’t have gold depository accounts,” he added. “We set up a system of depository agents so you can have any corporation, any group, basically start a depository agent, and they can send and receive through this depository system, outside of the Federal Reserve System.”
Alex Newman at the New American writes:
Among other immediate effects, the law creating the first state-level gold-backed bank in the nation, House Bill 483, will involve repatriating about $1 billion of Texas gold from New York. Conflicting news reports and official statements say the state’s precious metals stockpile is being held either by HSBC in New York, or by the powerful New York Federal Reserve Bank, a privately owned outfit cloaked in secrecy with immense power over the U.S. economy. First, though, officials will need to select a home for the Texas depository.
There will be many other benefits as well, according to supporters. While other states have in recent years passed legislation declaring gold and silver to be legal tender, analysts say Texas’ new depository could help supercharge the growing movement for an honest and sensible monetary system founded on real money rather than debt-based paper notes conjured into existence by a private banking cartel. Indeed, one of the chief aims of gold-and-silver-as-currency proponents is to restore sound money — and the Texas law could help pave the way.
The Tenth Amendment Center’s Michael Bolden said, “The key is to make it so people can use gold and silver instead of fiat paper money. A bill like this won’t nullify the Fed on its own, but it is an important step forward in that direction.”
Many people may question whether or not this is constitutional. The reality is that it is very constitutional. According to Article 1, Section 10:
No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility.
According to Rep. Capriglione, “This could very well make the Federal Reserve System unnecessary.”
I’m all for that as it will eliminate a foreign entity from pushing us further into debt. The question is, will this go unchallenged by a tyrannical federal government, or are we about to see the beginnings of the second secession from the Union? Time will tell.