I think the article below indicates just how fragile the U.S. and world economy really are. The world is preparing itself for its anti-christ.
Texas House Member Giovanni Capriglione (R), recently introduced a bill that would bring $1 Billion worth of gold bars stored in New York City back home to Texas. The bill also provides for the establishment of the Texas Bullion Depository, which would be the Texas answer to Fort Knox. Private citizens could store their own gold at the depository as well.
According to CNBC, the University of Texas
Investment Management Company (UTIMCO) owns 6,643 gold bars.
Some media outlets have wrongly reported that the Federal Reserve keeps
the gold in an “undisclosed” location somewhere underneath New York City. The
bars are actually held in a private vault owned by HSBC bank. This could be
one reason why Texas lawmakers want them back. The bill also allows for
pension funds like the Teachers Retirement System of Texas to invest in
physical gold. As of now, these institutions are limited by law to investing in
gold futures only.
“We’re trying to figure out the right amount of gold to have here
in Texas. We don’t want just the certificates. We want our gold. And if you’re
the state of Texas, you should be able to get your gold.” said Rep.
Capriglione. He imagines a scenario where Texas sells the bullion and then
immediately repurchases the bars within state lines.
Texas Governor Rick Perry (R) backed the idea behind repatriation
in a recent interview with Glenn Beck. “If we own it, I will suggest to you
that that’s not someone else’s determination whether we can take possession of
it back or not.” said Governor Rick Perry.
10th Amendment Rights
The bill has yet to become law, but it could be
a prudent move. Texas is asserting its rights under the 10th Amendment, and
some say that this bill is a direct message for the Federal government. “This
bill contains a provision that says to the federal government that you, the
federal government, purport to confiscate this Texas gold, we, the state of
Texas, consider that to be null and void. And under the 10th Amendment of the
United States Constitution, they have that power,” says Jim Rickards of Tangent Capital Partners.
Texas is hedging against the possibility that
the Federal Government could seize precious metal from private citizens. It’s
happened before, the Feds seized gold from private citizens in 1933 after FDR
issued Presidential Executive Order (EO) 6102. In fact, the EO was issued on 1 April 1933 and citizens had three weeks to turn in their gold. The recent
events in Cypress have shown us that asset seizure can happen when a desperate,
bankrupt government runs out of options. It doesn’t make much sense to keep
physical gold from a state like Texas, with a strong financial position, and
keep it in a “death spiral” state like New York. The gold belongs to
Texas, and it should be stored in Texas.
First Step To Secession?
Some may see the gold repatriation as a step
towards secession. If Texas were to secede, it could back a new currency with
gold bullion. It is highly unlikely that Texas will leave the Union, it would
take an act of Congress. But more states could follow Texas’
lead and move to bring gold back home. The move to repatriate gold is not
new. As I’ve noted in previous posts, the Bundesbank has recently expressed
interest in bring home German bullion stored in New York City vaults. The Netherlands have followed suite.
US government balance sheets should continue to deteriorate, and
it seems likely that trust in the Central Bank will erode as well. German and
Texas gold repatriation could be the start of a larger trend. Precious metals
will always be a store of value. They provide a hedge against depreciating fiat
currencies backed by nothing but faith. We could begin to see more states and
countries begin to move their gold bullion back home. Repatriation could put
upward pressure on prices, providing another reason to add the yellow metal to
your portfolio.
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