TEXAS GOLD BACKED BANK - New Texas Bank to Challenge The Federal Reserve Fiat Currency System

The State of Texas is setting up a gold-backed bank that will allow depositors to bypass the controversial Federal Reserve System and its fiat currency in banking and commerce, according to the state representative who authored the recently enacted law. Under the measure, passed overwhelmingly by lawmakers and signed in mid-June by Republican Governor Greg Abbott, Lone Star State officials will establish and operate the Texas Bullion Depository for anyone who would like to deposit and trade in precious metals. The implications are as big as Texas.

While some analysts have said the move may be another sign heralding Texas’ eventual secession from the union, or preparation for financial Armageddon, its advocates say the depository simply makes financial sense. Among other benefits, the institution will provide more options to consumers weary of the increasingly troubled traditional banking and monetary system, which is viewed by the public with growing suspicion. And experts say the effect of making it easier to use sound money in commerce could be far-reaching.

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.

“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,” said a statement issued by Governor Abbott

“This exact scenario happened with futures broker MF Global. I knew people who had warehouse receipts to gold bars with a specific serial number. But that gold had an encumbered title and they became unsecured creditors in bankruptcy,” said Weiner. Section A2116.023 of the bill states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.

Distrust in the countries and companies who currently store gold have led Austria, Germany, the Netherlands, Russia and Venezuela to move some of their gold stored in New York, London, and Paris back to home. Patrice is also angry that anyone would dare suggest that it is wise to keep wealth in an alternative to US dollars global reserve currency The only thing the US Constitution says on this matter is that states may not make something other than gold and silver legal tender. I have no doubt that the Feds will attempt to quash the Texas plan using the courts, but an strategy based on the “coin money” clause seems like an unlikely avenue. The feds are more likely to resort to the old standby of “national security” to make a case here. But, I guess “supremacy clause!” is just interventionist code for “we don’t like you, and we’ll come up with some newfangled legal interpretation to make you stop doing stuff we don’t like.” Council of Foreign Relations, where ex-Fed-Chief Alan Greenspan Gold is a currency. It is still, by all evidence, a premier currency. 2008 No fiat currency, including the dollar collapse september october 2015 chart