“A Run on the Fed”
Don’t mess with Texas– and especially their gold.
Texas wants its $1 billion in gold reserves back from the
New York Federal Reserve Bank, and they hope to build a
structure similar to Fort Knox to protect it.
It would be the nation’s first sovereign depository for private gold.
Texas also hopes to pass a law that would protect the supply
from federal government seizure.
Senior Director Jim Rickards of Tangent Capital says “it’s not a run on Fort Knox, it’s a run on the Fed.”
It’s also part of the slow and steady re-monetization of gold throughout the world. Foreign nations are bringing their stored gold back– Venezuela, Germany, Switzerland, Azerbaijan, and possibly the Netherlands where it’s being currently debated.
Rickards believes another economic depression is around the corner and Texas wants to hedge its bets.
Texas believes taking its gold back and securing in it its own ‘Fort Knox of Texas’ is all possible because of the 10th Amendment:
“The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.”
Legislation by Texas State Rep. Giovanni Capriglione would create the Texas Bullion Depository. “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,” Capriglione said.
Capriglione said the bill is not about putting Texas on its own gold standard. Rather, a depository would give the state a reputation as being more financially secure in the event of a national or international financial crisis and economic meltdown.
The depository would be a secure state-based bank that would hold the gold bars owned by the University of Texas Investment Management. It’s no surprise that Ron Paul supports the plan, as he explains that the gold would be safer in the hands of
“If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible,“ Ron Paul said. “Texas is better served if it knows exactly where its gold is rather than depending on the security of the Federal Reserve.”
An additional clip of Jim Rickards discussing more about Texas’ gold plans can be viewed here.