Texas is building a gold repository and the ground breaking is planned for late this year. The law is in the books and the search is on for the contractor to build the high security facility. Mark your calendars for a December 1, 2016 kickoff.
In a world of unsettling economic madness, it is encouraging to see the state of Texas placing emphasis on self-sufficiency and stability. It is clear that the gold repository will be built and Texas’ physical assets will be moved there, it is promising that Texas legislators envision a future Texas economy driven by diverse commodity markets, and Texans will find comfort in individual investment possibilities in secure physical assets.
Some highlights of the Texas gold repository include:
- Constitutionally Authorized
- Develops Financial Infrastructure in Texas
- Maintains Texas’ gold within the state as physical holdings
- Generates new state revenue through holding fees
- Eliminates $650k annual holding fees paid to other facilities
- Enables individual Texans to securely invest and transact in gold
- Develops other Texas commodity markets
- Hedges against inflation and economic instability
Constitutional Sound Money
Setting up a gold repository is a endeavor in sound money. This strategy is based firmly on the U.S. Constitution as Article 1, Section 10, states:
“No State shall…coin Money: emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts…”
– U.S Constitution, Article 1, Section 10
Self-Sufficient Texas Infrastructure
The depository will provide a Texas-based infrastructure that will serve as a secure holding of precious metals for financial institutions, cities, school districts, businesses, individuals and countries.
The initial transfer will include $650 million owned by The University of Texas Investment Management Company, currently held in New York.
Further, the plan is to leverage the repository as a foundation for growing worldwide commodity markets in Texas. The envisioned market would offer the ability to trade and receive physical shipments of diverse Texas commodities such as cattle, oil, gas, and others.
In addition to the benefits to the State of Texas and business, individuals can leverage the repository for personal accounts.
Economic Stability for Texas and Texans
The depository will enable a hedge against inflation and economic disruptions and provides a can provide a layer of economic stability for Texas. It is no secret that the Federal Reserve has been printing money generously and increasing financial instability.
U.S. dollars are no longer back by gold as Nixon removed the last ties to the gold standard in 1971. This raises concerns with regards to the long-term prospects for the dollar and the shorter term possibilities of inflation. Inflation strongly and negatively affects an individual’s ability to protect their property and savings. Prior to appointment as FED Chairman Alan Greenspan wrote:
“In the absence of the gold standard, there is no way to protect savings from confiscation through inflation. There is no safe store of value. If there were, the government would have to make its holding illegal, as was done in the case of gold. If everyone decided, for example, to convert all his bank deposits to silver or copper or any other good, and thereafter declined to accept checks as payment for goods, bank deposits would lose their purchasing power and government-created bank credit would be worthless as a claim on goods. The financial policy of the welfare state requires that there be no way for the owners of wealth to protect themselves.
This is the shabby secret of the welfare statists’ tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists’ antagonism toward the gold standard.”
– Alan Greenspan, Gold and Economic Freedom, 1966
Notice that Greenspan points out that without a gold standard it is not possible for individuals to protect their savings. Since the Texas gold repository enables individuals to store their gold on-site and track this online it can provide a safe haven for private investment.
Greenspan did not often act on these convictions as FED Chairman. However, he has made recent comments that express a renewed emphasis on sound money based on gold. As recently as June 2016 in an interview with Bloomberg, Greenspan made this statement:
“If we went back on the gold standard and we adhered to the actual structure of the gold standard as it exited prior to 1913, we’d be fine. Remember that the period 1870 to 1913 was one of the most aggressive periods economically that we’ve had in the United States, and that was a golden period of the gold standard. I’m known as a gold bug and everyone laughs at me, but why do central banks own gold now?”
– Alan Greenspan, interview with Bloomberg, 2016
A Bigger Picture?
While Texas is making efforts to increase economic stability and independence, it will be interesting to see the next steps and opportunities that arise as a result of the foundation that the repository offers.
Some have called this the “Fort Knox of Texas” while others have claimed that this is the first step toward secession. Perhaps there are some considerations here with regards to Texas independence, perhaps not. Regardless, the gold repository is presented to Texans as “a bank that doesn’t do any lending” and that is a foundation that can be expanded upon as times change and new political needs arise.
United States Constitution, Article 1, Section 10 http://www.usconstitution.net/xconst_A1Sec10.html
First up: a gold depository in Texas. And then? http://www.star-telegram.com/news/politics-government/article104509111.html
Greenspan Warns A Crisis Is Imminent, Urges A Return To The Gold Standard http://www.zerohedge.com/news/2016-06-27/greenspan-warns-crisis-imminent-he-urges-return-gold-standard