Texas To Remove One Billion In Gold From NY Fed’s Vault

originally posted by: dazbog

originally posted by: Answer

originally posted by: buster2010

originally posted by: Answer
Can you blame the state of Texas?

Would YOU trust the federal government with your possessions?

This is the Federal Reserve not the Federal government. The Reserve is privately owned.

Uh huh...

6 of one, half dozen of the other. If you honestly think the Federal Reserve doesn't answer to the Federal govn't and vice versa, I have a bridge and some water-front property to sell you.

If you have ever had the opportunity to view the exchanges between the Banking Committee and the two prior Chairman of the FRB,
one becomes acutely aware of who is running the show. It is not the Government ! I honestly don't understand how you have come to the conclusion that the Gov holds any sway over the FRB. They have NONE WHAT-SO-EVER. As an aside, I don't think, I know. Thanks : )

I worded that incorrectly but my point was that the same masters are pulling the strings for both puppets.

Okay, have read the HB 483, here's the high points. Imo, this facility is not limited to just UT and A & M University bullion, this will grow into a very profitable endeavor for the State of Texas transacting with many entities worldwide. All the fees earned go into the General Revenue Fund for the State of Texas.

Source: www.legis.state.tx.us...

Sec. 2116.002. TEXAS BULLION DEPOSITORY.

(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.

Sec. 2116.003. DEPOSITORY ADMINISTRATION; ADMINISTRATOR.

(a) The depository is administered as a division of the office of
the comptroller and under the direction and supervision of a
bullion depository administrator appointed by the comptroller with
the advice and consent of the governor, lieutenant governor, and
senate.

(b) The administrator shall:

(1) administer, supervise, and direct the operations
and affairs of the depository and depository agents; and

(2) liaise with the comptroller and other divisions of
the office of the comptroller to ensure that each transaction with
the depository that involves state money, that involves an agency,
a political subdivision, or another instrumentality of this state,
or that involves a private person is planned, administered, and
executed in a manner to achieve the purposes of this chapter.

Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS.

The depository shall enter into transactions and relationships with
bullion banks, depositories, dealers, central banks, sovereign
wealth funds, financial institutions, international
nongovernmental organizations, and other persons,

located inside or outside of this state or inside or outside of the United States,
as the comptroller determines to be prudent and suitable to
facilitate the operations of the depository and to further the
purposes of this chapter.

Sec. 2116.022. CERTAIN ACTIONS PROHIBITED.

The depository may not take any of the following actions, and any attempt by the
depository to take any of the following actions is void ab initio
and of no force or effect:

(1) entering into a precious metals leasing,
sale-leaseback, forward transaction, swap transaction, future
transaction, index transaction, or option on or other derivative of
any of those, whether in the nature of a cap transaction, floor
transaction, collar transaction, repurchase transaction, reverse
repurchase transaction, buy-and-sell-back transaction, securities
lending transaction,

or other financial instrument or interest
intended to or having the effect of hedging or leveraging the
depository's holdings of precious metals, including any option
with respect to any of these transactions, or any combination of
these transactions, except that the limitation provided by this
subdivision does not apply to a transaction entered into to limit
the depository's exposure

to post-signature price risks associated
with executory agreements to purchase or sell precious metals in
the ordinary course of depository operations and does not apply to
policies of insurance purchased to insure against ordinary casualty
risks such as theft, damage or destruction, loss during shipment,
or similar risks;

Here's my favorite part:

Sec. 2116.023. CONFISCATIONS, REQUISITIONS, SEIZURES, AND
OTHER ACTIONS VOID.

(a) A purported confiscation, requisition,
seizure, or other attempt to control the ownership, disposition, or
proceeds of a withdrawal, transfer, liquidation, or settlement of a
depository account, including the precious metals represented by
the balance of a depository account, if effected by a governmental
or quasi-governmental authority other than an authority of this
state

or by a financial institution or other person acting on behalf
of or pursuant to a directive or authorization issued by a
governmental or quasi-governmental authority other than an
authority of this state, in the course of a generalized declaration
of illegality or emergency relating to the ownership, possession,
or disposition of

one or more precious metals, contracts, or other
rights to the precious metals or contracts or derivatives of the
ownership, possession, disposition, contracts, or other rights, is
void ab initio and of no force or effect.

(b) The depository in the case of receiving notice of a
purported confiscation, requisition, seizure, or other attempt to
control the ownership, disposition, or proceeds of a withdrawal,
transfer, liquidation, or settlement of a depository account,
including the precious metals represented by the balance of a
depository account, effected by a governmental or

quasi-governmental authority other than an authority of this state
or by a financial institution or other person acting on behalf of or
pursuant to a directive or authorization issued by a governmental
or quasi-governmental authority other than an authority of this
state, in the course of a generalized declaration of illegality or
emergency relating to the ownership, possession,

or disposition of
one or more precious metals, contracts, or other rights to the
precious metals or contracts or derivatives of the ownership,
possession, disposition, contracts, or other rights, may not
recognize the governmental or quasi-governmental authority,
financial institution, or other person acting as the lawful
successor of the registered holder of a depository account in
question.

STM

a reply to: seentoomuch

Good contribution and analysis

Soon I shall live in the wealthiest state in the union.

... I'm okay with that.

Also...

originally posted by: stonerwilliam
I wonder will they build it on Elm street in Dallas

stranger things have happened

I can't imagine a safer place...

Two thoughts immediately come to mind when it comes to this issue.

1. If the gold belongs to Texas(or whoever) why is it wrong or questionable for them to actually want it? That's like one of us having 2 million dollars in the bank and going to withdraw it and then being criticized for it. I mean, it belongs to that person, not the bank..why is it questionable for someone to want it?

2. If a state did want to secede why wouldn't they be allowed to? I think it is fairly safe to say that the majority of Americans don't trust the government at the federal level, and many don't even trust state government officials. Therefore, if the people aren't happy with their leadership, why are they forced to stay a part of the U.S.?

We aren't talking about 'onesies' or 'twosies' here, so any 'if you don't like the U.S. just move somewhere else' comments will be meaningless.

The latest Rasmussen Reports national telephone survey finds that just 12% of Likely U.S. Voters rate the job Congress does as good or excellent. That’s little changed from last month but up slightly from eight percent (8%) a year ago. Most voters (58%) continue to think Congress is doing a poor job.

They're entitled to the HSBC gold, but not any Federal Reserve gold.
a reply to: xuenchen

originally posted by: Parthin96
They're entitled to the HSBC gold, but not any Federal Reserve gold.
a reply to: xuenchen

Are you absolutely 100% sure?

Here's a bit more on the subject:

Source: www.zerohedge.com...“repatriated”-ny-fed-new-texas-bullion-depository

The man who initially drafted this legislation is Rick Cunningham of the Texas Center for Economics, Law, and Policy. Mr. Cunningham is respected and is the Executive Director of the Center, but he is also a magna cum laude graduate of Texas A&M with a degree in Economics, as well as a graduate of the University of Chicago Law School, where he served as associate editor of the Law Review journal.

According to Mr. Cunningham

“this proposal consists of two parts – the “depository” part and the “system” part. The “depository” part … provides simply for hedging the state’s investment risk by allocating a recommended portion of state and local investment assets to physical gold and other precious metals, and housing those metals in a state-operated facility…”

“But the truly game-changing aspect of this proposal … lies in the “system” part. This would be an advanced, state-owned and operated system of electronic payments and settlements, denominated in ounces of precious metals, barred from engaging in lending, leasing, speculative or derivative transactions, and always maintaining a 100% ratio of bullion reserves to account balances.

At full scale, not only could it sustain state and local government operations, it could potentially sustain large swaths of the Texas economy, even in the face of a national financial or currency crisis.”

If gold and silver were to become widely circulating currencies in Texas, the Federal Reserve issued and continuously devaluing dollar may slowly fall out of favour. Not maintaining a currency monopoly could ultimately lead to a return to using gold and silver as currency in the U.S.

In the coming months and years it is likely that the Federal Reserve and the Federal government of the U.S. will come under increasing pressure from Russia and China to back the dollar with something of intrinsic value rather than simply increasingly empty promises.

Texas hopes to make money on gold storage. If you set up a private depository the gold is not added to their books. It is your gold sitting In a vault where you pay a fee to keep it stored. The federal Reserve they give you paper notes and it is added to the banks net worth. Several silver depositories are now opening up to gold storage because people like the idea of being able to access there gold immediately and willing to pay for storage.

The Federal Reserve has no gold, just monopoly money. I will buy Park Place and put a hotel on it thank you.

Good Luck to Texas!





Respectfully,
EOS

I mean they can fight the Fed for it's gold, but good luck with that, it's not state property.
a reply to: xuenchen

Here's an update on The State of Texas and it's gold:

Source: hosted.ap.org...

The plan has kicked up chatter outside of Texas that it's a step toward secession, an idea raised now and then on the state's farthest political fringe.

"Just moving it would be pretty expensive and, unless Texas is anticipating withdrawing from the union, which I suspect is some peoples' want, I don't see what advantage it is...," said Edwin Truman, a senior fellow at the Washington-based Peterson Institute for International Economics who has written about gold and monetary policy. "What are you getting for what you're paying for?"

But Capriglione says he's just convinced that gold is safer, especially close at hand.

After the bill sailed through the Legislature, Republican Gov. Greg Abbott signed it and tweeted: "California may be the golden state, but Texans deserve to keep their gold in-state!"

Texas' state-owned gold is held by the University of Texas Investment Management Company, the nation's second largest academic endowment behind Harvard. It began gradually amassing gold futures in 2009 as a hedge against currency weakness in the recession. It eventually transitioned to physical bullion, and by 2011 had $1 billion worth.

The price of gold has since mostly slumped amid a soaring stock market. Today, the fund's gold bars represent about 2.5 percent of its $25.4 billion in holdings, said Chief Executive Officer Bruce Zimmerman.

Asked about the new depository, Zimmerman said, "We don't do politics. We're just investors."

The Fed declined comment on the new Texas depository, as did HSBC bank, which currently stores the gold bars in an underground vault in Manhattan.

Stacked together, the state's gold occupies about 20 square feet. It's unclear whether repatriating it could be done with an electronic transfer or would require a fleet of planes or armored cars.

One possible effect of the new depository might be more attention to the idea of returning to the gold standard, long a cause of former Texas Rep. Ron Paul. The Federal Reserve was founded more than a century ago so that the value of the U.S. dollar no longer had to be anchored to gold, and Richard Nixon formally scrapped the gold standard in 1971.

"I think Texas is once again showing they're ahead of the curve," said James Rickards, author of the 2014 book "The Death of Money: The Coming Collapse of the International Monetary System." `'They're not waiting for the disaster, but preparing for it."

There's more in the article about working out the logistics by forming a task force to handle the specifics that were left out of the Bill.

STM