Texas Launches Gold-backed Bank, Challenging Federal Reserve

The New American ^ | 15 July 2015 | Alex Newman

[E. Pluribus Unum]

Article V Convention.

[VitacoreVision]

Texas’ Gold is NOT in the NY Fed, it’s in a private HSBC bank in New York.

[catnipman]

Does anyone else know if this is only for Texas residents and businesses?

The article is somewhat ambiguous about this issue and, researching the net, all the information seems to indicate it’s just for Texas.

That would actually make sense if that were to be the case, because the Feds would be unable to stick their noses in Texas’ business.

[DoodleDawg]

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.

It's held by HSBC. The Federal Reserve doesn't hold gold for private individuals or private companies.

[Lurker]

“While other states have in recent years passed legislation declaring gold and silver to be legal tender”

The Constitution is quite clear on this point. While good hearted I suppose, simple adherence to that now ignored document would render such legislation unnecessary.

L

[oincobx]

So do you pay them to store your gold, or is this a service paid for by the taxpayers of the State of Texas?

[deport]

Previous articles from last month that were posted on FR.
The gold isn’t in the Feds but a bank located in NYC.

http://www.freerepublic.com/focus/f-news/3299938/posts
Writing’s On The Wall: Texas Pulls $1 Billion In Gold From NY Fed, Makes It “Non-Confiscatable” ^

http://www.freerepublic.com/focus/f-news/3300204/posts
BREAKING: Texas Signs Bill to Get GOLD from Fed ^

http://www.freerepublic.com/focus/f-news/3301275/posts
Texas Building New Facility To Store Gold Reserves Out of Reach of Federal Confiscation or Seizure ^

http://www.freerepublic.com/focus/f-news/3307810/posts
Texas wants its gold back inside the state’s borders ^

[Pontiac]

The Federal Reserve doesn't hold gold for private individuals or private companies.

The State of Texas is neither.

[palmer]

“As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state — as people in other states carry out their desire to bank with sound money — and an eventual outcry against the use of Federal Reserve notes for any transactions,” added Greene, who also testified in favor of the law in his capacity as a private citizen

In a perfect world that might happen. In today's world there will be a bubble where everybody buys "Texas" which will pop when everybody sells Texas. The legal framework will have some safeguards against this, but the market will work around those. For example the legal framework may say that out-of-state residents can only put money in term deposits, not demand deposits. But the market will create demand deposit accounts that will be invested in Texas term deposits. That will of course exacerbate the crash.

I like currencies chosen by people who are completely free to chose whatever currency they want. I want people to have the choice of Texas gold if they want it. But Texas should take advantage of the demand and automatically convert some small percentage into long term state-issued bonds backed by income producing infrastructure (e.g. toll roads, nuke plants, etc). People could still sell their bonds to get all the capital back but at least there would be a small commitment to tamp down market froth.

[DoodleDawg]

The State of Texas is neither.

Texas doesn't own any gold either. It's owned by the University of Texas Investment Management Corporation, a private entity established by the University of Texas to manage and invest the money in its endowment.

Regardless, even if the money was owned by the state of Texas it still wouldn't be at the New York Fed. They only store gold for foreign countries, foreign central banks, and a limited number of international organizations.

[DoodleDawg]

Well have Texas go to the folks at the New York Fed and demand their gold. Let us know how that works out.

[WildHighlander57]

Link please, to that info. I do recall someone on FR mentioning this.

[deport]

I was going to ping you to this thread but I see you found it.

[laplata]

Sounds like a bad move. One of the Tx secessionists on here told me they plan to deport everyone on SocSec and Medicare back to the US and seize their homes without repayment.

---

Right-
He and I were in Nam together. He’s got an itchy trigger finger.

[Georgia Girl 2]

“While other states have in recent years passed legislation declaring gold and silver to be legal tender”

GA being one of them. I wish we could open our own bank. Right now I think ND is the only state in the Union with a state bank. Well and now Texas. Smart.

[laplata]

Sounds like a bad move. One of the Tx secessionists on here told me they plan to deport everyone on SocSec and Medicare back to the US and seize their homes without repayment.

---

That’s hard to believe. Can you send that to me?

[nascarnation]

This was in 2014.
My chances of finding that post are about as good as winning the Powerball.

It’s all a joke anyway.

I always tell them be sure to alert me when the first Texas governor, lieutenant governor, secretary of state, attorney general, or member of the legislature is elected who is advocating secession.

So far I haven’t gotten any alerts.

[Lurkina.n.Learnin]

I will be a casual observer of this. Could be quite interesting.

[Cen-Tejas]

Yes sir!

[Yo-Yo]

Will they accept BitCoin?