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In a move that is nothing short of ballsy, Texas Governor Greg Abbott signed a bill on Friday that is already stirring up some heated discussion in D.C. and the financial world. It seems that the Lone Star state is taking a swipe at the federal government by sending a clear message that Texas doesn’t trust them with their most valuable commodity. Could this be the first nail in the Fed’s coffin? It seems to be so.
House Bill 483, which goes into law immediately, allows for an initial one billion dollars worth of gold bars to be taken back from a Federal Reserve location in New York and moved to a newly constructed gold and silver depository in Texas. The end goal is to make the bullion untouchable to the Federal Reserve and to eliminate taxpayer funds from being used to store Texas citizens’ gold in what are essentially less financially secure locations controlled by the government.
According to KVUE, in a press release, Governor Abbott clearly stated his justification for bringing Texas gold back to Texas.
“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 Abbott in the release. “With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.”
As reported by ETF Daily News, there is a section in the bill which specifically addresses the relevant threat of government confiscation of the relocated bullion. In essence, Texas has declared that they will protect their citizens’ gold and that they have the full force of the Constitution behind them in order to do so.
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.”
Constitutional lawyer and gold expert Edwin Vieira says that the move by Texas to repatriate their citizens’ gold is protected by Article 1, section 10 of the U.S. Constitution, which obliges the states to only tender payment of debt in gold and silver coin. Any attempt by the government to stop the move will be met with fierce resistance.
“If someone from the Department of Justice comes along you are going to see legal and political fireworks. The state is going to say ‘we need to have a mechanism to make gold and silver money. This is pursuant to the constitutional provision we have. You can’t touch this. Our state power on the constitutional level is more powerful than any statute you may pass,’” said Vieira.
There has even been talk of Texas having the potential to reform currency from paper money back to the straight line value of precious metals because the bullion would be in the possession of the state and not be at risk of confiscation by the government the way it happened in 1933.
Vieira explained how, without the threat of confiscation, citizens can use gold and silver as currency, completely bypassing the fickleness of the paper money system.
“People can legally do that with gold contracts. The difficulty is the implementation. Now Texas has set up a mechanism with the depository. We have accounts in that institution and can easily transfer back and forth certain amounts. So we can run our money system on a gold or silver basis if we were so inclined,” said Vieira.
Over the last several years, Texas has earned the reputation of being a tough as nails adversary of sorts to the federal government in refusing to bow to this administration’s whims on a range of issues, including illegal immigration, gun control, Obamacare, and now currency. Texas enjoys having one of the strongest economies in the U.S., and so, all things considered, it’s no wonder that with the implementation of its own state bullion reserve, people would flock to store their gold and silver there.
Truth in Media tells us that the bill’s sponsor, Representative Giovanni Capriglione, said, “When I first announced this, I got so many emails and phone calls from people literally all over the world who said they want to store their gold … in a Texas depository. People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold.”
Having the ability to control their own currency flow is perhaps the final element needed for Texas to become fully independent of the United States.
Is that their end-game? I don’t think at this point anyone can say for sure, but it’s likely the U.S. government isn’t going to take too kindly to the Lone Star state’s most recent one-finger salute. In fact, I expect we will all see quite the showdown in the not too distant future, considering the risk to the Fed that once Texas takes back their gold, other states will no doubt follow suit.
h/t [Truth In Media]
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Disclaimer: This article was not written by Lorra B.