State Of Texas To The Fed/Government: “We Want Our Gold”

This Texas Gold Depository Bill represents a direct threat to the western Central Bank fraudulent fractional gold reserve system in which most if not all of the bullion held by the Fed, ECB banks and the Bank of England has been leased or hypothecated.  This Bill, if passed, represents a direct threat to the wealthy elitists’ ability to loot our system using the U.S. dollar Ponzi scheme.  – Investment Research Dynamics

Two big public pension funds in Texas – University of Texas and the Texas Teachers Retirement System – own more than $1 billion worth of gold.  It was originally being held in the form of futures and ETFs.  In 2011, uncomfortable with owning gold in paper form, University of Texas took delivery of bars and “safekept” them in an HSBC vault in NYC.

Now there’s Bill sitting on the Texas Governor’s desk waiting to be reviewed for his signature.  Clearly, there are powerful entities in Texas who are concerned about the possibility that the gold owned in physical form by the State of Texas is at risk if it remains in storage in a bullion bank vault in NYC.

I think that somebody was looking at that, we better have this under our complete control,” said constitutional lawyer and gold expert Edwin Vieira, of the Texas bill. “They don’t want to have the gold in some bank somewhere and in two to five years it turns out not to be there.”  – Edwin Vieira, Constitutional law expert specifically as the Constitution relates to money 

While the State of Texas is going to attempt to pre-empt the risk that the physical gold owned by Texas has been or will be hyothecated or leased, I would bet that the bars already have counterparty ownership claims attached, even if the bars are still sitting in HSBC’s vault.

It’s no secret anymore that the western Central Banks have leased out most of the gold being stored in their vault facilities.  Anyone who denies this is either completely corrupted or a complete idiot.   Even Alan Greenspan admitted to Congress that the Fed leases gold to control the price:

Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.  – Alan Greenspan, July 24, 1998

Re-read that statement and think about what Greenspan is saying.  He’s implicitly stating that the Fed can create enough paper gold – i.e. gold in lease form – in order to contain the price of gold.  Please note:  gold can be leased without actually moving the physical bars if the counterpart to the lease does not demand delivery.  However, the ownership of that bar for legal purposes has transferred to the counterparty to whom the bar was leased.

Thus, in theory, a Central Bank can create a limitless supply of paper gold if it is not required to deliver any bars.  This is the same idea behind Bernanke’s famous “helicopter speech” in which he stated that electronic currency can be created in infinite supply.

 

HSBC has likely already leased out or hypothecated most if not all of Texas’ gold bars sitting in its vault.  While HSBC would be on the hook for the gold bars owed to Texas, Texas would be at risk for the possibility that HSBC would be unable to procure and deliver even a single gold bar. This scenario would arise if HSBC were to go bankrupt, a risk of which is clearly outlined in the GLD prospectus (HSBC is the custodian for GLD).

“This exact scenario happened with futures broker MF Global. I knew people who had warehouse receipts to gold bars with a specific serial number. But that gold had an encumbered title and they became unsecured creditors in bankruptcy,” said Weiner.   – Keith Weiner, President of the Gold Standard Institute  LINK

Apparently the wiser people in Texas were watching closely when Germany asked the Fed to ship over 600 tonnes of gold bars that had been “safekept” in NYC since the end of WW II.  In so many words the Fed/US Government said:  “we’ll send you your gold when we’re good and ready to send it.”

The message is that the gold was not there to be shipped.  Obviously Germany was not going create a massive political problem for itself by attempting to force the U.S. legally to produce and ship the bars.  Instead the German political leaders simply winked at the U.S. and said “okay, we understand the problem -take your time.”

Even more interesting perhaps, is a provision in the Texas Bill which prevents the Federal Government from seizing the gold bars:

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.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.  LINK

It will be interesting to watch this situation unfold, especially if Governor, Gregg Abbott signs the Bill.  You can read the article from which I sourced the above quotes here:  Texas Has The Potential To Uproot The Monetary System

I hope I’m wrong about this, but if I put my “think like a criminal” thinking cap on, I can envision a scenario in which the powerful political and money interests in Washington, DC and NYC exert a full assault on Governor Abbott to veto the Bill.   This is the kind of legislation that could potentially expose the fraudulent fractional gold reserve system in the U.S. in which the ratio of paper claims to gold is several multiples.  In fact, it’s the type of legal movement that could burn down the U.S. dollar.

14 thoughts on “State Of Texas To The Fed/Government: “We Want Our Gold”

  1. Abbott is caught between the proverbial rock and a hard place!

    If he signs the Bill, he’s a hero in Texas and persona non grata to the big money interests on Wall street and in Washington. Therefore, cutting his own financial throat for any future financial “considerations” from the oligarchs.

    If he does not sign the Bill and vetoes it, he may as well hang a sign around his neck saying; “I belong to the Wall street/Washington power elite. They own me lock, stock and barrel and to hell with the citizens of Texas.

    All a question of morality.

  2. Now for the coup de grace, Texas should create their own State Bank just like North Dakota and completely cut out “The One Bank” criminal consortium.

  3. HSBC to Texas upon the bill being signed:

    “Dear Valued Customer,

    We understand and support your desire to transfer your gold holdings of just under 2 tons, and we will gladly comply once the appropriate technology for doing so is invented. As of this date, we know of no method of transporting such a large mass the necessary distance. Again, thank you for being a valued customer, and please accept this free toaster as a token of our appreciation.’

    1. If someone in a leading position in Texas demands their gold back please follow the advice below.

      Stay away from windows.
      Don`t visit any roofs on top of high rises.
      Dont´play with nailguns.
      Stay away from bathtubs (not good for your throat)
      No bicycling.

  4. It would be interesting to see what would happen if the law goes into affect and then Texas attempts to move the gold to a private vault while they construct theirs.

    It would not be a big surprise if the bars are no longer at HSBC. If that is the case you would think that the bank officials would be charged with theft.

    That post by Mr. Ward is funny as Hell!

    1. May Jade Helm defines Texas as hostile territory for their gold claim.
      After all anybody distrusting Wall Street organizations may be seen as non-patriots up to terro …t (uups)

  5. Haven’t been able to verify but read that there are 3 potential depositories already in position and any could be awarded the contract to hold the gold for Texas and other states/parties that maybe interested. This should roll fast when it becomes law. Why the hell would you wait with the biggest bunch of effing crooks (BANKSTERS) claiming to hold it for you yeah right you got our backs.

    I thought I saw the Representatives voted 140/1 for it and the Senators were like 47/2 not swearing by the Senators but pretty positive the Reps vote is correct. Both were landslides. Don’t know how that could not be signed by the Gov. Wonder if he doesn’t sign it if it becomes law anyway. Have seen that works in some states.

    BTW I think its pretty close to 26 tons.

    1. “26 tons”. You are right. In my quick calculation, I accidentally used the grams/pound converter rather than ounce/pound converter. Either that, or I work for HSBC!!

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.