“We are not talking Fort Knox,” Capriglione said. “But 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.” – Texas State Representative, Giovanni Capriglione (Ft. Worth Star Telegram)
Texas State Rep Giovanni Capriglione created legislation that would create a Texas Bullion Depository where Texas could store its gold. Both the House and Senate in Texas have signed off on the Bill and it is headed to the Governor for consideration.
Comment from Texas reader, Dan: All in Texas that think like this Representative…the gold may be gone by the time the vault is built…’rounded’ up by Jade Helm 15 and placed in a ‘secure vault’ for safe keeping…minus the Texas Teachers’ gold of course.
The plan calls for the creation of secure facility that would enable the State to move over $1 billion in gold bullion bars owned by the University of Texas Investment Management Company, which is the second largest U.S. academic endowment. The fund currently “safekeeps” its gold at an HSBC vault in NYC.
This will be an interesting process to watch unfold. My first instinct is to put on my “think like a criminal” hat and wonder if HSBC even has possession of the investment fund’s bullion – i.e. that the bullion might already be hypothecated. To further this thought, I can envision a scenario in which HSBC – along with highly influential politicians in DC – exert undo influence on Governor Abbot to compel him to veto the legislation. This would alleviate the high degree of pressure that would be placed on HSBC to cough up the bars.
Notwithstanding this “think like a criminal” angle, the State of Texas now joins Venezuela, Germany, the Netherlands and Austria in the gold repatriation movement by governmental entities. Germany, of course, already found out what happens when you “safekeep” your gold with bullion banks that are practiced in the art of leasing and hypothecation.
It would seem that the State of Texas is going to attempt to avoid the fate faced by Germany…
Whenever destroyers appear among men, they start by destroying money, for money is men’s protection and the base of a moral existence. Destroyers seize gold and leave to its owners a counterfeit pile of paper. This kills all objective standards and delivers men into the arbitrary power of an arbitrary setter of values. – Franciso D’Anconia’s “money speech,” Atlas Shrugged