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article imageTexas proposing repatriation of gold held at the Federal Reserve

By Andrew Moran     Mar 26, 2013 in Politics
Houston - New legislation is being proposed in Texas that would establish a sort of Texas Bullion Depository. Texas Governor Rick Perry and other lawmakers are proposing that it would get back its gold from the Federal Reserve.
As part of the state university system’s investment fund, the state of Texas holds approximately $1 billion worth of gold that is held underneath the Federal Reserve Bank of New York. If the measure passes then the Lone Star State would allow the government and its citizens to store gold bullion in its own facility.
The Texas Governor has teamed up with Republican State Representative Giovanni Capriglione to establish a state-like Fort Knox. Capriglione also makes the case that the state could also save money on administrative functions and security duties by giving contracts to private companies.
“If we own it," Perry said in an interview with conservative radio talk show host Glenn Beck, according to Star-Telegram. "I will suggest to you that that's not someone else's determination whether we can take possession of it back or not."
Former Texas Republican Congressman Ron Paul, who has been a long advocate of returning to a Gold Standard-type of monetary system, showed support for Texas’s move and noted that it’s best to own it close to home.
“If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible," the three-time presidential candidate told the Texas Tribune on Thursday. "Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve."
The United States officially went off of the Gold Standard in 1971 under the order of President Richard Nixon, who declared that “we’re all Keynesians now.” Since then, the U.S. dollar has been backed by nothing at all and has been the victim of depreciation ever since the inception of the Federal Reserve System.
Recently, the U.S. Treasury’s inspector general performed an audit of the department’s gold held at the Federal Reserve Bank of New York. The report concluded that the Fed’s gold is secure and is purer than original estimates. However, what is usually neglected by most is that the gold held at the bank is mostly owned by foreign governments, central banks and official international groups. Gold owned by the U.S. government is held at Fort Knox, Kentucky, Denver, Colorado and West Point, New York.
A lot of news organizations are discussing the possibility of Texas seceding from the Union. Although there have been no references to the state doing so as part of this legislation, many point to 1933 when President Franklin Delano Roosevelt seized private ownership of gold coins, bullion and certificates.
Many states have either implemented or proposed an alternative currency or adopting a proto-Gold Standard monetary system. Arizona recently debated legislation that would have gold and silver coins as legal tender.
Utah passed a measure in 2011 that would allow consumers and businesses to exchange gold and silver coins for goods and services. Several other states are debating imposing similar laws, including Minnesota, North Carolina, Idaho, South Carolina and Colorado, which are all wary of the U.S. dollar.
More about Texas, Rick perry, Federal reserve, texas bullion depository, Gold standard
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