Babylon's Bankers

TEXAS SENATE PASSES BILL ESTABLISHING BULLION DEPOSITORY

Mr. E.O. shared this one, and it's another one of those whopper-doozies during a week of financial whopper-doozies, and it invites my usual high-octane speculation:

Texas Senate Passes Bill to Establish Bullion Depository, Help Facilitate Transactions in Gold and Silver

For those living outside the United States, you may be unaware that there is a quiet, but growing, revolt of states where such measures are being passed in state legislatures, measures or resolutions bucking Federal pressure, ranging the whole spectrum from resolutions in favor of "constitutional money," i.e., bullion coinage and not Federal reserve notes, to other more obtuse measures, such as measures against miliarization of local law enforcement, and so on.

In the Texas case, the bill and its intentions are clear, and the measure of its passage, a significant indicator:

"A bill taking a step towards gold and silver as commonly-used legal tender in Texas passed in the state Senate today by an overwhelming 29-2 vote.

"Introduced by State Rep. Giovanni Capriglione (R- Southlake) and four co-sponsors on Feb. 12, House Bill 483 (HB483) would create a state bullion depository. It reads, in part:

(a) The Texas Bullion Depository is established as an agency of this state in the office of the comptroller.
(b) The depository is established to serve as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to or otherwise acquired by this state or an agency, a political subdivision, or another instrumentality of this state.

"What the bill essentially does is create a means for transactions to occur in precious metals. It allows people  to open an account and deposit their precious metals in the state depository. They could then use the electronic system to make payments to any other business or person who also holds an account.

"This opening of the market is considered by many insiders to be the most important first step towards bringing sound money to mainstream acceptance.

“'The key is to make it so people can use gold and silver instead of fiat paper money,” said Michael Boldin of the Tenth Amendment Center. “A bill like this won’t nullify the Fed on its own, but it is an important step forward in that direction.'”

One would be mistaken, in my opinion, to read this story and view it simply from the perspective of continued state revolt against the Federal government. There may be much larger factors now in play that are influencing the thinking in Austin. First, let's note that texas become the first major state economy within the Union to pass such a measure in its upper house. Other states, mostly in the upper plains, have passed simialr measures, but only as resoutions and not with the establishment of actual state agencies. The exception, of course, has been North Dakota, with its state bank. In effect, the Texas measure establishes a similar bank.

So now for the high octane speculation: why might Texas be doing this? why are they thinking in Austin, and why are they not thinking in Sacramento, Tallahassee, or Albany? One answer is that Texas might be looking at the global buying spree in gold and other bullions being carried on by Russia, India, and especially China, and anticipating a worst case scenario and acting accordingly, and prudently. It is maneuvering itself into a position to be able to continue dometic trade internal to the state, and internationally, should a worst case scenario occur. But there may be an even deeper reason, and that is, Texas is also home to many of the USA's defense industries, and, one can only assume, many black projects, and as the public financial system continues to become increasingly transparent, and increasingly shaky, it becomes essential to that black world to have opaque finances, and... well... digital just doesn't do it.

We can formulate that idea as Farrell's First Law of Black Projects Finance: Black projects rquire black financing, and black financing must always, by the nature of the case, be analogue, and not digital, and dependent on the actual movement of physical media of exchange. And the Second Law: Cashless society and the black projects world don't mix. There's more, but that will have to wait future publications... 😉

See you on the flip side...

16 thoughts on “TEXAS SENATE PASSES BILL ESTABLISHING BULLION DEPOSITORY”

  1. Zero Hedge just posted an article on this which states that it is Kyle Bass’s idea, and that the gold he wants to “repatriate” to Texas is held by HSBC in NYC and is part of the endowment of the University of Texas, and that fiat funds were specifically converted to gold as a hedge against an eventual dollar collapse: “I look at gold as just another currency that they can’t print any more of.”

    http://www.zerohedge.com/news/2015-06-01/kyle-bass-was-right-texas-create-own-bullion-depository-repatriate-1-billion-gold

    1. Like the article suggests, just maybe Texas is taking an anti-federal stand… or as the Zero Hedge article ends: “Sounds like Texas – just like Austria, Germany, Russia, and China to name just four – no longer trusts the status quo.”

      Bingo.

  2. Then there are the two new space ports being built in Texas – maybe they want a way for off-planet folks to pay for their vacations on exotic Earth . . . .

  3. No offense to the Texan readers out there, but the scenario laid out here is too clever by half for Texas to cook up. I think it is just Texas being Texas and sticking it to the Feds, and it is so broadly worded that it shows next to nothing in the way of brain-power was expended upon it. Legislators are notoriously clueless and will vote for — or against — anything given the slightest nudge or bribe. That said, I’m sure it will come in handy and be exploited by any number of unindicted criminals, though I doubt black ops armaments manufacturers will be the first in line. They seem to prefer by far the tried-and-true Federal pig trough.

  4. marcos toledo

    Isn’t black projects financing usually done via drugs and military plunder expeditions. Though precious metals allow of private exchange without outside interference and snooping by authorities. As for Texas one has wonder what hidden agenda is being played out and will it unintendsionally help the rest of us in the long run.

  5. loisg:

    Except the North Dakota bank has been around for decades and is a state bank, not a state gold/silver exchange.

    Elon Musk is hardly an “innovator” outside of computers. Tesla motors is mostly a distraction. And so is SpaceX.

  6. All my gold and silver will always stay inside my armory.Until you make it fully convertible in any exchange as real money this may be another way toward relieving one of their personal property. It still may get you across a border in a pinch…

  7. It could be for the reasons stated above; or it could also be a rather sneaky way to later “bail in” everyone’s hard currency. Time will tell…

  8. Looks like a method for Texas to collect, register and test, gold and other precious metals.

    And likely arrest, or kill, any alchemist silly enough to trust a Texas state account with gold, or platinum, the alchemist has made in quantity.

    SAIC (or whatever the new non-employee owned name is) isn’t based in Texas and has its most significant facilities in California.

    And then if this Texas bank becomes a reality, Texans with access to it, or credit from it, can use it as means of speculation–just like the 1880s again.

    It’s likely a desperate move by Texas to forestall massive changes coming to the hydro-carbon economy of Texas.

    1. Good points… and if gold is legal tender, there should not, in theory, be any rush by the largely libertarian-motivated “gold-bug” crowd to open a deposit with Big Brother. On the other hand, the not-so-libertarian oil interests could, as you say, be trying to hedge their future position.

    2. I was wondering why both Texas and North Dakota would be inclined to pursue this route, and your idea of this being a move to forestall the demise of a carbon based economy is a good one, since both states are deeply immersed in that system. Also, that Texas would be looking back rather than forward seems to fit their general outlook.
      The petroleum industry has been buying off all these new technologies for decades, but now along comes a new generation of innovators ( think Elon Musk and others) who have no intention of being bought off and fully intend to pursue these new technologies.

      1. loisg:

        Except the North Dakota bank has been around for decades and is a state bank, not a state gold/silver exchange.

        Elon Musk is hardly an “innovator” outside of computers. Tesla motors is mostly a distraction. And so is SpaceX.

      2. Robert Barricklow

        North Dakota is a PUBLIC Bank.
        Not Private.
        It is designed more or less along the lines of the U.S. Constitution. Lincoln & Kennedy were in favor of this “Colonial Script” that was issued for, of, and by their People’s Representative governance.
        http://www.publicbankinginstitute.org/

        1. Scott Harclerode

          Both houses have now passed this legislation with veto proof majorities and it is on the Governor’s desk.

        2. Beneath all the currency and MONEY maneuvers, is a centuries old battle for a control of the STRUCTURE OF TIME — in other words, for an imposition of the Roman Gregorian CALENDAR as a tool of commerce over all other contending time structures, including that of Genesis, for which Rome purports to be caretaker. However, the Genesis day does not begin at “mid”night, but in accord with the “breath” of the day, at sundown — at the beginning of rest or in contraction. So too does the rhythm or cycle of the year begin in fall, also when life contracts, and the earth in its respective hemispheres rests, giving forth an expansion of new life in spring. To be sure, the breath of the entire universe just as it is with our own breath, is one of both contraction and expansion.

          Currently, we are mired a tyranny of material, commercial or monetized time. And as such, time ceases to have a normal relative, or beneficent function to human existence. The manipulators of structured time, give rise to a tyranny of time. And once again, not only this, but the current artificial Romanist structure of time, is in total discord with creation.

          So, what actually IS time? From a spiritual viewpoint, “Time is grace… Time is the grace we’ve been gifted to change our minds.” ~ Elm

          1. Robert Barricklow

            Excellent!!!
            The DEEP meaning is eloquently graceful,
            yet freeing, in a spiritual sense.
            Hard to put in words.

            …monetized time is certainly, oxymoronic.

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