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:
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...