FLASH! THE TEXAS BULLION DEPOSITORY GOES… GLOBAL…
Rarely do I get a submission - in this case from S.D., to whom a big thank you for spotting and sharing this one - that is so significant. In fact, this one is so hugely significant that I'm releasing this blog immediately, rather than waiting until Friday like I originally intended. It's what in the heyday of newspapers would have been published as a "flash" or an "extra".
Remember the Texas state bullion depository? I've blogged about the story, and about how I think it's part of a larger pattern of state initiatives that indicate that some, at least, at the "deep state" layers of state governments in the USA are preparing for a potential crack up. The signs are there: open defiance of the Federal government during the Trump administration of states and sanctuary cities simply refusing to enforce Federal law; now, states like Texas openly defying Biden administration policy by enforcing the borders and, in Texas' case, deciding to go ahead with Mr. Trump's "wall." Or consider all the states passing marijuana legalization and even allowing "pot stores," again in open defiance of federal law. The point is, the defiance is growing, and that means the federal government is increasingly weak.
Establishing a bullion depository is exactly the step one would take if one were concerned about a break up, and your state's ability to continue economic activity and to be able to transact on the global stage in that eventuality.
But one would do something else, and Texas just did it:
The Texas Bullion Depository The Only State-Run Depository Prepares to Go Globa
Note the following:
In summer 2018, Texas began operating the nation’s only state-run bullion depository, a highly secure, government-backed storage facility comparable to the U.S. Bullion Depository in Fort Knox, Kentucky, which holds federal gold reserves. Now the Texas Bullion Depository (TxBD), which experienced a surge of deposits during the earlier phases of the global coronavirus pandemic, aims to provide its services to a wider range of clientele and make lasting impacts that extend well beyond the Texas border.
With TxBD in operation, a push is building in Texas for commodities trading options outside of New York. According to State Rep. Giovanni Capriglione, the author of the bill that created TxBDExternal Link, Texas is ideally positioned both geographically and economically to become an epicenter for commodities trading.
ll U.S. citizens and residents, including businesses, trusts and estates, are eligible to apply for a TxBD accountExternal Link to deposit bullion for safekeeping. (TxBD does not require applicants to reside in Texas to qualify for an account.) As of June 2021, nearly 1,000 account holders had deposits at TxBD, with the average account valued at approximately $140,000, Douglas says. And in 2019, the Texas Legislature passed and Texas voters approved a constitutional amendmentExternal Link allowing the state to exempt all precious metals stored at TxBD from property taxation.
In the long term, TxBD seeks to expand its customer base and partner with banking institutions to provide COMEX-level liquidity needed to serve larger investors.(Boldface emphases added)
Now you may think that the real news here is the apparent bid of the Texas Bullion Depository to become a kind of "COMEX South," and indeed, that is news, because it means another step has been taken to ensure the viability of the Texas economy in the event of a federal crack-up.
But the real news - for me at least - is how very similar the Texas Bullion Depository looks to a Venetian banco di scritta, the banks on the Rialto that would handle depositors' accounts - i.e., receive their bullion - and simply handle their accounts via ledger entries between banks and merchants (or, in some cases, by issuing actual paper bank notes), settling accounts every few days or so by actual physical transference of bullion. This is the type of bank conceptually behind central banks' bullion depositories, where bullion is moved from one cage representing, say, France, to another cage, representing Italy, as transactions are cleared. Needless to say, the system is based on a lot of trust, and when that trust collapses, depositors demand their hard assets (think of the German gold repatriation, the central bank equivalent of a bank run on cash). Note that in Texas' case, the accounts of depositors have been exempted from property taxation.
Again, this is a hugely significant development, because in effect, Texas has done for the ordinary depositor at the bullion depository what the Bank of International Settlements (BIS) did for central bankers: it has created a quasi-sovereign jurisdiction - a tax haven - a bullion depository-cum-Rialto-clearing-bank... kind of like the Bank of International Settlements..
... and unlike the Bank of International Settlements hiding in its tower in Basel and issuing papers about how wonderful digital currency is, it's open to anyone, anywhere...
If it manages to conduct business lawfully, openly, and with probity, then watch out folks, it will send shockwaves around the world.
Or to put it country simple: this is huge folks. This isn't the launch of a little schooner, it's the launch of something very big whose displacement is - perhaps intentionally - understated... When the Texas Bullion Depository creates its own "unit of account" and you start trading notes based on the deposits, then you'll know...
See you on the flip side...
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John Connally, Governors of Texas 1963 – 1969, Democrat, became President Nixon’s Secretary of the Treasury in 1971. Connally presided over the removal of the U.S. from the Gold Standard. See Connally’s Wikipedia page. Connally was considered as a replacement for Vice President Spiro Agnew when he was forced to resign. Gerald Ford got the position and ended up as President when Nixon resigned. Connally and his wife were in the same limousine with JFK and Jackie when JFK was assassinated. Connally’s was wounded and his wound was caused by the so called “magic bullet”. Connally led the Democrats for Nixon campaign. If the Gold is missing from Fort Knox, Kentucky I would take a close look at Connally’s activities. Texas, the Lone Star State has an Electric Power grid completely separate from the rest of the U.S. It didn’t work out too good when they had a severe cold spell recently but people like Connally usually live in exclusive gated communities anyway, with back up generators. Or they have access to Continuity of Government facilities, paid for by the taxpayers of course.
It seems Ohio recently lifted its sales tax on gold and silver coins and bullion. It’s definitely a trend…
Wonderful news, maybe? I usually in life go by the motto “no one knows enough to be a pessimist” but with Texas as a beacon of freedom I do have a problem, there is few: JFK assasination, post war German Nazi diaspora network in amount larger than in DC, and of course last but not least Shrub family. Seceded Texas with lots of international gold is a dream come true for…little enclave in Bariloche. Nazi will be always Nazi, they did plunder Europe from their gold, what will keep them from doing it to Texas?
Heaven’s crest is an eight-legged horse,
where Odin holds steady course,
riding his solar stallion
in spurs bullion,
where money grows on trees.
Reminds me of Benjamin’s Franking autobiography in which he states the primary reason for the American Revolution: money.
He, and other blue bloods, wanted is issue their own currency.
Have their own sovereignty, in other words.
Texas, is on the way towards establishing its monetary independence.
A good slogan?
Remember the Alamo!
Texans will fight to the death, for independence.
Remember the last time Texas challenged the Deep State?
A cold polar vortex came blowing in.
Could some some bad weather be coming to Texas?
As I recall, the “ice” from the cold polar vortex would not melt when touched by direct flame ( saw videos of attempts to do so). Point: Dunno – better toughen/roughen up and say a prayer for Davey Crockett.
When Elana Freeland says,
“There is no natural weather”; she ain’t just whistling Dixie.
There is no natural rain either. It’s dry rain.
Beware the first few minutes of rain,
it’s loaded w/chemicals, nano-metals, and other abhorrent wonders.
By the way, I had a Davey Crockett hat as a kid.
But, I didn’t shoot a bear when I was three;
I was run over by a Cadillac though, when I was three.
Doctors said I wouldn’t walk again.
[I can hear you now/Oh! That explains it.]
Later, in high school; lettered in Football & Swimming.
So, once again;
Should have phrased it differently:
“All rain isn’t natural either”.
wow…… good for you Robert!
“Ultimately at issue in all this is…”
[1:27:09 clicks in]
Read earlier that Macron was stalled off Vaxpass for a day by courts who ruled he cannot withhold food from the unvaxxed. Wonder how long that will last? Guess I need some heartening.
REPORT:Strength In Numbers. – This is how you stop government enforcers from abusing citizens.
The police heard the silent majority…
LOUD & Clear!
And then ran away w/their tails between their legs.
HUGE indeed. Here in TN our State Legislature is conducting exploratory feasibility for a Bullion Bank, although I’m not sure their scope is a depository beyond our state borders. This would be a welcomed addition to Tennessee’s independence from Federal tyrranies. As of now bullion purchases over the internet are charged sales tax – 7.0% and my town the County Seat charges 2.75%…that’s nearly 10% and when you add the $90/toz premium onto the current ask per ounce $1,819.39 Random Yr Gold Eagles – the buy is $2095.57. So if our State moves forward with the Bullion Bank and gold as approved medium of purchase that additional premium/tax $276.17 would go away. Sound Money Index says if Tennessee were to pass a law eliminating the sales tax on the purchase of gold and silver and establish and an in-state gold depository, the state would move from 46 th to the top-12 best states in the country, as measured by the Sound Money Index
I things I will be watching for regarding this story:
First, to see if any other States deposit their gold into this bullion depository and if those states run along the lines of those who joined with Texas in filing the suit in the Supreme Court regarding the election then the 21 states along with Texas that filed a case with the Supreme Court in July 2021 regarding seeking clarity on a major gun case. There could be some surprising states who do.
Second, and this is just bit of odd speculation, if Texas makes any type of agreements over border issues, or bullion trading, or general security agreements with Mexico.
Regarding out of country transactions – I believe the US Foreign Accounts and SEC currently prohibit gold transactions globally. I think they’re afraid people would buy gold in say Thailand liquidating their US assets as a tax dodge.
Interesting. In any event, most financial institutions outside the US will refuse to open accounts in the name of a US citizen in view of the extremely onerous compliance and reporting requirements imposed on them by the US IRS through international treaties and other agreements and regulations. Most non-US financial institutions would rather lose business than have to deal with the IRS. No doubt many US citizens feel the same way?!
This is indeed a welcome development, a step in the direction of creating a new marketplace. If I were a Texan resident – especially one who viewed the federal government as inimical to the interests of Texas – I’d be delighted.
However, I’m not sure about its significance outside Texas. There are already several commercial bullion depositories around the globe which will buy/sell/store/transfer bullion for anyone anywhere and even allow the bullion to be used to fund day-to-day purchases anywhere in the world that accepts Visa/MC. These bullion depositories cannot confer any tax benefits, but neither can TxBD, except for Texan residents and corporations.
If this move leads to the creation of a new, clean marketplace (one can dream!), then it would be one giant leap for mankind. If it simply preparatory to an announcement that COMEX is re-locating from NYC, or creating a new subsidiary market place in Texas, it would be a great disappointment. The COMEX is a criminal enterprise which deprives investors globally of free, fair and open markets. It is a blot on humanity.
Excellent job noting the most important points on the financial side of things! I’d only add that the TX depository, unlike commercial bullion depositories, is backed by a government; and, unlike other bullion depositories back by governments, this one isn’t only open to banks. I’m not sure if there’s another one like that anywhere(?). If it becomes just another instrument for the same old banksters to retain control, it’s of questionable value (at best) to ordinary residents of TX — regardless of whether TX breaks away from the U.S.
With those caveats, I agree with Dr. Farrell that on a symbolic level, and in terms of “sending messages” politically, this is huge. IMO, on those levels, it can only mean one, or some combination, of the following: the TX government is preparing for de facto or de jure secession; the banksters take the possibility of a U.S. crackup really seriously and/or are pushing for such a crackup (either of which, in itself, is huge) and want to ensure they’ve got a foothold in the potential breakaways. Whatever the case, I’d say this is a further signal — and a major one — that the U.S. federal government is weaker now than it has been since the Civil War.
Yes, thanks, I do agree that what this signals about the future of what’s left of the constitution is huge. No doubt about that.
The only point I’d like to add is that a bullion depository does not normally trade with or on behalf of its depositors. The market – especially for trading monetary gold – for trading would normally be a separate business/institution; but building and operating a depository would be needed before also opening a market, if that is what Texas intends.
I’m not an expert, but I can however think of a couple of government-owned bullion depositories which will buy/sell/store bullion for anyone: Australia’s Perth Mint and the UK’s Royal Mint. If Texas offered something similar, it could be on to a winner?
Didn’t know that about those mints…
This is great news, thanks for the alert S.D. and DR. Farrell!
Asset dispersion. Better to have several go-to resources and safe havens for the likelihood of another attack by foreign forces of an unconventional tactic.