Geographically diversify - Move Gold to Texas

[FarmerD]

I haven't seen this discussed here at at all.  The Texas Gold Depository is supposed to be set up this quarter.  If it works as advertised it may be a far better oprtionthan Perth Mint or any other way to store gold overseas.  Curious what others think (MedTex, I've heard the depository will in Dallas)


Texas State bill (HB 3505) passed June11, 2015 to create a Texas Bullion Depository. HB 3505  establishes the Texas Bullion Depository as an agency of this state in the office of the comptroller.

The Stated purpose written right into the bill is to:

    Provide basis for intergovernmental payments and transactions between persons.

    Create a process and mechanism by which to function in a systemic national or international collapse.

What the bill essentially does is create a means for intergovernmental transactions to occur in precious metals. Taxes could be paid in precious metals and it would allow people who receive payments from the government to elect precious metals for payment. It would also allow normal citizens 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 hold an account.

All metals would be redeemable on demand. Fractional Reserve banking would be prohibited as well as all other types of banking or investment with the deposits.



Section A2116.023 of the bill states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.

And free from the threat of confiscation, private citizens can use gold and silver as money, completely bypassing the paper money system.

“People can legally do that with gold contracts. The difficulty is the implementation. Now Texas has set up a mechanism with the depository. We have accounts in that institution and can easily transfer back and forth certain amounts. So we can run our money system a gold or silver basis if we were so inclined,” said Vieira.

This would not be possible if the gold is stored in a bank because of the risks of bank holidays and bankruptcies. It would also not be possible if the federal government could confiscate gold.

According to Vieira, this anti-seizure provision rests on Article 1, section 10 of the Constitution of the United States, which obliges the States to not make anything tender in payment of debts apart from gold and silver coin.

“If someone from the Department of Justice comes along you are going to see legal and political fireworks. The state is going to say ‘we need to have a mechanism to make gold and silver money. This is pursuant to the constitutional provision we have. You can’t touch this. Our state power on the constitutional level is more powerful than any statute you may pass,'” said Vieira.

Because one of the litigant parties is a state, the case would go directly to the Supreme Court.

“We are talking about something completely new in terms of the legal playing field. This is no longer a fringe concept,” he adds, but cautions about a possible fight with the federal government: “We will have to see how committed the governor and the attorney general are”
http://www.zerohedge.com/news/2015-06-1 ... fiscatable

Here's the webpage about the depository (note the webpage belongs to a blogger not some state agency). 
http://www.texasbulliondepository.com/home.html

[Tyler]

Cool!  Can't wait for it to be set up so we can learn about the details. 

[MachineGhost]

I haven't seen this discussed here at at all.  The Texas Gold Depository is supposed to be set up this quarter.  If it works as advertised it may be a far better oprtionthan Perth Mint or any other way to store gold overseas.  Curious what others think (MedTex, I've heard the depository will in Dallas)

Very easy to blockade and/or invade Texas to prevent it from seceeding or to steal its gold.  And there will be enough comfortable collaborators that the coup would probably happen bloodlessly.

Verdict: Security theatre.

P.S.  There's no law requiring FRN's to be used and accepted as money in the private sector.  People are free to use gold and silver now if they choose to.  So this seems like a cure in search of a problem -- obviously its an idea from wingnut Republicans who have a warped gold bug doom porn view of monetary history.  You got to give them credit for the fact they keep trying against all odds and reason to demolish the Federal government that conquered them.

P.P.S.  If it's just a boring ol' storage warehouse in de facto terms instead of a wingnut agenda, how well does government ever work out (Fed?  Fort Knox?  Willie Sutton?) vs the private sector?  Case closed for me.

P.P.P.S.  No one in their right mind would ever use precious metals to pay their taxes -- Gresham's Law.  But wingnuts are never in their right mind to begin with.

[Libertarian666]

Sounds good to me! Of course the paper bugs will scream about how crazy and retarded this is, but then no one is forcing them to use it, so who cares what they say?

[Mark Leavy]

There are lots of places to store valuables outside of the banking system.  My preferred storage is wine vaults with 24 hour access.

[MachineGhost]

There are lots of places to store valuables outside of the banking system.  My preferred storage is wine vaults with 24 hour access.

Why wine vaults?  So you can get drunk and fondle your gold coins at the same time? 

[Mark Leavy]

There are lots of places to store valuables outside of the banking system.  My preferred storage is wine vaults with 24 hour access.

Why wine vaults?  So you can get drunk and fondle your gold coins at the same time? 

Super high security.  Temperature and humidity controlled.  24 hour access.  Outside of the banking system.  About $25 per month. Local, small business.

[FarmerD]

I haven't seen this discussed here at at all.  The Texas Gold Depository is supposed to be set up this quarter.  If it works as advertised it may be a far better oprtionthan Perth Mint or any other way to store gold overseas.  Curious what others think (MedTex, I've heard the depository will in Dallas)

Very easy to blockade and/or invade Texas to prevent it from seceeding or to steal its gold.  And there will be enough comfortable collaborators that the coup would probably happen bloodlessly.

THe main point is that if there is a financial crises and the Feds want your gold, there would be a legal tangle between Texas and the Feds that could last for years.  In a financial crisis, time is your friend since a dollar crisis would be over in months not years.  At least that is the hope.

Lots of people on this forum like the Perth Mint Programs.  The Texas Program would seemingly allow you to retain ownership of physical gold here in the US in an entangling legal jurisdiction without having to deal with a foreign country.  Unlike the storing gold at the Perth mint where the US govt knows you own gold there (either through customs declarations or bank transactions) the Texas program should allow deposit box holders to remain anonymous from the feds.  I don't see Texas notifying the Feds of the names of depositors and the amounts held in storage.

Obviously more details on the program should be coming out shortly.  I for one will be following this closely. 

[dualstow]

There are lots of places to store valuables outside of the banking system.  My preferred storage is wine vaults with 24 hour access.

Why wine vaults?  So you can get drunk and fondle your gold coins at the same time? 

Super high security.  Temperature and humidity controlled.  24 hour access.  Outside of the banking system.  About $25 per month. Local, small business.

I love it! Ahh, 1977 was a great year for krugerrands.

[Ad Orientem]

Texas is at least nominally part of the United States so I don't think it would count for geographic diversification unless you are a non-American.

[ochotona]

I live in Texas, and there is something really crappy here... not sure if it exists elsewhere. Google and read this POS:

Glenn Hegar, Texas Comptroller of Public Accounts
Unclaimed Property Texas Statutes
Title 6 – Property Code, Chapters 72-76

If your accounts or safebox go "inactive", the State can take them. Is this common in other States?

[barrett]

I don't know how it breaks down exactly by state but here is some info:

http://www.lostbankaccount.com/find-los ... it-box.htm

The short answer is yes, the state can seize and sell off assets if a box has been "dormant" from one to five years. "Dormancy" apparently varies by state.

This has prompted me to set a reminder every ten month that reads, "Go to safe deposit box, fondle contents, return contents to box." This is one of the few bills that I have set up for automatic payment.