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In one of its first steps towards creating an unconstrained economy, the State of Texas has decided to setup its own gold-backed bank.
The decision comes in the wake of Governor Greg Abbott’s decision to repatriate $1 billion worth of state’s gold from an underground vault in New York. The republican plans to store this gold in a ‘yet-to-be-built’ facility, a step that will circumscribe taxpayers’ money from leaving Texas and will further circumvent the controversial Federal Reserve System.
This means thats the Texans will be able to conduct gold-backed transactions to pay for goods and services, and will further be exempted from paying fees to store gold outside their state. The government, on the other hand, will be able to objectively secure and stabilize their commodity reserves.
Rep. Giovanni Capriglione — the author and sponsors of the proposal — told the Texas Observer that their bill has not received the media coverage it deserved, considering that it will create a first-of-its-kind state-level Bullion Depository in the US that will empower people with facilities to “use assets in [their] vaults the same way [they] use cash”.
Bitcoin Accepted
While Giovanni made sure to threaten Feds by all means, his host — Radio Jockey Rick Wiles —took the opportunity to ask the representative about the possibilities of a “Texas-style Bitcoin,” a decentralized digital currency whose followers often go after the capitalists for monopolizing finance markets. As Texas and Bitcoin seems to be sharing a common ground here, Wiles’s question literally hit the right node, to which Giovanni replied:
“OK! That would be awesome too. I personally own Bitcoin. You could make transactions with Bitcoin, use the gold depository as a medium, and then make payments on the other side. This is the biggest threat in 102 years to the Federal Reserve System.”
While the comments on Bitcoin seem more instant than official, it would still be interesting to see how Texas plays out its private reserve theory with the help of a digital currency. In a best case scenario, they might adopt Bitcoin; in worst, they might just create their own. Its open-source, after all!
Quinn 
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fgbouman 
Pimento Chitlin 
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CTJohnson 
Now if the other 49 could follow suit…I’d have thought New Hampshire would’ve been first to step this one up… hmmm
Several States have declared that gold and silver are semi-legal tender.
This was a 2014 Oklahoma law news:
………….
On June 4, Oklahoma joined Utah,
Texas, and Louisiana in affirming that gold and silver coins are (as
they always have been under the Constitution) legal tender in the
payment of debts in the state. On the surface this seems almost
nonsensical: affirming a right that already exists in Article I, Section
10 of the U.S. Constitution. But it is much more than that.
Senate Bill 862, which Oklahoma Governor Mary Fallin signed into law this week, says,
Gold and silver coins issued by the United States government are legal tender in the State of Oklahoma.
No person may compel another person to
tender or accept gold or silver coins that are issued by the United
States government, except as agreed upon by contract.
……….
Most of the laws are of that nature. Gold can be used, if agreed upon. You cannot walk in a store and FORCE them to take gold, but it is leal to spend that gold, if the store allows it. I don’t know of anybody using gold in Utah.
If Texas want to pay State debts with gold, and the party they owe to wants to allow it, it can be done. Heck, if Texas wants to pay a State debt with bitcoin, and the party wants to allow it, that would also be legal.
Of course Texas cannot mint money, and order people to accept it. It is possible they can mint money, and ALLOW people to accept it. And if they have $1 billion in gold assets, then they should spend that. Paying to store it is a waste of money.
The funny thing is the use of “legal tender” and then the simultaneous assertion that “No person may compel another person to tender or accept gold or silver coins that are issued by the United States government, except as agreed upon by contract.”
Why exactly one would want to use a gold Walking Liberty 50 dollar piece for legal tender is beyond me since it is worth more than 20 times that amount in greenbacks. But then one doesn’t look for smarts among politicians from the South.
you are dumb – to even think that !
To think that one would have to be pretty ignorant to want to redeem a coin worth over a thousand dollars for just fifty dollars? You need to explain that to me, Pimento, I guess I’m just too dumb to understand.
They dont make 50 dollor notes you goof. Your coin is worth whatever the market price for gold is. There is no way this could have been serious….
Take a look at your Walking Liberty bullion coin. The 1oz ones say they are worth fifty dollars. That is the monetary value for which it is redeemable. Oh, and they do make fifty dollar Fed notes as well. I spent one today.
I stand corrected. Misunderstood what you said, but in hindsight… I am a goof! Haha
The Internet encourages us to type without our normal censor intact so we all spend more than a little time eating our hats. I’ve ordered a line of chocolate flavored ones to make it more palatable.
It is not “repatriating” gold to send it from one vault in NY to a vault in Texas. Texas is not a country. It is a State, in the UNITED States.
And I think it would be unconstitutional for Texas to coin money.
Article 1, section 10:
“No state shall enter into any treaty, alliance, or confederation; grant
letters of marque and reprisal; coin money; emit bills of credit; make
anything but gold and silver coin a tender in payment of debts; pass any
bill of attainder, ex post facto law, or law impairing the obligation
of contracts, or grant any title of nobility.”
I don’t know all the clauses of the Constitution that deal with money, but if Texas chooses to recognize gold for payment (they can do that), then it does not stop gold from leaving Texas. It does make it a bit harder to do business with Texans who choose to forego dollars.
……………… AND YET the fed is in direct violation of this…………….
The Fed doesn’t violate this, the US Treasury does. They’re the ones doing the minting. The Fed just distributes the fiat money.
How wrong you are. The treasury actually only prints a very tiny portion of dollars that exist. Most dollars exist only in a “digital” format and are released by the federally authorized, but still private, Federal Reserve Bank. Read up on fractional reserve banking. There is not even close to enough physical coinage and paper to cover all of the “$$” in existence.
The “digital” dollars are not currency nor money. They’re credit. Whether on the Fed’s computers or private banks computers. Still only credit.
When you learn the difference between credit and money (cash) you’ll understand why the Fed doesn’t violate this. Fractional reserve banking increases the credit supply, not the currency supply. If you find a private bank that creates currency, please contact the US Secret Service right away, as counterfeiting is illegal.
If the people wanted there money – cash in hand there is only about an average of 15 percent circulated at any given time !
Obviously at some point paper money was introduced, and in 1971 was completely removed from precious metal backing. And it is legal.
So bits of the law are changed. I don’t know which parts. Legal tender is now not limited to gold and silver coin.
I am pretty sure that part about States not coining money is still part of the law.
Texas has the ability to throw off the shackles of Federal Government if need be. The FEDS need to pay close attention and heed the warning that a General Assembly and a Ratification can be called whenever we see fit !