On Friday, June 12th, 2015, Gov. Gregg Abbott of Texas signed a bill into law that establishes a state bullion depository and prohibits the federal government from seizing the gold and silver stored within.
Governor Greg Abbott today signed House Bill 483 (Capriglione, R-Southlake; Kolkhorst, R-Brenham) to establish a state gold bullion depository administered by the Office of the Comptroller. The law will repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas.
The why of it is important, but what is more interesting is that major news outlets haven’t seemed to take much notice.
Sure, ZeroHedge and other alternative media outlets have reported on these events, but the only real mention by a major source – The Wonkblog at The Washington Post – is an intellectually ingenious, apocalyptic, tin-foil hat-wearing, nut-job wordsmithed “article.”
In some episode of hyperinflation and U.S. government collapse, as the nation falls into a Hobbesian state of nature, paper dollars will be no good, and gold would likely be the medium of exchange for buying food and guns and whatever else is needed for Texas to prosper amid the post-apocalyptic hellscape.
Similarly, if Texas were to decide that enough was enough and it wished to no longer be part of these United States (a notion that Perry himself seemed to joke about in 2009, saying “When we came in the union in 1845, one of the issues was that we would be able to leave if we decided to do that.”)
So the only reason that Texas might be doing this is “end of the werldz” or… succession. So much wrong.
So now… the real deal.
First, it’s not Texas the government, but the University of Texas Investment Management Co. (UTIMCO), that is pulling the $1 Billion in gold from the reserve. UTIMCO is responsible for investments for the University of Texas and Texas A&M. It is modeled after funds created by Harvard, Yale, Duke and a few other more liberally-acceptable institutions of higher learning. Texas just might not trust the full faith and credit of the U.S. government as much as the more left-leaning brethren (anyone seen the national debt lately?)
Second, it doesn’t have to be the end of humanity in order for Texas to have lost control of its gold in the fed. If Texas has any trouble paying its bills to the federal government – perhaps due to expensive healthcare initiatives or onerous drilling regulation.. or whatever – the federal government could just take Texas’ gold from the repository to repay Texas’ debts.
Now, Texas is protecting its money and that of its citizens. Seems a crying shame our members of Congress aren’t thinking as long-term as The Lone Star State.