Texas Launches Gold-Backed Bank

[IsaacNewton]

If the feds don't put a stop to this, then federal reserve notes will soon become a thing of the past. It will be interesting to see how this plays out.

The New American covers news on politics economy culture and more based on the U.S. Constitution so that freedom shall not perish.​

The State of Texas is setting up a gold-backed bank that will allow depositors to bypass the controversial Federal Reserve System and its fiat currency in banking and commerce, according to the state representative who authored the recently enacted law. Under the measure, passed overwhelmingly by lawmakers and signed in mid-June by Republican Governor Greg Abbott, Lone Star State officials will establish and operate the Texas Bullion Depository for anyone who would like to deposit and trade in precious metals. The implications are as big as Texas.

While some analysts have said the move may be another sign heralding Texas’ eventual secession from the union, or preparation for financial Armageddon, its advocates say the depository simply makes financial sense. Among other benefits, the institution will provide more options to consumers weary of the increasingly troubled traditional banking and monetary system, which is viewed by the public with growing suspicion. And experts say the effect of making it easier to use sound money in commerce could be far-reaching.

Among other immediate effects, the law creating the first state-level gold-backed bank in the nation, House Bill 483, will involve repatriating about $1 billion of Texas gold from New York. Conflicting news reports and official statements say the state’s precious metals stockpile is being held either by HSBC in New York, or by the powerful New York Federal Reserve Bank, a privately owned outfit cloaked in secrecy with immense power over the U.S. economy. First, though, officials will need to select a home for the Texas depository.

“Today I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store gold bullion and other precious metals,” said a statement issued by Governor Abbott, a popular conservative governor, after the ceremonial signing. “With the passage of this bill, the Texas Bullion
Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.” The law protects the assets from seizure by the feds or other forces, too.​

Then Taxus should immediately give up its FDIC protection and reject any and all federal assistance for anything...like a catastrophic flood.

You want to be independent? Good, go all the way an no whining when a hurricane destroys two or three of Taxus' largest cities.

You mean it should secede? I thought numskulls like you were opposed to secession.

You think? Since when.

 

[Toddsterpatriot]

Was it Utah that recently wanted to issue gold backed currency and the Feds. shut it down before it even got off the ground? Too bad. Having our money backed by something other than, "trust me, this dollar is worth a dollar, honest. We haven't been printing a bunch more of them." is what the whole country needs.

A gold backed dollar would have lost over one-third of its value since September 2011.

It would actually help stabilize the market with a steady demand. China has manipulated the gold market so badly has been impossible to predict these last few years. I'd love to see this country go on the gold standard. Money that would actually be of value, an inability to print without gold backing, and a powerful dollar in the global arena.

China has manipulated the gold market so badly has been impossible to predict these last few years. I'd love to see this country go on the gold standard.

You want us to base our money on something the Chinese can manipulate?

 

[Toddsterpatriot]

Was it Utah that recently wanted to issue gold backed currency and the Feds. shut it down before it even got off the ground? Too bad. Having our money backed by something other than, "trust me, this dollar is worth a dollar, honest. We haven't been printing a bunch more of them." is what the whole country needs.

A gold backed dollar would have lost over one-third of its value since September 2011.

Federal reserve notes have lost 95% of their value since 1914.

Only if you're dumb enough to keep them under your pillow for the last 100 years.

 

[SwimExpert]

We went off the gold standard under FDR

You might want to check that again.

 

[SwimExpert]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

 

[bripat9643]

Was it Utah that recently wanted to issue gold backed currency and the Feds. shut it down before it even got off the ground? Too bad. Having our money backed by something other than, "trust me, this dollar is worth a dollar, honest. We haven't been printing a bunch more of them." is what the whole country needs.

A gold backed dollar would have lost over one-third of its value since September 2011.

It would actually help stabilize the market with a steady demand. China has manipulated the gold market so badly has been impossible to predict these last few years. I'd love to see this country go on the gold standard. Money that would actually be of value, an inability to print without gold backing, and a powerful dollar in the global arena.

Who says how much gold is worth?

The market determines what gold is worth.

 

[bripat9643]

We went off the gold standard under FDR

You might want to check that again.

Hmmm, no, that's an indisputable fact. We went off the gold standard when ordinary Americans could no longer exchange their bank notes for gold. That occurred under FDR.

 

[bripat9643]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

 

[Moonglow]

Sounds more like a hard currency or precious metals exchange place to me, instead of a bank, which if I had deposits like that I would also invest it like a bank does, so what's new?

 

[Moonglow]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

That's because there twas a gold shortage in the 1840's until California and the Gold rush..

 

[Toddsterpatriot]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

Gold backed money almost never loses its value.

It would have lost about 2/3rds of its value between 1980 and 1999.
And over 1/3rd since September 2011.

 

[Skylar]

As long they do not conflict with Congress authority, there is nothing to keep Texas from "printing" a second currency honored by the government of Texas.

In fact, it could be a money making idea if they are prudent in its uses.

Sure there is. A tax on state banks of 10%. Look at the history of State banking in the post Civil war era.

 

[Skylar]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

Gold backed money almost never loses its value.

It would have lost about 2/3rds of its value between 1980 and 1999.
And over 1/3rd since September 2011.

Yeah, a currency tied to gold would be wildly unstable. With about 11 times the volatility of the US dollar. Commerce runs on stability. Not on wildly changing value and rampant currency speculation.

 

[bripat9643]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

Gold backed money almost never loses its value.

It would have lost about 2/3rds of its value between 1980 and 1999.
And over 1/3rd since September 2011.

Over the long term, it gains value, not loses value. I just posted the evidence. Fiat money, on the other hand, eventually goes to zero in value.

 

[bripat9643]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

Gold backed money almost never loses its value.

It would have lost about 2/3rds of its value between 1980 and 1999.
And over 1/3rd since September 2011.

Yeah, a currency tied to gold would be wildly unstable. With about 11 times the volatility of the US dollar. Commerce runs on stability. Not on wildly changing value and rampant currency speculation.

Where do you get this "11 times the volatility of the US dollar" horseshit?

 

[Toddsterpatriot]

Federal reserve notes have lost 95% of their value since 1914.

When fiat money loses its value, it's because the money supply is increasing. When gold backed money loses it's value, it's because the money supply has decreased.

Gold backed money almost never loses its value. The dollar was worth more at the end of the 19th century than it was worth at the beginning.

Gold backed money almost never loses its value.

It would have lost about 2/3rds of its value between 1980 and 1999.
And over 1/3rd since September 2011.

Over the long term, it gains value, not loses value. I just posted the evidence. Fiat money, on the other hand, eventually goes to zero in value.

Over the long term, it gains value, not loses value.

When I go to pay my mortgage, I'm more interested in the recent 1/3rd loss than the supposed long-term gain.

Fiat money, on the other hand, eventually goes to zero in value.

Which is why every nation in the world is on a gold standard.
And by "every nation" I mean "not a single nation".

 

[Dont Taz Me Bro]

It is like the OP wants us to know he is stupid and delusional.

The bank will either be a pointless waste of money or illegal so a pointless waste of money.

Lots of local currencies exist around the country.

 

[Hossfly]

Liberals need to take note,if this shit catches on it's gonna get messy.

I made a comment on the Texas gold reserve on another thread this past week. No one commented or seemed excited then.

I missed it, can you link it?

I'll look for it.

 

[Toro]

There are many banks outside of the Federal Reserve System. However, those banks cannot tap the Fed window and borrow from the Fed. I'm not sure if they are eligible for FDIC insurance, but I don't remember.

I think this would be interesting.

 

[Contumacious]

If Texas wants to waste its money building up stockpiles of gold, then by all means it can do so.

The Gold Standard has its own problems.

People have short memories if they can't remember the Nixon Shock: Nixon Shock - Wikipedia the free encyclopedia

The current world monetary system assigns no special role to gold; indeed, the Federal Reserve is not obliged to tie the dollar to anything. It can print as much or as little money as it deems appropriate. There are powerful advantages to such an unconstrained system. Above all, the Fed is free to respond to actual or threatened recessions by pumping in money. To take only one example, that flexibility is the reason the stock market crash of 1987—which started out every bit as frightening as that of 1929—did not cause a slump in the real economy.

While a freely floating national money has advantages, however, it also has risks. For one thing, it can create uncertainties for international traders and investors. Over the past five years, the dollar has been worth as much as 120 yen and as little as 80. The costs of this volatility are hard to measure (partly because sophisticated financial markets allow businesses to hedge much of that risk), but they must be significant. Furthermore, a system that leaves monetary managers free to do good also leaves them free to be irresponsible—and, in some countries, they have been quick to take the opportunity.[18]

Yeah man, the gold standard has problems such as politicians can not maintain a gargantuan welfare/warfare police state.