We all know the cliché: ‘Don’t mess with Texas.’
Well, a new piece of legislation is being proposed to send that message to Washington, when it comes to protecting Texas’ gold.
A lawmaker has proposed a bill to create a Texas Bullion Depository, which would allow the state and its citizens to store gold bullion in its own facility in Texas, with the protection of the state.
If passed, the Texas bill would tell Washington to “shove off” under the 10th amendment power given the states, if we ever saw the kind of currency craziness we saw during the Great Depression when President Franklin D. Roosevelt mandated citizens hand over most of their gold.
Texas isn’t the first state to think about hedging its monetary destiny with precious metals.
Citing concerns over the value of the U.S. dollar, Arizona lawmakers are the latest to pursue legislation that would declare privately minted gold and silver coins legal tender. In 2011, Utah became the first state in the country to legalize these precious metal coins as currency. Lawmakers in states including Minnesota, North Carolina, Idaho, South Carolina, and Colorado have debated similar laws.
As for the Texas proposal, Jim Rickards, senior managing director of Tangent Capital Partners and author of Currency Wars, tells The Daily Ticker you can think of it like the “Fort Knox of Texas.”
And on the legal side Rickards says, “you’ve got the state of Texas standing up for you if the federal government tries to do what they tried to do in 1933, which is take the people’s gold.” Rickards is also a lawyer and has read the legislation.
So, is Texas making preparations to start hoarding gold?
“It may end up that way,” Rickards says. “Personally, I think this is a game changer in terms of the way institutional investors are going to look at gold.”
That’s because large Texas pension funds haven’t been allowed to invest in physical gold, but Rickards explains this law would change that.
Gold is considered a hedge against inflation. And while inflation is currently low in the U.S. right now by official figures, Rickards doesn’t expect that to remain the case, projecting an uptick to come later this year or early next year.
If people were to lose faith in the dollar, Rickards concedes Texas could have the foundation for its own currency, of sorts.
Which could come in handy if they, say, push forward in trying to secede.
You may recall, more than 100,000 people signed an online petition calling on the Obama administration to allow Texas to secede from the U.S., according to New York Times. In January, the White House declined but the secession movement has pressed on.
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We all know the cliché: ‘Don’t mess with Texas.’
Since it was first reported that residents in the state of Louisiana were petitioning to secede from the U.S., residents in over 20 more states have filed requests with the White House to peaceably break from the union.
Furthermore, the Louisiana petition has topped 14,000 signatures, more than halfway to the threshold needed after which the White House has pledged to respond.
And for Texas, one of the new states to join the fray, the signature count now tops 25,000.
The White House’s We the People website explains that once a petition reaches 25,000 signatures, it will be placed on a queue for response from the administration. The website also maintains a page for previous petitions that have received a White House response.
Joining Louisiana now are Arizona, Oklahoma, Arkansas, South Carolina, Georgia, Missouri, Tennessee, Michigan, New York, Colorado, Oregon, New Jersey, North Dakota, Montana, Indiana, Mississippi, Kentucky, Florida, North Carolina, Alabama and Texas.
The Louisiana petition, which has served as a pattern for many of the new states, reads as follows: “We petition the Obama administration to: Peacefully grant the State of Louisiana to withdraw from the United States of America and create its own NEW government.”
It continues, “As the Founding Fathers of the United States of America made clear in the Declaration of Independence in 1776: ……..‘When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.’”
The petition concludes with a further quote from the Declaration of Independence: “‘Governments are instituted among Men, deriving their just powers from the consent of the governed, that whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or abolish it, and institute new Government.’”