Texas Wants Its Gold Back From The Fed

Tyler Durden's picture

Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Texas Moves to Repatriate its Gold from the Federal Reserve

This is one of the most interesting stories I have read regarding the precious metals market in quite some time.  It appears that Texas Rep. Giovanni Capriglione has a bill in play that would move the state’s gold from New York (where its under the “safekeeping” of the ultra shady Federal Reserve) to a depository within the state of Texas itself.  The reason this would be such a big deal if it happens, is because a lot of the gold bought and sold globally is not very likely not actually owned by those that “buy” it.  From my perspective, pretty much the only countries that actually buy gold and bring it within their borders are China, Russia and Iran.  Most other nations that claim they “bought” gold, most likely hold a certificate that states they have gold in London or New York.  So in other words, they have no gold.  It looks like Texas is wising up.

From the Star-Telegram:

Freshman Rep. Giovanni Capriglione, R-Southlake, is carrying a bill that would establish the Texas Bullion Depository, a secure state-based bank to house $1 billion worth of gold bars owned by the University of Texas Investment Management Co., or UTIMCO, and stored by the Federal Reserve.


“If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible,” Paul told The Texas Tribune on Thursday.” Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve.”

You’ve gotta love Ron Paul.  The guy is still raising hell even after he left Congress.

The highly political Governor also appears to be on board…

“If we own it,” Perry said, “I will suggest to you that that’s not someone else’s determination whether we can take possession of it back or not.”


“We don’t want just the certificates. We want our gold. And if you’re the state of Texas, you should be able to get your gold.”


Come on Rick, that sounds like terrorist talk.

The United States and many other countries stopped pegging their currencies to the gold standard decades ago. Capriglione said the bill is not about putting Texas on its own gold standard. Rather, a depository would give the state a reputation as being more financially secure in the event of a financial crisis.


Transporting gold from New York City or other banks to Texas would be impractical from a security and logistics standpoint, Capriglione said.


Ok, that’s just weird.  Gold is shipped all over the world every single day.  This isn’t even an international shipment.  My guess is that the Fed has already made it clear they will not be sending any gold to Texas.

He believes that it makes more sense to sell the gold that Texas has elsewhere and repurchase it within state lines.


He said the measure wouldn’t pose a significant expense, because the gold bars could be safeguarded in a small area, no bigger than 20 square feet.


Again, if that’s all it is what’s so hard about shipping it?


Such a bill might not divide lawmakers strictly along party lines. Sen. Rodney Ellis, D-Houston, called it “an interesting concept” but said he wants to learn more about it and talk to “colleagues in the financial industry” before weighing in on its merits.

Great idea Rodney, because taking advice from Wall Street leads to such favorable outcomes.Full article here.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
ihedgemyhedges's picture

You can't have it.


Crash Overide's picture

Lets put you on the 7 year plan...



Uncle Ben.

francis_sawyer's picture

All my "EX'es [gold bars] live in Texas"...

Troll Magnet's picture

Texas says...


gmrpeabody's picture

Texas may have a very cold winter next year...

Oh wait..., nevermind.

SimplePrinciple's picture

No need.  The "thieves" will have stolen the shipment and replaced it with Tungsten before it arrives.  "We told you that transporting gold would be dangerous."

NewThor's picture

Would Texas be able to apply that Gold to the 1/50th part of the national debt that is their responsibility?

FranSix's picture

Give the gold bars to Texas, they'll lose it in a boating accident.

cynicalskeptic's picture

or lose it on the way to Texas........    wait, how many large bodies of water between NY and Texas?     Maybe they'd ship it via the Atlantic and Carribean just ot have the opportunity....Pirates maybe?

NewThor's picture


That's a sore spot for you fellas?

Sorry. I forget sometimes you Bugs can be

more serious 

than a one fingered Baptist.

Pure Evil's picture

Why would you want to store it in Texas?

Once the endless hordes of hispanic zombies have achieved reconquista for "La Raza" and the Aztlan empire they'll just move the gold to Mexico City as tribute from the conquered land.

Manthong's picture

Rick should stay away from those grassy knolls down there.

RafterManFMJ's picture

...and that book suppository building.

Frankie Carbone's picture

That's where the manual on fair play comes from. The one that Texas shoves up Bernank's ass.

bernorange's picture

Rep. Giovanni Capriglione's bill (HB 3505) has a flaw in it:

"Sec. 2116.005 (f)
Precious metal deposited with the depository by any person is the property of this state and is held by the depository outside the state treasury. On withdrawal and settlement, the precious metals become the property of the depository account holder."

I sent a letter (email) to his office about it. 

DosZap's picture

Would Texas be able to apply that Gold to the 1/50th part of the national debt that is their responsibility?

We do not owe a dime to them, they made all the crappy decisions, so it's their bed and they can lie in it.

Ag Tex's picture

Exactly!  In Texas, we love God (Jesus Christ our Lord and Savior) and His Word, family, guns (primarily glocks and AR's, followed by deer rifles, shotguns, and barbeque guns), our great state and the United States of America.  Y'all come on down and bring your bibles and manners. 


Magpul and Colt, unplug, pack up shop and head south.  We welcome you!


We also love our governor but sometimes have no clue as to what he's talking about. ;-)



Meat Hammer's picture

No, they'll create a new currency backed by gold, then send all of their FRN toilet paper back home, giving the finger to legal-tender laws....and I don't mean the middle one, I mean the trigger one.  

In fact, since all American debt is worthless fiat, let's send it all back, pay off the debt, close down The Fed, create a new gold-backed currency and experiment with some good ol' fashion fucking freedom?  

Oh shit, I almost forgot to down-arrow you.......

HurricaneSeason's picture

It wouldn't help, much. If the idiots secede, the Federal Reserve will credit their gold at $42 an ounce towards their share of the national debt.

sun tzu's picture

or they can sell their gold on the open market and let the rest of the idiots deal with the other 49/50th of the debt created by ben shalom. better to get on the lifeboat than stay on the titanic. 

HurricaneSeason's picture

What would interest rates be on texas as a country?  Cuba took the liferaft.

Bansters-in-my- feces's picture

Hey NewThor....you sound about as smart as a frozen FruitLoop.


And I guarantee that I we evey met,you you have more than one NewThor....

You would be ThorAllOver.

You fucking Idiot.

Eternal Complainer's picture

Can't they just pledge some worthless iou's( bonds)..
..everybody's doing it.

krispkritter's picture

A bit OT, but talking about wanting something valuable back:  

Man Drank $102,000 Worth Of Vintage Whiskey  

nmewn's picture

It appears the handyman unilaterally renegotiated the terms of his contract.

Maybe he's european ;-)

Bansters-in-my- feces's picture

Hey KrispKritter, If I drank $102.000 worth of vintage whiskey of some elses,I would have No trouble giving it back.

Might have a few pieces of potato and/or carrots and a piece of steak in it though.....

But hey,.....I wouldn't charge them for the free food.

Troll Magnet's picture

Oh and if TX ever secedes, you can bet your bottom dollar that I'll be moving there! Go Texas!

Beam Me Up Scotty's picture

Capital controls and border controls might say otherwise if that happens.  You might want to think about moving up your timeframe.

DoChenRollingBearing's picture

I disagree.  I agree w/ Troll Magnet that Texas would become seen as a bastion of liberty and sanity should they buy gold and secede.  Texas could survive on it own without the USA.  The more important question: could the USA survive without Texas?


Texas could always buy gold, slowly, on the open market.

And while I am here talking gold, here is my story on PM diversification for individuals:


Troll Magnet's picture

Loved Texas when I visited but I'm told that their property tax is ridiculously high. Higher than Cali.

DosZap's picture

I'm told that their property tax is ridiculously high. Higher than Cali.


BS, we have no state income tax either.(everything is FAR less expensive in Texas than Californicatia.)

We even have a balanced state budget and a 16 Billion $$$ Reserve Fund surplus.

Why?,the legislature only meets every 2yrs.

BC6's picture

I was you about 10 years ago TM. I moved from CA to TX about 7 years ago. 

The property taxes are higher than CA, but the nominal house value in TX is considerably lower in TX than CA.

So, assume a 3% property tax, which is the average on a 300K home, which is quite a home here - at least 4bd/3ba. That is a 9K tax bill.

In CA, that 300K home is at least 800K and that is being generous. Also the CA home is likely a 2bd or 3bd/2b. The max is 1% of the assessed value. So, 1% of 800K is 8K.

Essentially, the property taxes are the same.

As you already know, there are no state income taxes in TX, so in moving to TX, you automatically gave yourself a 9.3% (today) raise. When I left in 2006, it was a 7% raise and it was significant.

Boy, I would like to see the same from being able to opt out of SSN and SDI, etc.

What is more expensive in TX is electricity. You need it for the summers and the winters. Average rates will run you about $250-300 on that big 4bd house, less for a smaller residence. Whereas in CA, your typical central air and heat is your windows and slider doors.

The people in TX are more genunine as most were raised with Christian values and to show repect for others.

The only thing I miss sometimes is the weather in CA, but it's so minor b/c TX also has nice weather and it has actual seasons. If someone says to me, but in CA, you can go to the beach one day and the mountain resorts the next day, I laugh because the water is cold and brackish and there's always some "accidental"  sewage discharge. The mountains (Big Bear, Arrowhead) are beautiful, but are packed to the gills with what the locals there call lowlanders.

Anyways, I'm sure we'll be seeing you soon. TX is seeing approx. net +700 ppl arrive in the state every day.


Troll Magnet's picture

yeah that makes sense when you put it that way.

and cali's prop tax isn't 1% max. this year i'm paying 1.3%. i could really use that $ to stack instead. fuckers...

PoliticalRefugeefromCalif.'s picture

Don't forget about the small matter of a future glo in the dark coastline thanks to Japan's nuclear program, so far Texas doesn't have that looming issue.

Pure Evil's picture

A lot depends upon where you live. Property taxes in dense urban areas are always going to be higher.

Someone has to pay for the education of children of illegal immigrants that come to Texas and squeeze out kids faster than a cockroach.

The same thing that happened to Southern California is also happening to Texas.

sun tzu's picture

If you live in the Houston area along the coast, there is no winter except for 4-5 days. All you need is AC for the summer. Even in the Austin-San Antonio region, the winters are mild. 

Stoploss's picture



They are lower than anywhere i have found.

If you live in a large city obviously they're going to be higher because of schools.

Smaller towns and communities are much lower. And i mean 50% lower..

tmosley's picture

Suggest you try in the north and west of Texas, outisde of large cities.  I live in the county, four blocks from the city, and my taxes are ridiculously low, like 1% on a valuation that is about 40% of the actual value.

But maybe I'm just lucky.

A Nanny Moose's picture

Texas still allows homesteading, doesn't it?

fortune114's picture

Property tax is controlled by counties, cities, and school districts, so the amount you pay varies wildly depending on where you live.  There is no property tax (that we pay, anyway) that is collected by the State.

sun tzu's picture

True. I pay 2.55% property tax on a 5 bdr/3 bth house I paid $175K in McKinney TX. It was rated the 2nd best place to live in the US by CNN Money in 2012.

In California I would probably pay $800K to live in a crappy city. 

Beam Me Up Scotty's picture

Im not disagreeing with Troll Magnet DoChen.  Im just saying, if you are going to move, you might want to do it sooner rather than later.  If the SHTF, you won't get to jump into your shiney new suburban with all of your gold and expatriate from the state you currently reside in and head for Texas.  Some states are already getting the idea that if you have made your wealth within their borders during your life, that when you die, they get a cut no matter where you live.  Just like the US won't let you renounce your citizenship and take your loot with you, the states will come to that conclusion sooner or later too.

DosZap's picture

Some states are already getting the idea that if you have made your wealth within their borders during your life, that when you die, they get a cut no matter where you live.

Heheheheh, trying to collect it will be a bitch.

Beam Me Up Scotty's picture

As long as its not in a bank you are correct.  Didn't California take some guys money that lived in Arizona a few years ago, because they said he owed them taxes and he actually didn't?  But because he had money in a Wells Fargo bank, they just confiscated it from his account.