Texas Gold Repatriation Bill Has One Message To Feds: "Come And Take It"

Tyler Durden's picture

As the mainstream media begins to come to terms with just what Texas' decision to repatriate its gold from the Federal Government in its own Gold Depository, the details of Republican State Rep. Giovanni Capriglione's bill protecting gold from confiscation become clear...


In an interview with The Epoch Times, Caprigilione explains why he pushed the bill and its far-reaching implications...

Epoch Times: What did you do to make the bill pass?

Giovanni Capriglione: I grabbed the banner last session. I was a freshman and it was difficult. Part of the problem was that it has a lot of verbiage that had nothing to do with law. Things like the case of an economic meltdown.

This is a principle part of why the bill was created, but it made it a distraction trying to pass the bill. Because then you get into: Do you think the economy is going to collapse, blaming the president, blaming the banks. What I did in this version of it, I stripped all kinds of stuff out other than the bill itself.

Epoch Times: Why did you go for it?

Mr. Capriglione: I have a vision, I would like for Texas to compete with Manhattan or the exchanges in Chicago. Here in Texas we have oil, we have natural gas, we have our own electric grid. To me having a bunch of metal commodities in the mix is something else that helps Texas to be able to become a marketplace for a lot of different items. Part of the idea of the depository is just another Texas thing. I’m still a little stunned that it happened.

I wrapped all of it together and I love to do economic development. I just want Texas to really be able to grow economically.

Former Texas Gov. Rick Perry previously said, “We are telling the whole entire world that Texas has a billion dollars worth of gold.” Gov. Abbott too, wants to attract businesses to our state.

Epoch Times: What were some of the difficulties?

Mr. Capriglione: My initial goal was to create a state everything, to have that completely run by the state. The issue with that was that it became a budget item. They were not keen on developing a completely new piece of [transaction] software. If the state had done it from scratch it would have just been too large.

The state would have developed the infrastructure to do [gold] deposits. We wanted the state to build the depository. We wanted the state to provide the security. It’s just very expensive. One of the things in Texas, because we are so conservative, if you have a bill that costs money its chances go way down.

I worked to do this without a fiscal note or a budget expense. We were able to do that by privatizing a significant portion of the depository. So we don’t have to build one, someone can go and say: we want to run it. We don’t have to run our own electronic software, someone else smarter than the state within the business can and will—and probably already has—developed the software to run [this operation].

This time I got put on the investment and financial services committee where this bill went through. It made it a lot easier to get it through the system. I was pretty shocked it passed the house with 137 to 1.

Now our office is getting calls and people are offering their services. I got some very interesting high network individuals who are thinking about putting their gold in Texas now. The response has been really, really good.

Epoch Times: What do you say about the anti-seizure clause, do you think the federal government will interfere with the gold and silver stored in the depository?

Mr. Capriglione: I think that what we have done is completely constitutional, we’ve looked at precedents, I have looked at Article 1, Section 10 of the Constitution so I think we are in good standing.

If the federal government were to try and do something like that, the reality is: There is a motto in the office of almost every state legislator in Texas, and it’s a flag that we have [from the Texas Revolution], it’s below a cannon and what the motto says is, “Come and Take it.”

That would be my response. We are on good solid legal footing to be able to not only have this depository, but to be able to do the transactions that are stated in the bill.

It was written with the idea that the federal government is a construct of the states. As long as we are following the Constitution as this law does, we won’t have any issues. The federal government can sue all they want, and I hope they don’t, because I think they will lose.

We created this in the state to provide depositors the protection I just spoke of. That’s a critical part of why this was created. Can a private depository do this? A private depository cannot do what we were able to do because the Constitution is pretty clear in terms of the rights states have.

Epoch Times: What do you think about using gold and silver as money?

Mr. Capriglione: It’s something that’s allowed. Back in 2008 when you go and look at the crisis, it may have been rooted in subprime, but at its core what it is there is a lack of business confidence. People get scared and worried and that kind of cycle feeds on itself. [The idea is to] have something that is stable and that you can touch as opposed to being ephemeral like paper or bank money.

One of the issues in 2008 was that people would start withdrawing their deposits, which to some extent happened. And there just isn’t enough actual backing of that. What we have in this is something that people can rely on. The way we structured the bill is there are no forwards, future derivatives, lending contracts on the bullion that’s placed inside the depository. What you see is what you have. Nothing will be created, nor destroyed.

That stability helps confidence and it also provides a flight to sound money, this is going to be it.

Epoch Times: Is Texas going to have its own money?

Mr. Capriglione: Article 1 Section 10 [of the Constitution] states that this will be prohibited and we would never coin our own money. I think that’s unconstitutional.

I have bitcoins and I use it as an alternative as well. Every individual should have as many options as possible to be able to transact business. The more options individuals have the more liquidity there is, the more comfort there is, and the more stability. We don’t—and I have no intention to create our own currency, we don’t have to.

By creating this depository what we are able to do is people are able to make their transactions through our depository, completely in conformance with the Constitution.

Epoch Times: How would this work?

Mr. Capriglione: It’s done electronically, we won’t actually move a block [of gold in the depository] because we want to have the fractional equivalents to be able to move it over. But it’s essentially being moved over. Individuals, corporations, and government entities will do their transactions through the use of gold.

I’ve looked at [having our own currency] and we would be into a lot more trouble. This accomplishes what the point is. In this world, there is so much stuff that happens electronically and you are not really sure what’s in your account. With this you can take possession of what is in your account at any time, within five days it will be subject to delivery.

Epoch Times: What did the governor think of the bill?

The governor is great to work with, he only has had 12 bill signings, and the gold was one of them. He came in and I was waiting for him to do the press signing thing and he said, “We are about to make national news, aren’t we?” and I said: “Yes, we are.” I’m thankful that he did it.

Epoch Times: In fact, it was he who also set forth the motion to repatriate the gold of Texan institutions such as the $1 billion the University of Texas endowment fund owns and currently stores with HSBC in New York.

Mr. Capriglione: Technically we have all these different agencies, but the governor has a lot of sway in the matter.

*  *  *

Times are changing for sure.

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Bemused Observer's picture

Funny, with all the faith those in power claim to have in fiat, they still want that yellow shiny...

SuperVinci's picture

Just remember, NO MORE CLINTONs and NO MORE BUSHs

MonetaryApostate's picture

Everything happens by design, history repeats itself, and you should know damn well what's coming next...

(Bank Bail-Ins)  >>> Read Some History...   https://en.wikipedia.org/wiki/List_of_banking_crises


Once they ban cash, be warned, what follows next is going to be nothing pretty...

>>>  https://youtu.be/-DT7bX-B1Mg

TeamDepends's picture

What's that? You've been bartering on the black market? Say hello to Mr. Guillotine!

remain calm's picture

They will never get the gold into Texas, the Fed government will legislate and regulate them from ever moving it into Texas. If they were smart they should ask for it RIGHT NOW and put it a Large private Texas bank to hinder the Fed from obstructing and creating all kinds of walls up.

Boris Alatovkrap's picture

Russia was also same problem get copper wire into Sochi, but eventually it is happen.

Waylon Bits's picture
Waylon Bits (not verified) Boris Alatovkrap Jun 17, 2015 6:02 PM



Amish FinEng's picture

My neighbor Jeb has vast Bitcoin holdings. He says that it's his 'other' farm. He harvests more than once a year.

I say, plow that field Jeb, plow it!

joseJimenez's picture

Amen, Let's make it more general, no more scumbags.

ZH Snob's picture

I'm afraid our economy will crash before Texas ever gets an ounce of its gold back.  Then, they will have to wait in line with everyone else the fed and the govt has cheated with its hypothocated and rehypothocated paper games.  The legal mess will drag on for years, and the finger-pointing will be circular and endless.

then, when all is said and done the injured parties will be left with the dilemma of trying to get blood from a rock.

N2OJoe's picture

Or gold from a China.

DuneCreature's picture

Confucius say – “Want stolen gold repatriated? .. You steal back slowly one coin at time while pirate distracted with stupid Iphone trinket.”

“Texas make big hullabaloo and too much noise. No patience. Now pirate know what you are up to and call lawyer and police. …You no get gold back now. ..Sooooo sorry.”

~ DC

RichardParker's picture

Paul calls Bernanke what he really is, a price fixer;




Fun Facts's picture

Texas is plotting a route to secession.

saveUSsavers's picture

You READ it? They are NOT TAKING PHYSICAL GOLD, electronic transfer and they "CAN CLAIM IN 5 DAYS" TOTAL BS !

wareco's picture

You better read it again.  You sir are in error.  They are repatriating their gold into the depository.  The are electronically transerring the gold within the depository to satisfy transactions between depositors, in lieu of physically transferring the gold within the depository.  Why do you think the State of Texas will be providing the security, and the inclusion of an anti-confiscation provision if there is no gold stored there?

azusgm's picture

Bingo, wareco.

You are a speedier typist than I am.

A Nanny Moose's picture

Last time we spoke of a Texas Depository someone got hiself perished.

azusgm's picture

Yes, the Great State of Texas is taking physical possession.

The part about electronic transfer and 5 days is for conducting transactions among the depositors or making physical delivery for those who wish to make withdrawals.

DosZap's picture

And the neat part is they are going to allow residents, and others to deposit their physical here also.

FreeShitter's picture

Jade Helm might just do that Mr. perry, but fuck the feds. Its about time someone took a stand.

Magnum's picture

We'll find out if Texans are anything like Germans.  After all, it could take years...

Latitude25's picture

Uh it's still in NY.  Taking it now should not be a problem.

Bay of Pigs's picture

"such as the $1 billion the University of Texas endowment fund owns and currently stores with HSBC in New York."

And therein lies the rub...

Dave Thomas's picture

LOL HSBC, just like the bank of Hormel!

JohninMK's picture

Yup, still in HSBC vaults, but nice and safe in Honk Kong.

knukles's picture

Q to US troops: Would you fire upon unarmed civilians?
Q to Texas Nat Guard:  Would you obey the Governor or the Feds?

NoDebt's picture

The National Guard can be activated under either a State Charter (Governor of the state is Commander in Chief) or a Federal Charter (President is the Commander in Chief).  I don't believe it can be both simultaneously- one or the other.

So the question might just be:  Would the National Guard, activated and commanded by a state governor, fire upon US Army/Navy/Air Force/Marine troops if so ordered in defense of the state?  Yikes.  Let's hope we don't ever have to find out the answer to that question. 


XqWretch's picture

Just look at Kent State... question answered. The goons will always fire as long upon their fellow citizens as long as they are getting their paychecks/benefits/pensions. Look at all these fucking gestapo thug cops we have today.

willwork4food's picture

You may be right, but we live in a much different time. Kent State wasn't that far removed from the WW2 & Korean era, and long hairs were looked upon as misfits/drug users and free love nuts. That said, they still shot and killed unarmed American STUDENTS.

centerline's picture

Wrong.  It only lasts for little while.  Stomach runs out.  The folks pulling the trigger (MIC) know the difference.  It is the cops that dont.  But, they are outgunned in every way and they also live in our neighborhoods and want to come home at night.

Why do you thin the French back in the days of such atrocities had to import thieves and killers?  And it still did not work out.  The assholes here can open the floodgates to as much gang scum as they like but it is still the same.  Not enough to overcome the masses who know better.  Failed history, again and again.  Why?  Because the playbook never changes. 

Citxmech's picture

So is Texas just going to send some trucks, back them in, and say "fill 'em up!"?

sleigher's picture

Just don't drive back via North Carolina?

Amish FinEng's picture

You may want to be careful if there is a slow moving buggy with a diamond shaped reflector in front of you.

I'm not saying it's a trap but you're in a sovereign country now.

cynicalskeptic's picture

I suspect local 'authorities' are a far bigger threat.... 

I wonder how many other states would be looking to stop any trucks carrying Texas bound gold under civil forfeiture laws?

Trucker Glock's picture

"Just don't drive back via North Carolina?"

Or Tenaha, TX.  The irony.

Beowulf55's picture

yeah, the cops will say they smell pot and confiscate it.

Buster Cherry's picture

I agree that Tenaha is a cancerous mole.

The Old Man's picture

I did some math the other day when I heard about this BIG amount of gold Texas wants back.

At current prices one billion $ in gold is just over 26 tons. One ton would equal a cube just under 15". So you've got 26 cubes ~. 

Course now if it's all in coinage, it'd take up a tad more space. In standard bars however, be about 5 pallets.

The Fed could Air Freight it by Fed Ex on one plane. (That'll be the day!)

Personally I think this is just a line in the sand Texas is drawing for publicity and politico.

A billion in gold for Texas is a drop in the proverbial bucket.

Trucker Glock's picture

"A billion in gold for Texas is a drop in the proverbial bucket."

Yes it is. Less than 0.3% of their debt.  Wealth preservation. :)

cowdiddly's picture

They gotta get it back from the Fed first before they start gettin all Texican braggadocio lippy.

Get in back of the line.

Evil Bugeyes's picture
"Come And Take It" is not a message I would advise sending to the Feds. It sounds kind of like an invitation.
SgtShaftoe's picture

It might be an invitation, some of them like it pretty rough. ;-)

Tucson Tom's picture

" Come and take it" rings a bell, Eh?       Molon labe -----not just for guns anymore!