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Old 03-21-2013, 10:57 PM   #1
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Lightbulb Proposed Texas legislation: gold bullion repository

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...
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.
...
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.
...
More (incl. video): http://finance.yahoo.com/blogs/daily...192407075.html
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Old 03-21-2013, 11:06 PM   #2
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Call it the Rick Perry gold rush: The governor wants to bring the state's gold reserves back from a New York vault to Texas.

And he may have legislative support to do it. 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 Company, or UTIMCO, and currently stored by the Federal Reserve.

The idea isn't entirely new. Some Republican members worked on a gold bill last session that was never filed. And gold-standard-backing Ron Paul, the former Texas congressman, has raised repeated concerns about the safety of states' gold supplies.

"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 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."

Bringing Texas' gold home has gained more traction this legislative session because of Perry's vocal support for it. On conservative radio host Glenn Beck's show on Tuesday, the governor said Texas was "in the process" -- the legislative process, he later clarified -- of "bringing gold that belongs to the state of Texas back into the state." He argued that the state was at least as capable as the Federal Reserve of safeguarding Texas' "physical gold."
...
Capriglione said he was at a Tea Party event in Tarrant County earlier this year where Perry spoke about the state's gold investments as an economic development tool. Since then, he has been working with Perry's office on the bill.

"Something on the scorecards of a lot of these businesses in deciding whether they want to come to Texas is stability and gold as being one of those items," Capriglione said. "I think it's been in his consciousness for a while in trying to get some sort of depository in the state of Texas."

He has also spoken with UTIMCO, which owns the 6,643 gold bars currently housed underground in New York City.

"We're trying to figure out the right amount of gold to have here in Texas," Capriglione said. "'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."

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 national or international financial crisis.
...
More: http://www.star-telegram.com/2013/03...to-create.html
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Old 03-21-2013, 11:09 PM   #3
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HB 3505: http://www.legis.state.tx.us/BillLoo...3R&Bill=HB3505
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Old 03-21-2013, 11:26 PM   #4
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I'm certainly in favor of this, but the really interesting part will be the reaction of the fed when they see gold leaving their vault.

Assuming there is any gold there to take back...

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Old 03-22-2013, 07:54 AM   #5
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BTW, those 6,643 gold bars are the ones that Kyle Bass got the University of Texas to buy.
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Old 03-22-2013, 12:05 PM   #6
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Gov. Perry is supporting this, so the chances of getting this law passed are high?
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Old 03-22-2013, 12:12 PM   #7
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This is Cool!
We're working on relocating to Texas.


GOD BLESS OUR TROOPS!!!
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Old 03-22-2013, 12:25 PM   #8
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Originally Posted by swissaustrian View Post:
Gov. Perry is supporting this, so the chances of getting this law passed are high?
Don't know yet. Looks like the bill was just introduced and the author is planning some changes based upon early feedback.

If Dewhurst (Lt. Gov) is on board, it will likely pass eventually. Having Gov. Perry essentially being the driving force for it doesn't hurt though.
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Old 03-22-2013, 12:41 PM   #9
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Originally Posted by PMBug View Post:
Looks like the bill was just introduced and the author is planning some changes based upon early feedback.
There's one very troubling section, so if you wanna give feedback mention this. It means you don't own the metal as long as it is deposited with the state:
Quote :
Sec.
A
2116.005.
AA
DEPOSITS AND DEPOSITORY ACCOUNTS;
STANDARDS.

...

(f)
AA
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.
p. 6 : http://www.legis.state.tx.us/tlodocs...pdf#navpanes=0
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Old 03-22-2013, 01:06 PM   #10
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Quote :
Hello,

I read with interest about your bill HB 3505:

http://www.texastribune.org/2013/03/...ld-back-texas/

In general, I think it's a fantastic idea. Given news about Germany's 7 year repatriation effort (is the gold actually there?) and recent news about central bank desperation (Cyprus bail-in), it seems only prudent to safeguard assets important to Texas.

However, it appears that your proposed repository would only be offering pooled or unallocated accounts to the Texas public:

"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."

http://www.legis.state.tx.us/tlodocs...pdf#navpanes=0

I would prefer to see the proposed repository acting as a custodian only. Ie. any gold deposited by the public is still owned by the depositor and is merely being held on account for the depositor.

Is the state of Texas not willing to guarantee the gold 100%? If they are, what is the objection to offering fully allocated (ie. depositor owned) accounts?
http://www.house.state.tx.us/members...e/?district=98
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Old 04-05-2013, 07:23 PM   #11
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Website to help folks advocate for the bill:
http://texassoundmoney.org/bills/gol...ill-potential/
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Old 04-23-2013, 06:22 PM   #12
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Originally Posted by Jim Rickards :
#Texas House holding hearings on #TexasBullionDepository now. I submitted written testimony in favor. One small step for wealth preservation
https://mobile.twitter.com/JamesGRic...0520363008?p=v
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Old 04-25-2013, 07:14 AM   #13
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The University of Texas Investment Management Co., the third-largest U.S. academic endowment, sold $375 million in gold bars from holdings of about $1.4 billion and reinvested the proceeds in gold futures and equities.

In the three months that ended Feb. 28, the Austin, Texas- based fund bought $75 million in gold futures, $225 million in developed-market equities and $75 million in emerging-market equity futures, Bruce Zimmerman, the chief executive officer, said yesterday in a telephone interview.

The fund, which manages $29.2 billion, started taking delivery of gold through futures starting in 2008 as a hedge against inflation, Zimmerman said. While fund managers and directors remain concerned global consumer prices may increase, the fund wanted to increase investments in equities, he said.

“Our idea was to buy and hold gold, and when the world’s central banks begin tightening, we’ll sell,” Zimmerman said. “The price of gold has traded off, but the world’s central banks haven’t started tightening.”

The latest investment didn’t change the fund’s overall exposure to the metal because of the leverage involved in its gold futures, Zimmerman said.

The fund hasn’t bought or sold gold since February, he said. Its gold holdings are now valued at about $1.1 billion, while its cost basis is $967 million, he said.
...
http://www.bloomberg.com/news/2013-0...-holdings.html
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Old 05-22-2013, 09:54 AM   #14
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... Utimco is holding tight to its stash of the metal and even is thinking about buying a bit more. The fund won't consider exiting from gold until central banks such as the U.S. Federal Reserve tighten the money supply, according to Mr. Zimmerman. ...

"The basic reason we put on the hedge still exists. You could see interest rates and yields way up, and that would be bad for stocks," Mr. Zimmerman says. "Right now, everyone's dancing, but there really isn't an elegant exit to easy money."
http://online.wsj.com/article/SB1000...480765680.html
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Old 07-10-2013, 12:34 PM   #15
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This bill never made it out of committee and the regular Congressional session ended. Perhaps it will have better luck next session.
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Old 07-10-2013, 04:13 PM   #16
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...

Texas is about the only place I would consider storing (a little bit of) my gold other than in our own bunker...

I hope that the TX Legislature makes a go of it next year.
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Old 07-15-2013, 09:24 AM   #17
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Looks like a double edged sword to me. It’s a great decision if it passes the political traps and execution flaws, and a dangerous one if it has grey areas as pointed out by Yellow Jacket.
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Old 07-16-2013, 03:46 AM   #18
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I bet Texas doesn't have its gold there anymore :P

I wonder how much the US will be left with after everyone repatriates and withdraws. They don't have Germany's gold, they might not have the approx. 9,000 tons the USA is supposed to have.
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Old 07-16-2013, 06:29 AM   #19
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Perry is a two-face shill.

Legislation to outlaw TSA groping passed the house, but Perry made sure it didn't go through the senate. He is a fake conservative wannabe who looks to Ron Paul to fill in the blanks when he forgets his script.
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Old 07-16-2013, 10:22 AM   #20
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