State Government Of Texas Moves To Hoard Its Gold

Does a Texas legislative session resemble a Yosemite Sam Looney Toons clip? Because that’s what I’m picturing. The Fort Worth Star-Telegram reports:

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. A bill from Rep. Giovanni Capriglione 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. and stored by the Federal Reserve.

The idea isn’t entirely new. Gold-standard-backing Ron Paul 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 Texas Tribune on Thursday.

“If we own it,” Perry said, “It’s not someone else’s determination whether we can take possession of it back or not.”

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  • http://www.facebook.com/profile.php?id=742104313 Adam Goodwin

    I bet the governor is parsing through a proposal secession plan right now.

  • David Duke-Astin

    I admire the ability of Texans to be so proud about their ignorance.

  • Charlie Primero

    Wise move.

  • BuzzCoastin

    that’s roughly 20 tons of gold
    and what would Texas do with that gold anyway?
    they’re using it as a hedge against fiat currency inflation

    the only way to profit from the gold is to sell it
    otherwise
    it’s just gold

    • http://www.facebook.com/profile.php?id=742104313 Adam Goodwin

      Unless they’re trying to start their own currency which they’ll back with gold. But I doubt it. They just want to call out the Fed for the thieving bastards they are. Ron Paul is from Texas, remember. Strong libertarian calling down there. Blah.

      • BuzzCoastin

        yeah, that’s kinda my point
        they’re showboating for the Texas sheeple
        it’s a Media Op that goes nowhere and helps no one except the elites
        but gives some sheeple a chubby

    • http://www.facebook.com/ElizabethAGreene Elizabeth Greene

      I’ll explain. The federal reserve “loans” its gold deposits, including those that Texas is paying to store, out to paper markets. Texas, Germany, and others have a concern that future economic problems will cause a bank run on physical gold. In this case, those without physical possession of their assets will be left with fiat currency and promises instead.

      By taking possession of their physical bullion Texas reduces their market risk and gains the option to make some income by leasing to the paper market. The downside of this is that they increase the risk of someone physically attacking their vaults.

      • BuzzCoastin

        In a financial collapse, say like Germany at the end of WW2, the gold will disappear from Texas, say like Germany at the end of WW2. Or like the gold in WTC Bld 7.

        Texans have long cherished the myth that they are voluntary slaves to Uncle Homeland, when in fact Texas is Uncle Homeland’s biggest bitch.

  • http://twitter.com/TedHeistman Ted Heistman

    Yeah, Jacob, everybody that doesn’t live in NYC is a dumb ass cartoon person.

  • Haystack

    If they want their gold back they’ll have to slay our dragon first.

  • Rex Vestri

    Rick Perry is an idiot and an embarrassment to all Texans that are capable of independent thought. Unfortunately, it seems that far far too many Texans aren’t. I’m surrounded by idiots here in Texas.

  • lazy_friend

    Leprechauns.

  • Geoff Henry

    Not a fan of Perry but think it’s actually smart. Why have the gold at the fed anyway. If this goes through it would be funny if they responded by saying they don’t actually have it.