Back in 2011, the University of Texas completed the repatriation of over $1 billion in gold it had stored with the Federal Reserve in vaults underneath their New York City offices. This money was part of the school’s vast endowment fund, and represented a lack of trust in the central bank at a time when foreign countries such as Venezuela and Germany were also seeking to repatriate their own gold from the U.S..
Fast forward four years later and now the state of Texas is doing the same as its University did by calling for a repatriation of gold that is held at the Federal Reserve. On June 12, Governor Greg Abbot signed into a law a bill that will lead to the construction of a gold and silver depository, when once completed will then lead to the transfer of over $1 billion in precious metals held currently at the central bank, back into the hands of the state of Texas.
Texas Governor Greg Abbott signed a bill into law on Friday, June 12, that will allow Texas to build a gold and silver bullion depository. In addition, Texas will repatriate $1 billion worth of bullion from the Federal Reserve in New York to the new facility once completed.
This is what the governor had to say:
“Today I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store gold bullion and other precious metals. With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.” – Epoch Times
Besides Texas, there are a few states that have recognized the truth about gold and silver and have sought to make it a monetary standard within the confines of their domains. Over the past five years states such as Virginia, Oklahoma, and Utah have passed laws allowing for public transactions to be done in both gold and silver, setting the stage for a domestic return to a gold standard in the future.
The father of modern banking in the U.S. once stated, “Gold is money, everything else is credit“, and over the past 44 years American’s have seen the destruction that can and has occurred from a purely debt based monetary system. And as China and other countries around the world accumulate gold reserves in preparation for a future return to a gold standard, Texas is getting ahead of the curve and ensuring that they have physical control over their own gold reserves before the unthinkable happens where the Fed denies them their property the same way they are doing so for Germany.
Kenneth Schortgen Jr is a writer for Secretsofthefed.com, Examiner.com, Roguemoney.net, and To the Death Media, and hosts the popular web blog, The Daily Economist. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.