Texas demands its physical gold reserves be returned by the Fed

Tuesday, April 02, 2013 by: J. D. Heyes
Tags: Texas, gold reserves, Federal Reserve

(NaturalNews) The seizure of privately held savings accounts by the government of Cyprus, in order to finance a European Union-led bailout, is having reverberations far beyond the shores of that bankrupt nation. In fact, they are being felt as far away as Texas, where lawmakers there are increasingly concerned that greedy secular progressives in Washington, D.C., might someday consider a similar tactic, in order to bail out a federal government which is quickly spending itself into oblivion.

As a financial bulwark against such theft, GOP Gov. Rick Perry is considering legislation that would "return the state's $1 billion in gold reserves currently stored by the Federal Reserve at a vault in New York," WorldNetDaily is reporting.

The bill is being sponsored by state Rep. Giovanni Capriglione, R-Southlake. In an interview with the Texas Tribune, the lawmaker said, "For us to have our own gold, a lot of the runs on the bank and those types of things, they happen because people are worried that there's nothing there to back up" their deposits.

Protecting The Lone Star State from official theft

Bank runs were feared in Cyprus following the government's decision to confiscate as much as 60 percent of savings accounts over 100,000 euros, so they were closed for several days before and after the government made its decision to rob both Cypriots and citizens of other countries who wrongly believed their money was safe. Initially, the government said it planned to steal 37.5 percent of savings; now, officials say they may take an additional 22.5 percent if "a bigger haircut" is needed.

And it's precisely that kind of financial mission creep that has Capriglione and other state lawmakers concerned.

He says his measure is "not about putting Texas on its own gold standard." Instead, it will "give the state a reputation as being more financially secure in the event of a national or international financial crisis."

Perry, in an interview with Glenn Beck, sounded determined that the state should not have any difficulty securing its gold from the Fed.

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

But where to keep it? Capriglione's bill establishes the Texas Bullion Depository, where the gold would be kept.

"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," said Capriglione.

The lawmaker said it would be impractical to transport $1 billion worth of gold bars (securely, anyway), so he said he would suggest the state sell its gold then repurchase it in Texas.

Interestingly, in this day of bitter partisanship, the legislation may get bipartisan support. WorldNetDaily reported that state Sen. Rodney Ellis, D-Houston, called it "an interesting concept," adding he wanted to consult financial experts on the idea and flesh out its merits or problems.

The rise of a new theft-proof currency?

The new-found bipartisanship, no doubt, stems from the depth and severity of the financial crisis in Cyprus - a crisis that has been worsening all across the European continent since the Great Recession of 2008-2009.

Cyprus nearly dissolved into chaos as the government and EU officials negotiated a deal to steal the people's money in order for the bankrupt government to borrow more money.

Cypriot banks closed March 16 but some reopened March 28, nearly two weeks later. When they did, banks posted armed guards out front and, in order to avoid collapse, limited withdrawals to 300 euros (about $380). Despite the theft, however, the Cypriot government is still looking to "raise" another 8.3 billion.

The fiscal crisis there, and more importantly, the government's response to it, has sparked a surge in virtual money that exists only online - bitcoins - as our editor, Mike Adams, the Health Ranger, has written about recently. Bitcoin, he wrote - which are now accepted at the Natural News Store - "is a decentralized, peer-to-peer, "revolutionary" electronic currency that bypasses central banks and government controls. All transactions are (virtually) free, and bitcoin money can be freely sent or received globally, from any country, with no regulations or restrictions. (http://www.naturalnews.com)

Sources:

http://www.wnd.com

http://www.theaustralian.com.au

http://www.bloomberg.com