Rick Perry to Federal Government –> Texas wants it’s 1 Billion in Gold back

As horrible as Perry was in the debates, there’s no doubt he’s a great governor

Yahoo.com: Texas wants its gold back — all $1 billion of it. That’s what Gov. Rick Perry told Glenn Beck on his radio show last week, according to the Texas Tribune.

The Federal Reserve holds the gold bars, which are owned by the University of Texas Investment Management Company. Perry wants to bring them all back to Texas to store the gold in what would be called the Texas Bullion Depository.

Former Rep. Ron Paul (R-Texas), a stalwart gold standard proponent, supports Perry’s proposal. But Texas state representative Giovanni Capriglione, who wrote legislation to fulfill Perry’s wishes, wants to distance the move from that kind of rhetoric, telling the Texas Tribune that the measure is “not about putting Texas on its own gold standard.” He says, instead, that it looks to “give the state a reputation as being more financially secure in the event of a national or international financial crisis.”

But what’s so bad about keeping the gold in the Federal Reserve’s vault in New York City? If there were a serious spike in inflation (a big worry of gold standard supporters), there would be nothing to stop Texas from accessing its store of gold in Manhattan. And taking the gold to Texas would likely be more problematic than helpful. As Neil Irwin of the The Washington Post notes, building, staffing, and securing the proposed Texas Bullion Depository would be incredibly expensive.

In fact, it would take a Mad Max-style breakdown to justify bringing all of that booty back to Texas, says Irwin:

For it to make sense to go to all that hassle of storing your own gold, you have to be insuring against some much darker possibilities, like a collapse of the U.S. government and monetary system…

In some episode of hyperinflation and U.S. government collapse, as the nation falls into a Hobbesian state of nature, paper dollars will be no good, but gold would likely be the medium of exchange for buying food and guns and whatever else is needed for Texas to prosper amid the post-apocalyptic hellscape. [Washington Post]

Another reason — other than the one put forth by Capriglione — that a state might want to keep $1 billion of gold handy is if it were planning to secede. Texas has already tried to break away from the Union twice — in 1836 and 1865 — and more than 100,000 Texans signed an online petition earlier this year asking the White House to allow the state to secede.

Other than support from the Tea Party set, though, many Texas politicians aren’t sold on the gold idea. State Rep. Lon Burnam (D) told the Texas Tribune, "We’ve got plenty of real problems that we’re not going to deal with this session. Let’s deal with them."

About Ask Marion

I am a babyboomer and empty nester who savors every moment of my past and believes that it is the responsibility of each of us in my generation and Americans in general to make sure that America is as good or even a better place for future generations as it was for us. So far... we haven't done very well!! Favorite Quotes: "The first 50 years are to build and acquire; the second 50 are to leave your legacy"; "Do something that scares you every day!"; "The journey in between what you once were and who you are becoming is where the dance of life really takes place". At age 62 I find myself fighting inoperable uterine Cancer and thanks to the man upstairs and the prayers from so many people including many of my readers from AskMarion and JustOneMorePet... I'm beating it. After losing our business because of the economy and factors related to the re-election of President Obama in 2012 followed by 16-mos of job hunting, my architect-trained husband is working as a trucker and has only been home approximately 5-days a month since I was diagnosed, which has made everything more difficult and often lonely... plus funds are tight. Our family medical deductible is 12K per year for two of us; thank you ObamaCare. But thanks to donations from so many of you, we are making ends meet as I go through treatment while taking care of my father-in-law who is suffering from late stage Alzheimer's and my mother-in-law who suffers from RA and onset dementia as well as hearing loss, for which there are no caretaker funds, as I continue the fight here online to inform and help restore our amazing country. And finally I need to thank a core group of family, friends, and readers... all at a distance, who check in with me regularly. Plus, I must thank my furkids who have not left my side through this fight. You can see them at JustOneMorePet.
This entry was posted in Economy and Money, Knowledge Is Power, News and politics, Politics, You Be the Judge and tagged , , , , , . Bookmark the permalink.

3 Responses to Rick Perry to Federal Government –> Texas wants it’s 1 Billion in Gold back

  1. Pingback: It’s A Wrap… Ask Marion – 03-31.13 – Happy Easter and Passover Edition | askmarion

  2. Zia says:

    Germany is told it has to wait 7 years to get its gold back….so good luck with that, Rick!


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