As Texas moves forward with plans to open its own state gold depository and repatriate about $1 billion worth of gold currently stored in an underground Manhattan vault, the state lawmaker helping to spearhead the effort, Rep. Giovanni Capriglione, recently took time to remind people of exactly how groundbreaking the plan is.
First a little background. In mid-June, Texas Gov. Greg Abbott signed into law HB 483, paving the way for Texas to repatriate $1 billion in gold from New York, bringing it home to be stored in a yet-to-be-built Texas Bullion Depository, as HNGN previously reported. Many wonder if this is the first step in Texas' plan to secede.
"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," Abbott said in a statement in June. "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."
On to Capriglione, the author and sponsor of the bill, who recently appeared on the Trunews talk show to speak with host Rick Wiles about what the legislation could mean for Texas.
"The really interesting part about this depository, which hasn't been getting a lot of press," Capriglione said, is that "with this depository, private individuals and entities will be able to purchase goods, and will be able to use assets in the vault the same way you'd be able to use cash," reported the Texas Observer.
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That essentially means that people can conduct transactions backed by gold stored in the Texas depository, effectively circumventing the Federal Reserve and fractional reserve banking practices in general, according to The New American.
As if the second largest state in the nation deciding to create its own gold depository to circumvent the Fed isn't a big enough deal in itself, Wiles then breached the subject of Bitcoin, a highly secure, decentralized cryptocurrency that proponents say has the capability of undermining the entire banking system and putting the power of money back in the hands of the people.
"Is there any possibility there could be a Texas-style Bitcoin? Wiles asked.
"OK! That would be awesome too," Capriglione exclaimed. "I personally own Bitcoin. You could make transactions with Bitcoin, use the gold depository as a medium, and then make payments on the other side."
Wiles continued: "This is the biggest threat in 102 years to the Federal Reserve System."
Capriglione agreed, saying, "This could very well make the Federal Reserve System unnecessary."
"This is different than your traditional bank - a traditional bank lends money. Especially if you're in Greece right now, you know that if you go to the bank, and everybody went to the bank to try to get their deposits out, there's not enough paper money to cover it. That causes a whole bunch of concerns. What this depository does is, it doesn't allow that - if there are 5,000 bars of gold in there, there will be 5,000 gold bars there, and you'll be able to access your deposits directly upon demand," Capriglione said, according to The New American.
"You can write checks to individuals who have gold depository accounts, and you'll also be able to write checks to individuals and corporations who don't have gold depository accounts," he explained. "We set up a system of depository agents so you can have any corporation, any group, basically start a depository agent, and they can send and receive through this depository system, outside of the Federal Reserve System."