Southlake Legislator Wants Texas to Have its Own Fort Knox, Just in Case of a Global Collapse

bullion-1.jpg
The United States Bullion Depository was, according to Wikipedia, an unintended byproduct of a 1933 executive order banning the private ownership of large quantities of gold. Those who didn't move their gold to Switzerland sold it to the Federal Reserve, which found that it didn't really have any place to store it. Hence, Fort Knox.

State Representative Giovanni Capriglione, a Southlake Republican, wants Texas to take a more deliberate approach to its collection of precious metals. He filed a bill on Friday to create the Texas Bullion Depository, which, as the name implies, is where the state will store its vast gold reserves. You know, just so the Texas economy can continue to thrive in case of a "a systemic dislocation in a national and international financial system, including systemic problems in liquidity, credit markets, or currency markets," to quote from the bill.

Of course, Texas' gold reserves aren't very vast at the moment, but they will be if Capriglione has his way. His bill seems essentially to allow for the creation of a shadow currency based on the gold standard, since it would allow state agencies, cities, counties, and other arms of state government to carry out transactions based on holdings in the bullion depository. Again, just in case the global financial system suffers complete and utter collapse.

Capriglione has obviously given the topic a lot of thought. His bill runs to 44 pages and goes into minute detail about how the would-be depository would be run.

It all seems a bit quixotic. One doubts the U.S. government would stand idly by and watch Texas create a shadow currency, though, on second thought, this might only encourage certain persons (we're looking at you, Greg Abbott) always spoiling for a fight with the Feds.

The larger flaw is that, if the world economy collapses to the point that the Texas Bullion Depository becomes useful, we'd have much bigger problems than figuring out if we're going to pay for our car registration with dollar bills or gold coins. Probably better to just stockpile guns.


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33 comments
ScottsMerkin
ScottsMerkin topcommenter

why dont they just invest in bitcoins, makes as much sense

everlastingphelps
everlastingphelps topcommenter

Can't buy any guns because no one has any to sell. Can't invest in lead and brass because there isn't any ammo around to buy. Gold is the best remaining choice.

Myrna.Minkoff-Katz
Myrna.Minkoff-Katz topcommenter

Some Texas revisionists still regard the state as a republic unto its own.  Such a queer situation to anyone come lately to this burg, like yours truly. 

Scruffygeist
Scruffygeist

For the love of Jeebus, will Texas Republicans just fund a time machine and move back to the 1950s already?

Newsflash--the gold standard has been a dumbass idea for decades. At least stockpile the much more precious metals used in electronics that China is hording from their own mines if you're going to make a paranoid, irrational "backup plan."

ThePosterFormerlyKnownasPaul
ThePosterFormerlyKnownasPaul topcommenter

Wow!!!  Well bless my heart, stick me in the corner and call me silly .... I never thought that I would see in a month of Sundays, make that two months of Sundays, that the DO would be advocating that we stockpile guns.


What's next?  Lambs lying down with lions?  Cats with dogs?  What is this world coming to?

Montemalone
Montemalone topcommenter

Yeah, Gio's cousin Vinnie in Jersey has explained how this is gonna work. 

Makes it easier to gather when it's all in one place.

ruddski
ruddski

"State Representative.... a Southlake Republican"

There ya go, right in the second graph, a tip-off that the DO considers whatever is being proposed to be stupid, embarrassing or racist.


cstoney04
cstoney04

hmmm, how long has gold been used for a currency?  2000+ years.  How long has the dollar been off the gold standard, 42 years? 

If it's so pointless why does the treasury still hold all of it, why not sell it?

NewsDog
NewsDog

@Scruffygeist Scruffy why don't you go look at a few history books and come back and tell us which political party was running the State of Texas in the 1950s.     Stupid is not party specific.  

MushMouth1
MushMouth1

@ruddski Well stupid,embarrassing and racist is pretty much the Texas Republican's motto these days

scottindallas
scottindallas topcommenter

@observist @ScottsMerkin  I was hoping someone would make the FIAT currency argument, saying we need to get on the Gold Standard.  The Gold Standard did nothing to stabilize the economic cycle, but fiat currency did.  These people take the 180 degree wrong answer time after time.  I've been called a reverse barometer, but these guys really take the cake.  I know it takes a while to see things like I do, but I dare say my provocative takes are more sound than these expert "economists"  A funny thing about these people, they're not earnest.  You'll find few open forums for libertarians, and in those forums, they won't debate.  They seldom reply to e-mails.  I don't know if they're stupid, spewers of received wisdom, or sophists selling us out.  It's uncanny.   And, for whatever reason, arguing with them earnestly is big fun for me.  I know I come off as self righteous, but that's wrong; I'm not afraid to be proven wrong, I want to get it right.  But, you see that Holman, Rooster, and Phelps can't argue economics without getting POWNED

everlastingphelps
everlastingphelps topcommenter

@observist @everlastingphelps sounds like you haven't seen the inside a gun store in the last six months.

Scruffygeist
Scruffygeist

@NewsDog It's not a party reference, it's a societal, rose-colored nostalgic reference.

everlastingphelps
everlastingphelps topcommenter

@cstoney04 Annual ammunition production in this country is over 5 billion rounds a year.  There are over  350 thousand AR-15s alone produced in this country a year.  (That's about 10%% of the overall firearms produced and not exported.)  The .gov orders were just a statistical blip compared to the buying power of the People of the USA.

As should be noted by .gov when making its decisions.

cstoney04
cstoney04

Actually it was Obama's ordering of 7,000 assault weapons in January and Social Security's ordering of 500,000 hollow-point bullets that threw a kink in the supply chain.

cstoney04
cstoney04

No it was obama's order for 7,000 assault weapons for DHS and Social Security's order for 500,000 hollow point bullets that are tying things up.

everlastingphelps
everlastingphelps topcommenter

@scottindallas @everlastingphelps @observist dude, -I- don't even consider lew Rockwell to be a credibile source, and I'm a libertarian.

scottindallas
scottindallas topcommenter

@everlastingphelps @observist Lew Rockwell has challenged the notion that manufacturers have been producing flat out.  This is an artificial bubble.  The NRA and manufacturers are laughing all the way to the bank.

oakclifftownie
oakclifftownie

Big time multiple Gun owners  Bwahahahahaha http://news.yahoo.com/ala-child-hostage-standoff-2nd-day-bunker-133516644.html      This guy had guns and a bunker and now he is Six feet under.. Fat lot of good all those firearms and booby traps did him ........Just look at the photos and see what happens when the Authorities decide force is the way to solve the  problem . And if some of you are that sure of that coming for your guns in the  future.  Well that's what it will look like to the rest of US and they come for you.

everlastingphelps
everlastingphelps topcommenter

@observist@everlastingphelpsEven with seasonal adjustment, this is unprecedented.  The year over year is an astounding increase.  

http://3.bp.blogspot.com/-Cr7z-hysaTQ/UOZuu0fMhrI/AAAAAAAAFO8/Xa1k5lmLHX4/s1600/Screen+Shot+2013-01-04+at++Friday,+January+4,+12.54+AM.png


It hasn't dropped off since then, but there's no stock.  Like I said, every manufacturer is running at 100% production (major ones running the lines 24/7) and they can't keep up with demand.

People aren't buying all these guns just to turn them in if a ban comes down.

everlastingphelps
everlastingphelps topcommenter

@observist @everlastingphelps No.  There aren't enough preppers in the country. Ordinary citizens have cleaned them out, and continue to clean them out as fast as supply comes in.  And I mean ordinary-ordinary, in that according to the surveys about half of the purchasers are first-time firearm owners and about 40% are Democrat.

ruddski
ruddski

@TheCredibleHulk @ruddski 

Correct. Over the years, I've seen the weakness of liberalism, and I don't wanna end up in Detroit, so I tend to slam that with the worst track record.

TheCredibleHulk
TheCredibleHulk topcommenter

@ruddski @TheCredibleHulk 

Yet you leave the distinct impression that you are somehow more irritated with left leaning pols and bloggers.

I don't guess there's a ruddski over at NewsMax trolling the comments section. 

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