Sunday, June 12, 2016

Is the Texas bullion depository possibly something more than another scam?

Rodney Johnson, who is in business with Harry Dent and says very similar things to Dent in his weekly emails, is out with more details on the Texas gold depository.   I must admit that when I first heard about it I assumed it was the work of the Austin liberals with the goal of running a fractionally reserved gold scam.  For all I know, that might still be the long term goal.  But for the near term at least it looks to be something a bit more conservative in nature because, as Rodney reports, "If things go well, the physical location could be up and running within a year. The plan is to open up the depository to all Texans, not just the University investment fund. And it won’t be just a storage facility. The state legislature authorized a bullion depository that can receive and send fund transfers.
Suddenly, the Texas Bullion Depository looks a lot like a bank, with deposits backed by gold, which takes their independent streak to a whole new level. Apparently they aren’t just mad about paying banks in New York to store their gold. They’re mad at the whole darn system!

If Texas succeeds in setting up a metals-based bank, they will create one of the highest-profile alternatives to the traditional, fiat money banking system that we use today.
Yes, Bitcoin is once again riding high. But the digital money system suffers from one of the same weaknesses that plagues fiat cash – at the end of the day, there’s nothing behind it.".

OK then, that is something interesting.  All it would take would be to have one big player, like, say, Texas, declare that it has created its own state money and then set an exchange rate between gold backed "Texas Stars" and nothing backed US Dollars.  Since Texas has pretty much everything...:
  • energy reserves and infrastucture including vast areas of open land upon which to set up solar energy generation stations
  • ocean access to the world via the Gulf of Mexico
  • Farming and ranching for meat and vegetables
  • Technology at all levels 
...there is really very little that the federal government can do to order it around if it will not be ordered.  And you can bet that many of the adjoining southern states would side with the gorilla near them instead of the one up in DC if given a choice. 

For now this bullion depository is a very small story but it could easily turn into something much bigger going forward as the ongoing conservative wave increases in strength and in scope.

1 comment:

Augustine said...

Viva the Texas Republic!

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