Posted with permission from Communities Digital News

WASHINGTON, May 26, 2017 – On June 12th, 2015, the Texas legislature signed into law Bill Number 483, bringing to life the Texas Bullion Depository. The state of Texas owns about $660 million dollars worth of gold bullion that is currently housed in a vault in HSBC Bank in New York City. The recently passed bill will allow Texas to bring the gold back to within the state and store it at the new depository, saving Texas taxpayers millions of dollars worth of storage fees.

The recently passed bill will allow Texas to bring the gold back to within the state and store it at the new depository, saving Texas taxpayers millions of dollars worth of storage fees.

Additionally, the Depository will allow for private individuals and institutions to create accounts with the Depository, providing the account holders the ability to buy and hold gold bullion and complete transactions with the precious metal. Beyond just saving taxpayers money, this bill will help start the restoration of the gold standard to the economy.

Beyond just saving taxpayers money, this bill will help start the restoration of the gold standard to the economy.

The gold standard is the idea that currency, such as the dollar or pound, is related to gold through a fixed price. Thus every unit of currency is worth a certain amount of gold (or other precious metals, depending on the country).


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In the United States, the gold standard was officially introduced in 1900, and the government introduced the dollar as a representative currency of gold. This put the US on a level with the other major powers in the world at the time.

Seventy-one years later the gold standard was abandoned in place of a fiat currency – a currency that is not backed by any material value. This is dangerous because the Federal Reserve now has a monopoly on the value of the currency. It can inflate or deflate the value of the dollar through the manipulation of the money supply, as well as increase the amount of credit with unrestrained power.

The gold standard is one of the more controversial topics in American economics. Defenders say that it's a protection against the monopolistic controls of a fiat currency by the Fed, preventing them from expanding credit or reducing the value of your money through inflation. Opponents suggest that it gives unfair competitive advantages to certain countries that produce more gold than others and that it can limit economic growth. Both of these viewpoints have been proven to be accurate. The question now becomes, which system provides a freer market and the most economic freedom for the most people?

The question now becomes, which system provides a freer market and the most economic freedom for the most people?

Texas feels, as do I, that the gold standard – or the ability to use gold and other precious metals as currency in place of fiat money such as the dollar – is an important protector of wealth against the Fed's money manipulation schemes. Without a gold standard or an alternate form of currency to compete with the dollar, the Fed has complete control over the money supply. The long term price of gold is very stable relative to a fiat currency, protecting the value of your savings and investments. In the absence of such protections, savings and investments can be wiped out by inflation caused by massive credit expansion, such as occurred in the 2008 housing crisis.

In the absence of such protections, savings and investments can be wiped out by inflation caused by massive credit expansion, such as occurred in the 2008 housing crisis.

The Great Depression was caused largely by the Fed mishandling the money supply. The 2008 Recession was caused by over speculation and an irrational increase in credit, in the form of government insuring the insurance companies so that they would give mortgages to more people. On top of this, instead of allowing the Wall Street companies that did not act rationally and over speculated before the crisis to fail, as they would in a healthy economy, the federal government revived them with billions of dollars of taxpayer money.

They claimed that these companies were "too big to fail", and instead of allowing our economy to reset they tried to put a bandaid on a bullet wound by transferring the household debt from the private sector (the Wall St. banks that should have failed) to the public sector (Federal government debt).


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They claimed that these companies were "too big to fail", and instead of allowing our economy to reset they tried to put a band-aid on a bullet wound by transferring the household debt from the private sector (the Wall St. banks that should have failed) to the public sector (Federal government debt).

So just how bad is the debt? PragerU explains in their video, "America's Debt Crisis Explained".

Now the government, or the American taxpayer, is responsible for this debt and has absolutely no way of paying it off. Through their misunderstanding of free market economics, the bureaucrats in Washington have encouraged bad investment, credit, and debt expansion, and increased the current debt bubble – all while decreasing the value of their citizens' savings. The consequences of this will come in the form of a recession more severe than the 2008 crisis when the next debt bubble collapses, and the American people will again be called on to correct the government's mistakes.

I personally do not trust the Federal Reserve to ensure the safety of my savings and investment without a gold standard through which the value of my holdings would be at least relatively stable. Apparently, Texas agrees with me.

The institution of this depository will not return us to a gold standard, but it will provide an alternate form of currency to compete with the dollar. In the likely event of another recession, the value of the gold commodity will not be overly affected by any type of inflation or deflation that could be enacted by the Fed's monetary policy, providing an alternate form of currency to use in a US economy that is slowly being choked by debt. At best case, the hope is that this Depository will inspire other states to create their own Depositories and the US can return to a real gold standard. In the very least, the Fed will no longer have a monopoly on currency, and those that choose to invest in gold will be at least partially protected from

In the very least, the Fed will no longer have a monopoly on currency, and those that choose to invest in gold will be at least partially protected from a bad fiscal policy.

These measures are important because they will remove the dependence of your savings and investments on the decisions of federal bureaucrats, who rarely have your best interests in mind.

They have proven time and again that they would rather legislate to the corporate lobbyists and their vast campaign funds at the expense of you, the taxpayer. This Bullion Depository provides you a means to trade freely outside of the bureaucrats' influence, free from the burden they gladly lay at your feet while their own pockets are lined.