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Gold bugs of Texas

Dear Lord:

Texas Gov. Rick Perry (R) and freshman state Rep. Giovanni Capriglione have a plan to create a “Fort Knox of Texas” so that the state can start hoarding gold.

Giovanni has filed a bill to establish a Texas Bullion Depository to store the $1 billion worth of gold bars that are owned by University of Texas Investment Management Co. (UTIMCO), which are currently being housed by the U.S. Federal Reserve.

Speaking to conservative radio host Glenn Beck on Tuesday, Perry said that lawmakers were in the process of “bringing gold that belongs to the state of Texas back into the state.” Beck has been a longtime paid spokesperson for the precious metal seller Goldline, which agreed to refund up to $4.5 million to former customers last year after being sued for marking up gold more than 50 percent.

I don't know.

Lefists in Texas don't have it easy. But there are times when I think Lincoln got slavery right, but it's a shame keeping the Union had to be part of the solution. Most times I don't think that. But it gets tiring.

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Jay's picture
Submitted by Jay on

One of my pole stars is the supposition that if a conservative Republican advocates for something, it must be wrong, and for the reason that I simply have not puzzled out how he and his buddies make money out of it. That said, my understanding is that the futures market for gold has on its books a multiple of the actual gold that's actually out there. Put another way, if you "buy" bullion from a financial institution, there may not be any actual gold to back it up. It is "gold" in the monetized concept of gold, but if you demand delivery of said gold, you're SOL, and it derives its value in a sort of capricious way, depending on how confident people feel about the nonexistent "gold" they "own." It's as if the value is determined by "fiat." But I digress . . .

At any rate, this is not the first time a government has done this. I recall reading that the German Central Bank recalled all its gold 1-3 years ago and now has it in safekeeping somewhere. Jesse's Cafe Americain is an interesting place to go for gold related trade, as I'm sure many of you know. I am of the opinion that gold is a yellow metal you cannot eat. If you want to use it for money in the event of the zombie apocalypse however, it has to be more substantial than an emailed statement from your stockbroker.

Jay's picture
Submitted by Jay on

Here. Sadly, it's not the most reputable news source (you can't take anything they say at face value), but there are other corroborating sources if you google "german central bank gold reserves."

Nut Graf:

The new policy will include the complete withdrawal of 374 tons of German gold stored at the Banque de France in Paris, about 11 percent of the total. Bundesbank officials were quick to note that the decision was not a reflection of French trustworthiness. Rather, because France and Germany now share the euro, there is no need for reserves as insurance against currency crises.

“The gold in Paris is in the best of hands,” Mr. Thiele said on Wednesday. “We are thankful to the Bank of France for storing it.”

dameocrat's picture
Submitted by dameocrat on

The goldbugs just represent a different faction of neoliberals. One faction wants to turn us into peasants by taking the right to print money away from all governments, and printing bank authorized money and charging all governments interest over it. This is Goldman Sachs and JP Morgan, and the Federal Reserve. The other faction of elites wants to take the right to print money from the government and replace it with gold and silver, which they will hoard. That would be the Koch Brothers, Peter Thiel, the old HL Hunt family and other birchers. The Pauls, Rick Perry, and this Giovanni Capriglione represent this faction. In a lesser two evils scenario the latter are worst since they also represent the old confederacy. They will bring back slavery, and take voting rights away from women. Both factions will make ordinary people poor.

This Giovanni Capriglione lives in a suburb of Dallas where many people live like medieval royalty.,_Texas

People who think the Pauls and Peter Thiel,and their ilk are in anyway progressive are fools.

Submitted by lambert on

I would like to know if there is a Northeast (??) equivalent of South Lake, TX, to begin.

Also, I'm wondering if this analysis is too schematic, a la Yankees and the Cowboys. For example, where do the software barons of Silicon Valley and the Pacific Coast live, or are they not on the same scale?

NOTE Adding, this would make a great map... South Lake would be one location, but how many others are there?

I encourage you to follow up with the post. I really like the way you grounded factional analysis in geographical reality.