AUSTIN, Tex. (May 26, 2015) – A bill taking a step towards gold and silver as commonly-used legal tender in Texas passed in the state Senate today by an overwhelming 29-2 vote.
Introduced by State Rep. Giovanni Capriglione (R- Southlake) and four co-sponsors on Feb. 12, House Bill 483 (HB483) would create a state bullion depository. It reads, in part:
(a) The Texas Bullion Depository is established as an agency of this state in the office of the comptroller.
(b) The depository is established to serve as the custodian, guardian, and administrator of certain bullion and specie that may be transferred to or otherwise acquired by this state or an agency, a political subdivision, or another instrumentality of this state.
What the bill essentially does is create a means for transactions to occur in precious metals. It allows people to open an account and deposit their precious metals in the state depository. They could then use the electronic system to make payments to any other business or person who also holds an account.
This opening of the market is considered by many insiders to be the most important first step towards bringing sound money to mainstream acceptance.
“The key is to make it so people can use gold and silver instead of fiat paper money,” said Michael Boldin of the Tenth Amendment Center. “A bill like this won’t nullify the Fed on its own, but it is an important step forward in that direction.”
THE CONSTITUTION
Currently, all debts and taxes in Texas must either get paid with Federal Reserve Notes (dollars), authorized as legal tender by Congress, or with coins issued by the U.S. Treasury — very few of which have gold or silver in them.
But the United States Constitution states in Article I, Section 10, “No State shall…make any Thing but gold and silver Coin a Tender in Payment of Debts.”
The legislation in Texas takes a step towards that constitutional requirement, ignored for decades in every state. Such a tactic would undermine the monopoly the Federal Reserve system by introducing competition into the monetary system.
Professor William Greene is an expert on constitutional tender and said when people in multiple states actually start using gold and silver instead of Federal Reserve Notes, it would effectively nullify the Federal Reserve and end the federal government’s monopoly on money.
Over time, as residents of the state use both Federal Reserve notes and silver and gold coins, the fact that the coins hold their value more than Federal Reserve notes do will lead to a “reverse Gresham’s Law” effect, where good money (gold and silver coins) will drive out bad money (Federal Reserve notes).
As this happens, a cascade of events can begin to occur, including the flow of real wealth toward the state’s treasury, an influx of banking business from outside of the state – as people in other states carry out their desire to bank with sound money – and an eventual outcry against the use of Federal Reserve notes for any transactions.
Once things get to that point, Federal Reserve notes would become largely unwanted and irrelevant for ordinary people. Nullifying the Fed on a state by state level is what will get us there. The passage of HB483 would mark the first step toward that ultimate goal.
NEXT UP
HB483 previously passed the House by a vote of 140-1. After some amendments were added in committee on the Senate side, the bill will first go back to the House for concurrence. On Twitter, Capriglione said the amendments were “minor” and in the vote, he “will concur.”
@TenthAmendment yes, the amendments are minor and I will concur.
— Giovanni Capriglione (@VoteGiovanni) May 26, 2015
Should the House join with Capriglione, the bill will move to Gov. Abbott’s desk for a signature.
Michael Boldin contributed to this report.
Expect a rash of tornados, throw in a couple hurricanes and, let’s not forget to include a few earthquakes on top of nuclear terrorism for going up against the Rothchilds. Isn’t it obvious where the “Clear and Present” danger is?
Of course Abbott could refuse to sign the bill (since he knows he and his family will be whacked if he does), but of bigger ramifications is the fact that this could be the reason for the Jade Helm crap…and of course the changes to the bill could create a House refusal to vote for it in another dog and pony show similar to the Rick Perry/legislative bill to get rid of TSA/vote it down when TSA threatens to refuse to fly over Texas BS!
Could pass and be signed, but the realist in me (or is it cynic?) says that this wonderful effort by Texas will fail…these folks do not want to get whacked!