Texas Republican State Representative Giovanni Capriglione authored the bill demanding state owned gold bars be returned to the Lone Star State. The legislation to pull $1 billion in gold reserves from a Federal Reserve vault in New York is supported by Governor Rick Perry.
The financial crisis in Cyprus which prompted a run on the bank and ultimately a closure of the financial institutions reportedly bolstered support for the Texas gold bar return bill. State Representative Capriglione had this to say about why he penned the bill:
“For us to have our own gold, a lot of the runs on the bank and those types of things, they happen because people are worried that there’s nothing there to back it up.”
Governor Perry stated that if Texas owns the gold, then no one else should be able to determine if the state can reclaim possession of the bars of precious metal. Representative Capriglione also noted that Texas is not interested in implementing its own gold standard. According to the Republican’s statements about the gold bars bill, he simply wants to bolster the state’s fiscally secure reputation. The Texas public servant also feels that such a solid financial persona would be beneficial in case an international of national fiscal crisis occurred.
The legislation notes the state does not merely want gold certificates from the Federal Reserve, they want the actual gold bars to store inside a planned Texas Bullion Depository. Moving $1 billion in gold bars from New York to Texas would be a huge task, one some are calling impractical. State Representative Capriglione suggested selling the gold currently housed inside the New York vault and then repurchasing the same amount in Texas.
The Texas gold bill might become a bi-partisan effort. Democrat State Senator Rodney Ellis believes the return of the precious metal from the Federal Reserve vault is an “interesting concept” and is discussing the matter further with fiscal experts. A total of six of the 14 most economically sound cities in America are in Texas.
Our bill to create a Texas Bullion Depository makes the front page of the Drudge Report. With all of the economic… fb.me/ERDISJ1Q
— Giovanni Capriglione (@VoteGiovanni) March 29, 2013
Following the Cyprus crisis, Bitcoins soared in the region. A 20 percent increase is Bitcoin usage from the regions most impacted by the bank closure occurred in just one week.
What do you think about the Texas gold bars bill?
[Image Via: Shutterstock.com]