Archive | June 14, 2015

Texas Pulls $1 Billion In Gold From NY Fed*

Texas Pulls $1 Billion In Gold From NY Fed*

The lack of faith in central bank trustworthiness is spreading. First Germany, then Holland, and Austria, and now – as we noted was possible previouslyTexas has enacted a Bill to repatriate $1 billion of gold from The NY Fed’s vaults to a newly established state gold bullion depository...”People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold,” and the Bill includes a section to prevent forced seizure from the Federal Government.

moneyblackholeFrom 2011:

The University of Texas Investment Management Co., the second-largest U.S. academic endowment, took delivery of almost $1 billion in gold bullion and is storing the bars in a New York vault, according to the fund’s board.”

The decision to turn the fund’s investment into gold bars was influenced by Kyle Bass, a Dallas hedge fund manager and member of the endowment’s board, Zimmerman said at its annual meeting on April 14. Bass made $500 million on the U.S. subprime-mortgage collapse.

“Central banks are printing more money than they ever have, so what’s the value of money in terms of purchases of goods and services,” Bass said yesterday in a telephone interview. “I look at gold as just another currency that they can’t print any more of.”

And now, after we noted the possibility previously, as The Epoch Times reports, Texas Governor Greg Abbott signed a bill into law on Friday, June 12, that will allow Texas to build a gold and silver bullion depository. In addition, Texas will repatriate $1 billion worth of bullion from the Federal Reserve in New York to the new facility once completed.

On the surface the bill looks rather innocent, but its implications are far reaching. HB 483, “relating to the establishment and administration of a state bullion depository” to store gold and silver coins, was introduced by state Rep. Giovanni Capriglione.

Capriglione told the Star-Telegram:

“We are not talking Fort Knox. But when I first announced this, I got so many emails and phone calls from people literally all over the world who said they want to store their gold … in a Texas depository. People have this image of Texas as big and powerful … so for a lot of people, this is exactly where they would want to go with their gold.”

But isn’t New York, where most of the world’s gold is stored, also big and powerful? Why does the state of Texas want to go through the trouble of building its own storage facility”

There are precisely two important reasons. One involves distrust in the current storage system. The second threatens the paper money system as a whole.

“In a lot of cases with gold you may not have clear title to the metal. You may have a counterparty relationship that makes you a creditor. If the counterparty has a problem unrelated to gold, they can default and then you become an unsecured creditor in bankruptcy,” said Keith Weiner, president of the Gold Standard Institute.

This means you get whatever is left after liquidation, often just a fraction of the initial value of your holdings.

“This exact scenario happened with futures broker MF Global. I knew people who had warehouse receipts to gold bars with a specific serial number. But that gold had an encumbered title and they became unsecured creditors in bankruptcy,” said Weiner.

In Texas, two big public pension funds from the University of Texas (UoT) and the Teacher Retirement System (TRS) own gold worth more than $1 billion.

Being uncomfortable with holding purely financial gold in the form of futures and Exchange-traded Funds, University of Texas actually took delivery of the gold bars in 2011 and warehoused it with HSBC Bank in New York.

At the time pension fund board member and hedge fund manager Kyle Bass explained: “As a fiduciary, which I am in that position to the extent you own gold and you are going for a long time, and it’s not a trade. … We looked at the COMEX at the time and they had about $80 billion of open interest between futures and futures options. And in the warehouse they had $2.7 billion of deliverables. We are going to own it a long time. You are on the board, you are a fiduciary, so that’s an easy one, you go get it.”

Bass is implying that there is much more financial gold out there than physical, and that it is prudent to actually hold the physical.

Taking the gold to Texas would then also solve the counterparty risk.

“In this case it’s going to be a depository, the gold is going to be there, they are not going to be able to lend it out and it won’t serve as collateral for other transactions of the bank.” said Victor Sperandeo of trading firm EAM Partners.

“Because if the bank closes, you are screwed.”

“I think that somebody was looking at that, we better have this under our complete control,” said constitutional lawyer and gold expert Edwin Vieira, of the Texas bill.

“They don’t want to have the gold in some bank somewhere and in two to five years it turns out not to be there.”

So far most of the attention has focused on the part of the depository and the big institutions. However, the bill also includes a provision to prevent seizure, which is important for private parties who want to avoid another 1933 style confiscation of their bullion by Federal authorities.

So far most of the attention has focused on the part of the depository and the big institutions. However, the bill also includes a provision to prevent seizure, which is important for private parties who want to avoid another 1933 style confiscation of their bullion by Federal authorities.

Section A2116.023 of the bill states: “A purported confiscation, requisition, seizure, or other attempt to control the ownership … is void ab initio and of no force or effect.” Effectively, the state of Texas will protect any gold stored in the depository from the federal government.

And free from the threat of confiscation, private citizens can use gold and silver as money, completely bypassing the paper money system.

“People can legally do that with gold contracts. The difficulty is the implementation. Now Texas has set up a mechanism with the depository. We have accounts in that institution and can easily transfer back and forth certain amounts. So we can run our money system a gold or silver basis if we were so inclined,” said Vieira.

This would not be possible if the gold is stored in a bank because of the risks of bank holidays and bankruptcies. It would also not be possible if the federal government could confiscate gold.

According to Vieira, this anti-seizure provision rests on Article 1, section 10 of the Constitution of the United States, which obliges the States to not make anything tender in payment of debts apart from gold and silver coin. 

If someone from the Department of Justice comes along you are going to see legal and political fireworks. The state is going to say ‘we need to have a mechanism to make gold and silver money. This is pursuant to the constitutional provision we have. You can’t touch this. Our state power on the constitutional level is more powerful than any statute you may pass,’” said Vieira.

Because one of the litigant parties is a state, the case would go directly to the Supreme Court.

“We are talking about something completely new in terms of the legal playing field. This is no longer a fringe concept,” he adds, but cautions about a possible fight with the federal government:

“We will have to see how committed the governor and the attorney general are.”

Official Statement from Governor Abbott:

Governor Greg Abbott today signed House Bill 483 (Capriglione, R-Southlake; Kolkhorst, R-Brenham) to establish a state gold bullion depository administered by the Office of the Comptroller. The law will repatriate $1 billion of gold bullion from the Federal Reserve in New York to Texas. The bullion depository will serve as the custodian, guardian and administrator of bullion that may be transferred to or otherwise acquired by the State of Texas. Governor Abbott issued the following statement:

 

“Today I signed HB 483 to provide a secure facility for the State of Texas, state agencies and Texas citizens to store gold bullion and other precious metals. With the passage of this bill, the Texas Bullion Depository will become the first state-level facility of its kind in the nation, increasing the security and stability of our gold reserves and keeping taxpayer funds from leaving Texas to pay for fees to store gold in facilities outside our state.”

*  *  *

Is this the first step down a road to secession? Notably, they’ll need that gold to establish their own country once they win the potentially imminent war with the US military which starts on Monday (Jade Helm).

*  *  *

This implicit subordination of The Fed’s gold sends a more ominous signal of rising fears of confiscation and leaves us wondering just how long before every state (and or country) decides to follow Texas’ lead?

Source*

Related Topics:

Federal Reserve Returns Only Five Percent of Germany’s Gold*

The “War on Cash” Migrates to Switzerland*

Why Central Banks HATE Cash and Will Begin to Tax It Shortly*

Iceland Wizens to Banksters Game with Plan to Remove Power of Commercial Banks to Create Money*

Hungary Kills The Rothschild Banks: Ordered To Vacate Country.

Asian Bank Threatens the Dollar, so U.S. Threatens China*

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Stop the International War of Genocide on Syrians Catholic Patriarch Demands*

Stop the International War of Genocide on Syrians Catholic Patriarch Demands*

By Haifa Said

Melkite Greek Catholic Patriarch of Antioch and All the East Gregorios III Laham called for stopping the “international war of genocide” against Syria.

He was speaking in a statement condemning a terrorist massacre that was committed against civilians in Qalb Lawze village in the countryside of Idleb province.

At least 30 residents of the village were killed at the hands of terrorists from “Jabhat al-Nusra” and “Ahrar al-Sham Islamic Movement” on Wednesday night. Five of those killed were members of one family.

The terrorists also looted and burned tens of houses.

The Patriarch expressed in his statement “deep sorrow” over the killing of “innocent people” in Idleb.

“We raise our voices loud and clear in the face of the criminal organizations and in the face of the Arab world and the European world,” said the Patriarch, referring to the involvement of some Arab and Western countries in supporting the terrorists in Syria and the silence of other countries on the crimes committed there.

He dismissed what is going on in “dear Syria” as “an international war of genocide,” calling on those sides to stop this war.

Source*

The Holy Synod of the Universal Syriac Orthodox Church meeting in Syria regretted the international silence on the terrorist and vandalism acts taking place in Syria and Iraq.

In the final statement issued on Saturday at the end of its regular session of 2015, held in Maaret Saidnaya town near Damascus, the Synod referred to the destruction of archeological and historical sites and holy worship places in the two neighbouring countries at the hands of terrorists.

It also referred to the abduction of the two Aleppo bishops John Ibrahim and Paul Yazigi, who have been held in terrorists’ captivity since April, 2013.

The statement called on the international community and decision-makers in the world to work for establishing peace in the region, vowing adherence to living in fraternity and commitment to the homeland.

Two days ago, the Synod delegation met with President Bashar al-Assad to whom they expressed their belief that Syria will remain, as it has always been, a homeland for all of the Syrians with their various affiliations and “a sanctuary” for all those who believe in the generous values of humanity in spite of the ferocious terrorist war waged against the country.

They considered holding this year’s session of the Synod in the Syrian town of Saidnaya at this time as carrying a message of support for the Syrian people.

In the Synod’s final session, Patriarch of Antioch for the Syriac Catholic Church Mar Ignatius Joseph III Younan called for the unity of the Antioch church in Lebanon, Syria and Iraq.

Syriac Orthodox Patriarch of Antioch and All East Mar Ignatius Afram II, for his part, said the meeting’s objective was to discuss the affairs of the Syrians who are passing through tough times, hoping that Syria will return as it once was, a country of peace and stability.

He said the Christians have their roots running deep in Syria and Iraq.

“No one can imagine this part of the world, particularly Syria and Iraq, without the Christian component,” he added.

Greek Orthodox Patriarch of Antioch and All East John X Yazigi said “gatherings are what Christian life is all about,” imploring God for peace to prevail in Syria again.

Melkite Greek Catholic Patriarch of Antioch and All EastGregory III Laham said faith is an integral part of the peaceful solutions to world crises, indicating that the world “has to find a way other than war.”

Earlier today, the participants in Saidnaya meetings, which started on June 8, held a prayer for peace to prevail in Syria at St. Peter & Paul Cathedral of St Ephrem’s Monastery, where the meetings took place.

Patriarch Mor Ignatius II of Antioch and All The East, who is the Supreme Head of the Universal Syriac Orthodox Church, performed the prayers along with Patriarch John X (Yazigi), Patriarch Gregorios III (Laham) and Patriarch Mor Ignatius Youssef III Younan.

Syrian Army Hits Hard ISIL Leaders’ Command Meeting in Deir Ezzur Province

Less than two days after the Syrian army’s airstrikes against ISIL leaders’ gathering centres in Raqqah province, similar massive strikes were waged against the terrorist groups’ commanders in Deir Ezzur.

Syrian sources reported on Tuesday that the air force targeted an ISIL position in Hatlah town in Deir Ezzur, where leaders of the terrorist group had gathered for strategic coordination.

Early tips from informants in ISIL camps disclosed that a large group of ringleaders, mainly from Saudi Arabia and Tunisia, have been killed in the raid.

The sources named the ringleaders as Abu Qasourah al-Saudi, Mostafa Sharif al-Abdallah, Hamed al-Hamoud, Ahmad Rahal, Ala Mostafa, Walid al-Ma’youf, Sarhan al-Abdallah, Majed Abdussalam and Nawaf al-Basiri.

Syrian fighter jets had hit ISIL positions in Raqqa province and managed to kill tens of high-profile Takfiri commanders in the area on Monday as well.

A senior Syrian military commander, speaking on the condition of anonymity, said that tens of terrorists were killed in Ayid Saqir region in Raqqa province on Monday after the Syrian warplanes heavily targeted their positions.

Sham Times news website, meantime, reported that the Syrian security and intelligence forces had obtained intel about the concentration camps of ISIL commanders. In a similar operation last week, Syrian warplanes killed 140 ISIL terrorists in Raqqa province.

The ISIL Takfiri terrorists currently control shrinking swathes of Syria and Iraq. They have threatened all communities, including Shiites, Sunnis, Kurds, Christians, Ezadi Kurds and others, as they continue their atrocities in Iraq.

Senior Iraqi officials have blamed Saudi Arabia, Qatar, and some Persian Gulf Arab states for the growing terrorism in their country. ISIL has links with Saudi intelligence and is believed to be indirectly supported by the Israeli regime.

Related Topics:

U.S. Accusations against Syria Backfire*

Syrian Army and Hezbullah Push back al-Qaeda as Christian Militia Mobilizes*

Muslims and Christians March against ISIL*

Nun Exposes Syrian Chemical Hoax*

Desecration of Churches and Mosques, Act of Outsiders States Bishop*

Syrian Observatory for Human Rights a One-man EU Funded Show!*

NWO Ambassador: Angela Jolie on Syria*

The Damascus Terror Conference and Israeli Control of America

The Anti-Christ and Armageddon around Damascus*

Iraqi Shia Militia Rejects U.S. Enforcements in Anbar*