Excellent interview. Jim Rickards on Squawk Box yesterday.
Texas wants its $1 billion in gold reserves back from the New York Fed, and they hope to build a structure similar to Fort Knox to protect it. It would be the nation's first Sovereign depository for private gold, and they also hope to pass a law that would protect the supply from federal government seizure. Will it work and could other states do the same?
Rickards says it's "not a run on Fort Knox, it's a run on the Fed," and it's part of the slow and steady re-monetization of gold. Rickards also discusses foreign nations bringing gold back...Venezuela, Germany, being debated in Netherlands, Switzerland.
It's all possible because of the 10th amendment:
The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.
Don't mess with Texas... especially their gold.
Jim Rickards with Lauren Lyster.
The legislation by Rep. Capriglione would create the Texas Bullion Depository. "We don’t want just the certificates. We want our gold. And if you’re the state of Texas, you should be able to get your gold."
The depository would be a secure state-based bank that would hold the gold bars owned by the University of Texas Investment Management. No surprise that Ron Paul supports the plan, as he explains that the gold would be safer in the hands of Texans.
"If you think gold is a hedge, or a protection, you always want it as close to the individual and the entity as possible. Texas is better served if it knows exactly where the gold is rather than depending on the security of the Federal Reserve."