Thanks My Ladies for letting us share from your private chatroom.
IQD NOVA: I WOULD LIKE TO SUGGEST THAT EVERYONE GO AND RESEARCH SOMETHING.
I WOULD LIKE EVERYONE TO LOOK AT IT THRU THE LENS OF “HOW CAN THIS HELP ME!!!! “
NOT FROM ANY-OTHER LENS!!!!
NOT THE GOVERNMENT IS EVIL …THE DOLLAR IS GOING TO S*** …THE BANKS HAVE 6 HEADS…. LET ALL THAT BS FALL ON THE FLOOR….. IN THIS STUDY IT WILL DO YOU NO GOOD!!
OK WHAT AM I TALKING ABOUT?????
TEXAS AND WHY IS IT GETTING ITS GOLD BACK FROM HSBC?
WHAT ARE THEY GOING TO DO WITH IT, AND WHAT ARE THEY GOING TO ALLOW OTHER PEOPLE/AGENTS TO DO?
HOW DOES THE COMPARE TO WHAT SINGAPORE HAS DONE AND IS ALLOWING PEOPLE TO DO?
I REALLY AM ASKING FOR PEOPLE THAT REALLY DO WANT TO UNDERSTAND HOW TO USE GOLD AS A HEDGE AND HAVE A REAL CHOICE IN BANKING TO STUDY THIS!
ONCE AGAIN…. ONLY THRU THE LENS OF "HOW CAN THIS HELP ME IN THE FUTURE!!!! "
PS. MEMPHIS YOU ARE ONLY ALLOWED TO GIVE HINTS!!!!!!!
AW: One thing take sticks out to me is that Texas is saying "come deposit your gold with us..........not with a bank that may very well loan your gold to other banks." In other words, Texas is saying to all the rest of the holders of gold that your gold is safe with us.
Blessed 153: They are doing it for stability and strength in the state's economy. Also in a sense trying to side step the Federal Reserve. It is a hedge in case the US economy tanks. What is fascinating to me personally is that people will have the ability to keep gold there. At a time when banks can confiscate the contents of your safety deposit boxes, this would be a place to keep physical gold. Truly a first of it's kind. Before this came about there was another law making gold and silver a legal form of payment.
"with this depository, private individuals and entities will be able to purchase goods, and will be able to use assets in the vault the same way you'd be able to use cash,"
This is not a place to turn your gold into USD, it's a place to keep gold as gold. Just as we want to go outside of US banks to keep dinar dinar.....
AW: My understanding is it's about creating options for investors, businesses, and the like. It will be done electronically.
Texas would have a greater impact of competing, by possibly being a metals commodity center, alongside its oil, gas, and agriculture resources.
The Feds are a creation of the States, so this is Constitutional from Article 1, Section 10. A lawsuit could result, but the likelihood of it being successful against Texas is not good.
The actual depository would be state-owned, not private. The idea is to have something of tangible value to inspire business confidence and Texas investment.
No futures. No lending contracts. No way to manipulate the depository into a debt vehicle. Nothing created or destroyed.
Account holders would be able to retrieve assets anytime. Delivery in less than one business week.
I think HSBC is crapping their shorts over this because they know they don't have the reserves to send the University of Texas Endowment Fund back to the Lone Star State.
Such a move would cause their collapse. Whew!
Blessed 153: When the dollar corrects, we will have dinar on deposit in other places, and if you are in Texas, you can have GOLD on deposit
"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," Abbott said in a statement in June.
(quote is from the same article link above)
MVL: I think this would help us leverage our deposits much better, our investment would actually be solidified in something of value, and we'd have a return, rather than chasing a rate of return somewhere that doesn't have the liquidity to back it up.
Lisa: • Texas has passed a law to create and maintain a depository for precious metals. When storing assets in their facility, it’s a contractual agreement, without provision for institutions to hedge upon their value. So, in other words, hard assets in; hard assets (available to go) out from the depository. Texas no longer wishes for the wealth of its citizens to be subject to loss, nor use their taxpayer’s funds to pay the fees to store gold in a federal/banking facility.
• When using an agent, it looks to me as though they are bound by direct contract guidelines between a licensed depository agent and with the individual, or entity that has assets on deposit.
• Texas has crafted this facility in a like manner to Singapore. Singapore is “fiercely independent”, “pro-business”, “safe, clean, wealthy”, and “politically stable”. Embedded in the law is the ability for Texas to do business within all states, and with those outside the states on an international basis. HB 483 Sec.2116.021.
• This is exciting! By taking this step, Texas has stepped away from status quo and is taking advantage of its right to act with independence on a state level! I hope this is a catalyst for other states to follow their lead.
MVL: Very well-said. I agree. Like Singaporean banks now, Texas banking will be well-capitalized for any depositor.
AW: It appears that several folks have already hit upon the correct answers to NOVA's questions. However, here is my shortened answers:
1.) Why is Texas doing this? To pre-empt their gold from being hypothecated or leased to other customers of HSBC......or, in other words, losing control of their gold.
2.) Texas will be building a depository large enough to store their gold as well as the gold and precious metals of financial institutions, cities, states and other countires.
3.) This is similar to what Singapore is currently doing in that, Singapore is the world's top destination for offshore storage of gold. On the other, for those who hold gold in the USA and would consider storage in Singapore, they now have an alternative to storing their gold or other precious metal in the Lone Star State.
Prior to reading many of the articles about this move by Texas, I never considered the possibility that the gold you may own that is on deposit at a bank could be leased to another bank and in the process become encumbered. Thus, losing ownership of it.............
Novette: Basically they are creating a way to bypass the paper currency system by settling accounts in gold not in dollar...
IQD NOVA: PERHAPS CREATING A EVERYDAY USE FOR GOLD......
Farhead: They (Texas) may be saying/messaging that unlike Puerto Rico, Illinois, etc Texas will be a secure state for bond investors as they can back their bond with gold?
Dale: Its as simple as asking yourself, do you want a debt instrument in you pocket or a tangible asset?
MZ: My answer to 2 questions from NOVA. 3rd question will be answered later
1) TEXAS AND WHY IS IT GETTING ITS GOLD BACK FROM HSBC?
When Governor Greg Abbott signed House Bill Number 483 in his own hand on Friday, Texas gave a big gold “finger” to Wall Street and will soon bring $1 billion in gold bars back to the Lone Star State.
The University of Texas made headlines in 2010 by adding more than $500 million in gold to their endowment. The decision to plough half a billion dollars into gold was only the first chapter of the story. Perhaps the bigger news was the choice not to simply buy shares in a gold ETF or gold futures contracts. Custodians decided to buy physical bars instead – signaling a distinct lack of faith in paper gold.
Also Custodian with the fiduciary responsibility for managing the Texas gold convinced state officials to build a depository and move the gold bars home from Wall Street. Texas joins Germany, Venezuela, the Netherlands, and other governments that have lost trust in New York depositories for safeguarding their metal.
Some of the Lone Star State’s gold is actually in the grubby hands of the New York Fed and HSBC, the bank reported to be storing some of the gold, has been the subject of criminal investigations and lawsuits.
HSBC’s suspected activities range from manipulation of metals and currency markets to rigging LIBOR interest rates. And the bank avoided prosecution for laundering Mexican drug cartel money in 2012 by paying nearly $2 billion in fines instead.
Texas could have chosen to store with another bank. The problem is the alternatives aren’t much better. Virtually all of the major Wall Street banks appear to be engaged in some pretty unsavory activity – including ripping off their own customers. In recent years, banks have paid nearly $200 billion in fines.
Federal regulators and prosecutors may be investigating and levying some fines, but they aren’t planning to send a single one of the traders or executives implicated in these scandals to prison. That also weighs heavily on confidence. No one who is paying attention, including officials in Texas, should expect the Federal government to enforce the rule of law or property rights when it comes to the financial sector.
Investors tangled up with MF Global learned that lesson the hard way. The Federal bankruptcy trustee in charge froze all assets, including gold and silver bars stored in COMEX depositories – like HSBC’s. The owners of the bars had warehouse receipts proving they held title, but that didn’t prevent the trustee from liquidating their metal and putting them at the back of the line with the rest
The story will bear close watching as HSBC and the New York Fed prepare for Texas to take actual delivery down the road.
The state’s gold holdings are reported to now total $1 billion in value. If those gold bars have been surreptitiously leased out, pledged, hypothecated, or even sold, then we could see a scramble for the physical metal.
2) WHAT ARE THE GOING TO DO WITH IT AND WHAT ARE THEY GOING TO ALLOW OTHER PEOPLE/AGENTS TO DO?
And the new depository will not just be a well-guarded warehouse for that bullion. The law Abbott signed calls for the creation of an electronic payments system that will allow gold, silver, platinum, palladium, and rhodium depositors to write checks against their accounts, making the depository into a bank – one that will create a metal-backed money supply intended to challenge the paper currency issued by the Federal Reserve - or "Yankee dollars" as one of the law's top supporters calls them.
And in case the Fed or Obama wants to confiscate Texas's gold, nice try Fed and Obama! In keeping with this suspicion of the Fed and Washington, the new law also explicitly declares that no “governmental or quasi-governmental authority other than an authority of [Texas]” will be allowed to confiscate or freeze an account inside the depository. Gold that’s entrusted to Texas will stay in Texas.
NF: I am excited to think of the banking possibilities this opens up for the state of Texas.
Joey: Nor does Texas have to provide the Feds with a list of who bought and the amount.
Sands: GOOD POINT, JOEY!!!
IQD NOVA: ITS JUST NOT TEXAS. THEY ARE OPENING IT UP TO THE WORLD!
NF: is there any talk from any of the other states about following what Texas is doing?
Memphis: not openly no. but behind the scenes? I am hearing...yes.
SANDS: OK, HAVE BEEN READING AND STUDYING, THIS IS REAL NEW TO ME AND THIS IS WHAT I HAVE CAME UP WITH THE LITTLE TIME I HAVE STUDIED THIS:
1. TEXAS WANTS THEIR GOLD BACK BECAUSE IT WILL BE SAFER AT HOME FROM THEFT, CONFISCATION AND MIS HANDLING. IT WILL ALSO GIVE TEXAS AN EDGE SHOULD THE GOVERNMENT FAIL DUE TO INFLATION WHERE THE ECONOMY COLLAPSES. ALSO, SHOULD TEXAS FOLLOW THRU WITH PLANS TO LEAVE STATEHOOD, IT ENSURES THEY WILL HAVE POSSESSION OF THEIR GOLD.
2. TEXAS IS BUILDING A FACILITY IN AUSTIN (THE STATE CAPITAL) TO HOUSE AND PROTECT IT. THEY WILL ALLOW OTHERS TO STORE THEIR GOLD AT THIS FACILITY AND WRITE CHECKS AGAINST THE VALUE OF THEIR OWN HOLDINGS.
MUCH LIKE A REGULAR BANK DOES WITH CASH DEPOSITS.
3. THIS IS REAL CLOSE THE WHAT SINGAPORE HAS DONE IN BUILDING A GOLD HUB IN A SAFE HAVEN FOR INVESTORS AROUND THE WORLD. MANY WOULD PREFER KEEPING THEIR HOLDINGS CLOSER TO HOME.
THIS HAS OPENED MY EYES. I HAVE HEARD MUCH ABOUT PUTTING A CERTAIN AMOUNT OF HOLDINGS IN METALS, WHICH I HAVE ALWAYS THOUGHT A GOOD IDEA WITH DRAW BACKS. I HAD NEVER FOUND A SECURE PLACE TO KEEP GOLD AND THOUGHT IT TOO RISKY AND AWKWARD TO KEEP AT HOME.
THIS WOULD GIVE ME, AS A SMALL HOLDER (NOT IN THE BILLION $ RANGE) A SAFE, SECURE, EASY ACESSABLE MEANS TO PURCHASE AND HOLD GOLD AND BE ABLE TO USE IT EASILY WHEN NEEDED. I WOULD FEEL MUCH MORE COMFORTABLE PLACING ASSETS IN TEXAS THAN A REGULAR BANK.
MY LADIES: VERY GOOD ANSWERS EVERYONE BUT I WOULD LIKE TO TRY IT LIKE THIS PLEASE
NOVA WOULD LIKE YOU TO ANSWER TO THESE QUESTIONS
PLEASE TRY TO STAY ON THE PATH AND # 4 IS IMPORTANT!!!
1) TEXAS AND WHY IS IT GETTING ITS GOLD BACK FROM HSBC?
2) WHAT ARE THEY GOING TO DO WITH IT AND WHAT ARE THEY GOING TO ALLOW OTHER PEOPLE/AGENTS TO DO?
3) HOW DOES THIS COMPARE TO WHAT SINGAPORE HAS DONE AND IS ALLOWING PEOPLE TO DO?
4) WHAT DOES THIS MEAN FOR ME??
IQD NOVA: IT IS MOST IMPORTANT THAT WE ALL INCLUDING ME , ARE ABLE TO DIGEST WHAT WE READ IN A WAY THAT BRINGS A PRACTICAL APPLICATION FOR OUR LIVES.
NF: #4. at first glance it means that I will have the opportunity to buy gold to hold in a safe environment with fair taxes. It means I will have, in the near future, the ability to use a new banking system against the value of my gold and hopefully other precious metals like is done in Singapore. It is another door to financial security that I haven't had to date.
MY LADIES: THANK YOU NF ...THANK YOU VERY MUCH...YOU'RE DOING GOOD...
NF: 1. Why is TX getting gold back from HSBC? I believe it is for complete stability and control of the gold for the state and the citizens. What I see from all of this is "IT IS WHAT IT IS" meaning the gold won't go away, it won't grow and at any point it can be accessed immediately. Texas won't lend it or use it in any transactions. Having gold on deposit in TX means you have another form of security should paper money fail. I like this idea even if it does not earn interest like most investing does. It is tradable and will always have value (even if the value floats). I am on my cell so I will answer the other questions after I re-charge! I may not hit the target but I have to tell you that nothing has excited me more than this course you are giving! I feel like I am in college and even the struggle is a good thing! Thanks Mary.
Sager: Hi guys, I had a packed but awesome day today. With that said, I took the opportunity to read up on Texas and what they’re doing and here are my main points from what they’re doing:
- The fact that they are talking about using gold and bitcoin for transactions, especially bitcoin (as it was originally conceived to be a decentralized digital currency), clearly tells me they want to bypass the dollar, fiat currency, and the entire fiat currency system in general. Using Bitcoin has no taxes associated to transactions as well, and isn’t registered anywhere in the banking system.
- Essentially what it means to me is that this type of setup with Texas would allow me to bypass the federal reserve system to make banking transactions, thereby acting as both a hedge against taxes and protection of my assets, while "circumventing fractional reserve banking practices in general”.
- The benefit of having their gold in Texas can be likened to having my kids at home instead of away somewhere else where I don’t know what could happen. In other words, better protection and control of your assets.
- Having all the gold back in Texas would benefit every client within that bank. More value stored at the bank so better stability and security.
- Personally, I believe that what Texas is doing will cause significant stress to the federal reserve system, especially if other states follow this model, because less dollars will be used. If that is the case, I believe they would eventually implement new policies to control this emergence, but this would only happen after the new banking system is launched.
So the first question I’m wondering is, why is the federal reserve system allowing itself to lose power/control? And the follow-up question, which could also be the answer, is; Could the current banking system be allowing this in order to further allow the absorption of the US dollar, and ultimately pave the way for the new system to come in?
This is where I am in my understanding of all this. Thank you so much for all the information here in this group. I feel blessed and fortunate to be part of this. Thank you
Side question: Nova mentioned on a recent call that gold is to be considered a hedge against government (I know memphis also mentioned it afterwards). To come to think of it, I’m actually not sure what this means. Does it mean to protect it against a fiat currency when that particular currency depreciates? Or protect it against a failing government?
Memphis: >>>rolling up sleeves... Let's take a quote from just the last few words penned by SW: :
"...I would feel much more comfortable placing assets in TX [as opposed to] a regular bank."
In this closing comment she captured the essence of why suddenly gold matters so much to so many. Others here have simply nailed it by using the operative word of "CONFIDENCE" for when we get to the heart of the matter, what makes people do what they do, it all revolves around confidence.
As a major nation state approaches that phase in the cycle where it is contracting and the confidence IN that nation begins to wane?
People always find ways to survive, to avoid what is coming (whether real or perceived) and so they move assets IN ANTICIPATION of that event.
At the heart of things gold matters to us only as a hedge of protection against gov't such that we might preserve our wealth. This point is important because nowhere in the discussion of gold/silver can we use the word "grow". We simply seek to protect, preserve, maintain that which is ours and thus the word "confidence" is lurking behind every conversation.
I hope that makes sense. It should also be confirming to many that your "gut feeling" is not afar off even if you lack the time to read/study on this stuff each day! (handshake)
MY LADIES: WELL SAID...THANK YOU MEMPHIS