Another indicator that smart people see bad times:
Citing concerns about about a possible economic crisis and a desire for monetary stability, the State of Tennessee is now officially on record supporting the establishment of a depository facility to house gold and other precious metals for Tennesseans. In a remarkable example of bi-partisanship on serious issues, the resolution passed unanimously in both the state House and Senate before being signed by the governor. But more work remains, according to pro-Constitution and sound money activists supporting the efforts.
Analysts and supporters said the measure was an important step on the road to restoring honest money and a stable monetary system based on gold and silver in Tennessee and beyond. As the Federal Reserve banking cartel continues to debase the U.S. dollar and enrich its cronies at the expense of everyday Americans, other states are also exploring and pursuing similar efforts — and in some cases even more ambitious ones, such as a law in Texas establishing a gold-backed bank that lawmakers said would challenge the Federal Reserve’s monopoly on currency.
The measure in Tennessee, House Joint Resolution 516, puts the state on record in official support of “the safekeeping and storage of gold and precious metal bullion and coins in a Tennessee bullion depository or other such similar facility.” The resolution also supports the security that such an institution would provide.
It is pretty shocking. Normalcy bias should inoculate government institutions from even considering that the monetary system could fail. I know intellectually for a fact that it will have to happen at some point, but I still feel funny saying it. The sheer enormity of the idea – that the smartest people today would be powerless to stop our civilizational suicide – makes it sound ridiculous.
And yet, even state governments recognize what is on the horizon.
Of course, I would not put my precious metals in any place where the federal government could find them. I fully expect any potential store of value will be either seized or outlawed, with a grace period to turn it in to the government in return for a fraction of its worth. The alternative will be a full collapse of the federal government. Until it falls, the powers that be will do anything try and avert the disaster.
I think the best idea to process now is that what is coming ultimately, will be unlike anything we can imagine today.
[…] Tennessee Thinks Money Will Be Unreliable […]
That’s why it is important that these be state depositories. I think that Texas and Tennessee have accounted for this — they intend to use these depositories as backing for their own currencies once the dollar collapses. There’s no other reason to keep the gold in a depository rather than your own vault, except as backing for currency.
I can’t say I know enough about how they will do this do say anything decisively, but it seems to me that if there is any sizable amount of gold in some place, the federal government will try to swoop in and take it by force – and I am not even sure it will go to the government. At the height of the Ukraine crisis, planes swept in, trucks took all the nation’s gold to the airport, it was loaded up, and nobody has seen it since. To my knowledge, not only is it gone, and not only won’t Ukraine’s leadership ask where it went – they won’t even talk publicly about the fact it is gone.
We have gotten used to rules, but that is bad. When the SHTF, there is one rule. Them that have the gold, by hook or by crook, made the rules. If this is as bad as it looks, it will be a big eye opener to everyone who thought justice was real, courts would always provide it, and the rules we were raised with were real.
As a Texan, I’m sure that they will try.
Since these are privately run institutions, this will be a combination of private security and state police / Texas State Guard. This whole scheme is being designed looking straight at the Fed and the Feds. Take this:
That’s not a design against safecrackers and bank robbers. That’s a design against military siege, specifically the US military. And this is one of at least five firms that are vying for the franchise, and most of the firms are promising multiple depositories. This is being designed as resilient as you can make it. Maybe the feds have one team that can crack a nut like that. They won’t be able to come up with 10 and have them all hit at the same time without the word leaking out before the hit. There’s just too long a supply and support tail for that.
Also, note that the Texas State Guard will be almost certainly be doing security. (It may or may not be “secret” but they are currently doing security at several nuclear power plants in Texas, because the governor wasn’t happy with the fed’s “standards”.) They are a curious and anachronistic bunch. I think of them as the Original Oathkeepers. They could have joined the National Guard — most of them are vets. They have an entire Air Force, with fighter jets and CAS. And there are two main conditions for their service — their CinC is the Texas Governor, and only the Texas Governor, and they are not eligible for federalization. Ever.
I personally knew one of these guys. You don’t get paid for it, so there’s no one there “for the paycheck.” They are all in the TNG. These guys are the most K-selected right wing nationalists (often Texas Nationalists) you will ever meet. The official motto is “Equal to the Task!”. I think that the unofficial motto is probably, “I wish those motherfuckers would!”
That is awesome.
One more point — here it is explicitly:
In other words, a currency.
http://www.hngn.com/articles/110000/20150716/texas-gold-depository-will-circumvent-federal-reserve-system-and-accept-bitcoin.htm
It’s a really minor sign but it struck me as unusual. In the UK bank accounts are covered by government backed deposit insurance up to £75,000. If a bank goes under you don’t lose everything and most people with under £75k get it all back.
In the past this was something that ran along in the background. It wasn’t even mentioned in the UK media much during the financial crisis. I think it was felt it would be counter productive to confidence (like not mentioning an airlines safety record in ads because it just gets people thinking about the dangers).
Now they are running radio adverts about the scheme. The government or the banks, I’m not sure who is running the ads, feels the need to reassure people the in the event of a bank collapse you can still get your money.