We warned you previously of the danger of global currency wars, and that the trouble could come in two major flavors:
Competitive devaluation, most recently in the form of massive printing by the Bank of Japan.
Nations moving away from Dollars as their reserve/trading currency. We told you about the gold purchases and repatriation by several major countries, most notably China, Russia, and Germany.
We warned you about the danger of “Fractional Gold Reserves” and what would happen if everybody wanted their gold at once, and joked about Ben Bernanke needing to go mine it by hand.
We were thinking foreign nations, but it turns out that the Sovereign State of Texas has the same idea, and is proposing to keep its own gold, and that of private depositors in Texas, in a local vault, protected from, ahem, mistakes, or government seizure by the Tenth Amendment and the Texas spirit.
James Rickards, author of “Currency Wars“, on the significance of this move by Texas:
Giovanni Capriglione, Texas state rep, discussing his bill on Fox:
Note the question: “Germany, other countries, recalling their gold, now Texas-
Do you think this is the beginning of a trend?”