Texas introduces GAULT legislation

pmbug

pmbug

Well-Known Member
I wrote an article advocating for Gold as Unpegged Legal Tender (GAULT) almost two years ago. This morning I see a report where my home state of Texas has (re*)introduced legislation to implement it locally:

Two bills filed in the Texas House would create 100% backed gold and silver-backed transactional currencies that would serve as legal tender in the state. This would create a foundation for the people to undermine the Federal Reserve’s monopoly on money.

Rep. Mark Dorazio filed House Bill 1049 (HB1049) and House Bill 1056 (HB1056). The language in both bills is nearly identical but they add the provisions to different sections of the Texas code.

Under the proposed law, the Texas Comptroller would issue gold and silver specie (coins) through the Texas Bullion Depository and also establish gold and silver transactional currency defined as “the representation of gold and silver specie and bullion held in the pooled depository account.”

The Depository would be required to hold enough gold and silver to back 100 percent of the issued currency.

Holders of gold and silver specie and currency would be able to use them as “legal tender in payment of debt” in the state of Texas. The gold and silver-backed currency would be electronically transferable to another person.

Gold and silver-backed currency would be redeemable in specie or at the spot price of gold in U.S. dollars minus applicable fees.

In practice, the passage of HB1049 or HB1056 would allow any person to conduct business transactions using gold or silver.
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https://blog.tenthamendmentcenter.c...acked-gold-and-silver-transactional-currency/

* this legislation was introduced in the last legislative session, but it was introduced late in the session and didn't make it through the legislative process which was busy considering a bunch of other issues.
 
Questions/comments/issues immediately come to mind:

1. at a domestic level while the Federal government receives taxes and dues and remits payments denominated in USD then the GAULT proposal will not undermine the government's monopoly on the issuance of currency
2. while Federal Treasury issues securities and pays interest on those securities denominated in USD then the proposal will not undermine the government's monopoly on the issuance of currency
3. the State will have to decide whether it wishes to and has the capacity to pay its own obligations and receive payments in the equivalent of gold or continue to use Federal issued fiat
4. the impact of inflation on the State's capacity to meet its obligation to provide in-specie transactions based on a gold standard should it continue to also use Federal issued currency
5. opposition to government establishing a hoard of assets as a means to provide protection for its citizens against the effects of inflation when individuals can just go out and buy gold and other assets themselves
6. opposition to the proposal on the grounds that it is "wasteful" as it diverts funding from other public spending
7. the possibility that there will not be enough gold-pegged currency circulating to meet need
8. hoarding
9. the inflationary effect of declining gold prices
10. the leaking of "wealth" beyond the borders of Texas

The Texas legislature has got its work ahead of it if it wants to pass such a law.
 
The simplest solution would be to formalise the use of a private currency alternative eg BTC as legal tender. But then the Founding Father's understandable inability when writing the Constitution to perceive an alternative to minting coins from precious metals comes into play. :rolleyes:
 
Over the past two years, there have been pushes in the State legislatures of various American States to build their own bullion depositories and to legalize gold/silver. Texas leads the pack as far as actually building their Bullion Depository. If this bill passes in Texas, I expect that more States will follow suit in time. How awesome would it be if all (or even most) States enacted GAULT legislation and payment system infrastructure for trading in gold/silver were being deployed.
 
pmbug said:
How awesome would it be if all (or even most) States enacted GAULT legislation and payment system infrastructure for trading in gold/silver were being deployed.
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There are too many unanswered questions and complications to arrive at the conclusion that it would be awesome. At this stage at best it's an option worth exploring that has the potential to raise more problems than it solves.
 
Its all just talk. Gov Abbot is just another WEF shill and doing his part of shipping illegals all over the US while blaming others.
He's in on all of it as much as the next one and just another traitor that acts like he can't secure his own border.
 
JohnnyBravo300 said:
Its all just talk. Gov Abbot is just another WEF shill and doing his part of shipping illegals all over the US while blaming others.
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Populism is the concern that many have in response to the threat posed by elites, real or perceived. I think that it can distract from the fundamental issues at times, in this instance, the debate between government issued fiat and a commodity backed currency.
 
Golden Stash said:
Texas wants to cede from the USA.
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From what I've been reading in the comments sections of news reports from the US (Newsweek), broadly speaking conservatives are in favour of Federal intervention at the local and State level when a Republican is in the White House, but they're all State and local rights when it's a Democrat as President. I would assume the same thing applies in reverse to the "liberal" side of politics over there. I can't see that changing for many years.
 
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HB1056 has just passed both the Texas House and Senate and now awaits Governor Abbott's signature. Awesome!
 
Governor Abbot of Texas is a WEF shill. Its a wonder he took part in that at all, or maybe he didnt.

I do like Dunigan and the gang at Liberty and Finance tho.
They have some great guests.
 
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Much respect to Daniel Diaz for the work he's done. He's talking about the Florida bill in that video, but the language in Texas' HB1056 contains a similar caveat:
H.B. No. 1056

AN ACT
relating to the recognition of gold and silver specie as legal
tender and the establishment of a transactional currency based on
gold and silver; authorizing a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 2116, Government Code, is amended by
adding Subchapter D to read as follows:
SUBCHAPTER D. GOLD AND SILVER SPECIE AND CURRENCY
Sec. 2116.101. LEGAL TENDER. (a) To the extent authorized
by Section 10, Article I, United States Constitution, gold and
silver specie that meet the requirements of this section are legal
tender in this state.
(b) To be legal tender in this state, gold and silver
specie:
(1) must be imprinted, stamped, or otherwise marked
with the specie's weight and purity and may be imprinted, stamped,
or otherwise marked with a name or symbol that identifies a refiner
or mint of the specie; and
(2) except for the information described by
Subdivision (1), may not be imprinted, stamped, or otherwise marked
with any name, symbol, or other information or design, including
any suggestion that the specie has been minted or issued by a
government.
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https://legiscan.com/TX/text/HB1056/2025

It would limit legal tender status to pretty much plain bars. I expect that this will get amended in time as the infrastructure develops and people start using using it. I also expect to see more Mints offering pure bullion products that meet the definition. We might see a big change in the retail market as pure bullion products become more popular than the current artistic fare.
 
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