Texas Gold going home: the latest body blow to Federal Reserve credibility?

Posted on March 29, 2013 by

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ImageA few months ago the big revelation to gold bugs was Germany wanted its gold back from the Federal Reserve.  What’s the world coming to when central banks don’t trust each other?  Further, with central banks net buyers of gold for the last few years, something seems afoot in the global currency markets.  In perhaps a move of political theater, Texas is the latest to jump in the fray by introducing a bill to bring $1B in gold bars stored with the Federal Reserve back to the state of Texas.  Texas gold may be going home.  Since not all Texas gold is black gold, this is interesting.  Utah passed a law in 2011 making gold and silver legal tender.  Perhaps Texas gold coming home could be the precursor there as well?

As someone who follows monetary economics, this is likely just political theater.  Nevertheless, the Fed’s current destructive policies make more likely the political possibility of alternative monetary arrangements.  Texas gold coming home is just another sign that the barbarous relic could be the Once and Future King of money.

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