Rebirth of Reason

Sanctions: 6Sanctions: 6
Texas to Hold its own Gold
Posted by Michael E. Marotta on 6/13, 6:48am

Just note, however, that the gold is not at the Federal Reserve.  It is at the Hong Kong Shanghai Bank of Commerce - in our post-modern times rebranded as merely "HSBC" - a private bank with offices in New York City. And it is one thing to pass a law, but another to actually have someplace to put the gold.  That will be the next step.


“If we own it,” Perry said on Glenn Beck’s radio show last week, according to the Texas Tribune. “I will suggest to you that that’s not someone else’s determination whether we can take possession of it back or not.” Washington Post "Wonk Blog" March 26, 2013 citing a Texas Tribune story from March 21, 2013. 


According to multiple reports, UTIMCO [University of Texas Investment Management Company] executed the purchase of 6,643 gold bars – to be stored at an HSBC vault in New York City – at the behest of Kyle Bass, a UTIMCO investment board member and managing partner of hedge fund Hayman Capital Management. This equates to 5% of the university system’s total assets. The investment thesis, according to sources, is predicated on the idea that if even 5% of COMEX futures were called, the company would not have enough physical gold to meet demand. “If you own a paper contract where they can only deliver you 10 cents on the dollar or less, you should probably convert it to physical,” Bass told Bloomberg earlier this week.  Chief Investment Officer Online April 20, 2011 here. 


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