Texas wants its gold back. I say help or get out of the way. Texas is not unique in this interest. Germany and others have recently expressed similar intentions to repatriate their gold2. What makes the Texas bill, HB3505 unique3 is a Texas depository is also proposed that both institutions and later the private investors may use to keep physical gold safe in Texas. It is nice to see a State interested in protecting the property of its people and institutions with equal vigor.

I can think of no place better equipped to protect its property than Texas. If I worked for a Texas institution I would feel comfortable knowing that some of my pension was being kept, or could be kept, in gold, thus protected from the kind of currency risks4 built-in to other investments. It would also be comforting to know that those metals were being protected by Texas, in Texas, not some obscure and distant entity like the Federal Reserve in New York.

This is simply another example of the wisdom and leadership shown by the State in matters of business, finance and property rights. It is no surprise that so many people and businesses move to Texas every year.

If this passes and the depository is opened to personal investors, it will be interesting to see how this will change gold investment and storage across the nation, and perhaps the world.

Please checkout the following. They do a great job of explaining the bill and what it means to you.

Please keep in mind that the U.S. currency strength, as defined by the inflation rate, may not be what it seems. See the Growing Liberty article What can you do if you are being lied to about inflation?.

  1. stock.xchng - Coins (stock photo by iprole) Available at: http://www.sxc.hu/photo/1222895 
  2. Germany Repatriating Gold From NY, Paris “In Case Of A Currency Crisis” - Forbes Available at: http://www.forbes.com/sites/afontevecchia/2013/01/16/germany-repatriating-gold-from-ny-paris-in-case-of-a-currency-crisis/ [Accessed April 4, 2013]. 
  3. I am not a lawyer or a financial adviser; this article is opinion not professional advice. 
  4. The price of gold, in a particular currency, may change over time, but the intrinsic value seems to stay fairly constant. 
  5. stock.xchng - Lone Star (stock photo by KFleming) Available at: http://www.sxc.hu/browse.phtml?f=view&id=301087 

Here is genuine feedback from a first-timer's experience through the time that we were involved in both the Senate District and the State Convention this year.

Let me first start by saying that this year we represented “the local business owner” as citizens of Texas, USA! We have consistently voted Republican, but we have never participated this intimately in politics ever in our lives! It was fantastic to see our vote affecting the State level results, and we helped elect several people (whom we have met and know), that will represent our view on the National stage from our State, and even from our home town!! Wehoooooooo! That is really a thrilling experience. That is what I wanted my wife and I to be a part of this year! Now, who’s gonna say I didn’t do my part!? I hope you understand (which I know you do) that this is a real boots on the ground testimony of how our group as a whole came together and successfully became representatives within a hierarchical establishment system, and truly legitimized our cause. Now I can say that there is something better than getting the “I voted” sticker to wear around. I went into this thing with no faith in the electoral process, and came out the other side, having a lot more to say about it, for the positive1. I am still struggling in my political faith! But, now I know what to expect for the next time that I get involved. Let me tell you, there will be a next time!

OK, all of that said, I knew some of the participants in the room who were more established within the ranks. That comes from having been a business owner in Texas for seven years, and having been a tax-paying citizen who actively votes, for 17 years. (Though, I have never participated beyond the voting booth until this year!) I have good relations with the other participants, so that might influence what I’m going to say next. We felt welcome, and we had some great interactions with everyone. There was not one negative interaction that we experienced, in or out of the convention setting. In fact, I think those we interacted with were friendly, very personable, and impressed upon me their willingness to include the younger, less experienced participants, such as us. Because of their willingness to engage with us in the process, we will continue to work alongside specific people in the next election, to struggle for our cause, and continue to change the platform to be more appropriately reflective of a desire to preserve the future of our personal liberty, locally, and then nationally.

I’m sorry for my lack of experience, but I have to transcribe my best description into a hypothetical of what I believe Ron Paul would respectfully say, when he is asked if he will endorse Mitt Romney.

I will consider working together with those established participants, because that’s what I strive to do daily, in every facet of my life, and this will be no different. Furthermore, I am quite familiar with this normal struggle, as a business owner, and a husband. In fact, it was an assumption of mine that while this was everyone’s desire at the State Convention, “working together” was not to trump the power of my vote ! With all due respect, I’m afraid that this attitude appears to imply that I haven’t considered “working together” to get to the State Convention, or even to write this letter. So, I hope this is a clear indication to the reader, whomever it is that should have interest in my response, that I have quite thoroughly considered working together, just as successfully as I have duly accomplished my goals of speaking my voice, influencing the platform, voting my delegate choices, and walking away proudly flashing my distinguished delegate badge at every person I walked by on the street that day! I found this question initially unsettling, but after writing this letter, I realize that this is a great start to the very interaction that I seek, which is in getting the readers attention to such a degree that I have to reply with this tone. I don’t think I’ll be able to support any ideology that I can’t agree with, or more importantly, one that cannot reflect The Constitution of the United States.

Until I begin to SEE an active platform that is:

  • indicative of a more fiscally conservative view point in Defense, Immigration, and Domestic Infrastructural Rebuilding and Improvement (roads, bridges, over-passes)
  • a constitutionally focused dialogue that invites serious debate on returning to a pre-Federal Reserve Bank (Gold and Silver Standard) non-fiat currency
  • proving to truly struggle and fight to preserve the health of an accountable democratic process that embraces a reduction of Governmental Power, and Increased Liberty

Until I begin to see a platform taking strides to embrace this verbiage with forward motion, I won’t feel that I am representing a genuine voice for those who have died to preserve The Constitution of the United States.
Instead, I think the perception that is “US against THEM” on both sides of this pink elephant in the room, exists simply because there is an appearance that those representing The Constitution of the United States are under reasonable suspicion of not doing so. I urge you to remain above reproach with regard to protecting The Constitution of the United States in your public service, when possible, and be blatant about it, when impossible! Please re-read my bullet points, because I suggest that they would be good first-steps to “tear down this wall”, and represent the opinions of so many people who are being

Huge Chains.jpg

chained down by forced inflation, increasing slavery, depleting resources for prosperity, and an ever-diminishing sense of empowerment to vote their conscience! If those citizens whom I’ve just described knew that this kind of self-empowering opportunity existed within the public debate, and their own voices could impact the national election, like mine just did, I believe they would stop blaming the past, and they would immediately begin to create the future. It can take effect that fast! I have just learned how to vote people into office that want this, like I do. Thank you for enabling me in this effort. Imagine, they would wake up from the dream that money grows on shovel-ready trees, and they would begin truly struggling and fighting for the front of the line to join our team of Liberty Warriors. That is who we all are, I hope.

That would cause me to want to have continued participation, and not just passively let the Obama-types have unobstructed access to the Oval Office. All in the same spirit of why I began listening to, and eventually voting for Ron Paul, because of his genuine commitment, above everything else, to The Constitution of the United States. Thank you for enabling my opportunity, and serving with me this year in celebrating freedom, by participating in our most powerful expression of freedom; Voting our Conscience.

  1. esp. How Votes Truly Count 

Lately there seems to be some dispute as to what defines inflation. I define inflation the traditional way, that it is an undue expansion of the currency or money supply of a Nation. There are those who are far better equipped to expand on this. I recommend starting with What You Should Know About Inflation by Henry Hazlitt (free/pdf)1, or from Amazon What You Should Know About Inflation (1960)Using this affiliate link will help support our efforts to serve you..

This is not professional investment advice.2

While inflation may simply be an inevitable product of our current financial system, understanding the changes in the rate of inflation and how trends affect our lives are important to be able to make good financial decisions.

Information about the direct expansion of the money supply is more difficult to obtain than information about the price increase on selected items. The Federal Reserve no longer publishes all of the money supply numbers, the reasons being outside the scope of this article. What is published can be found here. The United States Government provides financial reports including those that describe the change in consumer and producer prices. The question is how meaningful and reliable are those reports, and other reports provided by the U.S. Government?

Numbers in isolation are of little value, but when compared against the results of many prior years, trends can emerge. Lets look at how this might work for weather. Knowing that it is cold today is fine. Knowing that it is cold today and has been continuing to cool for an entire month is more useful. The value of such information is useful when the numbers are computed the same way over time.

If meteorologists measured temperature in one scale, say Fahrenheit for one hundred years, then switched scales to Kelvin, you could expect some confusion when comparing the recorded values from the Fahrenheit scale to the values recorded from the Kelvin scale. I can just imagine how people might react if they were not well informed of the change or were unable to evaluate the numbers recorded in the new scale with the numbers recorded using the scale familiar to them.

Scale conversation

Seventy degrees Fahrenheit is a pleasant temperature, whereas at 273 degrees Kelvin would feel rather cold. Water is frozen at 273K. To provide context for the 273K number one would need to know that 237 degrees on the Kelvin scale is roughly 32 degrees on the Fahrenheit scale. Both the Kelvin and Fahrenheit scales are useful for measuring temperature, but to establish trends one must be consistent so the computed values can be properly compared.

The specific ways that the computation of inflation has changed, is beyond the scope of this article but U.S. Bureau of Labor Statistics is a good starting place if you want to fully understand the changes. Why do you think that the method of finding the increase in consumer prices was changed? Do you think there are organizations that would substantially benefit from maintaining an appearance of a lower increase in the rate of inflation?

I am reminded of a quote from Mark Twain.
“There are three kinds of lies: lies, damned lies and statistics.”

If you have not seen this video or would simply like a refresher on growth rates, Professor Albert Bartlett does a great job.

Here is the good news, the folks at Shadow Government Statistics have taken the time to assemble some really useful charts that can help make sense of the Government reports. These charts even take into account changes in the computation methods.

Here is an example:

Annual Consumer Inflation - Official vs. SGS 1980 based alternative

Are you being lied to about inflation? That is for you to decide. What can you do about it? Well to start with you can get another way of looking at the data, such as can be found at Shadow Government Statistics . They have other useful charts too.

Alternate data at Shadow Government Statistics


You can also find out more about inflation in general. The Mises Institute has some very good resources.

  1. mises.org has a number of really good books that can be obtained freely in pdf form. 
  2. Please read the site terms.