In the event of a U.S. dollar collapse, the state of Texas could be prepared with its own currency, according to an expert.
KTRH reported that Texas has been quietly preparing in case the dollar collapses — especially as China works to make the Yuan the default currency. According to KTRH, Texas has been establishing its first state-run bullion depository after Republican Gov. Greg Abbott signed the legislation in June.
"If we don't have foreign buyers of our debt, that leaves the American public and the Federal Reserve, and that is a certain recipe for financial disaster," Kevin Freeman, founder and chairman of the National Security Investment Consultant Institute, told KTRH.
"When that happens, the dollar will lose its status as the primary reserve currency, and if that happens or when that happens, it's going to be very hard for the U.S. to pay its bills," Freeman continued.
Freeman said Texas' state-run bullion depository is the kind of steps "necessary" in order "to issue constitutionally allowed Texas currency."
After the announcement of the bullion depository, Abbott also announced that the state would "repatriate" $1 billion of gold bullion from New York to Texas.
"I would like to see this all come together so we become a commodities hub for the continent," state Rep. Giovanni Capriglione (R) told the Texas Tribune. "I think we’re just perfectly situated."