Venezuela Repatriates Its Gold

Venezuela receives shipment of gold

CARACAS, Venezuela - Venezuela repatriated a final shipment of gold from foreign banks Monday, saying the country has withdrawn a total of $9 billion in its gold reserves and moved it to the country's Central Bank.

The shipment of 14 metric tons (15 tons) brought the total amount of gold shipped to Venezuela since November to 160 metric tons (176 tons), Central Bank President Nelson Merentes said.

President Hugo Chavez in August initially announced a plan to retrieve about 211 metric tons (233 tons) held in U.S. and European banks.

Merentes didn't explain the change, but said about 85 per cent of Venezuela's gold reserves are now held in the country.



My view:

As much as I despise Hugo Chavez and his mad socialist/communist policies, he is doing something wise for a change.

By repatriating the nation's gold from the Anglo-American bank cartel he is freeing his country from its iron grip and that of an increasingly vulnerable US dollar.

On a global scale, only the central banks of India and China have been purchasing gold in large volumes over the past few years.  So the complacency level of most G20 nations is troubling.  They are counting on an easy solution to the European banking and sovereign debt crisis.  The contagion has not yet reached the shores of Canada and the United States, but the linkage of the banking system is so systemic, that we will see another large crisis at some point in the near to medium term.

The problem with a sovereign debt crisis if it goes global, is that it can morph into a currency crisis that transcends all boarders.  Those that have the protection of gold and silver as reserve currencies will be in a much stronger position to restart their economies after the inevitable financial contagion crushes the value of fiat currencies.

So our little mad dictator might not be as crazy as we thought, because there is no easy button to press for a simple way out of the global debt problem.

Comments

  1. If you look at MF Global and the fact that gold
    is being re-hypothecated over and over again,
    Chavez did the right thing.

    In the words of Jim Sinclair, CEO of Tanzanian Royalty and founder of www.jsmineset.com,
    with gold in your hands, you never have to worry about counterparty risks.

    Gerald Celente has had a hard time in trying
    to take delivery of his gold.

    ReplyDelete
  2. You are so correct Anonymous at 9:58 am.

    Gold in your hand is the way to go.

    The trust level in the banking system is rapidly approaching zero thanks to the licence to rob they received from the central banks, democratically elected congress bums, and useless banking overseers.

    But all good ponzi schemes come to an end, and this one ends soon.

    ReplyDelete

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