Chavez Emptying Bank of England Vault as Venezuela Brings Back Gold Hoard

Venezuelan President Hugo Chavez ordered the central bank to repatriate $11 billion of gold reserves held in developed nations’ institutions such as the Bank of England as the metal rises to record levels behind a weakening U.S. dollar.
Venezuela, which holds 211 tons of its 365 tons of gold reserves in U.S., European, Canadian and Swiss institutions, will progressively return the bars to the central bank’s vault, Chavez said yesterday. JPMorgan Chase & Co. (JPM), Barclays Plc (BARC),Standard Chartered Plc (STAN) and the Bank of Nova Scotia (BNS) also hold Venezuelan gold, the president said.
“We’ve held 99 tons of gold at the Bank of England since 1980. I agree with bringing that home,” Chavez said yesterday on state television. “It’s a healthy decision.”
www.bloomberg.com...

Hugo is acting as point man for his friends in Beijing in their developing power play with the West. We'll know fairly soon if there is any truth to it. The comex is vulnerable. When Venezuela pulls it's monetary reserves will others follow? With the comex in shambles and liquidity freezing up Beijing will be entirely justified in saying they don't like the game anymore; they're taking their ball and going home. I think the system would come apart at the seams.

Hope Chavez like Tungstein bars.

I hear they are all the rage in London...

Originally posted by Surfrat
Hugo is acting as point man for his friends in Beijing in their developing power play with the West. We'll know fairly soon if there is any truth to it. The comex is vulnerable. When Venezuela pulls it's monetary reserves will others follow? With the comex in shambles and liquidity freezing up Beijing will be entirely justified in saying they don't like the game anymore; they're taking their ball and going home. I think the system would come apart at the seams.

I agree, this is just the "paradigm" sift that is needed to bring down the old energies/banking systems of control. Also look at the JPMC position on silver!

Regards and Nameste,

-Chung

In February 1989, at the beginning of his second term as president, he accepted an International Monetary Fund proposal known as the Washington consensus. In return for accepting this proposal, the International Monetary Fund offered Venezuela a loan for 4.5 billion US dollars. This cooperation with the IMF came about weeks after his victory in the 1988 presidential election, and a populist, anti-neoliberal campaign during which he described the IMF as "a neutron bomb that killed people, but left buildings standing" and said that World Bank economists were "genocide workers in the pay of economic totalitarianism". Poor economic conditions led to attempts to revolutionize the political and economic structure of Venezuela, but the implementation of the neoliberal reforms (and in particular the liberalization of petrol prices, which caused an immediate increase in the cost of petrol to consumers and rises in fares on public transport
It resulted in massive popular protests in Caracas, the capital. Carlos Andrés Pérez crushed the protest with the National Guard, causing a large number of deaths—estimates range from 500 to 3000, and resulted in the declaration of a state of emergency

Mr. Chavez is making a symbolic move, but not a financial move. He is attempting to undermine the psychological support for the dollar. However, gold in and of itself has no more value than the dollar, as it is a perceived value. His withdrawl of gold insures he will not be paid dividends on it's value from foreign banks, but will only be paid by his own banks. This policy, while popular now, will result in a self-defeating economic policy. It is likely that the gold was placed in foreign banks at the advice of his economic advisers, otherwise why would the bullion be in foreign banks? The only other alternative was in case of his defection, as with Mubarek, and an attempt to take the wealth, or a portion of it, for himself. He is, in a small sense, waging an economic warfare.

The ultimate result will hurt Chavez, as the strength of the dollar is based on the strength of the US economy, the greatest economic engine that has ever existed. The US economy, as in the late 70s, will bounce back with a vengance, and Chavez will be sitting in a rocking chair holding his useless gold. He toys with economics, but does not see that his true economy is in his people and their having freedom and democracy.

Isn't this the problem with being on the gold standard? If everyone pulls their money out there isn't enough gold to cover it and the people riot?

Originally posted by kro32
Isn't this the problem with being on the gold standard? If everyone pulls their money out there isn't enough gold to cover it and the people riot?

Friend:

Good point. Nixon pulled us off the gold standard that had stabilized the world for years...

Look at the market swings after...

There is a mighty difference between absolute value =ing precious metals and the digital 010101110010010101110 of the new banking.

This means that there is ABSOLUTE value!

Then go look at the manipulation of the "gold" and "silver" markets!

Regards and Nameste,

-Chung

the digital new banking.

Isn’t that system more about money laundering than manipulations? Not real familiar with digital trading.

Debt Collapse - The Case For $20,000 Gold - Mike Maloney
www.youtube.com...
When u have time; this video is very informative

Originally posted by Jim Scott
The ultimate result will hurt Chavez, as the strength of the dollar is based on the strength of the US economy, the greatest economic engine that has ever existed. The US economy, as in the late 70s, will bounce back with a vengeance, and Chavez will be sitting in a rocking chair holding his useless gold. He toys with economics, but does not see that his true economy is in his people and their having freedom and democracy.

there is a huge difference between 1970 and 2011, the financial sector is out of control.

with hedge funds playing the commodity markets, with all the make believe wealth based on corporate IOUs, so many trillions $ that are just computer entries.

the financial sector is bleeding the real economy to anemic state.

and our USA tax code is a disaster in and of itself.

how can we have a recovery until we straighten out the mess.
at least cut the interest on credit cards to 10%, show the world that our governments still have a purpose.

and in 1970, the people were not being fleeced by pharmaceuticals, utilities,banks, etc to the point they are today.
look at your monthly budget.

the value of gold will keep going up.

the USA is a wealthy country, and with governance could recover, i agree.
but when is this going to happen, DC is dysfunctional and controlled by lobbyists.

just my opinion, as i see it.

get ye selves down the outback and start picking them nuggets up off the floor.

I saw a documentary, several years ago, which portrayed an old man who lived in the outback and supported himself and his wife by walking around the desert and picking up nuggets of gold. No prospecting, just rooting through surface debris and selling his booty once a week.

Oh dear Goldman et al, no longer can you root through the desert of your storerooms and fabricate some paper trades, GO CHAVEZ, GO CHAVEZ, GO CHAVEZ!!!!

I want photographic proof of the removal of the gold, the shipping route taken, the delivery address. Please Mr C. Please let us see this humiliation.

I suspect however this will be appeased, negotiated and I smell a rat, there is some other negotiation going on that we do not know about. I # you not!

Oil and gold, gold and oil: Dollar Dollar - something else is afoot, watch this space....

Hugo Chavez goes to cuba for quick cancer treatment,
apparently full of cancer,, your gonna die,,
ok doc how much time,
couple months,,
ok thanks
gets home ,
take it all boys,, all of it,, lets party,
or/
take it all out and hide it here,
cause remeber,
they will ALWAYS ,
come after the GOLD.
party or siege???

reply to post by Surfrat


very interesting

"In February 1989, at the beginning of his second term as president, he accepted an International Monetary Fund proposal known as the Washington consensus."

you know there is a very interesting "Irish Film Crew",,, doing a "Documentary" ,, on Chavez,,,at the time of that ,,proposal,,
i think it went,,
sign the proposal or
we through you out of the plane,,metaphorically.

"Chavez Documentary" ???,, dont know name.

Originally posted by silent thunder
Hope Chavez like Tungstein bars.

I hear they are all the rage in London...

I am sure that will be the first thing he has his people test. and if they are, he will publicise the fact.

Originally posted by BobAthome
"Chavez Documentary" ???,, dont know name.

The Revolution Will Not Be Televised



A film everyone should watch imho.

GL

multipliy weight times todays price equals???????

or was it at a "set Price" ,,and he is just being a wise investor?

Either way England Has a Chit for how much?????????????????

Well they couldnt afford oil for there Castles last year,,
looks like, cuboard,,, just got lighter as well.

Old Mother Hubbard,,

we should have the seals hijack the shipment !

hey, that would be a good movie

Originally posted by Jim Scott
Mr. Chavez is making a symbolic move, but not a financial move. He is attempting to undermine the psychological support for the dollar. However, gold in and of itself has no more value than the dollar, as it is a perceived value. His withdrawl of gold insures he will not be paid dividends on it's value from foreign banks, but will only be paid by his own banks. This policy, while popular now, will result in a self-defeating economic policy. It is likely that the gold was placed in foreign banks at the advice of his economic advisers, otherwise why would the bullion be in foreign banks? The only other alternative was in case of his defection, as with Mubarek, and an attempt to take the wealth, or a portion of it, for himself. He is, in a small sense, waging an economic warfare.

The ultimate result will hurt Chavez, as the strength of the dollar is based on the strength of the US economy, the greatest economic engine that has ever existed. The US economy, as in the late 70s, will bounce back with a vengance, and Chavez will be sitting in a rocking chair holding his useless gold. He toys with economics, but does not see that his true economy is in his people and their having freedom and democracy.

What jobs are there for this economy to bounce back with?


The game is over. God help you if you cannot see the horror that's coming to this country.

Mr. Chavez is making a symbolic move, but not a financial move. He is attempting to undermine the psychological support for the dollar. However, gold in and of itself has no more value than the dollar, as it is a perceived value. His withdrawl of gold insures he will not be paid dividends on it's value from foreign banks, but will only be paid by his own banks

Missing the point. He gets it back, then invests with china. This could start a run for other countries to do the same. Your only as strong as your allies.