What happens when a country wants its gold back and they want it in solid form? Not paper but real Gold! What happens when the banks that keep the gold do not have that much real gold or it depletes all the supply they have, to give it back?
So the news that Hugo Chavez made a decision to recall Venezuela’s gold reserves stored in U.S. and European banks, was being done to protect the country from economic troubles in the developed world. Is no surprise to a sane human and makes total sense. It is Venezuela’s gold and they can do what they want with it. It also was announced that this other assets will also be distributed to countries that are safer such as China, Russia and Brazil…
In a real world that is fair: Chavez (Venezuela) made a smart move. The U.S. and Western Europe have seized Libya’s assets and are handling the billions of dollars as if it was their own money to give. Some will be given to the “rebel” government, some will be payed to Western companies to re-build Libya, some will pay for oil companies to move into Libya to control the oil fields… and some money frankly will just go “missing”. Actions like that have consequences…
Since the West has proven over and over again that they can freeze and seize assets that are kept under their control at will (Iran, Iraq, Syria, Libya, etc…) why would any sane world leader trust the West with their countries money or security? I’m surprised more aren’t following suit and dis-investing in the West…
What it all means is that the world realizes that money kept in the USA and Western Europe is not a safe bet anymore. In fact it is a unwise move and that issues has been brought about by the actions of the Western world…
This is enough gold to cause a serious implosion: This could be considered an outright attack on the West as major financial markets. This is a big question mark on the West as a safe place to keep your gold and other assets. Could this start a run on pulling gold from the US, UK, European Union and Switzerland? I see by Google that Venezuela’s gold reserves are 13th in the world. This might have much more dire consequences than Venezuela understands. The Western press has already started the propaganda and the commentators have already taken up the war cry against Venezuela. But then maybe they do understand and the consequences of leaving the gold in the West is greater than taking it back home where it belongs…
What will happen to Venezuela, over this move? Right now this is a staggering amount of money (11 billion in gold, not worthless paper). The West is broke (very broke) and most likely does not have enough gold to do what is necessary or really does not want to return the gold. The West can not afford any more countries to want their gold which is stored in the Western vaults. In a fair world nothing will happen, but in the Western world who sees this as a challenge to her empire. The repercussions are sever. That is what keeps more countries from pulling their assets… (right now at least)
It is called ruling by “Terror”…
Kyle Keeton
Windows to Russia!