Venezuelan President Hugo Chavez ordered his government to repatriate $11 billion in gold held in banks abroad to safeguard the country from the economic crisis and said he’ll nationalize the local gold industry. Venezuela has about 211 tons of its 365 tons of gold reserves held abroad at institutions including the Bank of England, JP Morgan Chase & Co. (JPM), Barclays Plc (BARC), Standard Chartered Plc (STAN) and the Bank of Nova Scotia (BNS), according to a government document. … Chavez, who has said he wants to eliminate the “dictatorship” of the U.S. dollar, has called on Venezuela’s central bank to diversify its $28.7 billion in reserves away from U.S. institutions. – Bloomberg
Dominant Social Theme: The government knows best how to manage the money supply; Chavez will lead the way.
Free-Market Analysis: Whoa! Hold the US dollar horses, folks… the global reserve currency game just got a whole lot more interesting. There is, in our humble opinion, a whole lot more to this story than just the repatriation of gold being held at foreign central and commercial banks. It is perhaps the biggest story to unfold in the currency markets in many years.
full article at source:http://www.thedailybell.com/2814/Chavez-Launchs-War-Against-US-Dollar
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- News & Analysis Chavez Launches War Against US Dollar (jhaines6.wordpress.com)
- chavez Launches War Against US Dollar (anationbeguiled.wordpress.com)
- Chavez Orders Gold Repatriation, Will Nationalize Industry (businessweek.com)
- Chavez to nationalize gold production (edition.cnn.com)
- Venezuela’s Hugo Chavez to nationalize gold sector (calgaryherald.com)
- Gold Hits New Record After Chavez Announces Plan To Pull Reserves From US, European Banks (destructionist.wordpress.com)
- Chavez Recalls Gold Held in U.S., Europe Amid Plan to Nationalize Industry (foxnews.com)