Wednesday, August 17, 2011

HOT: Venezuela to Nationalize Gold Industry

President Hugo Chávez says he plans to take over Venezuela's largely underdeveloped gold mining industry in an attempt to boost international reserves, reports WSJ.

Chávez has already nationalized banks, telecommunications, oil fields, the power sector, and hundreds of thousands of acres of farmland.

Speaking on state television via telephone,  Chávez said he would introduce a new decree in the coming days to put exploration and extraction of gold into the government's hands. It will be "a decree to take the gold sector," which still remains in the hands of a "mafia and smugglers," he said.

Good luck with that Hugo. Nationalization of an industry tends to lower production. Nationalizing gold mining that is already underdeveloped will take a magic act for any serious new supply to develop.

Chavez has recently been undergoing treatment for what many suspect is cancer. Talk in certain parts of D.C. is that the CIA has slowly exposed him to very toxic, cancer causing materials.

If you want to bet on this one, bet that Chavez is a dead man before he produces even an ounce of gold.

(Thanks 2 Andre Grillon and Joe Nelson)


  1. Wait a minute. Didn't he say that he wanted to nationalize it to take it out of the hands of a mafia and smugglers? Oh, Hugo. You sly devil, you!

  2. When I first read about him, I appreciated his opposition to American imperialism. Later I learned he's a just another statist dictator.

  3. WSJ is reporting that Venezuela is having it's gold shipped home from the Bank of England.

    Will Chavez get his gold?

  4. So he's planning on keeping the sector 'underdeveloped' while just changing the mafia and smugglers controlling it.

  5. "Deutsche Börse Unit Sued Over Alleged Iran Funds"

    what's your take on this? especially this part:

    "The name of the second financial institution has been redacted from the unsealed documents. The case was sealed by a judge both for U.S. national-security reasons and to respect Luxembourg bank-secrecy laws."

  6. Chavez shouldn't be giving Krugman any ideas.