Monday, 24 September 2012

Venezuela Positioning Itself For The New Global Economy - Preserving Further Gold Reserves and Growing Ties To China

Something that involves a country very near and dear to my heart.

Good for Venezuela - even if they only get a portion, holding more gold in the long run (plus the copious amounts of oil they hold as well) will only serve to further prop up their budding economy.

Not to mention building stronger ties with what is clearly slated to be the next world superpower when the US empire falls.

China, Venezuela Agree to Develop One of World’s Largest Gold Mines

17 million ounces of gold is the equivalent of roughly $29.75 billion. Not too shabby, and that amount will only go higher as the price of gold continues to skyrocket! With the debts they have to China it's obvious why they opted to pursue a joint venture with the mining giant country: Pay down some debts with the only real money that exists right now. They're already paying off debts in oil - adding gold to the mix strengthens national holdings of both commodities.

I wouldn't be surprised if China refused to accept paper money as payment on the debts - indeed, this all makes me wonder if that's exactly the reason China decided to get in on this deal, and if it was a contributing factor to Venezuela's ceding of 100% claim over the gold.

Either way, Venezuela (led by the controversial yet staunchly pro-sovereignty Chávez) is positioning itself for the new world economy that is currently developing and will be front-and-center within a few years at most - and doing it quite well, at that.

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