Jump to content

Hugo wants his gold back!


LadyDeliah

Recommended Posts

Hugo Chavez has recalled the 99 tonnes of Venezuelan gold held by British banks. Problem is, they only have 10 tonnes and that has been promised all over the place.


Are we seeing the impending collapse of our ponzi scheme financial system, or will the UK Govt make some bogus allegation against Chavez and seize his assets rather than pay the Venezuelan gold back (cos they don't have it anymore!)?


http://www.siasat.pk/forum/showthread.php?76499-Venezuela-demands-delivery-of-its-gold-deposits-from-Bank-of-England

Link to comment
Share on other sites

As mentioned in your second article - he's doing it so their gold can't be seized when the forthcoming international arbitrations don't go his way. You can't just boot out foreign businesses Mugabi-style, and expect to get away with it.


Also their cost of borrowing is very very high, and apparently they have to provide gold to China to guarantee their loans.


Let's not kid ourselves that Venezuela are the good guys with a rock solid economy.


However, I wouldn't be surprised if this was just the start of a rush for physical gold, as futures become undeliverable. There's a huge demand for gold right now, and supply can't keep up.

Link to comment
Share on other sites

LadyD - interesting thread, as ever :)


However, I don't hold out much hope for his aspirations for a state-owned gold mining industry, stamping out illegal mining and corruption. He's already well and truly fucked up the running of its natural resources; their oil industry astonishingly owes huge sums of money to companies such as Exxon.


Lots of workers in the energy sector are still waiting on their pay after months and the state-run company has lost much of its knowledge and talent over the years, is in steep decline, whilst shamefully many of the country (poor) sit in darkness. Let's see if he spends wisely on this...

Link to comment
Share on other sites

katie1997 Wrote:

-------------------------------------------------------

> whilst shamefully many of the country (poor) sit in darkness.


High inequality, spiralling inflation, decreasing oil production capacities, a devalued currency.


So much for socialism.

Link to comment
Share on other sites

Jeremy Wrote:

-------------------------------------------------------


> High inequality, spiralling inflation, decreasing

> oil production capacities, a devalued currency.

>

> So much for socialism.


I thought the uk left socialism behind a long time ago.

Link to comment
Share on other sites

You make the 'ponzi scheme', by which you mean fractional reserve banking, financial system sound like a bad thing.

It's what made our world possible, it's what has built our roads and bridges and hospitals and allowed entrepreneurs.

You seem to sound gleeful at the impending collapse of the international banking system.

Careful what you wish for.....

Link to comment
Share on other sites

Brendan Wrote:

-------------------------------------------------------

> Jeremy Wrote:

> --------------------------------------------------

> -----

>

> > High inequality, spiralling inflation,

> decreasing

> > oil production capacities, a devalued currency.

> >

> > So much for socialism.

>

> I thought the uk left socialism behind a long time

> ago.



Lol

Link to comment
Share on other sites

Brendan Wrote:

-------------------------------------------------------

> Jeremy Wrote:

> --------------------------------------------------

> -----

>

> > High inequality, spiralling inflation,

> decreasing

> > oil production capacities, a devalued currency.

> >

> > So much for socialism.

>

> I thought the uk left socialism behind a long time

> ago.


LOL but key difference being the decline in UK oil production is down to the fact we've maximised those resources already hence natural decline. We have encouraged investment in what's left of the North Sea and West of Shetlands etc.


In Venezuela they still have massive proven reserves but Chavez, Ramirez, have not encouraged investment or talent into making the most of it. Dogged by strikes and financial mismanagement, companies unwilling to do business in their regulatory environment.


Sad to see this in beautiful Venezuela; shame they cannot follow Brazil, who out of that whole region, seem to be getting it right.

Link to comment
Share on other sites

mockney piers Wrote:

-------------------------------------------------------

> You make the 'ponzi scheme', by which you mean

> fractional reserve banking, financial system sound

> like a bad thing.

> It's what made our world possible, it's what has

> built our roads and bridges and hospitals and

> allowed entrepreneurs.

> You seem to sound gleeful at the impending

> collapse of the international banking system.

> Careful what you wish for.....



So when all the gold is recalled, and the UK banks can't honour their promises, what happens next?


Our financial system is based on smoke and mirrors. Chavez knows that we can't give him his gold back because we don't have it any more and the bit we do have has been promised to too many people.


What's that going to do to our credit rating?


He's calling the bluff of the Western financial system and I'm interested to see what the response will be.


Will they have to declare war on Venezuela rather than admit they've looted his gold reserves? Who will they go to for credit to wage war on Venezuela?


Interesting times we are living in.

Link to comment
Share on other sites

It's not based on smoke and mirrors, it's based on a collective understanding that has facilitated societal development for 400 years.

Without it there are no mortgages, no development loans, no capital investment, no nothing, there will only be lending from peter to paul via a middleman. If you think small business has it hard now, wait until banks cannot lend anything except depositors money!


In fact you're proposing an end to paper money which is just a promissory note, part of your smoke and mirrors; a return to money having an actual, not a conceptual value, so no more cards, cash machines etc.


You are, quite literally living in the middle ages with this.

Link to comment
Share on other sites

richardbach, you broke character. Poor show. Although "Godron" gets the thumbs up, I like that.


No such problem for MissNoodlesHats.


Anyway, I don't think the physical delivery will be a problem on this occasion. The BoE should be fine, the banks can buy physical gold from the market to deliver if necessary. The real problem will come if this is just the start on a scramble for physical gold.


As for credit ratings - I thought these were based on a government's ability to pay bond coupons, but happy to be corrected if this is not the case.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Latest Discussions

    • Plenty for sale online from various ticket vendors but you'll need to part with £250 and upwards by the looks of it. Out of interest i kept an eye on the prices for the England and Italy Euro final. At one point they were on offer for a couple of grand each. On the day sellers were obviously getting itchy feet and prices dropped somewhat but never went any lower than £400. That was a few hours before kick off. There was plenty still available half an hour before kick off.   Having been to Wembley a couple of times for play off finals i found it to be not a great place to watch football. Sat three rows back from the pitch side advertising hoardings for one game and way way up in the gods for the other. We felt to far away from the pitch on both occasions. Up in the goods was just stupid because we felt cut off as well.  I don't think it was rebuilt with acoustics in mind either. Even with most of our 25k fans singing it never sounded loud because it's pretty much uncovered and too open.   Happy hunting!
    • It doesn't work as a commercial venture.  Bit churlish to say I told you so.  I told you so.  I'll send less greetings cards.  What pees me off is international postage where you can no longer send light letters at 10 grammes, normal ones up to 20g, now all at the much more expensive 100 g  Didn't we vote to take back control and price everything according to irrational units like ounces? That's some obscure humour btw   
    • Available from Monday April 8th 2024, 2on2Walkies take pride in doggie care and only walk 2 furry friends at a time. I make sure that they get plenty of doggie interaction and socialisation in the park as well as making friends. Back home happy and tired I always check that the water bowl has fresh water and always make sure the doggie is left comfortable before I leave. I'm fully insured and have a couple of slots available for local walks to either Peckham Rye Park or Dulwich Park.  Thank you!  
    • Why would they only send them recorded delivery? I used the signed for option yesterday.
Home
Events
Sign In

Sign In



Or sign in with one of these services

Search
×
    Search In
×
×
  • Create New...