Venezuela may (correction - updated info - it WILL) move billions of dollars of Gold and Cash out of U.S.

UPDATE  and Video here 8/21/11

I was surprised when I read, that Venezuela even has gold and cash reserves in the U.S..  As much rhetoric Chavez has spewed over the years against the U.S. and their policies, they have kept cash and gold stored in the U.S.?

Venezuela has 11 Billion of Gold stored in the United States and 6 Billion of cash.

They are now looking at transferring the cash reserves to other countries to hold. (China, Russia, Brazil) and would get their gold back into Venezuela.

I can't imagine the U.S. just letting the gold go, because they most likely have leased or sold it.  The gold the U.S. will eventually ship (unless they decide to go to war with Venezuela before hand, just so they can freeze and keep the cash and gold) will most likely be tungsten filled.  I would advise Chavez to have the gold tested  when/if they get it back in the country.

Why any country would still have their reserves and gold in the United States is beyond me.  The U.S. out right stole 700 Billion dollars from Taiwan and I mean out right stole it!  700 Billion was being transferred from the Bank of Taiwan to a trust account in the U.S.   The Fed decided they wanted the money and literally took it, just because they could.  Lawsuits are still going on over it.  Funny enough the Tropos CEO has since been arrested for investment fraud.  But it seems all the charges are trumped up and false, it is simply because the Fed and U.S. Treasury do not like the fight for the 700 Billion they stole.

Quite a few have written about it, including Harvey Organ - it is towards the bottom his post linked. Another post is here.  Needless to say, only alternative media has touched this subject, you won't find it on MSM, but the suits are also online proving it really did happen.

Look at Libya, the war started, just so all the billions of Libyan assets in the U.S. and England could be frozen and essentially stolen from the Libyan people.   I wonder how much gold they had stored in the U.S. and England?

So, now the question comes, what is the U.S. going to think of to freeze Venezuela's assets (11 billion gold and 6 billion cash) in the United States, before they actually have to ship it back to Venezuela?

So watch the U.S. rhetoric gaining ground against Venezuela soon, I would assume they will start ramping it up to be able to keep the gold and cash.    If the U.S. does actually release the gold, I would think it will take a very long time, while the U.S. thinks of every way to not have to give back Venezuela what is rightfully theirs and the U.S. was trusted to store for them.

I wonder if Germany will ever ask for their billions of dollars of gold reserves the U.S. is holding for them?

Updated 1:55pm est to add:  Wall Street Journal has an article about it, saying they are going to move their gold from London and U.S..  The article can be read through GATA.  

What is interesting is the Venezuelan official notes part of the reason is due to the pillaging of Libya's assets abroad, as I mentioned above.

Portion:

The crisis, the document says, "has lit all the alarm signals as to whether it's convenient to maintain our reserves in that currency."

The document also notes that "the powers of the North" have "pillaged" Libya's international reserves as a result of the sanctions applied to Libya. "That makes us reflect on the need to elaborate a plan to monitor and secure the funds that the Republic maintains in international banks to meet its commitments abroad.

One of the documents outlining the moves appears to have been drafted by Jorge Giordani, Venezuela's planning and finance minister, in conjunction with Nelson Merentes, the central bank president, for Mr. Chávez's approval. It calls for the transfer of the cash and gold reserves as of Aug. 8 in a maximum of two months.

Another Update - 3:30pm est - Chavez is now going to nationalize all Gold mines in Venezuela.

Update 4:36pm - Critics are raising an alarm over Chavez wanting to get his assets out of the U.S. and England.  

Wow, there are forces already coming out against Venezuela getting their gold back.

"We think the market would view such an asset transfer negatively, as it could weaken confidence regarding backing for future external debt payments," Casey Reckman, an analyst with Credit Suisse, said in a research note on Wednesday.

Some critics speculated Chavez might be worried that possible political violence around next year's vote could trigger international sanctions. If Chavez opts not to accept defeat, they argue, he is better equipped to withstand the condemnation if he has control of all the country's cash.

Asdrubal Oliveros, of local think-tank Econanalitica, called the reported reserves plan "imprudent, to say the least."

"There are no technical motives, only political ones. The government looks at Libya and sees itself in the mirror," he said.

NOW - Get a load of this line in the article - is that a threat from the Federal Reserve?

The Federal Reserve must be informed of any electronic operation involving the U.S. dollar. ... Therefore, it may have a say on the destination and purpose of funds, in other words it can 'freeze' dollar resources," the document says.


68% of Venezuela's reserves are in Dollars! 

Update 5:30 pm - Zerohedge has the fact that 10.6 tons of Venezuela's gold is store with JP Morgan - 


I would say things are about to get very very interesting!