|Hugo always dress in red, a symbol of socialism|
The government will hold at least 55 percent of any joint ventures, according to a decree in today’s Official Gazette. The decree sets a royalty rate of 10 percent to 13 percent and says that all Venezuelan gold production will be sold to the state.
Chavez first announced the nationalization of the industry and plans to repatriate Venezuela’s foreign gold reserves on Aug. 17.
By nationalizing gold mines, Chavez ensures the people get a fair share in the mineral wealth, rather than enriching capitalist. The requirement that all gold must be sold to the state will further strengthen the reserves. And the repatriation of gold reserves stored abroad home prevents confiscation.
The action of Chavez is yet another crucial piece of jig-saw puzzle in dismantling the dollar as the reserve currency. Besides, it will also make people to be aware of the world monetary system which will further the destruction of the dollar supremacy.