Venezuela, Home Of Gold And Famine

Authored by Alex Deluce via,

Venezuela has become known for its shortages. Toilet paper is a luxury and bread almost impossible to come by. Amid the misery, however, Venezuela is well-stocked in military might, armed gangs, and, yes, gold.

There’s plenty of gold in Venezuela, a country where people are dying daily from hunger and disease. The question is, who is benefitting from this elusive mineral?

In the city of El Callao, military convoys have become the norm. Soldiers wander the streets with their faced covered and rifles ready. What’s so special about the once prosperous coastal enclave of El Callao? There are massive amounts of gold to be mined in the region. The government calls it the Arco Minero del Orinoco.

The gold is not being mined for the benefit of the Venezuelan people. President Nicolas Maduro has permitted the military access to El Callao and its riches. As any dictator is well aware, having the military on your side during troubled times is essential. Soldiers have been raiding neighborhoods and fighting gang lords to get at the gold. It’s meant to be their reward for keeping the people in check and the unpopular president in power.

These soldiers aren’t merely strutting through the streets. They have confiscated weapons, set fire to vehicles and killed 18 civilians. The army is in control of El Callao. This is where force reigns and civilians cower in fear.

Facing an upcoming election with very little public support, President Maduro has turned the country’s 160,000-strong military force loose to ensure its loyalty. Soldiers are marching through the streets, and they are now supplanting company leaders, who have been imprisoned. Promotion within the army is rampant, with 1,300 generals and admirals overseeing the ranks. No part of the Venezuelan economy is safe from the military, who also control the nation’s food supply.

With dwindling oil revenue, El Callao’s gold mines have become critical to Maduro. There as much as 8,000 tons of gold within its deposits, Eight thousand tons of gold were mined in 2017. Maduro has plans to raise that number to 24 tons in 2018. With the country’s GDP plummeting 15 percent in 2017 and falling by 50 percent in five years, the gold is desperately needed.

Former President Hugo Chavez nationalized the gold mines in 2011. Gangs quickly took charge, and the mines have been mismanaged ever since. In 2016, a mere 1 ton of gold was produced. That’s when Maduro brought in a gang of his own, the military, with wide-ranging powers.

El Callao now ranks as the most violent city in Venezuela. The army controls commerce, as well as much-needed gasoline. Along the 120-mile stretch from Puerto Ordaz to El Callao, military checkpoints are a common sight.

On February 10th, the military’s clash with miners left 18 civilians dead. The government claims the miners were resisting authority. The Ministry of Defense has no comment.

When the gold is mined, the central bank purchases it, and gold processors melt it into gold bars, all under the auspices of the soldiers. Then, under military guard, the gold is taken to Caracas, perhaps to Maduro himself, who has plans for a gold-backed cryptocurrency.

Venezuela’s current regime belies its rich history of economic freedom. But democracy has gradually been eroded by socialism, and the Venezuelan people are suffering the consequences, while those in charge enjoy the good life.

When socialism took hold under former President Chavez, it was declared that socialism had finally been implemented correctly. Since Chavez, the country has been on a steep downward spiral, with unprecedented national debts, hunger, and poverty spreading through the country. Venezuelans have figured out that socialism cannot be done right. Ever.

The history of Venezuela’s economic freedom began in 1914 and its abundance of oil. Privately-owned oil wells brought low tax rates and a good living to most Venezuelans. For the most part, the government was totalitarian but stayed out of economic matters.

All that abundance was too much for the government to resist. In 1950, once prosperous companies were nationalized, as were the banks. In 1958, Venezuela enjoyed its first democratically-elected president, Rómulo Betancourt, thus overthrowing the dictatorships. Betancourt was a communist. Following the election, he followed the communist rulebook by implementing controls over the economy. Private property was frowned upon.

Enter Hugo Chavez, who was elected president in 1998. He promised even more radical socialistic changes as he continued to weaken the hold on private property. Chavez perfectly set the stage for current President Nicolas Maduro.

The result of Venezuela’s experiment with socialism has led to hyperinflation, starvation, long queues for all necessities, and out-of-control prices. What little there is to be had, no one can afford. During the 1980s a college professor had to work 15 minutes to afford a kilo of beef. In 2017, the same professor needs to work 18 hours for the same kilo.

Steve Hanke, Professor of Applied Economics at Johns Hopkins University, has stated, “At present, Venezuela’s annual inflation rate exceeds 10,000%, the world’s highest. Venezuela is in a death spiral.” Professor Hanke is also a Senior Fellow at the Cato Institute and has served as an adviser to Venezuelan President Rafael Caldera. He has written extensively on the privatization of industry, especially in emerging nations.

Some of Venezuela’s young are starting to revolt. Calling themselves “la Resistencia,” they are attempting to resist a tyrannical government; unfortunately, they are frequently killed by government forces.

Desperate Venezuelans are leaving the country to find work. Jovito Gutierrez Yance joined others in a wooden boat to travel to Curacao to provide for his family. The boat capsized, and only a handful of bodies were recovered. His wife, Genesis, can only wait, her dreams in shatters. She is one of many without any idea of where her next meal will come from as the government continues to crack down on any opposition.

Socialism has turned Venezuela into a country with an abundance of gold, but without food to feed its citizens. Once again, socialism has shown that it can only lead to failure and misery.


ken1990 Sat, 04/14/2018 - 12:23 Permalink

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bshirley1968 Dsyno Sat, 04/14/2018 - 13:04 Permalink

The word missing is "worldwide". Not just in Venezuela.

The real problem in Venezuela is the same problem we face. Let's say the "young rebels" rise up and are successful. What kind of government as they going to implement? They only know socialism, democracy (socialism-light), and other collectivist forms of government where goobermint is the answer for everything.

Here in the states, we would have the same problem. A revolt against the criminal goobermint in DC would lead to another tyrannical, oppressive, collectivist form of goobermint because very few know what it is to be an American anymore. Hell, look at the dickhead we have in office now or the last three before him. Collectivist bastards one and all.

In reply to by Dsyno

Coinista Not My Real Name Sat, 04/14/2018 - 13:39 Permalink

Now look, jealous, loser, anti-science, old-bug, no-coiners: Your pet rocks have done NOTHING for you except get you excited just to be MONKEY HAMMERED back down on miscellaneous Mondays.  Except for those of you who's brains have slowed dramatically (most no-coiners), you don't have to be stuck in your old, jealous loser, ways.

BUY BITCOIN!!! Losers.  If the wonderful peoples of Venezuela would have done so they'd be the ones in Puerto Rico with the hot, young, women.

In reply to by Not My Real Name

jin187 house biscuit Sat, 04/14/2018 - 16:19 Permalink

Having gold in a situation like this makes you a target, nothing more.  No one gets in, no one gets out, and so the gold is only useful to those that already control the means of escape, the food, and the real estate.  The people that think gold will make them rich are betting on a perfect storm where everything gets so bad that fiat is near worthless, society almost crumbles, but things don't get too bad, allowing them to cash in at the right moment.  Good luck with that.

In reply to by house biscuit

bentaxle jin187 Sat, 04/14/2018 - 17:38 Permalink

Yep. Lot of practical problems to gold ownership can easily be overlooked.

As ever it will be people who know what they are doing who will prevail. The fools will be parted from their wealth. Suitable advice that can be given to fools is not to bother obtaining physical gold, which they will simply lose. But, instead, to acquire knowledge which they can't lose but which they can turn into labor.

In reply to by jin187

Fireman ken1990 Sat, 04/14/2018 - 12:32 Permalink

Venezuela is being set up for anglozionazi empire of carnage "liberation" the same way as the evil USSA and its Brit and Frog poodle dogs are "liberating" Syria. The funny thing is that so many of the so-called clued-in here at ZH have no problem at all in believing all the anglozionazi presstitute poison being spewed about the Republic of Venezuela.  Oh yeah it just happens to have the greatest known and proven oil reserves of any nation on the planet other than perhaps Yemen that other unfortunate land being torn to pieces by the undead anglozionazi filth and their Saudi Barbarian whores.…

In reply to by ken1990

not dead yet szponiasty Sat, 04/14/2018 - 16:40 Permalink

The US had been trying to knock off Chavez almost from the day he got elected. As with every country the US wished to destroy the US media is more than willing to play along. The clown that wrote this article wrongly claims Maduro has no support which is false. He is quite popular with the lower classes who thrived under Chavez contrary to this writers misinformation. Universities went from around 5 or 6 to almost 30 as the lower classes were given access to education. The US is always stressing education yet it's policies have ensured those south of it's borders in the lower classes remain barefoot, poor, and ignorant. Just as the US claims it is spreading democracy the reality is it crushes democracy in countries that don't kow tow to the US agenda. The major successes of this policy are Guatemala, Honduras, and Iran in the 50's, Chile and Afghanistan in the 70's, Nicaragua in the 80's, and of course Venezuela in 2000's. All ELECTING socialist governments. Their biggest goal was to EDUCATE their people. In Afghanistan that didn't go over too well with the wackies we supported, which was the beginnings of Al Qaeda, to overthrow the government as the education was to include women. As a sideshow the US baited the Soviets into heeding the call of the Afghan government, lazy or corrupt journalists claim the Soviets invaded, turning that country into a battlefield ever since then.

If socialism is so bad why does the US economically or militarily attack every country, especially in the Americas, that elects a socialist government. What is the US afraid of other than rich donors of those countries losing the cash to bribe US politicians. If socialism is so bad let it fail and then the US can ride in and save the day yet they attack before the new government can get established. In most cases the new government which overthrew the old one is a brutal dictatorship supported by the US. Ignorant so called journalists use Venezuela, Cuba, and North Korea as socialist failures yet never mention the weight of the US brought against them, sanctions or threatening sanctions against any countries that would deal with those on the US shit list.

In reply to by szponiasty

chubbar Sat, 04/14/2018 - 12:30 Permalink

Venezuela is a target of the bankers. At least this guy has recognized that gold will soon be the epicenter of the new international trading system and is taking steps to hoard it until it is properly valued. Soon he'll be able to use it to secure decent trade deals for his country. That isn't to say he isn't abusing his citizens and shouldn't be held accountable for his brutality, just that he is fighting the international bankers, same as we will be soon.

mark1955 Savvy Sat, 04/14/2018 - 12:39 Permalink

Off-Topic Heads Up on possible False Flag Attacks! 


    I have been warning for almost a week, here and on other sites, that the FBI/DHS were going to possibly Stage Mass Shooting/Bombing/Power Line Downing attacks blamed on the Right Wing on possibly: April 15th ( Tax Day ), April 16th ( Boston Marathon ) and April 19th ( Waco and Oklahoma, city anniversary ) to Try and both Demonize the Right Wing and Try and get further Gun Control!


Other possible FBI targets for Staged Attacks this coming week: Yawkey Way ( Outside of Fenway Park ) and Fanueil Hall Market Place  as the FBI/DHS  have Trained Drills there in the recent past!


    IMPORTANT!!! FBI might also Try and Blame Russia for any Power Outage hacking attacks and Hamas/Hezbollah ( Iran ) for any Bombings or other attacks...Please Don't fall for any of it!


Any "Attacks" happen, immediately call them into question!    





In reply to by Savvy

Croesus mark1955 Sat, 04/14/2018 - 12:57 Permalink

Captain Obvious, I presume?

What kind of nonsensical "predictions" are these?

'A staged shooting happening at some point in the near future' is a given. It's not a question of IF, but WHEN.

There will be no shooting on any of the immediately upcoming dates you've mentioned. The next one will be later this year, and not at a school. (Try July-September, at a park).

You're guessing, and are way off target.

I realize that you mean well, but this sort of thing doesn't do any favors for the gullible.

In reply to by mark1955

gallistic Savvy Sat, 04/14/2018 - 15:06 Permalink

(not) Saavy,

You and the four clueless idiots who up-voted you are an embarrassment to the USAmerican .gov regime-change crew.

If you are gonna get onboard USAmerica's freedom loving, regime-change train for the brown people, you need to get with the program. That particular propaganda point is one of the older, completely debunked, and abandoned pieces. Yet, you still peddle it as truth!

That means that you and the four idiots who upvoted you actually believe that horseshit, which clearly demonstrates you don't know jack-shit about Venezuela.


At the very least update your gross stupidity with the newest propaganda talking points.

In reply to by Savvy

NOTfromSanFrancisco Sat, 04/14/2018 - 12:40 Permalink

How far the U.S. has fallen that so many snowflakes could think that Socialism is the answer to this country's economic woes. Those who support a Bernie Sanders approach to government do not know the outcome. They have not lived through it. They have not studied it. My suggestion for those who want socialism is to go live in a socialist country for a few years and then come back and fight for it if you still believe in it.

The same can be said for those who want to rescind, annul or change the second ammendment to regulate the freedom to own and carry firearms. Please go live in one of the cities in this country (the U.S.) for a few years where gun prohibition laws are strictist. Try it before you buy it.

Preaching to the choir is venting, I know. But even though it is an uphill battle, I still try to reason with those who oppose but still are willing to listen and learn.

DisorderlyConduct NOTfromSanFrancisco Sat, 04/14/2018 - 15:40 Permalink

It's worse than you realize.

My wife is in pre-med,  and part of her general ed was political history of the US. To say that the book is left - biased is a massive understatement. There is so much misinformation in the book and so much bias from the professor that it's just downright scary.

And the hook is that even if you can spot it, you must repeat the party line answers, since the professor holds your grade in his hands. It's very Goebbels-esque. With a GPA requirement of 3.8 to get into her med program, she is forced to play ball with these fanatics.

The sad thing is the younger students look up to the professors as guides. Instead of being taught how to think, they are being told *what* to think. It's brainwashing.

In reply to by NOTfromSanFrancisco