Venezuelan President Hugo Chavez - Send our Gold back

From the Nasdaq.com site:

The week's biggest precious metals-related story probably came from the news that demagogic Venezuelan president Hugo Chavez decided to repatriate the vast majority of the nation's gold holdings from vaults in England, including 99 tons from the Bank of England itself. In total, Venezuela will return 211 tons of gold to its shores, with most of the metal traveling by ship.

Chavez cited concerns about foreign powers seizing the country's gold reserves, possibly as retaliation for the government's nationalization of certain key industries or as part of some more concerted campaign. Libya, for instance, has had some of its overseas reserves frozen as NATO conducts a bombing campaign and assists the rebels fighting Colonel Muammar Gadhafi.

Many 'goldbugs' may see Chavez's move as validating - the more hardcore gold buyers are fixated on physical possession and delivery, citing the benefits of the metal as a security in times of civil unrest, chaos, anarchy and hyperinflation. More conventional gold traders are content to take their profits on electronic shares or claims on some centrally-stored repository of gold. 

This is going to be interesting to hear the follow up stories on this one.  You have probably heard of 'fractional banking' where it is legal for US Banks to lend out more money than they actually have.  Well, some have suggested that some Central Banks have done the same with the precious metals that they are holding in their vaults.  Keep your eye on this one.

Also, there is a FOMC meeting next week on Friday.  Last year's gave birth to QE2.......we'll see what this year will bring.  For speculation, the bankers want more bail out money right?  (Who doesn't want more money to invest?  Or steel?).   The large institutions can bring down the financial markets even more this coming week to show the fed that the economy is still weak which validates the need for QE3 or whatever BS they will be calling it.  Bottom line is that they will be increasing the money supply even more, inflation will go up and the lower / middle class will pay the 'tax'....  

I personally have close to ZERO savings as I have put most of my capital in either Silver, PM ETF's or mining shares.