Why would a new financial system be bad if the currency was backed by the gold they are going to mine?

Well what you are saying is mine the gold and use the reserve to back the bolivar? I have always thought this would be a smart move for Chavez as this is a sound strategy to stabilize the bolivar, besides creating jobs, clean-up of toxins etc. Mining the gold seems to become more pertinent as the price of oil is now plumeting and gold price is rising (even as the dollar strengthens). Maybe these communist/socialist countries (China, Russia, Venezuela, Cuba) want to start their own currency/trading bloc like the Europeans did. I think the Chavez message now is: These are the countries I am want to do business with (in a protectionist way). He has not really been successful in making the rest of the South American nations go along with his plans. Canada, of course, is not mentioned even though it has been a good business partner in the past.