Krypto I think your ideas about the Chinese investing in gold mines is spot on. What is holding the Chinese back from Venezuela is the same thing that is keeping KRY from developing this mine which is: The Venezuelans are whacky and their agreements mean squat. The Chinese probably would not want to do all the work under a 50/50 contract where Hugo supplies nothing and they only get to keep 20-30% of the profit.

I think what the Chinese are doing with their American Dollars is lending Chavez just enough to keep him going- But! Not enough to save him. In other words if he somehow succeedes they have lent him enough to get their foot in the door to become involved in many of Venezuelas industries including mining. On the other hand, the scenario I think the Chinese would actualy favor is Hugo gone, and in his place a socialist government that has a more pro trade policy and both feet in the door.

The Chinese have had almost 100 years to perfect their Communist system and they have graduated towards free market socialisim (at least in business, maybe not in personal freedoms) because Communism does not work! If you want to trade with the rest of the (free) world you have to adapt.

That is why what Hugo is doing is so absurd, he praises Russia and China but is still alienating almost every company, country, and investor on the globe. Russia and China are not doing that, Mr. Estupido.