Facing Inflation of 5600% Venezuela Launches "Petro" Cryptocurrency

Mish

Venezuela's annual rate of inflation is 5600%. President Nicolas Maduro has his hopes pinned on the "Petro".

Presales of the "Petro", allegedly backed by petroleum that Venezuela cannot produce, started today. Maduro hopes to resuscitate the economy.

The move cannot possibly work. The problem is Maduro, and socialism in general. Some Tweets will explain.

Case closed.

MIke "Mish" Shedlock

Comments (20)
No. 1-20
JanNL
JanNL

I don't think you'll find a single reader disagreeing...

jmosk
jmosk

Unfortunately mish all the signs point to an increase in socialist candidates in the US..

philbq
philbq

But there is a major factor that should be told. The self-appointed ruler of the Western Hemisphere, the U.S., is conducting a massive campaign of political and economic subversion against the Maduro government. It is channeled thru the "National Endowment for Democracy", a U.S. govt. funded organization that intervenes in target countries , doing subversive work that used to be done by the CIA. They fund U.S.-approved political parties, pay labor unions to create labor unrest, promote anti-government demonstrations,etc. Also the media in Venezuela is owned by rightwing oligarchs and only has negative stories about the Maduro govt. So if you want to be a cheerleader for U.S. imperialism, go ahead. I personally prefer real democracy.

philbq
philbq

The U.S. oil industry has lusted for Venezuela for a long time. Venezuela has the 2nd largest oil reserves in the world (after Saudi Arabia), and the U.S. govt. has been trying to install a U.S. stooge for many years. If Venezuela had no oil, the U.S. would not be spending millions to undermine the govt. and "make the economy scream" (Nixon's command to Kissinger calling for the overthrow of Chile in 1972- it worked.) Look at U.S. interventions - it is almost always in countries with a wealth of natural resources. That is what is happening in Venezuela.

Realist
Realist

I am not a fan of socialism or communism. I am a fan of Capitalism. However, I am an even bigger believer in Realism. As far as I can see, the closest thing we have to an ideal system is Capitalism, balance with a reasonable Government. Unfettered Capitalism releases human ingenuity, which leads to tremendous accomplishments and growth. However, it can also bring problems (disparity of wealth, monopolies, pollution, slave labour, etc.). A reasonable Government tries its best to “manage” things to prevent the excesses of Capitalism, without choking off the benefits. In addition, Government provides things that Capitalism cannot easily provide; a democratic political system, a legal system, military, police, fire, infrastructure such as bridges and roads, rules and regulations, education, healthcare, etc. Mises said that Government is the problem. He was correct. However, Government is also the solution. The world is an incredibly complex place. The reality is that we need to balance things as best we can to get the best results. Capitalism + Good Democratic Government is still the closest thing we have to ideal. The argument going forward, is what is the correct balance. That is an endless argument.

sammy42
sammy42

While I think the USA would be much better served by staying out of conflicts we have nothing to do with that's not really what is happening in Venezuela.

What is happening in Venezuela is the result of a lot of people failing to think critically about their futures and entrusting their future to a central authority. Mix that with this idea that "majority rule" is the superior ideal of government, some nationalism, and this is exactly what you get.

philbq
philbq

Majority rule is democracy. It means letting people decide who governs them. Sometimes people chose questionable leaders. The alternative is totalitarianism.

WhirledPeas
WhirledPeas

How do we rub the noses of Bernie Sanders' supporters in this mess and make them realize the disaster that socialism is? They tend to ignore this mess or blame it on US meddling (see "philbq" above). They just cannot accept that socialists have solely destroyed a prosperous country. It clashes with their sense of reality. "It is easier to fool someone than it is too show them they have been fooled." Mark Twain.

Snake
Snake

Mexifornia is on its' way to Total Socialism!

WildBull
WildBull

Two hallmarks of practical socialism -- starvation and mass murder. But, the promise of free stuff leads us all like lemmings to the sea.

philbq
philbq

Syria is of strategic importance to the Western oil companies because of the proposed oil pipeline to Europe for the Western oil companies. U.S. interventions: Iraq-oil, Libya-oil, Iran (1953)-oil, Afghanistan- proposed oil pipeline (TAPI). And now Venezuela...U.S. interventions usually happen in countries where the Western oil companies have interests. It is simply a fact. They tried to overthrow Chavez, but the army and the people supported Chavez. Now the U.S. intervention continues, and will continue until a U.S. stooge is in power who will turn Venezuela's vast oil over to Western investors.

philbq
philbq

For your information, I am not a socialist. I believe in a mixed economy with both public and private investment. But I do believe in democracy, and if a country wants to control their own resources (Iran, Venezuela), they should not be overthrown by a subversion campaign paid by the U.S. to benefit U.S. corporations.

philbq
philbq

Actually, the proposed pipeline thru Syria is for Nat gas. The U.S. wants to control the flow of petroleum all over the world.

Stuki
Stuki

“I personally prefer real democracy.”
No place like The People’s Republic of Anywhere, for a true believer dupe.

RonJ
RonJ

"I don't think all our interventions are because of natural resources. What does Syria have?" A route for a gas pipeline that Assad declined to support.

raghavendra sharma
raghavendra sharma

I don't understand your comment "it won't work".The petro seems to me like a prepaid coupon that you can redeem for a barrel of oil, whatever its price at the time of redemption, in a currency that permits purchasing etherium coins. The fact that there are only 100 million is incidental and probably based on the venezuelan requirement of funds at the present.Essentially Maduro is circumventing USA sanctions by offering to sell to parties who can arrange funds in ethereum. I do sincerely fear that he might be "Gaddhafi-ed", because gaddhafi proposed selling libyan crude in Euro's and was advocating for a goldbacked african common currency.


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