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Venezuela pegging its economic recovery to a cryptocurrency that’s widely considered a scam
CNBC ^ | 08-20-2018 | Kate Rooney

Posted on 08/20/2018 10:09:35 AM PDT by NRx

Venezuela is doing something completely unprecedented. Some even say illegal.

As part of an attempt to stop skyrocketing inflation, the country is issuing a new fiat currency called the "sovereign bolivar," which will be backed by a cryptocurrency. But that cryptocurrency, called the "petro," does not trade, and Venezuela's own parliament says it's being illegally used to mortgage the nation's cash-strapped oil reserves.

"This is a smoke-and-mirrors operation typical of Venezuela — I'll believe it when I see it," said Steve Hanke, professor of applied economics at Johns Hopkins University and one of the world's leading experts on hyperinflation. "The problem with the petro is it's a scam, it doesn't even trade."

In February, President Nicolas Maduro unveiled the oil-backed "petro" digital currency as a means to raise cash amid an economic meltdown and economic sanctions. Maduro said each petro token, which is not in circulation yet, would be backed by a barrel of the state's national petroleum. He also said about 100 million petro tokens would be issued — estimated to be worth around $6 billion.

Crypto rating site ICOindex.com, which rates initial coin offerings, labeled the petro "scam status." The site evaluates coins based on their white papers, and said while petro promised to be backed up by oil resources, "the technology and mechanisms to do so are not adequately explained." Another site, ICObench, gives it a 1.6 out of 5 stars.

(Excerpt) Read more at cnbc.com ...


TOPICS: Business/Economy; Crime/Corruption; Cuba; Foreign Affairs; Front Page News; Russia
KEYWORDS: bitcoin; cnbc; cryptocurrency; cuba; energy; hydrocarbons; hyperinflation; iran; itsallascam; johnshopkinsu; katerooney; maga; nicaragua; nicolasmaduro; opec; petro; reservecurrency; russia; sanctions; sovereignbolivar; stevehanke; venezuela; venezuelacollapse
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To: NRx
each petro token, which is not in circulation yet, would be backed by a barrel of the state's national petroleum

Why don't they just sell the oil? Oh, they can't. Their talent has fled, assets being seized.

But the people are happy. They are all millionaires and have all lost weight. Many are on vacation in neighboring countries.

21 posted on 08/20/2018 10:42:56 AM PDT by FatherofFive (Islam is EVIL and needs to be eradicated)
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To: NRx

Actually, dealing in bitcoin has helped people who are trying to buy or sell property. Mainly because the fluctuation in the Venezuelan currency is so erratic that when one person agrees to sell his property by the time papers are drawn the land gets devalued in sometimes just one day, which makes any transaction difficult. They are finding that bitcoin is helping out smooth over transactions.


22 posted on 08/20/2018 11:04:08 AM PDT by Slyfox (Not my circus, not my monkeys)
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To: Moonman62
Thank GOD! the American dollar is backed up by GOLD!!!
23 posted on 08/20/2018 11:18:59 AM PDT by Elsie (Heck is where people, who don't believe in Gosh, think they are not going...)
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To: NRx

Good luck with that.


24 posted on 08/20/2018 11:19:21 AM PDT by grimalkin (You cannot subsidize irresponsibility and expect people to become more responsible. - T. Sowell)
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To: Elsie

If you want to convert your dollars to gold, you can.


25 posted on 08/20/2018 11:25:28 AM PDT by Moonman62 (Give a man a fish and he'll be a Democrat. Teach a man to fish and he'll be a responsible citizen.)
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To: Sasparilla

“...This must be what she thinks will cure what socialist experiments worldwide have been doing wrong....”
Occasional Cotex should be right down there helping them to do it “right”.
And to think not too long ago, Venezuela was a thriving oil-rich economy. It sure doesn’t take socialism long to destroy stuff, especially when it runs out of other peoples’ money.


26 posted on 08/20/2018 11:32:07 AM PDT by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: lurk

“...Venezuelan oil can’t just be pumped and used. It’s dirty stuff that needs steps to clean. When Chavez confiscated the oil industry, the US companies overseeing extraction and refining disappeared, leaving a processing vacuum that was never filled....”
BINGO!! Nail, meet hammer. The stupid POS confiscated american assets and technology that was key in keeping their economy afloat. The Americans basically had no choice but to write it off as a loss and pull out. The problem was, Chavez didn’t have the talent and experience available to fill the vacuum. Liberals/Socialists/Communists are stupid.
The Venezuelan oil company still has 2 refineries in the US (Corpus Christie, TX and Lake Charles, LA) that were engineered & designed to handle Venezuelan crude oil. They can also handle the tar sands crude as well (Keystone Pipeline). And I believe it was just last month that I read a news article that they were being looked at to be “nationalized” and held for sale to US entities to keep Russian/Chinese investors from acquiring them.
IMHO, Chavez totally screwed over his country and it’s people. That’s what libs/socialists/communists do best. And yeah, we’ll probably have to go back in there at some point to bail em out; not for the sake of the current govt, but for the people. Only this time, our assets and interests need to be protected...BIG TIME.


27 posted on 08/20/2018 11:49:03 AM PDT by lgjhn23 (It's easy to be liberal when you're dumber than a box of rocks.)
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To: NRx
[ As part of an attempt to stop skyrocketing inflation, the country is issuing a new fiat currency called the "sovereign bolivar," which will be backed by a cryptocurrency. But that cryptocurrency, called the "petro," does not trade, and Venezuela's own parliament says it's being illegally used to mortgage the nation's cash-strapped oil reserves. ]

WHAT could possibly go wrong with THIS? Let us not worry, dear FRiends. The Democrats, as always, have a brilliant solution! Danny Glover and Sean Penn know economics!

Now we need the Occasional Cortex with "Nice economy ya got there...."
28 posted on 08/20/2018 12:32:31 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: I want the USA back; SkyPilot; Roman_War_Criminal; null and void

[ Also, the current currency is losing its value at light speed. Nobody says why. Government printing money? Extreme shortages of goods? (How would that work?)

None of this will work. ]

Just need a global currency. That will fix everything. If only it was just a joke. Yet they keep trying.


29 posted on 08/20/2018 12:34:22 PM PDT by SaveFerris (Luke 17:28 ... as it was in the days of Lot; they did eat, they drank, they bought, they sold ......)
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To: NRx
Venezuela has joined Brazil, Zimbabwe & Weimar Germany in the Hyperinflation Hall of Infamy! Here is a picture that is worth its weight in words!


The stack of money is 14 million Strong Bolivars!

The late Jefe, Hugo Chavez, was elected President of Venezuela in 1998 following a 23% devaluation of the Bolivar by the previous government. The record since would be comical except for the misery as the national currency has gone from 'Bolivar' (named for Simon Bolivar - 'Liberator' of Venezuela, Columbia, Ecuador, Peru & Bolivia) to 'Strong Bolivar' [Bolivar Fuerte] to the new 'Sovereign Bolivar' (Bolivar Soberano). Since the Chavez government took power in 1999, the purchasing power of the currency (Bolivar) has shrunk by at least a million to one, and that is probably understated!

30 posted on 08/20/2018 12:40:23 PM PDT by SES1066 (Happiness is a depressed Washington, DC housing market!)
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To: PapaBear3625

“Sounds like a plan where Maduro can walk away with Venezuela’s whole economy, when things finally fall down.”

His proper name is Manureo. Because he is FULL of it!


31 posted on 08/20/2018 12:40:48 PM PDT by 2harddrive (Go to www.CodeIsFreeSpeech.com for 10 FREE 3D-printer gun blueprints!)
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To: Moonman62

His proper name is Manureo. Because he is FULL of it!


32 posted on 08/20/2018 12:42:59 PM PDT by 2harddrive (Go to www.CodeIsFreeSpeech.com for 10 FREE 3D-printer gun blueprints!)
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To: M Kehoe

His proper name is Manureo. Because he is FULL of it!


33 posted on 08/20/2018 12:43:22 PM PDT by 2harddrive (Go to www.CodeIsFreeSpeech.com for 10 FREE 3D-printer gun blueprints!)
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To: PapaBear3625

His proper name is Manureo. Because he is FULL of it!


34 posted on 08/20/2018 12:43:48 PM PDT by 2harddrive (Go to www.CodeIsFreeSpeech.com for 10 FREE 3D-printer gun blueprints!)
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To: AdmSmith; AnonymousConservative; Berosus; Bockscar; cardinal4; ColdOne; Convert from ECUSA; ...
Thanks NRx. Related, from the Petro keyword:

35 posted on 08/20/2018 12:55:22 PM PDT by SunkenCiv (www.tapatalk.com/groups/godsgravesglyphs/, forum.darwincentral.org, www.gopbriefingroom.com)
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To: NRx
And just think: Just about every Democrap candidate running for office is pushing for this kind of government.

"It's Utopia!! I tell you, it's UTOPIAAAA!!!!!"

UTOPIA! UTOPIA! UTOPIAAA!!!!


36 posted on 08/20/2018 1:51:19 PM PDT by GrandJediMasterYoda (Vox populi, vox dei)
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To: NRx

Talk about scams.. Marxism / socialism is a scam.


37 posted on 08/20/2018 1:52:56 PM PDT by neverevergiveup
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To: NRx

“Socialism + fiat money + cryptocurrency = The trifecta of make-believe wealth.”

WHAT COULD POSSIBLY GO WRONG!


38 posted on 08/20/2018 1:54:45 PM PDT by cpdiii (Cane Cutter, Deckhand,Roughneck, Geologist, Pilot, Pharmacist: THE CONSTITUTION IS WORTH DYING FOR!)
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To: NRx

Gives cryptocurrency a bad name!!!!!

Hahahahahahaha...


39 posted on 08/20/2018 1:54:52 PM PDT by rlmorel (Leftists: They believe in the "Invisible Hand" only when it is guided by government.)
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To: lurk
I worked in Venezuela pre Chavez. You are correct about their “heavy oil” but the deeper Cretaceous oil is pretty good. The majority of Venezuelan crude is the less desirable heavy oil and also high in sulfur.

Pre Chavez Venezuela built one of the best refineries in the world to handle these heavy crudes. This refinery is now operating at minimal capacity and is in disrepair.It should also be noted that pre Chavez, Venezuela had the highest standard of living in South America. There were no shortages of anything. People were not hungry and desperate.

40 posted on 08/20/2018 2:04:36 PM PDT by cpdiii (Cane Cutter, Deckhand,Roughneck, Geologist, Pilot, Pharmacist: THE CONSTITUTION IS WORTH DYING FOR!)
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