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Journal by khallow
Venezuela continues to find sharks to jump with this latest bit of news.

Venezuelan President Nicolas Maduro looked to the world of digital currency to circumvent U.S.-led financial sanctions, announcing on Sunday the launch of the “petro” backed by oil reserves to shore up a collapsed economy.

The leftist leader offered few specifics about the currency launch or how the struggling OPEC member would pull off such a feat, but he declared to cheers that “the 21st century has arrived!”

“Venezuela will create a cryptocurrency,” backed by oil, gas, gold and diamond reserves, Maduro said in his regular Sunday televised broadcast, a five-hour showcase of Christmas songs and dancing.

Didn't Venezuela used to have a fiat currency backed by oil? Why would anyone believe that this new fiat currency, despite having cryptocurrency cooties, will fare any better? I bet that the public nature of the block chain is a significant part of the reason they went with this scheme. You know to prevent the people of Venezuela from buying the things they need on the black market. Like anyone would use the "petro" for that anyway.

And we may also have a sign that the bubble of cryptocurrencies is reaching an unsustainable high, if we have deadbeat dictators grasping at this particular bit of straw.

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The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 2, Troll) by aristarchus on Monday December 04 2017, @06:32AM (4 children)

    by aristarchus (2645) on Monday December 04 2017, @06:32AM (#604931) Journal

    Usually, khallow, I would back you up when you say something rational. But this? What is this? Speculation? CIA Agitprop? Donald pump-and-dump on the markets? I cannot tell. And so, I will not comment. Other than to say, as someone allegedly econo-literate, we expected more of you, khallow. Much more.

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  • (Score: 2, Interesting) by khallow on Monday December 04 2017, @06:49AM (3 children)

    by khallow (3766) Subscriber Badge on Monday December 04 2017, @06:49AM (#604934) Journal

    Usually, khallow, I would back you up when you say something rational.

    We have plenty of examples where you did not. Not feeling the love here.

    • (Score: 1, Troll) by aristarchus on Monday December 04 2017, @07:02AM (2 children)

      by aristarchus (2645) on Monday December 04 2017, @07:02AM (#604939) Journal

      That is just because you have no perspective on when you are being rational, khallow! Those of us who love and care for you, and have visited Yellowstone National Park, have the distance to tell when you are being rational. Your recent post on War Crimes tribunals, for example, was spot on, great comment. But this one? I suspect Republican Latin American Derangement Syndrome (LADS) to be in effect. Just imagine, khallow, if you were in charge of the economic policy of Venezuela, what would you do? Entire power of the Federal Reserve against you, the WTO, the PTP and the WTF? Would you not dissemble? Prevaricate? Counter-signal, and gross national speculation indicies. You would do the same, khallow, you have already done the same.

      • (Score: 3, Insightful) by khallow on Monday December 04 2017, @07:22AM (1 child)

        by khallow (3766) Subscriber Badge on Monday December 04 2017, @07:22AM (#604941) Journal

        Just imagine, khallow, if you were in charge of the economic policy of Venezuela, what would you do?

        First, reverse everything since Chavez. It's not going to fully fix the current mess, but at least I can stop digging the hole deeper. Return the various seized assets to their original owners.

        Probably would implement an asset tax to pay for stuff and completely drop the sales taxes (which is currently at 12% [tradingeconomics.com], which is horribly high).

        Strong focus on implementing stable legal infrastucture for commerce, property ownership, running businesses, and dealing with corruption and bribery.

        Should do for starters.