Banana Republic Newsflash

[SciFiFisher]

It seems that a lot of countries are realizing you can use cryptocurrency to get around sanctions. Of course, if you can't afford bitcoin you can always make your own. Interesting twist on that. Kodak is launching their own cryptocurrency as a way for photographers to license and get paid for their work.

As for the television propaganda... do they still have telenovela's? At least those can be mildly entertaining.

[Sigma_Orionis]

It seems that a lot of countries are realizing you can use cryptocurrency to get around sanctions. Of course, if you can't afford bitcoin you can always make your own. Interesting twist on that. Kodak is launching their own cryptocurrency as a way for photographers to license and get paid for their work.

As for the television propaganda... do they still have telenovela's? At least those can be mildly entertaining.

Well, that's the thing. WHO in hell is going to accept a self issued cryptocurrency from a bankrupt entity as payment for tangible goods? I can see North Korea working the bitcoin angle. But if they made their own cryptocurrency, nobody would sell them anything. Particularly because of the sanctions. They have to use some sort of hard currency . So they can make all the noise they want about that Petro thing. it ain't going anywhere.

20 years ago, that channel used to produce its own Telenovelas, some of them were supposed to be good and everything (couldn't tell you cause I don't watch them.) I guess now they have "Social Content"

Edited to remove a double quote

[SciFiFisher]

20 years ago, that channel used to produce its own Telenovelas, some of them were supposed to be good and everything (couldn't tell you cause I don't watch them.) I guess now they have "Social Content"

Why am I suddenly afraid that I don't want to learn about "social content" or Venezuela PC broadcasting.

[Sigma_Orionis]

20 years ago, that channel used to produce its own Telenovelas, some of them were supposed to be good and everything (couldn't tell you cause I don't watch them.) I guess now they have "Social Content"

Why am I suddenly afraid that I don't want to learn about "social content" or Venezuela PC broadcasting.

Welcome to the club

[Sigma_Orionis]

In these last two weeks things have worsened so much it's dizzying.

The negotiations between the government and the opposition have broken down. To its credit (IMHO) the opposition did not cave in. The meeting on Jan 12 yielded no concrete results. The meeting on Jan 18 was called off for several reasons. The government kept piling on the opposition, demanding that the three parties that refused to participate in the municipal elections re-register for the national elections. But, most importantly the government said that it located and killed a "dangerous terrorist" by the name of Oscar Perez thanks information leaked by the opposition during the negotiations.

Let me stop on that a bit.

During last year's riots, a "special weapons and tactics" policeman with a penchant for publicity stunts (he was the protagonist in a rather silly action movie, that I never saw) stole a helicopter and threw a couple of grenades on top of the capitol building. He claimed to be rebelling against the government and called for everyone fight them.

A lot of people thought he was a government plant. He did make some waves but never gathered much support. He did manage to ward off the government forces looking for him for about six months.

Just last week he was killed by the government.

I never thought much of the guy, he seemed way too quixotic to be taken seriously. He paid with his life though.

In any case, the opposition called off the talks.

Now the government wants to have have national elections before May. 7 months ahead of time.

As I said, that had to happen, the thing is that unless there are international observers and that damned Constitutional Assembly is dissolved, there are few guarantees that the government won't just make a facade of legitimate elections.

In the meantime the price of the US$ (which is about the only real economic indicator) rises by 10% every day. Due to the dramatic rise in prices since last month, the government predictably imposed price controls. So now, Markets are even more bare than usual.

Edited for spelling three damned times (as usual)

[SciFiFisher]

If this were a movie there would be ominous background music about now.

[Sigma_Orionis]

Just to give you some reference for your ominous music.

At the current black market exchange rate, our highest denomination bill ( Bsf. 100,000) is worth 38 US cents

[Sigma_Orionis]

Well the "negotiation" talks broke down for good this week They are in "indefinite recess"

The government had already said they would have early presidential elections, BEFORE April 30th after the opposition did what they had to do (for once) the government announced elections or April 22nd Would this be a good thing? well considering the stunt they pulled last year with the constitutional assembly. Nobody believes those elections would be fair. As it is, it looks like it could backfire internationally.

So far those symbolic sanctions you first worlders love so much, are piling up, Canada and the UE have sanctioned several government officials and there's talk of more sanctions.

I don't mind them, since they make the lives of those bastards harder. But judging from sanctions to other countries, they don't seem to amount to much. The ones that actually have the most bite, are the ones that literally make it impossible for the government to refinance our debt, And that one is not much either. After all, nobody trusts our government's ability to pay at this time. So, I think we could not refinance our debt EVEN without the sanctions.

The one sanction that could really hurt is an Oil Embargo by the US. And there has been talk of that lately. However I think it will be used as a bargaining chip mostly because it will not only hurt the country, it might affect the Oil industry of the US.

What might compel Maduro and his clique to negotiate an exit is the fact that we WILL collapse in April (why April? major bond payments due then). I think that right now, the government is clinging to the hope that their crummy crypt-coin scheme will allow them to raise some cash. I think they're full it of. On February 20th a PRIVATE Initial Coin Offering for that damned piece of crap is scheduled. Hopefully, it will be a disaster and Maduro will actually try to negotiate his exit afterwards.

[SciFiFisher]

I keep hoping for an (almost) peaceful transition to a government that really tries to pull the country out of this whirlwind ride to the bottom.

[geonuc]

I keep hoping for an (almost) peaceful transition to a government that really tries to pull the country out of this whirlwind ride to the bottom.

Yes

[Sigma_Orionis]

it's my hope as well. But I'm not counting on it. Reason says that by the 20th they'll finally realize that the game is up and there's no way they can hold on to power. But that requires Rational Players. And I'm not sure they are.

What leads me to think that way? Our Culture. People in Power here are known to make extremely bad decisions for stupid reasons (imagine if of ALL your elites behaved like Donald Trump).

Case in point

With the current Hyperinflation, prices have risen so much, that most financial transaction systems are having problems dealing with the size of the figures involved. They need to be updated and since most private business here are barely braking even with all the price controls, they really can not go through the expense of doing so. SO, the government ought to do what most countries in the region have done with hit with a similar situation: do a currency reconversion (as in issue new currency worth, say 1000 times what its worth now, we actually did it once in 2007) the thing is the government refuses even to consider it. Hell, they refused to have higher denomination currency (even the bills here are imported) made until it was too late. Why? that would mean admitting there was a problem in the first place.

I am fond of saying that people in power here only react, and that happens only when they have a gun to their heads, and nine out of ten times only after the shot has been fired.

[grapes]

What might compel Maduro and his clique to negotiate an exit is the fact that we WILL collapse in April (why April? major bond payments due then). I think that right now, the government is clinging to the hope that their crummy crypt-coin scheme will allow them to raise some cash. I think they're full it of. On February 20th a PRIVATE Initial Coin Offering for that damned piece of crap is scheduled. Hopefully, it will be a disaster and Maduro will actually try to negotiate his exit afterwards.

Something to look forward to, now that the super bowl is over. O wait, Olympics. Nevermind.

[Sigma_Orionis]

Something to look forward to, now that the super bowl is over. O wait, Olympics. Nevermind.

Not according to these guys

Venezuelan leader Nicolás Maduro 'not welcome' in Peru

[Sigma_Orionis]

Posted without comment

On Venezuela, Where Are Liberals?

[geonuc]

Well, that article is depressing.

[Sigma_Orionis]

Well yeah, I find little difference between PSFs and Trump Supporters.

[Sigma_Orionis]

This is grimly amusing.

It’s an opinion he shares with the likes of Morgan Stanley, Nomura Securities International Inc. and Stifel Nicolaus & Co., who’ve argued that the bonds could produce a windfall when President Nicolas Maduro is finally pushed out and a new administration comes to a restructuring agreement with creditors. The change could come as soon as the presidential election the government set for April, but even if the opposition can’t gather enough momentum for a victory, Kisler thinks it’s only a matter of time before Maduro departs.

Lately the same economist that asked for a US military intervention in Venezuela, said stuff that sounds satisfactorily similar to what I'm saying (yes virginia, link in SPANISH) as in:

- It was irrational for the opposition to reach an agreement with the government in the recent Domenican Republic "Dialogue"

- US Sanctions will not make any difference, we're already collapsing on our own

- The Petro is BULL.

Due to lack of good news, I'll let my confirmation bias take the better of me.

Finally: Maduro said he'll go that summit in Peru he was dis-invited from, "Hell or Highwater", to which a Peruvian High Government Official replied that he is NOT allowed to enter the country. No links in english unfortunately.

ETA: Finally found something in English

[grapes]

What might compel Maduro and his clique to negotiate an exit is the fact that we WILL collapse in April (why April? major bond payments due then). I think that right now, the government is clinging to the hope that their crummy crypt-coin scheme will allow them to raise some cash. I think they're full it of. On February 20th a PRIVATE Initial Coin Offering for that damned piece of crap is scheduled. Hopefully, it will be a disaster and Maduro will actually try to negotiate his exit afterwards.

Something to look forward to, now that the super bowl is over. O wait, Olympics. Nevermind.

I take it back, pass the popcorn.

So, each Petro is based on a barrel of (future) oil. How short can they sell this?

[SciFiFisher]

What might compel Maduro and his clique to negotiate an exit is the fact that we WILL collapse in April (why April? major bond payments due then). I think that right now, the government is clinging to the hope that their crummy crypt-coin scheme will allow them to raise some cash. I think they're full it of. On February 20th a PRIVATE Initial Coin Offering for that damned piece of crap is scheduled. Hopefully, it will be a disaster and Maduro will actually try to negotiate his exit afterwards.

Something to look forward to, now that the super bowl is over. O wait, Olympics. Nevermind.

I take it back, pass the popcorn.

So, each Petro is based on a barrel of (future) oil. How short can they sell this?

Very.

[Sigma_Orionis]

What might compel Maduro and his clique to negotiate an exit is the fact that we WILL collapse in April (why April? major bond payments due then). I think that right now, the government is clinging to the hope that their crummy crypt-coin scheme will allow them to raise some cash. I think they're full it of. On February 20th a PRIVATE Initial Coin Offering for that damned piece of crap is scheduled. Hopefully, it will be a disaster and Maduro will actually try to negotiate his exit afterwards.

Something to look forward to, now that the super bowl is over. O wait, Olympics. Nevermind.

I take it back, pass the popcorn.

So, each Petro is based on a barrel of (future) oil. How short can they sell this?

Very.

From what I've read, for the private ICO that starts today, some advisors told the government to sell it with a 60% discount over the face value of US$ 60 per Petro.

So far, no hard news other than this

According to a report by the Caracas-based news agency Telesur, people will at first only be able to buy the petro using “hard currencies” and other cryptocurrencies, although it will later be possible to sell petros for local currency.

Gee I wonder why?

This quote is worth more than the whole offering of Petros:

Some outside observers are also sceptical about the scheme. “Venezuela has been known for misappropriation of assets in the past and the central bank has just created hyperinflation so I imagine there’ll be trust and transparency issues,” Longview Economics director Harry Colvin told CNBC.

Understatement of the Year much?

[grapes]

Washington Post:
https://www.washingtonpost.com/news/wor ... ocurrency/

But proponents say that buyers may find the currency appealing because it is backed by a commodity and an administration with incentives to see it succeed.

So, if it's backed (tied) to a commodity, does that limit its upper bound? Isn't that one of the attractions of some of these cryptocurrencies?

“It honestly sounds like they don’t really understand how any of it works,” Alex Van de Sande, a Brazil-based developer for the Ethereum Foundation, said in a phone interview.

“Unfortunately, that doesn’t mean it won’t raise money. We’ve seen terrible ideas that don’t make any sense raise a lot of it,” he said. “If I wanted to avoid international sanctions and make money appear out of thin air in my country hiding the origin, I guess this petro would be a useful way.”

Like, armed robbery is a bad idea, but you can get rich ...

[grapes]

Reuters article reports that Maduro reports to have raised $735 million

https://www.reuters.com/article/us-cryp ... SKCN1G506F

That's $7.35 per petro, so far

[SciFiFisher]

One of the talking heads on Bloomberg yesterday was saying that technically the Petro wasn't a true crypto-currency. It is just another way to monetize oil; which is a commodity. He thinks the base value of the Petro will be driven by the price of oil. It sounded to me as if he were comparing it to commodities futures. Interestingly, he did seem to think that it was a novel approach that might actually have value. In my opinion he was trying to dazzle the interviewer with his crypto currency speak. He apparently works for a venture capital firm that specializes in crypto currency. A couple of his statements read like he was trying to impress everyone. Come to think of it he sounded like a marketing guy.

[Sigma_Orionis]

Reuters article reports that Maduro reports to have raised $735 million

https://www.reuters.com/article/us-cryp ... SKCN1G506F

That's $7.35 per petro, so far

Frankly, they can quote whatever figure they want, since there's no way to independently verify it. Considering that he can run circles around Trump in the "lying through your teeth" category I really wouldn't believe anything he says.

Come to think of it he sounded like a marketing guy.

I get that impression out of almost anyone involved in crypto currencies

This guy agrees with me, so I think he's right

ETA, this is fun, the Petro Website which is the only place you can go get the software wallet to buy the damned thing is down.

ETA2 It's up again

[Sigma_Orionis]

I just found this

Venezuela’s ‘Petro’ Launch Was Amateur Hour

So, this blockchain or that blockchain—who cares? Putting aside Ethereum’s larger community than NEM and the simple fact that by employing different technologies they both come with a different set of technical guarantees, switching blockchains in the space of two weeks from a white paper release is amateur hour. It is genuinely unclear what happened here; the Spanish white paper accessible on the official Petro site still says Ethereum, while the English white paper says NEM. Also, I still haven’t received an email 24 hours after signing up to purchase Petro (as a test, of course), and others have tweeted about experiencing this, too.

I checked both whitepapers and that is correct, the spanish white paper said it was an Ethereum based Cyrptocurrency and the english white paper said it was based on NEM. I also registred and still waiting for the confirmation email

The NEM "Namespaces" that apparently are assigned to this BS shows no transactions

SO:

Still, it’s early days for the Petro and a state-issued cryptocurrency is truly unlike anything the world has seen before, for better or for worse. But this… this is not a great start.

No Shit Sherlock