MADURO PLEDGES 30 MILLION BARRELS OF OIL TO BACK PETRO CRYTOCURRENCY | WHAT REALLY HAPPENED

MADURO PLEDGES 30 MILLION BARRELS OF OIL TO BACK PETRO CRYTOCURRENCY

Venezuela will use some 30 million barrels of oil it has in storage as backing for its national cryptocurrency, the petro, Reuters reports, citing a speech by President Nicolas Maduro.

“I will deliver these 30 million of barrels as a liquid, physical, material backing for the petro,” Maduro said on Venezuelan television. “The inventories of crude and products in storage tanks are available for immediate commercialization ... to sustain and back the operations of the sovereign Venezuelan crypto-asset, the petro.”

Earlier this month, Maduro said the petro had more than 27,000 “affiliated businesses” already and the number was expected to increase twofold in the next few months.

Caracas has intensified its efforts to make the petro popular recently, after its launch last year failed to yield any positive results for the Venezuelan economy. One of the reasons for that was that at the time, Venezuela said it would back the cryptocurrency with some 5 billion barrels of yet to be developed reserves of oil, which were located in a region without oil production infrastructure.

Another reason was that the United States slapped sanctions on the cryptocurrency almost as soon as it was out, crippling its chances for trading on any large crypto exchange.

It was also the sanctions that pushed oil in storage higher in Venezuela. The tightening noose around Caracas, which now involves sanctions for non-U.S. parties doing oil business with Venezuela as well, scared away some potential buyers, effectively leaving Chinese and Russian entities as partners of the Maduro government. As a result, inventories of crude rose and production had to be limited several times, Reuters noted.

Webmaster's Commentary: 

Congrats, President Trump; your policy toward Venezuela, have pushed it into an even more "tight" economic alliance with China and Russia than ever before, well done, sir!!

(Sigh) Mr. President, a word, please: your, and your Administration's policies toward Venezuela, have been damned near insane.

I would suggest to you, as bluntly as I can politely, that Venezuela is not most probably going to fall further than it already has, because China and Russia will support Maduros in any way they can, stepping in with food, medicine, etc., to keep the situation here for working people no worse than it already is.

And if the petro does succeed, perhaps way beyond Maduros' wildest expectations, you will find another, very solid currency with which the US dollar most probably cannot compete.

So now, what, sir?!?

To any casual observer of American foreign policy, its execution appears to be foreign policy by dart-board; and not all of the players are using the same dart-board, Mr. President; and THAT is where this country can get into one hell of a lot of problems, sir.

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