The most welcome news for Venezuelan President Nicolas Maduro in the past month came from Russian President Vladimir Putin in December. Maduro and Putin reaffirmed the relationship between the two countries with more than just words.
More than $5 billion in new oil exploration and production deals were signed when the two met in December which will assist Venezuela in establishing its ambitious (or foolhardy) plan to only sell its oil in its oil-backed cryptocurrency, the Petro.
Maduro has insisted that the Venezuelan state oil company PVDSA will only accept Petro for its oil starting this year. By all accounts the Petro looks like a scam and until he can make good on promises to his benefactors, Russia and China, there is no way they will use it.
But, in theory, the Petro is a fine idea. Is it one that Maduro can pull off? It’s a good question. I doubt it.
But if it, or something like it were to succeed, it represents a tectonic shift for the world economy. Not today or tomorrow, mind you, but over time. Why? Because it provides a blueprint for countries which are not on The Davos Crowd’s Christmas card list to extricate themselves from the IMF/World Bank/SWIFT hamster wheel of currency collapse, debt slavery, economic privation and regime change.
Because cryptocurrencies exist outside of the traditional banking system it allows them to skirt sanctions (which are acts of war) and continue engaging in peaceful commerce on their terms, not those set on Wall St. or K Street.
But that said, there’s no real need for the Petro per se. Maduro could simply take Bitcoin.
The other day I wrote an article tying US policy towards Venezuela to Iran, saying Trump’s plans for Energy Dominance are what is driving his foreign policy. Venezuela looks like a dry run for what’s on tap for Iran later this year or early 2020.
And its John Bolton who is the architect of this horrific policy.
This is the John Bolton blueprint for regime change. Demonize the leader of a country that opposes our imperial rule, cut them off from the rest of the world through sanctions and political/military pressure and wait for the society to collapse.