Fausta's Blog

American and Latin American Politics, Society, and Culture

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Venezuela: US bans the petro

The new cryptocurrency cannot be legally traded in the USA:

U.S. Bans Use of Venezuela’s Cryptocurrency. Official blasts so-called petro as ‘a desperate attempt by a corrupt regime to defraud international investors’.

With the economy in shambles and the country cut off from debt markets, Venezuela President Nicolás Maduro launched the so-called petro cryptocurrency last month in a bid to skirt intensifying financial sanctions from the U.S., the European Union and others aiming to punish the government for its authoritarian rule.

“Investing in the petro should be seen as investing in the dictatorship,” a senior U.S. official said after President Donald Trump signed an executive order banning the currency.

Indeed, (emphasis added)

U.S. officials say any other cryptocurrencies created by Venezuela’s government in the future will also be subject to the ban, which took effect immediately. Echoing the U.S. action, Venezuelan lawmakers opposed to Mr. Maduro say the petro is illegal because it was created without parliamentary approval, raising questions about the asset’s validity if there were a change of power.

The petro is the regime’s cheap excuse for a make-believe revenue source in exchange for nothing. If they were simply oriented towards creating a money laundering tool, there’s plenty of bitcoin action in that direction.

In other Venezuela news,
Tuberculosis is on the upswing

A city issues its currency: Venezuelan City Launches Its Own Currency Amid Cash Crunch

Even the Russians are starting to worry: Rosneft seeks to ease fears over Venezuela loans.
Russian oil producer says repayments are being made on schedule

Last, but not least,

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Venezuela: The refugee crisis as the regime’s expansionist weapon

A second post today on Venezuela:

I have been writing about Venezuela‘s man-made crisis for years.

Here’s a question: Qui bono?

Who stands to benefit from it?

The regime stands to benefit:

chaos, desperation and violence give it an excuse to crack down harder. A refugee crisis, sparked by hardship, makes it easier for regime agents to infiltrate neighboring countries, expanding the government’s clandestine networks.

Keep that in mind as the regime enters phase two of its plan for a Pan-American revolution.

Cross-posted at WoW! Magazine.

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Venezuela opens backchannel over jailed American Joshua Holt

AP reports,
US aides: Venezuela opens backchannel over jailed American

Venezuelan President Nicolas Maduro welcomed a visit by a top-ranking Republican congressional staffer last month to discuss the possible release of a Utah man jailed for more than 20 months in this volatile South American nation, six U.S. congressional and administration aides told The Associated Press.
. . .
Holt, 25, traveled to Caracas in June 2016 to marry a fellow Mormon he met online practicing his Spanish. The couple was waiting for her U.S. visa when they were arrested during a police raid on the government-built housing complex where they were living in her apartment. Venezuelan authorities alleged Holt was stockpiling “weapons of war.”

Holt states that the weapons were planted.

He has been in jail since 2016 as a political prisoner: video from John Sexton’s article,

In addition to the weapons charges, Holt is also being held on suspicion of being an American spy.

H/t Panampost.

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Venezuela: Inflation and woes

Venezuela announces 99.6 percent devaluation of official forex rate

The central bank said the first auction of its new DICOM system yielded an exchange rate of 30,987.5 bolivars per euro, equivalent to around 25,000 per dollar.

That is a devaluation of 86.6 percent with respect to the previous DICOM rate and 99.6 percent from the subsidized rate of 10 bolivars per dollar, which was eliminated last week. (goo.gl/TRuF2Z)

How Fast Are Prices Skyrocketing in Venezuela? See Exhibit A: the Egg. With hyperinflation at 13,000%, eggs become essential to bartering (emphasis added)

Such is the ordeal in a country stricken with hyperinflation and a government so flummoxed on how to fix the distortions of its crumbling economy that it’s resorting to introducing what it says is a bitcoin-like cryptocurrency. The “petro” would eclipse the near worthless “strong bolivar,” which has lost 98% of its value against the dollar in the past year.

The problem is that in a country as broke as Venezuela, the government can’t print enough bills or pay the hefty fees for commercial printers to supply them. Paying with plastic? Credit-card readers seldom work.

Additionally, Venezuela Ranked Last in the Rule of Law Index 2017-2018.

And, another one from Steve Hanke,

Across the border,

Colombia Opens Border Shelter for Venezuelans Fleeing Crisis.Government opens facility near border city of Cúcuta as some 35,000 Venezuelans cross into the country each day

The facility, opened Saturday near the border city of Cúcuta, is expected to provide shelter of up to 48 hours for 120 people a day. Pregnant mothers, the elderly and minors who entered the country legally will be given priority. It will be administered by the Red Cross.

And they come to stay: Once-rich Venezuelans live as beggars in Colombia, but they don’t want to go back. “Bogotá officials believe that as many as 600,000 Venezuelans are now living in Colombia.”

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Venezuela: The eight armies behind Maduro

With a vested interest for the status quo,

According to Otero, there are eight armed groups that make up the Maduro administration’s muscle:

  • Armed civilian militias that are uniformed and trained by the army
  • The Bolivarian National Guard (Guardia Nacional Boliviariana — GNB)
  • The Bolivarian National Police (Policía Nacional Bolivariana — PNB)
  • The Bolivarian National Armed Forces (Fuerza Armada Nacional Bolivariana — FANB)
  • Cuban military advisors surrounding Maduro
  • “Colectivos,” the pro-government paramilitary organizations that operate throughout the country
  • The Revolutionary Armed Forces of Colombia (Fuerzas Armadas Revolucionarias de Colombia — FARC)
  • Colombia’s National Liberation Army (Ejército de Liberación Nacional — ELN)

Read it at InSight Crime,

In other Venezuela news,
Venezuela has just announced an election — and it’s terrible news for democracy

Colombia evicts over 200 homeless Venezuelans from sports field squat

How Much Worse Can it Get for Venezuela’s State Oil Firm PDVSA?
Venezuela’s Most-Wanted Rebel Shared His Story, Just Before Death

——————————————————————

I’m getting over a flu. Juliette filled in for me yesterday at DTGB, Who Can Investigate the Investigators?

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Venezuela: Oscar Perez killed by police? UPDATED

Oscar Perez, the former police helicopter pilot who last year attacked the Supreme Court and Interior Ministry, has been killed, according to government sources (emphasis added),

Oscar Perez, a Venezuelan police pilot accused of stealing a helicopter and using it to attack the country’s Supreme Court in June, was killed Monday in Caracas, a government official told CNN.

The high-ranking member of the Venezuelan government asked to remain anonymous. CNN has not been able to independently confirm Perez’s death.

“BREAKING NEWS: Óscar Pérez is wounded by an exploded grenade launched by security forces surrounding him. He denounces that Maduro’s regime is shooting at them and do not allow them to surrender.”

Roundup:
Venezuelan Helicopter Pilot Who Rebelled Against Dictatorship Livestreamed Raid that Killed Him

Venezuela forces launch deadly assault, capture rebel police officers

The assault was made public early Monday by Pérez himself, who posted video snippets on social media, including one in which he appears with a bloodied face.

“They are firing at us with RPG, grenades and grenade launchers, snipers,” Pérez says in one video. “There are civilians in here. We told them that we’re going to turn ourselves in and they don’t want to let us surrender. They want to kill us.”

A Day of Blood

A police operation for the capture of former CICPC inspector Oscar Pérez and his team took the entire day in Venezuelan social media. By 11:00 p.m., there was no official statement about his situation, only reports of the police takeover of the Bello Monte morgue, as an insinuation that his corpse might be there. Oscar Pérez’ group made a live digital recount of the assault they faced, uploading videos on his Instagram account (@equlibriogv) that showed what was happening. An unprecedented method that raised more suspicion than solidarity and prompted official mouthpieces to make unwise statements.

Two police officers and several “terrorists” have been killed in an operation to capture a helicopter pilot accused of leading an armed rebellion in Venezuela last year, officials say.

Venezuelan forces surrounded a house in the town of El Junquito, near the capital, Caracas, as they targeted the “cell” linked to pilot Oscar Pérez.

The authorities said they had arrested five people who they accuse of being part of a criminal group.

It is unclear what became of Mr Pérez.

Venezuelans Watch as Soldiers Besiege Rebel Group. Rogue police pilot Oscar Perez posts videos online as his supporters engage in gun battle at hideout

The saga of a police pilot and former actor who authorities said stole a helicopter in June and tossed grenades over official buildings took another violent turn as government forces said they had engaged in a bloody shootout with him and supporters at their rural hideout.

Venezuelans watched on Monday as Oscar Perez posted videos online of the fighting between special-forces soldiers and his group of civilians and former military personnel.

“Venezuela, they’re killing us!” Mr. Perez said in a video amid gunfire as blood streamed down the side of his face. His fate wasn’t known Monday evening. He has been calling for rebellion against President Nicolás Maduro’s autocratic rule.

La inhumana indiferencia del venezolano ante la ejecución de Óscar Pérez

UPDATE
CONFIRMED

After hours without revealing what Oscar Pérez’s fate was, Justice Minister Néstor Reverol gave a news conference on Tuesday.

In it he said that Mr Pérez was among seven “terrorists” killed in the siege.

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