Petro Coin: The Global Implications of Venezuela's National Cryptocurrency Backed by Crude Oil.

Disclaimer: I do not side with any of the political leaders talked about in this article. This is a non-biased look at the factual scientific data, leaked documents, and national strategies surrounding US history and Venezuela's current economic condition. I do not side with Venezuela, President Maduro, or with the US and Trump administration. This is strictly for the spread of knowledge.

Venezuela is amidst an economic crisis due to US sanctions that caused the collapse of the country's currency the Bolivar. Currently, in 2018, the currency has inflated more than 4,000% sending much of the population into poverty. People are starving and dying in the streets and everyone blames one man, President Nicolas Maduro. Many news organizations in the US and in Venezuela condemn him as a Dictator, a ruthless murderer and so on. But as many of us know, the news is controlled by the biggest corporations in the world and they only want you to know something if it benefits them. Maduro has launched a cryptocurrency called the Petro Coin to bypass US sanctions. As history shows, every currency that challenges the US "Petro Dollar" has resulted in a great calamity.

So why is Venezuela really in the condition it is?

As explained by Journalist Glenn Greenwald

"In essence, Venezuela is one of the very few countries with significant oil reserves which does not submit to U.S. dictates, and this simply cannot be permitted (such countries are always at the top of the U.S. government and media list of Countries To Be Demonized). Beyond that, the popularity of Chavez and the relative improvement of Venezuela’s poor under his redistributionist policies petrifies neoliberal institutions for its ability to serve as an example; just as the Cuban economy was choked by decades of U.S. sanctions and then held up by the U.S. as a failure of Communism, subverting the Venezuelan economy is crucial to destroying this success."

Section 1: Economic Warfare.

Definition: An economic strategy based on the use of measures (e.g. blockade) of which the primary effect is to weaken the economy of another state"

In, 2014 the Venezuelan Bolivar had an inflation rate of 57.31%. On March 9, 2015, the US launched its first sanction against Venezuela, named Executive Order 13692, “Blocking Property and Suspending Entry of Certain Persons Contributing to the Situation in Venezuela”. By 2016 the inflation rate skyrocketed to 254.39%. On August 24, 2017, President Trump issued E.O. 13808 “Imposing Additional Sanctions with Respect to the Situation in Venezuela.” Now in 2018, the Bolivar has depreciated so much in value that it is now virtually worthless.

So what is an economic sanction?

Definition: Commercial and financial penalties applied by one or more countries against a targeted country, group, or individual. Economic sanctions may include various forms of trade barriers, tariffs, and restrictions on financial transactions. Regime change is the most frequent foreign policy objective of economic sanctions.

So now we have set the stage. Venezuela a country who has been fighting against US globalization has been hit with sanctions, constricting the economy. President Maduro's fight to rid Venezuela of multinational corporations that pursuit Venezuela's vast resources for themselves has been costly.

The Multinational corporations that control the news sources have turned the world against him, even the people of his own country. There is vast misinformation being spread in the media. And the political opposition against Maduro is in the pocket of multinational corporations similar to how we have the lobbyist in US politics.

So what is Maduro's Plan to stop the suffering of its people amidst their fight for financial independence? Maduro decision is to launch a national cryptocurrency called the Petro Coin, backed by Venezuelan oil reserves.

This coin challenges the dollar or "PetroDollar" and can be the start of a global conflict.

Section 2: History of currencies challenging the petrodollar.

During the Vietnam War, the US racked up a huge debt. Countries like Britain and France started selling dollars and reclaiming their gold from the US treasury. The US did not have enough gold in its vaults to pay everyone out. President Nixon made an executive order to halt the conversion of the dollar to gold in an event called the Nixon Schock. Since then the Bretton Woods gold standard collapsed and the US dollar has been termed a Fiat Currency or a currency backed by nothing.

Ok, since the US dollar is not backed by anything anymore, what gives the US dollar it's value?

As stated by Investopedia's Author Zaw Thiha Tun

"After the Nixon shock, the US struck a deal with Saudi Arabia to standardize oil prices in dollar terms. This elevated the US dollar to become the world's reserve currency. The petrodollar system also provides the United States’ financial markets with a source of liquidity and foreign capital inflows through petrodollar "recycling." With this status, the U.S. dollar was able to enjoy, what some have asserted to be an "exorbitant privilege" of perpetually financing its current account deficit by issuing dollar-denominated assets at very low rates of interest, as well as, becoming a global economic hegemony."

This is an important position for the US and its investors. If the Petrodollar was to lose this position, the price of the dollar would collapse as it is not backed by anything.

Any country that has tried to go around using the PETRODOLLAR has been invaded and their leader assassinated, as this would cause record losses to the US economy.

In 2000, Saddam Hussain president of Iraq was amidst economic sanctions that prevented oil exports. As the economy collapsed and the people suffered and died of hunger, Saddam did what he believed would be the best thing for his people. He declared that Iraq would start trading oil exclusively in the EURO which would allow the trade oil while evading US sanctions. The United States could not allow this and by September 2001 the US launched a black flag operation against its own people to gather support for the invasion of Iraq (details of this type of operations have been declassified as "Operation Northwoods", evidence supporting this include Harrit, Niels H., et al. "Altruistic World Online Library." Open Chemical Physics Journal 2 (2009): 7-31. Jones, Steven E. "Revisiting 9/11/2001--Applying the Scientific Method." Journal of 9/11 Studies 11 (2007): 55-82. ).

By 2006, Iraq had been invaded, the government had been reformed by the US, and Saddam Hussain was murdered. The world celebrated as he died because of how the media demonized him and turned him into a terrorist.

The next country to stand up to the US Petrodollar has been Syria. In 2011 Prime minister of Syria Muammar Gaddafi announced that it was creating a new gold backed currency called the Dinar. Gadaffi announced that the Dinar would replace the dollar for all oil conversions exclusively. Within 6 months Syria was destroyed by war and Gadaffi was assassinated. Emails leaked from Hilary Clinton Revealed that NATO killed Gadaffi to stop the creation of the Gold-Backed Dinar (Ahmed, Mughees, Zainab Murtaza, and Tanzila Shahzadi. "Libyan Gold Dinar Plan And Us-Nato Retort." The Government-Annual Research Journal of Political Science. 6.6 (2018).)(Davidson, Christopher M. "Why Was Muammar Qadhafi Really Removed?." Middle East Policy 24.4 (2017): 91-116.)(Shubin, Vladimir. "2011: Africa, Libya, NATO and the R2P as projection of power." Journal of African Union Studies 2.3_4 (2013): 137-163.)

Section 3: The Petro Coin

The Petro Coin is an oil-backed cryptocurrency that will be launched on a blockchain. Its ICO token has already been launched on the NEM blockchain as a token smart contract. Once a coin is launched on a blockchain, no one can stop the coin from living on. What Maduro has done is actually a very effective way of bypassing US sanctions and economic warfare, but it will come at a great cost because of the impact it will have on the US economy. If the Petro Coin is accepted worldwide for the exchange of petroleum, the price of the US dollar will collapse. Even if the US invades Venezuela and assassinates Maduro they will be unable to stop a blockchain as it is powered by independent computers around the world.

The Petro coin will now allow Venezuelan's to purchase the resources they need from the international market without the restrictions placed by the US. This will allow the people of Venezuela to buy the things they need with a currency that is not subject to inflation due to printing and economic warfare.

[Source: Banksy Bitcoin graffiti spotted in Paris: R.I.P. Fiat]

Section 4: What is left to come?

Since February 20 we have seen the US preparing entry into Venezuela. The US military has been mobilizing into Colombia. The media has been calling conditions in Venezuela a humanitarian crisis that requires intervention. This is all adding up to an invasion of Venezuela using Colombia as an entry point. People will support this movement due to media propaganda that will depict the Venezuelan president and government and corrupt and ruthless dictators that are killing their own people. I predict a black flag event with chemical weapons or some type of Civil Right violations that allow the US government to intervene while also looking like the good guys. This might spark a global conflict with China, Russia, and North Korea as they have been dumping the US dollar for the past two years, and have publicly stated that they will back the Petro Coin.

If the US does not intervene then the only possible outcome is the collapse of the US dollar and its economy. Once the US dollar is not viewed as the world reserve currency, it's value will not be pinned the trade of oil. This will cause massive inflation to the dollar and an economic depression like we have never seen in the United States.