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> The value of the foreign assets seized by Venezuela far exceeds the value of Venezuelan foreign holdings seized in response. This sounds wrong. Do you have a

> The value of the foreign assets seized by Venezuela far exceeds the value of Venezuelan foreign holdings seized in response. This sounds wrong. Do you have a source?

rsj_hn 5y ago
Why does it sound wrong? Just off the top of my head (not an exhaustive list), Venezuela was ordered to pay $1.6 Billion to compensate Exxon in 2007[1] (and that doesn't include Conoco-Phillips or other oil and gas companies). Of course that payment was never made, as Venezuela paid only $255 million. But that's just one case. Solely in Oil and Gas, Venezuela nationalized $30 Billion worth of investment in 2007, and paid out only $1 Billion.[3] You can read more in this 2012 summary[3] Of course there were many more nationalizations after 2012, e.g. the GM plant they seized in 2017[4]. You can do your own googling for more fun about everthing from DishTV to telecom equipment, gold mines, etc. Venezuela seized virtually all foreign investment in the country. They owe the international community a huge debt. The diversion of those 4 tanker ships and freezing a couple hundred million is just the first of many, many payments that Venezuela needs to make. See also https://tennesseestar.com/2020/01/14/eight-industries-venezuela-nationalized-besides-oil/ https://tennesseestar.com/2020/01/14/eight-industries-venezu... [1] https://www.reuters.com/article/us-venezuela-exxon/venezuela-ordered-to-pay-exxon-1-6-billion-for-nationalization-idUSKCN0HY20720141010 https://www.reuters.com/article/us-venezuela-exxon/venezuela... [2] https://www.reuters.com/article/us-venezuela-exxonmobil-idUSTRE8010MC20120102 https://www.reuters.com/article/us-venezuela-exxonmobil-idUS... [3] https://www.reuters.com/article/us-venezuela-election-nationalizations/factbox-venezuelas-nationalizations-under-chavez-idUSBRE89701X20121008 https://www.reuters.com/article/us-venezuela-election-nation... [4] https://money.cnn.com/2017/04/20/news/gm-venezuela-plant-seized/index.html https://money.cnn.com/2017/04/20/news/gm-venezuela-plant-sei...
- crate_barre 5y ago
  Why is Venezuela using the dollar? Why’s it trying to use Bitcoin now? I don’t think they have a clue what to do, might be the simplest explanation.
  - rsj_hn 5y ago
    The dollar holdings that were seized were used by Venezuela for purpose of purchasing imports and also funds squirreled away by various government officials. My assumption is that it was the latter that was the main motivation as the U.S. is trying to squeeze the government. This is similar to freezing assets of certain Russian officials. Venezuela has shifted to a semi-barter system sending oil to Cuba in exchange for doctors and military personnel/secret police who can fight the domestic rebels - even the enforcement of authoritarianism is being outsourced to more competent nations. Venezuela is a poster boy for technical incompetence - a warning lesson to any nation that thinks they can eliminate their professional and managerial classes while still remaining a functional society. This should serve as a warning sign to many (myself included) who think the PMC class is the heart of our current troubles. Cuba, on the other hand, still maintains technical expertise in several areas. They still have a functioning medical/biotech/military complex, at least when it comes to small arms and intelligence. They can still provide electricity, roads, schools, and they are not starving, either. Yet Cuba has been the subject of much greater boycotts than Venezuela, so it really does boil down to human capital and effective administration. Cuba still has some, but Venezuela no longer does. I think understanding this difference is very important.

> The value of the foreign assets seized by Venezuela far exceeds the value of Venezuelan foreign holdings seized in response. This sounds wrong. Do you have a source?

rsj_hn 5y ago

Why does it sound wrong? Just off the top of my head (not an exhaustive list), Venezuela was ordered to pay $1.6 Billion to compensate Exxon in 2007[1] (and that doesn't include Conoco-Phillips or other oil and gas companies). Of course that payment was never made, as Venezuela paid only $255 million. But that's just one case. Solely in Oil and Gas, Venezuela nationalized $30 Billion worth of investment in 2007, and paid out only $1 Billion.[3] You can read more in this 2012 summary[3] Of course there were many more nationalizations after 2012, e.g. the GM plant they seized in 2017[4]. You can do your own googling for more fun about everthing from DishTV to telecom equipment, gold mines, etc. Venezuela seized virtually all foreign investment in the country. They owe the international community a huge debt. The diversion of those 4 tanker ships and freezing a couple hundred million is just the first of many, many payments that Venezuela needs to make. See also https://tennesseestar.com/2020/01/14/eight-industries-venezuela-nationalized-besides-oil/ https://tennesseestar.com/2020/01/14/eight-industries-venezu... [1] https://www.reuters.com/article/us-venezuela-exxon/venezuela-ordered-to-pay-exxon-1-6-billion-for-nationalization-idUSKCN0HY20720141010 https://www.reuters.com/article/us-venezuela-exxon/venezuela... [2] https://www.reuters.com/article/us-venezuela-exxonmobil-idUSTRE8010MC20120102 https://www.reuters.com/article/us-venezuela-exxonmobil-idUS... [3] https://www.reuters.com/article/us-venezuela-election-nationalizations/factbox-venezuelas-nationalizations-under-chavez-idUSBRE89701X20121008 https://www.reuters.com/article/us-venezuela-election-nation... [4] https://money.cnn.com/2017/04/20/news/gm-venezuela-plant-seized/index.html https://money.cnn.com/2017/04/20/news/gm-venezuela-plant-sei...

crate_barre 5y ago
Why is Venezuela using the dollar? Why’s it trying to use Bitcoin now? I don’t think they have a clue what to do, might be the simplest explanation.
- rsj_hn 5y ago
  The dollar holdings that were seized were used by Venezuela for purpose of purchasing imports and also funds squirreled away by various government officials. My assumption is that it was the latter that was the main motivation as the U.S. is trying to squeeze the government. This is similar to freezing assets of certain Russian officials. Venezuela has shifted to a semi-barter system sending oil to Cuba in exchange for doctors and military personnel/secret police who can fight the domestic rebels - even the enforcement of authoritarianism is being outsourced to more competent nations. Venezuela is a poster boy for technical incompetence - a warning lesson to any nation that thinks they can eliminate their professional and managerial classes while still remaining a functional society. This should serve as a warning sign to many (myself included) who think the PMC class is the heart of our current troubles. Cuba, on the other hand, still maintains technical expertise in several areas. They still have a functioning medical/biotech/military complex, at least when it comes to small arms and intelligence. They can still provide electricity, roads, schools, and they are not starving, either. Yet Cuba has been the subject of much greater boycotts than Venezuela, so it really does boil down to human capital and effective administration. Cuba still has some, but Venezuela no longer does. I think understanding this difference is very important.