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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.