News for hackers. Stuff that matters.

A comment on Venezuela devalues the bolivar by 95% and pegs it to ‘oil-linked’ cryptocurrency. Parent comment

Re:Venezuela devalues the bolivar by 95% and pegs it to ‘oil... by willyt on Monday August 20, 2018 @01:59PM (#17802184)
Ironically, considering all the anti socialist rants in the discussion so far, Norway's oil industry is state owned and the government has taken the profits and invested in creating one of the largest sovereign wealth funds and in a lot of national infrastructure.
[ Parent | on HN ]
Re:Venezuela devalues the bolivar by 95% and pegs it to ‘oil... by gpvos on Monday August 20, 2018 @03:03PM (#17802838)
Norway discovered its oil fairly late and has taken a good look at how other countries did it. For example, the Netherlands, another mostly non-corrupt country, squandered their gas revenues.
[ Parent | on HN ]
Re:Venezuela devalues the bolivar by 95% and pegs it to ‘oil... by wonthegame on Monday August 20, 2018 @04:28PM (#17803645)
So, the order matters. Chavez simply just took it and redistributed whereas Norways started as state owned?

Chavez took it because the oil execs were messing with the economy as a form of protest against taxes. A move that was highly controversial.

[ Parent | on HN ]
Re:Venezuela devalues the bolivar by 95% and pegs it to ‘oil... by atombender on Monday August 20, 2018 @09:20PM (#17805955)
The situation with PDVSA was more complicated than that [1].

As for Norway, to avoid the Dutch disease they made several crucial decisions [2] early on, one of them being to encourage the development of a healthy, competitive private oil/gas sector while still retaining the majority of revenue and oil fields. They also funneled the profits into the now-famous sovereign wealth fund.

[1] https://foreignpolicy.com/2018/07/16/how-venezuela-struck-it...

[2] https://www.ft.com/content/99680a04-92a0-11de-b63b-00144feab...

[ Parent | on HN ]