TL;DR: new regime in honduras is hostile to our dearest libertarian crypto bros, asserts sovereignty and tells them where to stick it.
A group of prominent international economists is applauding the recent move by Honduran President Xiomara Castro to push back against American crypto investors attempting to seize billions in public money from the Central American nation.
Background:
A group of libertarian investors teamed up with a former Honduran government — which was tied at the hip with narco-traffickers and came to power after a U.S.-backed military coup — in order to implement the world’s most radical libertarian policy, which turned over significant portions of the country to those investors through so-called special economic zones. The Honduran public, in a backlash, ousted the narco-backed regime, and the new government repealed the libertarian legislation. The crypto investors are now using the World Bank to force Honduras to honor the narco-government’s policies.
[ image of cryptobros making the face Wil E Coyote makes after running off a cliff ]
The crypto investors are now using the World Bank to force Honduras to honor the narco-government’s policies.
[Castro] has hit upon an elegant solution: She has taken steps to withdraw Honduras from ICSID. The crypto crowd is crying foul.
Among the dozens of signatories to the Progressive International praising Castro’s decision to exit the arbitration court are prominent South Korean economist Ha-Joon Chang; Chilean Gabriel Palma, of the “Palma Ratio of inequality”; American economist Jeffrey Sachs; former Greek Finance Minister Yanis Varoufakis; British economist Ann Pettifor; and Indian development economist Jayati Ghosh.
Predictably, the international community is going “LOL”
You may be asking, who’s winning in all of this?
In its case before the ICSID, Próspera retained a top lobbying firm, employing former Democratic lawmaker Kendrick Meek, to pressure Honduras to pay up.