Venezuela On The Brink Of Default (Updated)

Matt O'Brien, The Independent: Venezuela on the brink of complete economic collapse

It's not easy to go bankrupt when you have the largest oil reserves in the world, but Venezuela has managed it

The only question now is whether Venezuela's government or economy will completely collapse first.

The key word there is "completely." Both are well into their death throes. Indeed, Venezuela's ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it's hard to see that getting any better for them any time soon — or ever.

Incumbents, after all, don't tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It's no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.

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More News On Venezuela's Economic Crisis

It could be too late to avoid catastrophe in Venezuela -- Ricardo Hausmann, Financial Times
Venezuela unofficial exchange rate weakens below 1,000 bolivars/dollar -- Reuters
Black-Market Bolivars Crash Past 1,000 Per Dollar in Venezuela -- Bloomberg
Inflation-Wrought Venezuela Orders Bank Notes by the Planeload -- WSJ
Oil-rich Venezuela is now importing U.S. oil -- CNN
Oreo stops tracking Venezuela sales over economic mess -- CNN
Venezuela Is So Fucked -- Hamilton Nolan, Gawker