One futurist in the United States is very closely watching Venezuela make mistakes and predicts the complete collapse and economic implosion of the Communist Nation State of Venezuela. But how could that happen, as Venezuela is rich in oil you ask? Well easily really, you see Venezuela has a state run oil company, which is highly inefficient and their production is down by nearly 50% and Hugo Chavez is not minding the store but rather jet setting around the World talking to third world dictators.
What else has happened? Well the Venezuela Government has promised more than it can give in support to local trading partners, while upsetting the United States of America. They have also over promised what they can deliver to the Venezuelan people and soon they will not have the money to pay for it. Oil prices also have come down and if they remain under $50 a barrel Venezuela’s oil will not be worth enough on the open market to fund all their ambitions.
Additionally, there are other people in the Venezuelan government who are pretty high up, which are just waiting for Hugo Chávez to make a big mistake and they will take over. During the change management crisis and the economy failures Venezuela may be in a situation that they cannot get out of. As things come together and the future presses on Venezuela and their relationship with Iran will also severely hurt them and this is why the futurist, me, believes that Venezuela’s economy will implode.