August 8, 2017

LATE-STAGE SOCIALISM: Venezuela inches closer to default.

Inches?

The country, which is engulfed in crisis, owes $251 million to bondholders on Monday.

The payment comes after a weekend in which the attorney general was kicked out of office, a controversial legislature took power, and the military thwarted an alleged attack by a small paramilitary group.

Experts anticipate that Venezuela will make the payment to bondholders. But it has other payments coming due in the near future and could fall short on those if the economy continues to tailspin and the United States hits it with heavy sanctions.

“This model is broken, and default is inevitable,” says Siobhan Morden, an expert in Latin American bonds at Nomura Holdings. Oil “sanctions will probably arrive sooner and force default sooner.”

Meanwhile, “Chávez loyalists hold firm amid chaos.”

It’s an easy prediction to make, that the Left will portray Maduro as they eventually portrayed Stalin — the brute who betrayed the revolution of his noble predecessor.

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