After Greece defaulted on its obligations in 2009, investors began to look at which European country was next. However, the next country that could face an economic crisis is Venezuela. Although Venezuela is one of the top oil producers, President Chavez's ravaging spending and misguided policies are crippling the the economy. Chavez cut petroleum output, its main export, from 3.3 million barrels per day in 1998 to 2.25 million barrels a day. A large percent of it is subsidized for national spending, leaving only a fraction left to export at full price. Moreover, a substantial amount of money has been borrow from China, which Venezuela is repaying in the form of oil shipments, cutting revenues even further. The president has also establish hostile policies towards businesses that have caused owners and investors to flee. This poor business decisions are placing financial pressure on the country and although the situation looks bad for Venezuela, there is a chance that the country will not go bankrupt. There is mention that President Chavez has a number of reserves stored in the Central Bank and in an unaudited fund. These assets along with the high oil prices will Venezuela from going into bankruptcy in the near future.
-Gilberto Perez
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