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Venezuelan real salary has fallen 89.9% by March

Tuesday, February 14, 2017

U.S. should take preemptive action to avoid a collapse of the Venezuelan state

Venezuela is not in danger of becoming a failed state any moment, but it is going to become one if nothing changes. Even if oil prices go back up, it won’t be easy to get inflation in check, or to grow the economy back to where it was before. At best Venezuela experiences some unrest, at worst the state fails and a civil war unfolds. We are not ready for the worst case scenario. A failed Venezuela could send refugees into Columbia and Brazil, two countries that have their own problems to deal with without the added complication of refugees. Many of these refugees, potentially millions, could make their way to the U.S. More…

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