Cuba's Economy Collapses

Trump's de facto declaration of war on Venezuela (a naval blockade is undoubtedly war) has taken a toll on two economies, Venezuela and and Cuba.

The Wall Street journal accurately notes Communist-ruled Cuba was already suffering from food shortages, blackouts and exodus of people, and now faces loss of cheap oil from Nicolás Maduro.

Please consider Oil Blockade of Venezuela Pushes Cuba Toward Collapse

Cubans are going hungry, suffering from spreading disease and sleeping outdoors with no electricity to power fans through the sweltering nights. A quarter of the population has fled during the island's most prolonged economic crisis.

And it's about to get worse.

The U.S. is ratcheting up pressure on Havana's key benefactor, Venezuelan strongman Nicolás Maduro's regime, which has kept the Communist-ruled nation afloat with cheap oil. Now Venezuelan oil exports are at risk thanks to a partial blockade targeting sanctioned tankers—the kind that carry about 70% of the country's crude.

One tanker that the U.S. has already seized was en route with almost two million barrels of Venezuelan oil.

Venezuela has been vital for Cuba's economy since 1999, when then-President Hugo Chávez described the two countries as bound together "in a sea of happiness." Cuba deployed sports trainers, doctors and counterintelligence agents to Venezuela, the latter to root out traitors who might overthrow Chávez. Venezuela responded with 100,000 barrels of oil shipped to Cuba daily.

The heavily subsidized oil shipments have fallen to 30,000 barrels a day. Agents from Cuba's vaunted intelligence service remain in Venezuela, where they have worked to purge disloyal military officers and government officials, helping ensure Maduro remains ensconced in power.