Venezuelan bubble about to burst

The government plans to introduce a new currency in 2008, but this will do nothing to alter the economic fundamentals, which are eroding steadily.

Venezuela’s boom will fade as oil prices ease down toward the $50 range. Were oil prices to fall below $50 for any length of time, the tenuousness of the country’s situation would become obvious.

Reinforcing this is the fact that oil production rates are falling due to declining investment in the sector’s infrastructure.
London Free Press