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I won't pretend to know the details of Venezuela but this doesn't necessarily follow. What they've done is default on a bond payment. That doesn't mean that th
by lucozade 9y ago
I won't pretend to know the details of Venezuela but this doesn't necessarily follow.
What they've done is default on a bond payment. That doesn't mean that they have no money. The article has a graphic that says they have $9bn in reserves (though no details).
What it does mean is that, of the money they do have, they chose not to meet a financial obligation. There will likely be repercussions of this move but defaulting and being broke are different things.
Now, of all the people you probably want to make sure are paid are your military. Not so much to stop invasions but because the words "military" and "coup" have gone together often enough in history.