Venezuela has become a totalitarian state and the economy is in recession, thus, the US has decided to put sanctions to punish the government of Nicolas Maduro. The US wants to cut the sources of money that Maduro has, it wants to weaken its totalitarian government. The Trump administration doesn't want the American banks to make transactions with a corrupt government. These measures ban dealings in debt and equity issued by the dictatorship of Maduro and the state oil company. Certain bonds and dividend payments will be affected too. The oil imports by the US will not be affected by the sanctions, oil is the main source of income for Venezuela.
Mike Pence, the US Vice President, has also sided with the people from Venezuela, he believes that the people from the South American country have the right to freedom. Maduro dislikes these measures and tries to get more power.
Venezuela has become a dictatorship
Maduro and the people loyal to him have created a National Assembly, thus, Venezuela has become a dictatorship. They have fought against the chief prosecutor, and attack the congress that is controlled by the opposition. Many mayors have been arrested or removed, this is a hard time for the democracy in Venezuela. Maduro wants to control all the political power, there is no tolerance in Venezuela these days.
An economic disaster
Venezuela was a leading country in South America in the past, it has huge oil reserves.
The dictatorship has destroyed the local economy, it has fallen 35 percent since 2014. The people have impoverished a lot, this crisis is worse than the Great Recession that the United States had a long time ago. Another important factor is that Venezuela depends too much on oil and the production has fallen to very low levels.
There is a scarcity of products and the inflation rate already has three digits. The poverty rate has increased exponentially, the Socialist economic policy that Maduro has implemented isn't working at all.
An invasion is a speculation, the sanctions are a reality
Maduro states that the goal of the Trump government is destroying the economy of the country and then, invade Venezuela.
He also promised to protect the local population from the sanctions. Mike Pence talked with many opposition exiles in Miami about economic sanctions a short time ago, and they have become a reality today. There is a risk that Venezuela won't be able to pay its foreign debt.
