The US's Bold Move in Venezuela: What It Means for the World

The recent US operation in Venezuela has sent shockwaves through the global stage, and not everyone is taking it lightly. Michael Burry, known for his successful bet against the housing market, has been vocal about the long-term impacts of this event. He believes the markets are underestimating the significance of the US capturing Venezuela's president and taking control of the country's oil resources. Burry points out that this move is a clear message to China, which has invested heavily in Venezuela through its Belt and Road Initiative. With Venezuela's oil now in US hands, China's loans collateralized by future oil output are at risk. This could change the dynamics of global power and influence.The investor also suggests that China might see this as a lesson on how to handle Taiwan, but he's not sure if they'll be impressed or intimidated by the US's bold move. He warns that Chinese stocks, like Alibaba and Baidu, could face volatility if China escalates tensions in the South China Sea or targets Taiwan. Burry also thinks Russia's president might be surprised by how quickly the US achieved what Russia has been struggling to do in Ukraine. He believes that US access to Venezuelan oil could reduce Russia's influence and income in the long run. For Canada and Mexico, this could mean losing some leverage in trade with the US. If American refineries start using more Venezuelan oil, it could change the dynamics of North American energy trade. Burry is optimistic about US oil-service companies like Halliburton, Schlumberger, and Baker Hughes. He thinks they could benefit from the task of fixing and modernizing Venezuela's oil infrastructure.