Trump's attack on Venezuela leaves a power vacuum and a potentially huge price tag for the US, but lots of opportunities for Wall Street
Douglas Macgregor
January 3, 2026
Douglas Macgregor
January 3, 2026
The successful seizure and removal of President Nicolas Maduro from Venezuela demonstrates Washington’s readiness to use every means at its disposal — including military power — to stave off any diminishment of U.S. national influence in its bid to manage the dissolution of the celebrated postwar, liberal order.
For the moment, the rules-based order (meaning whatever rules Washington wants to impose) persists in the Western Hemisphere. As President Donald Trump noted, “We can do it again. Nobody can stop us. There’s nobody with the capability that we have.”
Put differently, “Team America” is back!
The question is what happens next? How will Washington consolidate its latest victory over Maduro and his regime? The plan seems murky if non-existent.
Presumably, Maduro will be tried and convicted in a U.S. court for drug-related crimes. Meanwhile Trump said Saturday that the U.S. will “take over” during the transition. Can Washington actually set up a new political order that will prevent Venezuela from sliding into civil war, or, more important, from hosting future drug-fueled violence?
President Trump said that opposition leader Maria Machado lacks the political strength to govern Venezuela. So who does that leave? Is there a CIA-preferred comprador for the job, or will Secretary of State Marco Rubio simply govern as an American Viceroy? In any case, can anyone — Venezuelan or American — govern the country without heavy reliance on U.S. Military power?
Meanwhile American firms and corporations are chomping at the bit to move into Venezuela to extract its oil. In addition to the world’s largest reserves (the oil infrastructure is decaying and it will take a long time to rebuild), Venezuela is massively endowed with gold and one of the largest iron ore deposits in the Western Hemisphere. To these must be added significant reserves of natural gas, bauxite, nickel and some rare earths. No doubt the exploitation of these mineral resources will be seen as vital if the current intervention is to avoid the usual catastrophic costs associated with military intervention.
Keep reading Douglas MacGregor on Responsible Statecraft.
For the moment, the rules-based order (meaning whatever rules Washington wants to impose) persists in the Western Hemisphere. As President Donald Trump noted, “We can do it again. Nobody can stop us. There’s nobody with the capability that we have.”
Put differently, “Team America” is back!
The question is what happens next? How will Washington consolidate its latest victory over Maduro and his regime? The plan seems murky if non-existent.
Presumably, Maduro will be tried and convicted in a U.S. court for drug-related crimes. Meanwhile Trump said Saturday that the U.S. will “take over” during the transition. Can Washington actually set up a new political order that will prevent Venezuela from sliding into civil war, or, more important, from hosting future drug-fueled violence?
President Trump said that opposition leader Maria Machado lacks the political strength to govern Venezuela. So who does that leave? Is there a CIA-preferred comprador for the job, or will Secretary of State Marco Rubio simply govern as an American Viceroy? In any case, can anyone — Venezuelan or American — govern the country without heavy reliance on U.S. Military power?
Meanwhile American firms and corporations are chomping at the bit to move into Venezuela to extract its oil. In addition to the world’s largest reserves (the oil infrastructure is decaying and it will take a long time to rebuild), Venezuela is massively endowed with gold and one of the largest iron ore deposits in the Western Hemisphere. To these must be added significant reserves of natural gas, bauxite, nickel and some rare earths. No doubt the exploitation of these mineral resources will be seen as vital if the current intervention is to avoid the usual catastrophic costs associated with military intervention.
Keep reading Douglas MacGregor on Responsible Statecraft.