Cuba's Grid Collapse and US Economic Warfare: From Social Breakdown to Liquidity Crisis

Cuba's recurring power outages, compounded by a six-month U.S. oil embargo, signal an inevitable societal breakdown as its aging infrastructure buckles under pressure. According to Jorge Piñon (University of Texas), the backbone of the system—large thermoelectric plants—are outdated, dysfunctional, and critically under-resourced. With summer temperatures hitting 35°C and 80% humidity, public frustration peaks amid nationwide blackouts. Vicente de la O Levy (Energy Minister) emphasized the dire situation: "There is a total absence of fuel," leaving repair efforts stalled.

U.S. Policies and Artificial Weakening Strategy

■Following Donald Trump's January 3 abduction of Nicolás Maduro from Venezuela, Cuba has become a focal point for economic destabilization via energy blockades.

■Figures like Raúl Guillermo Rodríguez Castro face backlash for perceived elite detachment, symbolizing institutional decay within the Cuban government.

■Jeb Bush's attempt to link Cuba with Iranian Shahed drones underscores Washington's narrative-driven approach to regional containment.

Infrastructure Collapse and Economic Risks

■Foreign corporations like Sherritt have exited or restructured operations, accelerating industrial decline.

■72-hour blackouts cripple essential services, from water pumps to phone charging, pushing liquidity constraints into crisis territory.

■Critics like Michel Torres Corona highlight concerns over unelected figures assuming de facto governance roles amid systemic paralysis.

From a capital flows perspective, Cuba's systemic breakdown reflects broader Latin American liquidity vulnerabilities. U.S. sanctions directly influence investment decisions, particularly in energy infrastructure, where deterioration risks spiking external borrowing costs. This dynamic could disrupt global risk-on/off cycles, signaling heightened geopolitical-economic volatility.