"Venezuela is potentially near falling off a cliff," Marczak added. "I think that, with incredibly low foreign exchange reserves, and oil owed to China, then you combine that with four-digit inflation and the humanitarian crisis, there is not much they can do."
Venezuela has acquired loans from Beijing in exchange for the promise of deeply discounted oil exports.
The Latin American country is dealing with a massive shortage of basic goods that's exacerbated by sky-high inflation. Last year, Venezuela's inflation rate reached a staggering 800 percent. On top of that, the International Monetary Fund forecast last July that inflation would reach 1,600 percent in 2017.
US crude since October 2014
Crude exports are insufficient to keep Venezuela solvent, as oil prices are still about 50 percent below their October 2014 levels. That said, U.S. crude has bounced by about 85 percent since last year.
Business activity in Venezuela has virtually collapsed, with many companies and skilled workers leaving the country, Marczak said. "This is a country that was an economic star in the region, and now we have a country with sub-Saharan conditions in our hemisphere."
Watch: What's happening in Venezuela?