I wonder if Venezuelan President Nicolas Maduro sits in his mansion singing “Don’t Cry For Me, Venezuela.” Perhaps Gordon Lightfoot’s “The Wreck of The Edmund Fitzgerald” is more appropriate given Maduro’s assinine management of the Venezuelan economy.
As Professor Steven Hanke of Johns Hopkins University has found, annual inflation in the once-thriving economy has reached 3,733%. The good news? At his last reading, it is down from 4,651%!
While Venezuelan inflation is “dropping,” their 2-year Sovereign yield has almost hit 200%!
The Venezuelan sovereign yield curve is inverted (or downward sloping) in the extreme.
Maduro just ignores Venezuela’s Parliament as he will likely do with his latest idea: issue an oil-backed cryptocurrency—the Petro.
Apparently, Maduro isn’t watching crypto-currency Ripple! Or has been watching and doesn’t care (which is likely the case).
Here is Maduro singing “The Wreck of The Venezuelan Economy.”