While the US Federal Reserve remains puzzled as to why US inflation is so low, President Nicholas Maduro and his Socialist compadres has managed to lower Venezuela’s annual inflation rate from a crippling 1,823% on August 4, 2017 to “only” 1,195% as of August 15, 2017.
Meanwhile, Venezuela’s 2 year sovereign yield has jumped from around 8.5% when Maduro was first “elected” in April 2014 to almost 70% today.
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And Venezuela’s sovereign yield curve has totally flipped from upward sloping when Maduro was first elected (up to 10 years, then downward sloping) to steeply downward sloping today.
Here is Maduro dancing over the reduction in annual inflation.
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