Life Without Water: Sweaty, Smelly, and Furious in Caracas (Inflation Is 55,000% Annually, Petroleos de Argentina CDS At >12,000, Cup Of Coffee = 1.4 MILLION Bolivars)

This is a syndicated repost courtesy of Confounded Interest . To view original, click here. Reposted with permission.

Not quite “Sleepless in Seattle.” More like “Cranky in Caracas.”

Bloomberg has a nice slice-of-life story about what it is like in the former flower of Latin America (with the largest crude oil deposits in the world).

A cup of coffee in Caracas? A measly 1.4 MILLION Bolivars!

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Annual inflation in Venezuela has declined to 55,000% from 65,000% in August. Probably measurement error.

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And Venezuela’s oil production has declined under Maduro’s “Reign of Error” while the US has cranked-up oil production.

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Venezuela’s sovereign yield curve (in US Dollars) today versus when President Nicholas Maduro took office. Quite a change!

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And Petroleos de Venezuela, their large government-owned oil company, has a credit default swap of … over 12,000 at 6 months.

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For comparison sake, Greece (the eternal problem child of Europe) has a far smaller CDS.

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I hope that isn’t a Rolex or Patek Philippe wrist watch. It wouldn’t send the right message for Cuban-style Socialism.

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