Venezuela Stops Publishing Money Supply Data For Obvious Reasons

Tyler Durden's picture

More than a year after hyperinflating banana republic Venezuela stopped reporting official inflation data, Venezuela has stopped publishing money supply data, depriving the general public of the last, and best, available tool to ascertain soaring inflation in what has become the world's worst-performing economy. Then again, one hardly needs official data to confirm the blistering wave of hyperinflation sweeping through the nation which has seen the value of the bolivar disintegrate under the Maduro regime.

The money supply indicator suddenly stopped appearing on the central bank's website on Feb. 24. The data in question, which will no longer be updated, looked as follows most recently.

  

Despite the halt of CPI data, consumer price rises are widely seen to be in triple digits, driven by an unraveling socialist system in which many people struggle to obtain meals and medicines. The M2 money supply was up by nearly 180% in mid-February from a year earlier, according to the central bank before it halted the release of the weekly data without explanation last month Reuters reports. In contrast, Reuters reports that neighboring Colombia's M2 was up 7 percent in the same period and the United States' was up 6 percent.

 "If they are not publishing, you know it must be skyrocketing," Aurelio Concheso, director of the Caracas-based business consultancy Aspen Consulting, stated the obvious. The central bank and ministry of communications did not respond to a request for comment, Reuters adds.

An increase in M2, the sum of cash together with checking, savings and other deposits, means more currency is circulating. That can accelerate inflation when coupled with a decline in the output of goods and services - such as in Venezuela, which is in the fourth year of a recession. When money supply is growing exponentially, as it has been in Venezuela, academics usually point to the infamous example of the Weimar Republic and leave it at that.

Slowly but surely Venezuela has stopped publishing all economic data. In addition to money supply and CPI, the government ceased the dissemination of gross domestic product data more than a year ago. Before that, it put an end to the release of balance of payments figures and its consumer product scarcity index.

For those who are somehow unfamiliar, Venezuela's money supply, as measured by M2, has risen exponentially since Hugo Chavez, a devout socialist, came to power in 1999 and is a major factor behind what is thought to be the world's highest inflation. 

In the absence of official data - and highlighting Venezuela's conflict of powers - the opposition-run National Assembly is publishing its own inflation figure, which it said reached 741 percent in the year to February. Critics accuse the government of suppressing data in order to hide the magnitude of the economic mess and of stoking price rises by reckless money-printing and overspending.

Socialist Nicolas Maduro, elected president after Chavez's 2013 death, has long blamed Venezuela's difficulties on an "economic war" being waged on the government by the opposition and U.S. government.

With no money supply figures available, the closest alternative is "excess bank reserves" data, a number which in the US has in recent years been around $2.5 trillion and which many expect will ultimately translate into runaway inflation once the hyperinflation in risk asset markets spills over into the broader economy. Still published by the Venezuela central bank, it represents the total funds that banks have available to make commercial loans though is no substitute for M2, say economists. The last year for which inflation data is available from the central bank is 2015, when consumer prices rose 181 percent.

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BigCumulusClouds's picture

"Socialist Nicolas Maduro, elected president after Chavez's 2013 death"

Correct me if I am wrong, but I dont believe Maduro was elected.  At least that is what my wife told me.

knukles's picture

We quit counting how many because we printed so many with so many zeros we couldn't count them
           "Sound money is the best money"
                        - Timmah of the G Spot

GUS100CORRINA's picture

KEYNESIAN MARXIST (Socialist in a hurry with a GUN) EXPERIMENT GONE WILD!!!!!

bigfire's picture

One man one vote, once.  They voted in 1998 for Chavez, what more do they need?

SumTing Wong's picture

I've got some of the old silver bolivars (usually the 5 bolivar coins, but some of the smaller ones too). I wonder why they kept inflation in check when they had to use silver to make the money, and now...

Hey, United States Federal Reserve, I'm looking at you also!

juggalo1's picture

Way to undermine your own argument.  Why is it that inflation in the US is a relatively benign 2-3% annually?  No one uses silver coins here.  Most people don't even use paper.

Uncle Sugar's picture

Reserve currency.  When that designation ends, and it will,  inflation will take off like a space-x rocket.

Lore's picture

Real inflation is like real unemployment or real GDP: "adjusted" and unrecognized.

I find it amusing how this writer repeatedly injects the little "socialism" barb at every opportunity. Monetary debasement is hardly a "socialist" phenomenon. It's a 'confidence' phenomenon. 

Venezuelan Hyperinflation (Martin Armstrong, 30-Nov-2016)

"The Venezuelean hyperinflation is the direct result of what happens when the general population loses all confidence in the government. ...The assumption it is the increase in money supply assumes people blindly just look at the quantity of money. It is the fact people ANTICIPATE the collapse and act accordingly, which then causes the government to increase the money supply."

Small wonder that USD protectionism has been the primary driver of foreign policy. America's breakdown is going to make Venezuela's seem trivial.

SILVERGEDDON's picture

"Only Congress shall have the power to mint currency or coin. "

Your " no one uses silver, most don't use paper " argument reminds me of something my mom used to say when confronted with the argument " that Jimmy and all the  other kids were doing it. " 

" So, if Jimmy and all the other kids were eating dog poop, would you be allowed to ? Answer is still no, it's bad for you. " 

Thanks, Mom. 

stacking12321's picture

hey, fool, if you can't think for yourself you'll never survive fight club.

inflation is 2-3%, because why, because the nice men at the governent told you so? check http://www.shadowstats.com/ for a number that's closer to the facts.

and using silver coins or not doesn't matter, if your wealth is stored in silver, it's preserved from being ravaged by counterfeiting (dollar-printing)

 

Nobodys Home's picture

There's Sum ting wong alright..(((Central Banks)))

Fake Trump's picture

Nothing left Nothing to publish.

xrxs's picture

They used up all the paper they needed to publish

AR15AU's picture

They stopped publishing M3... hahaha... what a banana republic... let me guess... "too expensive" to compute the number? That's what they all say!

TePikoElPozo's picture

i can barter 1 hundred trillion zimbabwe bank notes for about 3 federal reserve notes

those venezuela bank notes make shitty toilet paper

BigCumulusClouds's picture

Maduro could have stopped the inflation over night had he tied the currency to gold.  Instead he sold the Au that Chavez received from storage in NYC.  All it shows is that Maduro is an idiot or a sell out to his people.  The gold demand that Chavez made most likely cost him his life.  Other than the Presidents of Malasia, Russia, and Iran, Chavez also was the only foreign leader to say the 911 story was a lie.

BigCumulusClouds's picture

Correction: President Trump also said the 911 story was a lie.  Actually Trump went further and said the WTC buildings were blown up.

BritBob's picture

Venezuela appears for the first time as "not free" country report of Freedom House organization attributed the new category to "the combination of extreme economic mismanagement and heavy-handed Government" of President Nicolas Maduro.

Maduro is a keen supporter of Argentina's mythical Malvinas claim even speaking at regional conference on behalf of Argentina (CELAC).

How can Argentina claim the Falklands when she has never legally owned them?

Falklands- Never Belonged to Argentina:

https://www.academia.edu/31111843/Falklands_Never_Belonged_to_Argentina

 

Still, why let a good old socialist distraction get in the way of the truth.

stacking12321's picture

how can the UK claim the islas malvinas, either?

whom did the UK lawfully purchase the islands from, to gain such a title?

if no one, then their claim to the islands is entirely made-up, it's fictional, based on having guns - we have guns and therefore these islands are ours, because we say so!

this is what all governments do, including the UK, they steal, bully, and defraud.

carbonmutant's picture

"The only business that's booming in the barrios is crime. With close to 4,000 murders a year Caracas is getting a reputation as the most dangerous city in Latin America."
http://www.abc.net.au/news/2017-03-21/venezuela-undercover-a-nation-on-t...

soulcalibur's picture

Coming soon to country near you!

GlassHouse101's picture

Won't it be interesting when the USD supply around the world comes back home to roost?

nsurf9's picture

They just need better computers to count all those zeros because its stock market is at all-time highs and on fire for years - just like ours!

http://www.tradingeconomics.com/venezuela/stock-market

Jason T's picture

marxists.

I don't have pity.  

You reap what you sow.

E. Phil Chew's picture

Maduro & Co. stopped publishing the data because there isn't a plotter-printer made that's big enough or can hold enough ink and also rolls of paper not long enough to print one chart.

therover's picture

You can always print it on one chart...just condense the scale !

Fit to page bitchez !

venturen's picture

if only they had rescued the bankers then all would be well

Boris Gudonov's picture

Printing money is the favored way for governments to steal from the citizens.  Liberals love it and think it's a great idea.  Conservatives don't stop it.

 

RedDwarf's picture

I have some Zimbabwe 100 trillion notes.  Time coming soon when I'll need some Venezuelan money to my 'inflationary madness' fun stash.

Nobodys Home's picture

I find it amusing that when you buy those, somebody is profiting by selling failed fiat currency.

RedDwarf's picture

They're no longer fiat at that point, they're kitsch.

Bam_Man's picture

They ran out of commas and zeros.

Bam_Man's picture

They need to get Ben Shalom down there ASAP.

He could stop the hyper-inflation in 15 minutes.

omi's picture

USA stopped publishing M3 money supply, which is what's driving purchasing of assets a while ago, what's your point?

cheech_wizard's picture

Hey, where's another Steve Hanke article telling us all how "it's not that bad" in Venezuela?

Standard Disclaimer: Until recently, that is... http://www.zerohedge.com/news/2017-01-16/world%E2%80%99s-most-%E2%80%93-...

francis scott falseflag's picture

 

Bernanke stopped publishing in M3 in 2006, over two years before the panic.

 

God, the American criminals are good.  How did he know?

SAE6065's picture

We here in Murica are mostly Debt Slaves. The Fiat paper we use isn't worth the paper it was printed on. Murica, The Land of the UNFREE, and Home to the SLAVE.

Last of the Middle Class's picture

Umm because takes a wheel barrow to carry enough money to purchase a banana? that would be my guess

Sledge-hammer's picture
Sledge-hammer (not verified) Mar 21, 2017 4:42 PM

Hahahahaha!  The dumb-a**es are not publishing anything, because they can not afford to buy the paper.

latasurf6's picture

But in the US they publish the truth about the situation in the country where you idiots live right??

latasurf6's picture

Durden stop your idiosity and concentrate on your broken country!!

TrustbutVerify's picture

"Democrats" (really nothing more than socialists) take note of the above information.

Village-idiot's picture

So, what number comes after "quadrillion"?