Venezuela Surpasses Weimar As Hyperinflation Expected To Hit 1,000,000% By Year End

Some readers may recall this headline from January 2018 "IMF Projects Venezuela Inflation Will Soar to 13,000 Percent in 2018."

This, it turns out was just a little bit off, because as we reported only two weeks ago, Venezuela's annualized inflation hit an annualized rate of 482,153%, with food prices soaring 183% in just one month.

Fast forward to today, when it's time for another "slight revision" because according to the latest IMF forecast released today, Venezuela’s hyperinflation by the end of the year will hit, drumroll, 1,000,000% as the government continues to simply print money to in hopes of filling the void of what was once the country's economy. Putting that number in perspective, the IMF believes that Venezuela inflation hit only 2,400% in 2017, according to a report published Thursday by Alejandro Werner, head of the IMF’s Western Hemisphere department.

The revised forecast means that as of right now, Venezuela's hyperinflation has officially surpassed the Weimar Republic's, where the highest recorded monthly inflation was a timid 29,500% (resulting in prices doubling ever 3.7 days).

In addition to record-breaking hyperinflation, the IMF also expects the Venezuelan economy to contract 15% this year, leading to a cumulative GDP decline since 2013 of 50%.

Venezuela's collapse, while contained, is so profound it is now holding back the rebound of the entire region: while Latin America is expected to grow 1.9% this year, the number would be 2.5% without Venezuela according to Bloomberg.

The good news is that the strong US economic growth, largely the result of a fiscal stimulus sugar high, is providing a solid backdrop to the rest of the continent: "Recent trends in the world economy and financial markets are good news for Latin America,” Werner wrote. “Global growth and trade are on an upswing, and we expect the momentum to continue in 2018. Stronger commodity prices have also helped the region rebound."

The IMF spared any commentary or warning that Venezuela should serve as a cautionary tale to any government that refuses to live within its means.

Comments

peterk American Psycho Tue, 07/24/2018 - 01:58 Permalink

strangely enough, i find it difficult to not support socialism when the alternative is the corrupted "corporatism" model  we have today that masquarades as capitalism.

In socialism, the people bankrupt the nation.

In Corporatism, the elite + companies bankrupt the system.... look at the USA.

 

Atleast in socialism, the people enjoy  something, however temporary.

Oh, and before you tout the USA as a successfull "corporatism" model, understand that its prosperity is only

due to  its world Reserve Dollar  status. Even the USSR could have been a success  and be here today if it to

had a reserve currency status.

Pure capitalism does  not exist today, but  although people are quick to point out socialism,  hardly anyone

points out "CORPORATISM". The MIC is a classic case, bankrupting the USA.

In reply to by American Psycho

Kokito American Psycho Tue, 07/24/2018 - 09:45 Permalink

Tyler Durden forgot to mention that ever since the Venezuelan socialist president Hugo Chávez took office in 1999, the US has been conducting an economic, media, psychological, coup and terrorist war against Venezuela.

In May 2007, Chavez broke ties with the IMF & the WB & ever since the IMF & the WB have been trying to create the condition in Venezuela to reestablish the neoliberal and criminal capitalist hegemonic project on the Venezuelan people with the help of its neoliberal allies in Latin America. Some similar to what happen in Chile, led by Augusto Pinochet, in 1973.

In 2015, Obama declared that Venezuela is a threat to national security, a first step to start a program of sanctions and economic blockades from US to Venezuela (soft war) that continues with Trump with the help of the international banking, the financial cartel, the EU & the right-wing criminal & terrorist opposition the that are doing their best to block the importation of food, industrial products & needed medical supplies.

Tyler Durden forgot to mention that the hyperinflation is also caused by shortage of bills is due to the ongoing financial war against Venezuela & controlled by several transnational organized crime networks. This criminal network has two objectives "the first, extraction and theft of the monetary cone; and the second, imposition of criminal rates of the speculative dollar".

You have to aask yourself why with all the ZeroShit & Bloomberg hired guns misinformation war against the Bolivarian revolution, the majority of the Venezuelan people stills supports overwhelmingly the government of Maduro & has reelected him to another 6 years presidential term?

And Tyler Durden (who ever you are), you are dumb Mother Fucker & a stupid shit. Go fuck yourself.

In reply to by American Psycho

Miffed Microbi… are we there yet Mon, 07/23/2018 - 22:29 Permalink

Actually it just a slower swirl into the inevitable trash heap. I recently had the pleasure of diagnosing a homeless woman with GC, chlamydia,syphilis, hep C and TB. Dead at 28. Used to see one of these every couple of years. Had two last month. This country is on the path to a 3rd world shithole and those of us watching this are aghast how bad it has become. 

 

Miffed 

 

 

In reply to by are we there yet

nmewn Hulk Mon, 07/23/2018 - 21:57 Permalink

Hey, after the socilaist utopians have lost 99.9% there's still that 100% of that to go!

I swear, it's sad. I could sever the heads of the wicked as easily as care for the torn & helpless but I can truly say, I don't know which I would enjoy doing more ;-)

In reply to by Hulk