Venezuela’s 1 YR CDS Hits 9,800 As M2 Money Grows At 384% YoY

Following Venezuela’s economic and monetary meltdown is like watching is like watching the burning train scene from the Tom Cruise flick “War of the Worlds.” Except that Venezuela’s horrors are a reality, not a contrived HG Wells disaster.

The IMF has already warned that Venezuela that is expected to undergo a double dip recession, a 12.5% decline in GDP.

And credit default swaps for 1 year hit 9,800. For comparison, chronic problem nation Greece only has a 1 year CDS of 504.

And their CDS curve AND sovereign yield curve are deeply inverted.

While the US is expanding M2 money at 5.5% YoY,

Venezuela’s M2 money growth is up 384 percent in the last year. And 10% in one week!

And the black market exchange rate? Venezuela’s currency is now worth less than the currency in the game World of Warcraft.

What an unbelievable mess Maduro and his compadres have made.