[ ] the relentless surge in the S&P500 continues not on the back of "solid fundamentals" as the straight to CNBC pundits will shout, but on even more hope for future growth, i.e. multiple expansion.
Incidentally this is something even Goldman admitted when it said that "the stellar return in the S&P 500 borrowed heavily from the future."
Incidentally, it was also Goldman who revealed that the entire nearly 30% surge in the S&P 500 in 2013 was due to, you guessed it: multiple expansion: "the S&P 500 has returned 22% YTD driven almost entirely by P/E multiple expansion rather than higher earnings."
The “disconnect” is most clearly expressed in the United States, where the Federal Reserve’s policy of pumping trillions of dollars into financial markets has seen stock market indexes reach record highs, while the underlying economy stagnates and reverses.
Last week, it was revealed that the US economy contracted almost 3 percent in the first quarter of 2014, but stock markets climbed even further in the belief that the on-going stagnation would lead to the provision of still more ultra-cheap money.
The BIS then took aim at the Fed’s policy of informing financial markets of its intentions.
[ ] the very policies being implemented, supposedly with the aim of preventing a financial crisis, may well be creating the conditions for one.
The largest natural gas producer on the planet, Gazprom, has signed agreements with some of their biggest customers to switch payments for natural gas from U.S. dollars to euros.
It is one of the largest companies in the entire world and it makes up 8 percent of Russian GDP all by itself. It holds 18 percent of the natural gas reserves of the entire planet, and it is also a very large oil producer.
Dyukov said nine of ten consumers had agreed to switch to euros.
Meanwhile, Russians have been pulling money out of U.S. banks at an unprecedented pace...
Deposits by Russians in US banks suddenly plunged from $21.6 billion to $8.4 billion. They yanked out 61% of their deposits in just one month!
This is why the original BRICS economies have exploded in just the past 12 months to now include up to 80 other nations ready to join their coalition, and provide that critical mass that will slingshot the Chinese Yuan into viability, and create an alternative to the dollar that the West isn't prepared to compete with.
Several economists have stated that 2014 is a critical year for both the dollar and the global monetary system, and that a currency reset is inevitable to expunge the over one quadrillian dollars worth of toxic assets and derivatives which are unsustainable, and that are leading the world towards a collapse far worse than the one in 2008.
The level of analytical discussions on the Russian Internet is perfectly described by the political scientist Simon Uralov:
"To consider that the Ukrainian crisis set off only the minds of the Kievan colleagues and turned them all into bloodthirsty hysterics is fundamentally mistaken. Among the Moscow colleagues there is also an incredible number of such."
The purpose of this material is to take a step back from the hysteria and coldly analyze the situation in Ukraine.
Forbes said different currency valuation methods have been tried for “more than 4,000 year,” and experience shows that having a gold standard is the way to go. He added a gold standard “done right” provides stability and value when it comes to money supply.
"We are discussing with China and our BRICS parters the establishment of a system of multilateral swaps that will allow to transfer resources to one or another country, if needed. A part of the currency reserves can be directed to [the new system]."
"I think the work on ruble-yuan swap line will finalized in the nearest future and the way for ruble-yuan settlement will be open. Moreover, we are not the only ones with such initiatives. We know about the statements made by Mr. Noyer, chairman of the Bank of France. As a retaliation for what Americans have done to BNP Paribas, he opined that the trade with China must be done in yuan or euro."
Another conspiracy "theory" becomes conspiracy "fact" as The FT reports "a cluster of central banking investors has become major players on world equity markets."
The report, to be published this week by the Official Monetary and Financial Institutions Forum (OMFIF), confirms $29.1tn in market investments, held by 400 public sector institutions in 162 countries, which "could potentially contribute to overheated asset prices.
Russia’s annexation of Crimea and ongoing intimidation of Ukraine appears to mean the end of a 25-year period whose hallmark was an effort to bring Russia into greater alignment with Euro-Atlantic goals and traditions.
Americans do need to understand the challenge they are facing from a Russia that no longer seems interested in what the West has been offering for the last 25 years: special status with NATO, a privileged relationship with the European Union, and partnership in international diplomatic endeavor.
“Where was an effective adjustment mechanism? Was the “exorbitant privilege” of the dollar as a reserve currency also a “dangerous temptation” to procrastinate – an impediment to timely policy adjustments, risking eventual breakdown?”