USD is losing reserve currency status - COFER

U.S. dollar dropped to 58.8%, lowest on record, as shown in COFER.

 

IMF has plans to impose 10% tax on deposits

What happened to Cyprus, doesn't stay in Cyprus. We already warned everyone about this in this article. What they do to Cyprus, they will do to every European country. That was my statement.

And here we finally have it. The IMF is setting up plans to impose a 10% tax on the savings of citizens of European countries.

After citing their colleagues, IMF economists are throwing themselves into the water. "The tax rate needed to bring debt ratios (relative to GDP) to the level of the end of 2007 would require a tax of about 10% of all households with positive net savings." These calculations, we specify the IMF has been made to 15 countries in the euro zone. Let us recall that such arguments are intended merely suggestions to "theoretical" character. They are no less iconoclastic. But is it soft solutions leveraging outside of inflation, the most hypocritical of all?

 I wonder what will happen to the deposits of the European banks. If I had savings in the bank, I would take them out of the bank and store them at home or buy gold.

=> And yes, the bank deposits are falling.

Interconnectivity of Banks

I just love this figure that gives the interconnectivity of banks.

If J.P. Morgan (JPM) and Bank of America (BAC) fail, the entire system fails. That means that they will never fail, as the Federal Reserve will always protect them.

Figure 1: Interconnectivity of Banks