Saturday, February 8, 2014

Brandon Smith: The Private Swindle of Private American Wealth Has Begun

Brandon Smith: The Private Swindle of Private American Wealth Has Begun
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This article was written by Brandon Smith and originally published at Alt-Market.comÂ

Brandon Smith is also an Associate Editor for Oath Keepers. The article is mirrored at Oath Keepers:
http://oathkeepers.org/oath/2014/02/05/the-final-swindle-of-private-american-wealth-has-begun/
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I began writing analysis on the macro-economic situation of the American financial structure back in 2006, and in the eight years since, I have seen an undeniably steady trend of fiscal decline.

I have never had any doubt that the U.S. economy as we know it was headed for total and catastrophic collapse, the only question was when, exactly, the final trigger event would occur. As I have pointed out in the past, economic implosion is a process. It grows over time, like the ice shelf on a mountain developing into a potential avalanche. It is easy to shrug off the danger because the visible destruction is not immediate, it is latent; but when the avalanche finally begins, it is far too late for most people to escape...

If you view the progressive financial breakdown in America as some kind of "comedy of errors" or a trial of unlucky coincidences, then there is not much I can do to educate you on the reasons behind the carnage. If, however, you understand that there is a deliberate motivation behind American collapse, then what I have to say here will not fall on biased ears.

The financial crash of 2008, the same crash which has been ongoing for years, is NOT an accident. It is a concerted and engineered crisis meant to position the U.S. for currency disintegration and the institution of a global basket currency controlled by an unaccountable supranational governing body like the International Monetary Fund (IMF). The American populace is being conditioned through economic fear to accept the institutionalization of global financial control and the loss of sovereignty.

Anyone skeptical of this conclusion is welcome to study my numerous past examinations on the issue of globalization; I don't have the time within this article to re-explain, and frankly, with so much information on deliberate dollar destruction available to the public today I've grown tired of anyone with a lack of awareness.

If you continue to believe that the Fed actually exists to "help" stabilize our economy or our currency, then you will never find the logic behind what they do. If you understand that the goal of the Fed and the globalists is to dismantle the dollar and the U.S. economic system to make way for something "new", then certain recent events and policy initiatives do start to make sense.

The year of 2014 has been looming as a serious concern for me since the final quarter of 2013, and you can read about those concerns and the evidence that supports them in my article Expect Devastating Global Economic Changes In 2014.

At the end of 2013 we saw at least three major events that could have sent America spiraling into total collapse. The first was the announcement of possible taper measures by the Fed, which have now begun. The second was the possible invasion of Syria which the Obama Administration is still desperate for despite successful efforts by the liberty movement to deny him public support for war. And, the third event was the last debt ceiling debate (or debt ceiling theater depending on how you look at it), which placed the U.S. squarely on the edge of fiscal default.

As we begin 2014, these same threatening issues remain (along with many others), only at greater levels and with more prominence. New developments reinforce my original position that this year will be remembered by historians as the year in which the final breakdown of the U.S. monetary dynamic was set in motion. Here are some of those developments explained...

Taper Of QE3

When I first suggested that a Fed taper was not only possible but probable months ago, I was met with a lot a bit of criticism from some in the alternative economic world. You can read my taper articles here  and here .

This was understandable. The Fed uses multiple stimulus outlets besides QE in order to manipulate U.S. markets. Artificially lowering interest rates is very much a form of stimulus in itself, for instance.

However, I think a dangerous blindness to threats beyond money printing has developed within our community of analysts and this must be remedied.  

People need to realize first that the Fed does NOT care about the continued health of our economy, and they may not care about presenting a facade of health for much longer either. Alternative analysts also need to come to grips with the reality that overt money printing is not the only method at the disposal of globalists when destroying the greenback. A debt default is just as likely to cause loss of world reserve status and devaluation - no printing press required. Blame goes to government and political gridlock while the banks slither away in the midst of the chaos.

The taper of QE3 is not a "head fake", it is very real, but there are many hidden motivations behind such cuts.

Currently, $20 billion has been trimmed from the $85 billion per month program, and we are already beginning to see what APPEAR to be market effects, including a flight from emerging market currencies from Argentina to Turkey. A couple of years ago investors viewed these markets as among the few places they could exploit to make a positive return, or in other words, one of the few places they could successfully gamble. The Fed taper, though, seems to be shifting the flow of capital away from emerging markets.

The mainstream argument is that stimulus was flowing into such markets, giving them liquidity support, and the taper is drying up that liquidity. Whether this is actually true is hard to say, given that without a full audit we have no idea how much fiat the Federal Reserve has actually created and how much of it they send out into foreign markets.

I stand more on the position that the Fed taper was actually begun in preparation for a slowdown in global markets that was already in progress. In fact, I believe central bankers have been well aware that a decline in every sector was coming, and are moving to insulate themselves.

Is it just a "coincidence" that the central bankers have initiated their taper of QE right when global manufacturing numbers begin to plummet?


Is it just "coincidence" the taper was started right when the Baltic Dry Index, a global indicator of shipping demand, has lost over 50% of its value in the past few weeks?


Is it just "coincidence" that the taper is running tandem with dismal retail sales growth reports from across the globe coming in from the final quarter of 2013?


And, is it just a "coincidence" that the Fed taper is a accelerating right as the next debt ceiling debate begins in March, and when reports are being released by the Congressional Budget Office that over 2 million jobs may be lost due to Obamacare?


No, I do not think any of this is coincidence.  Most if not all of these negative indicators needed months to generate, so they could not have been caused by the taper itself.  The only explanation beyond "coincidence" is that the Federal Reserve WANTED to launch the taper program and protect itself before these signals began to reach the public.

Look at it this way - The taper program distances the bankers from responsibility for crisis in our financial framework, at least in the eyes of the general public. If a market calamity takes place WHILE stimulus measures are still at full speed, this makes the banks look rather guilty, or at least incompetent. People would begin to question the validity of central bank methods, and they might even question the validity of the central bank's existence. The Fed is creating space between itself and the economy because they know that a trigger event is coming. They want to ensure that they are not blamed and that stimulus itself is not seen as ineffective, or seen as the cause.
We all know that the claims of recovery are utter nonsense. Beyond the numerous warning signs listed above, one need only look at true unemployment numbers, household wage decline, and record low personal savings of the average American. The taper is not in response to an improving economic environment. Rather, the taper is a signal for the next stage of collapse.

Stocks are beginning to plummet around the world and all mainstream pundits are pointing fingers at a reduction in stimulus which has very little to do with anything. What is the message they want us to digest? That we "can't live" without the aid and oversight of central banks.

The real reason stocks and other indicators are stumbling is because the effectiveness of stimulus manipulation has a shelf life, and that shelf life is over for the Federal Reserve. I suspect they will continue cutting QE every month for the next year as stocks decline.  Will the Fed restart QE?  If they do, it will probably not occur until after a substantial breakdown has ensued and the public is sufficiently shell-shocked.  The possibility also exists that the Fed will never return to stimulus measures (if debt default is the plan), and QE stimulus will eventually be replaced by IMF "aid". 

Government Controlled Investment


Last month, just as taper measures were being implemented, the White House launched an investment program called MyRA; a retirement IRA program in which middle class and low wage Americans can invest part of their paycheck in government bonds.

That's right, if you wanted to know where the money was going to come from to support U.S. debt if the Fed cuts QE, guess what, the money is going to come from YOU.

For a decade or so China was the primary buyer and crutch for U.S. debt spending. After the derivatives crash of 2008, the Federal Reserve became the largest purchaser of Treasury bonds. With the decline of foreign interest in long term U.S. debt, and the taper in full effect, it only makes sense that the government would seek out an alternative source of capital to continue the debt cycle. The MyRA program turns the general American public into a new cash stream, but there's more going on here than meets the eye...

I find it rather suspicious that a government-controlled retirement program is suddenly introduced just as the Fed has begun to taper, as stocks are beginning to fall, and as questions arise over the U.S. debt ceiling. I have three major concerns:

First, is it possible that like the Fed, the government is also aware that a crash in stocks is coming? And, are they offering the MyRA program as an easy outlet (or trap) for people to pour in what little savings they have as panic over declining equities accelerates?  Bonds do tend to look appetizing to uninformed investors during an equities rout.

Second, the program is currently voluntary, but what if the plan is to make it mandatory? Obama has already signed mandatory health insurance "taxation" into law, which is meant to steal a portion of every paycheck. Why not steal an even larger portion from every paycheck in order to support U.S. debt? It's for the "greater good," after all.

Third, is this a deliberate strategy to corral the last vestiges of private American wealth into the corner of U.S. bonds, so that this wealth can be confiscated or annihilated? What happens if there is indeed an eventual debt default, as I believe there will be? Will Americans be herded into bonds by a crisis in stocks only to have bonds implode as well? Will they be conned into bond investment out of a "patriotic duty" to save the nation from default? Or, will the government just take their money through legislative wrangling, as was done in Cyprus not long ago?

The Final Swindle

Again, the next debt ceiling debate is slated for the end of this month. If the government decides to kick the can down the road for another quarter, I believe this will be the last time. The most recent actions of the Fed and the government signal preparations for a stock implosion and ultimate debt calamity. Default would have immediate effects in foreign markets, but the appearance of U.S. stability could drag on for a time, giving the globalists ample opportunity to siphon every ounce of financial blood from the public.

It is difficult to say how the next year will play out, but one thing is certain; something very strange and ugly is afoot. The goal of the globalists is to engineer desperation. To create a catastrophe and then force the masses to beg for help. How many hands of "friendship" will be offered in the wake of a U.S. wealth and currency crisis? What offers for "aid" will come from the IMF? How much of our country and how many of our people will be collateralized to secure that aid? And, how many Americans will go along with the swindle because they were not prepared in advance?

copyright Brandon Smith 2014    





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43 Trillion dollar lawsuit awaits Obama White House and banks

43 Trillion dollar lawsuit awaits Obama White House and banks

Doc Vega
nowpublic.com
October 30, 2012

The wheels of justice grind slowly but they do grind after all.
Major players in the Obama White House have been targeted in a law suit by Spire Law Group who is responsible for recovering 43 trillion in laundered funds and racketeering  that has been linked to major banks, crony capitalists, and government officials. This scheme based in New York will be party to the biggest federal government lawsuit in history. The government will attempt to recover 43 trillion in taxpayer’s funds disbursed during the 2009 bailout that totaled 787 billion to supposedly save the US financial markets from a massive collapse while funding infrastructure projects though out the US such as roads and bridges that were badly in need of repairs, yet only 6% of the money was ever used for such purposes.
Corrupt bailout evidence never acted upon
As many such as Rush Limbaugh had charged, the massive bailouts used for AIG, General Motors, Chrysler Corporation, a number of banks, even broadcasting companies, was apparently disbursed for other clandestine purposes such as slush funds for Democrat election campaigns. Yet, that’s not all.
A slick operation that didn’t plan on getting caught
Plaintiffs have now identified a number of individuals who were running a racketeering enterprise linked to the following individuals, who participated in and profited from the illegally deposited money. Those named as defendants in the lawsuit are: Attorney General, Eric Holder, California Attorney General Kamala Harris, Jon Corzine, former New Jersey Governor, former Treasury Secretary Robert Rubin, current Treasury Secretary, Timothy Geithner, former chairman of the board for Citigroup, Vikram Pandit, who recently resigned under disgustingly unethical disclosures, Senior White House advisor, Valerie Jarret, former communications director for the White House, Anita Dunn, chief legal counsel for Obama re-election campaign, Robert Bauer, including bankers and other associated parties who participated in the violation of the laws.
This lawsuit alleges criminal violations of the Patriot Act, the policy of embargo against Iran and other foreign nations hostile toward the United States, as well as the RICO statute, which involves Racketeering Influence and Corrupt Organizations Act. There are additional federal and state laws also violated and represented under the record federal government lawsuit.
Seeking to recover trillions and stop foreclosures
In addition, on the behalf of home owners across the nation, and taxpayers in the state of New York, Spire Law Group has extended its mass tort action to District Court of Brooklyn, New York seeking to halt all foreclosures nationwide until such time as the amount of 43 trillion dollars is recovered from bankers and co-conspirators. Audits will be sought against the Federal Reserve and bail out programs by an independent receiver such as Neil Barofsky, former Inspector General of the TARP programs on the basis that none of the money that was ever advanced to the Treasury Department was ever paid back despite protestations to the Obama administration who has failed to prosecute any of the bankers responsible for the alleged violations for which the lawsuit has been detailed to identify. These same indicted bankers the Obama re-election campaign has been borrowing money from to finance its operations.
The theft and corruption goes international to our enemies
Furthermore, Plaintiffs have expanded their lawsuit to include racketeering, money laundering, and violations of the Iranian Embargo Act by national banks that are named as defendants in the lawsuit along with the names of their bankers.
Hiding the money didn’t work
The jurisdictions of well known offshore havens have been identified as sanctuaries used to launder trillions which located in Switzerland, Isle of Man, Luxembourg, Malaysia, Cypress, and entities considered adverse to the Sanctions and Embargo Act against Iran by the US government. Many of these offshore entities have already been served with summons to appear in court over the last 6 months.
Our federal government part of the scheme
With undeniable proof already in place that the Obama administration was publicly urging refinance through bankers named in the lawsuit while secretly ratifying the formation of shell companies violating the Patriot Act along with state and federal laws. The Spire Law Group lawsuit further establishes that major federally chartered US banks were laundering stolen taxpayers and home owner’s money in the amount of 43 trillion and laundering it through obscure offshore companies. Named in the lawsuit are Bank of America, Wells Fargo, JP Morgan Bank, One West Bank, Citibank, and Citigroup, along with others to name a few.
Why weren’t our agencies protecting the people?
The Spire Law Group is the only legal organization that has pursued prosecution of these bankers named in the lawsuit. Neither Eric Holder’s Department of Justice, the Federal Deposit and Insurance Corporation, the Securities and Exchange Commission, or nor any state’s Attorney General has bothered to chase these criminal bankers internationally to recover the 43 trillion, lawful damages, injunctive relief, or other legal damages stemming from these gross irregularities and violations! Not one US Government agency has attempted to act under the directives of its own charter and prosecute the guilty parties involved!
The Spire Law Group specializes in the litigation of such entities as banks, government officials, failed loan pools, and the very offshore entities that were in receipt of laundered money that the defendants named in the lawsuit have disbursed through them. A 47 year partner of the law firm James N. Fiedler, expressed his outrage over the fact that US government agencies tasked with protecting the interests of the American public did not even attempt to pursue their duty! The law firm has 250 years accumulated experience in this type of legal recovery and prosecution whose clients range from large corporations, wealthy individuals, to the public’s interest at large.
Stripping away the facade
When comments were solicited from the Attorney General offices of six US states, no response came from those agencies who should have been involved. This lawsuit represents the most massive scale of corruption, theft of public funds, laundering, racketeering, and failure of the government to pursue it’s duty to the citizens of America in history. It promises to unveil and divulge the corrupt inner workings of the federal government along with its malignant relationship with the banking industry, Wall Street, and government officials who have considered themselves cunningly beyond the law!
From the President on down the chain of command justice will be done accordingly.
This article was posted: Tuesday, October 30, 2012 at 11:55 am

http://www.infowars.com/43-trillion-dollar-lawsuit-awaits-obama-white-house-and-banks/

Worlds Largest Lawsuit – Filed Against A Breathtaking Array of Powerful People: $43 TRILLION Racketeering + Laundering Lawsuit

https://www.mediafire.com/?7yo11n7f3vj6bfa

FREE DOWNLOAD FEDERAL COMPLAINT FILING IN NEW YORK

Worlds Largest Lawsuit – Filed Against A Breathtaking Array of Powerful People: $43 TRILLION Racketeering + Laundering Lawsuit


This is interesting.
Worlds largest lawsuit – filed against a breathtaking array of powerful people.
Who files it? “Spire Law” – claiming “250 years experience”, and so on – 10 layers, etc.
Oct. 25, 2012, 2:09 p.m. EDT
Major Banks, Governmental Officials and Their Comrade Capitalists Targets of Spire Law Group, LLP’s Racketeering and Money Laundering Lawsuit Seeking Return of $43 Trillion to the United States Treasury
NEW YORK, Oct. 25, 2012 /PRNewswire via COMTEX/ — Spire Law Group, LLP’s national home owners’ lawsuit, pending in the venue where the “Banksters” control their $43 trillion racketeering scheme (New York) – known as the largest money laundering and racketeering lawsuit in United States History and identifying $43 trillion ($43,000,000,000,000.00) of laundered money by the “Banksters” and their U.S. racketeering partners and joint venturers – now pinpoints the identities of the key racketeering partners of the “Banksters” located in the highest offices of government and acting for their own self-interests.
In connection with the federal lawsuit now impending in the United States District Court in Brooklyn, New York (Case No. 12-cv-04269-JBW-RML) – involving, among other things, a request that the District Court enjoin all mortgage foreclosures by the Banksters nationwide, unless and until the entire $43 trillion is repaid to a court-appointed receiver – Plaintiffs now establish the location of the $43 trillion ($43,000,000,000,000.00) of laundered money in a racketeering enterprise participated in by the following individuals (without limitation): Attorney General Holder acting in his individual capacity, Assistant Attorney General Tony West, the brother in law of Defendant California Attorney General Kamala Harris(both acting in their individual capacities), Jon Corzine (former New Jersey Governor), Robert Rubin (former Treasury Secretary and Bankster),Timothy Geitner, Treasury Secretary (acting in his individual capacity), Vikram Pandit (recently resigned and disgraced Chairman of the Board of Citigroup), Valerie Jarrett (a Senior White House Advisor), Anita Dunn (a former “communications director” for the Obama Administration),Robert Bauer (husband of Anita Dunn and Chief Legal Counsel for the Obama Re-election Campaign), as well as the “Banksters” themselves, and their affiliates and conduitsThe lawsuit alleges serial violations of the United States Patriot Act, the Policy of Embargo Against Iran and Countries Hostile to the Foreign Policy of the United States, and the Racketeer Influenced and Corrupt Organizations Act (commonly known as the RICO statute) and other State and Federal laws.
In the District Court lawsuit, Spire Law Group, LLP — on behalf of home owner across the Country and New York taxpayers, as well as under other taxpayer recompense laws — has expanded its mass tort action into federal court in Brooklyn, New York, seeking to halt all foreclosures nationwide pending the return of the $43 trillion ($43,000,000,000.00) by the “Banksters” and their co-conspirators, seeking an audit of the Fed and audits of all the “bailout programs” by an independent receiver such as Neil Barofsky, former Inspector General of the TARP program who has stated that none of the TARP money and other “bailout money” advanced from the Treasury has ever been repaid despite protestations to the contrary by the Defendants as well as similar protestations by President Obama and the Obama Administration both publicly on national television and more privately to the United States Congress. Because the Obama Administration has failed to pursue any of the “Banksters” criminally, and indeed is actively borrowing monies for Mr. Obama’s campaign from these same “Banksters” to finance its political aspirations, the national group of plaintiff home owners has been forced to now expand its lawsuit to include racketeering, money laundering and intentional violations of the Iranian Nations Sanctions and Embargo Act by the national banks included among the “Bankster” Defendants.
The complaint – which has now been fully served on thousands of the “Banksters and their Co-Conspirators” – makes it irrefutable that the epicenter of this laundering and racketeering enterprise has been and continues to be Wall Street and continues to involve the very “Banksters” located there who have repeatedly asked in the past to be “bailed out” and to be “bailed out” in the future.

No, The United States Will Not Go Into A Debt Crisis, Not Now, Not Ever
(If you read the headline and thought “Well, yeah”–feel free to skip this post.)
If there’s one article of faith in Washington (and elsewhere), it’s the idea that the United States might get into a debt crisis if it doesn’t get its fiscal house in order.
This is not true.
The reason why it’s not true is because we live in a fiat currency system, where the United States government can create an infinite number of dollars at no cost to meet its obligations. A Treasury bill is a promise that the government will give you US dollars–something that the United States government can produce infinitely and at no cost.
That’s the reason why interest rates on United States debt have only gone down even as the debt has ballooned. That’s the reason why Great Britain has very low rates on its debt despite having very high debt-to-GDP. That’s the reason why Japan has an astounding debt-to-GDP ratio and still enjoys some of the lowest rates ever. Investors have bet for so long that there would be a run on Japanese debt and have ended up so ruined that in financial circles that trade is called “the Widowmaker”. (Here’s a more detailed analysis by my former colleague Joe Weisenthal at Business Insider.)
Well, what about Argentina? Argentina had to default on its debt because it had pegged its currency to the US dollar. It wasn’t sovereign with regard to its currency since it had to maintain its currency’s peg. It wasn’t Argentina’s debt that caused it to default, it was its currency peg.
What about Greece? Same thing. Greece hasn’t used its own currency for ten years. Of course it’s going bankrupt.
Does it seem that strange that governments can’t run out of money?
You don’t have to take my word for it. How about Alan Greenspan? He said (PDF): ”[A] government cannot become insolvent with respect to obligations in its own currency. A fiat money system, like the ones we have today, can produce such claims without limit.”


CNBC Exec’s Children Murdered After Reporting On $43 Trillion Lawsuit Against US Banks
Market Watch still runs story of $43 trillion lawsuit against US banks after CNBC erases their version following murder of CNBC executive’s children.
Spire Law Group, LLP’s national home owners’ lawsuit, pending in the venue where the “Banksters” control their $43 trillion racketeering scheme (New York) – known as the largest money laundering and racketeering lawsuit in United States History and identifying $43 trillion ($43,000,000,000,000.00) of laundered money by the “Banksters” and their U.S. racketeering partners and joint venturers – now pinpoints the identities of the key racketeering partners of the “Banksters” located in the highest offices of government and acting for their own self-interests.
—————————————————————————
Commentary by Mike Rivero (whatreallyhappened.com)
KEEPING THIS STORY AT THE TOP.
Please share with your friends.
This story about the lawsuit broke Thursday at CNBC.
Now following the original CNBC link takes you to a blank page, even though some of the comments on that original article remain (UPDATE: comments have been erased as well).
Here the story takes a dark turn!
It turns out that Kevin Krim, the father of the two children stabbed to death, allegedly by the Nanny, is SVP and General Manager, CNBC Digital!
And shortly after the murder of the children, CNBC pulled down the story regarding the lawsuit against the banks!
How long will the story remain at Marketwatch before it is “Orwellized?”
Are the children of the executives at Marketwatch even now in danger?
As a side note, the official story regarding the murders is that the nanny stabbed the children, then tried to slash her own throat.
Suicide by cutting ones own throat is extremely rare, less than one percent of all suicides, and is primarily committed by men with military experience.
Women committing suicide by slashing their own throat is almost unheard of!
While the corporate-owned media is proclaiming the “rush to judgement” guilt of the nanny (who has survived but cannot yet speak) she has not actually been charged yet, nor is there any apparent motive for the nanny to have done such a thing.

Here is the 912 page lawsuit in full, pdf.

Read more at http://investmentwatchblog.com/43-trillion-racketeering-laundering-lawsuit/#bsgVdIlmKQpzLGoO.99

J.P. Morgan's Blythe Masters Withdraws From CFTC Panel

http://www.marketwatch.com/story/jp-morgans-blythe-masters-withdraws-from-cftc-panel-2014-02-07-114491433

J.P. Morgan's Blythe Masters Withdraws From CFTC Panel

By Andrew Ackerman , The Wall Street Journal

WASHINGTON—J.P. Morgan Chase JPM +0.25% & Co. commodities chief Blythe Masters withdrew from a regulator's advisory panel a day after her appointment was disclosed amid Democratic lawmaker objections to her involvement, people familiar with the matter said.
The lawmakers expressed concern about Ms. Masters's participation in the Commodity Futures Trading Commission panel given her role presiding over a unit accused of manipulating power markets. Last summer, J.P. Morgan paid a $410 million fine to settle the accusations by a federal electricity regulator. The settlement prompted the Justice Department to open its own investigation of the firm's energy practices. The bank didn't admit any wrongdoing as part of the settlement.
The CFTC's disclosure Thursday that Ms. Masters had been appointed to its global markets advisory committee prompted calls to the CFTC by aides to senior Democratic lawmakers, the people familiar with the matter said.
Lawmakers and their aides were "surprised" that a regulator would invite an individual whose division allegedly manipulated markets to act as an adviser on the regulation of commodities, one Senate Democratic aide said.
Acting CFTC Chairman Mark Wetjen and Ms. Masters spoke by phone and both agreed her appointment "wouldn't be good at this time," a CFTC official said. Mr. Wetjen had earlier invited Ms. Masters to participate on the panel. Mr. Wetjen declined to comment through a spokesman.
A J.P. Morgan official said Ms. Masters's decision to step down came after she realized the workload associated with the sale of the bank's physical commodities business would make it hard for her to participate on the panel. The bank plans to complete the sale in the first half of 2014. The official said the bank would offer another executive to serve on the panel.
The global markets committee, which includes industry executives, consumer advocates and academics, advises the CFTC on the overseas application of the agency's rules. It is set to meet Wednesday to discuss the CFTC's plan to impose its swaps rules overseas, something big banks have largely opposed.
While in her 20s, Ms. Masters was among the team of J.P. Morgan bankers who helped breathe life into the market for credit-default swaps, which aided the bank in removing risk from its books.
Credit-default swaps are insurance-like contracts that pay out when a country or company defaults on its debt.
The CFTC has pushed to make the swaps market more transparent and safer in the wake of the financial crisis, when banks' swaps trades soured. The CFTC's efforts have prompted blowback from the industry, particularly guidance clarifying that overseas banks must adhere to CFTC rules if they book a swaps deal abroad but use U.S.-based personnel to arrange, execute or negotiate the transactions. Three industry groups have filed suit against the agency over its guidance.
The global markets panel includes executives from other large banks, including Robert Klein , managing director and associate general counsel at Citigroup C +2.26% Inc., and Samara Cohen , managing director of the securities division at Goldman Sachs Group GS +0.11% Inc.
Christian Berthelsen contributed to this article.
Write to Andrew Ackerman at andrew.ackerman@wsj.com

http://www.marketwatch.com/story/jp-morgans-blythe-masters-withdraws-from-cftc-panel-2014-02-07-114491433

"As We Seek A Safe Place For Capital" Part 1

 "As We Seek A Safe Place For Capital"    Part 1
02/08/2014
Post From KTFA By Memphis » February 7th, 2014, 8:11 pm   •  [Post 8] 

The Sovereign Debt Crisis is behind this?

Memphis:  Great find water guy, Ty. :handshake2:

This post is not dinar related but is directed at the growing number of people who are developing a global mindset. I have been following this story because it has value. There has been much press on this lately and some other news that is directly related but only to those who are truly L@@King (we'll connect those dots below ).

The world is changing and beneath the surface of THIS press release lies a much bigger story, the under lying symptom (sickness) that is driving it and THAT is important to us all as we seek a safe place for capital.
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Allow me to insert my notes within the article here. There is much to be said and it needs to (hopefully) be presented in a thoughtful manner.

Below is the article as a quote ( in italic) from WaterGuy's post then I will follow it up by re-posting the news piece with commentary added.

Please follow closely the use of [brackets] where my notes are added to the body of the article.

waterguy101 wrote on February 6th, 2014, 8:13 pm:

The foreign-exchange trading business was in upheaval across Wall Street as senior executives resigned and others were fired amid an expanding probe of possible currency manipulation.

Benjamin Lawsky, superintendent of New York’s Department of Financial Services, asked more than a dozen firms including Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C) for documents on their currency-trading practices, said a person with knowledge of the matter.

 Deutsche Bank, the top foreign-exchange trader, fired four dealers after an internal probe, people with knowledge of the move said. Goldman Sachs lost two partners while Citigroup said its foreign-exchange chief will leave in March.

Lawsky’s investigation is at least the 12th opened by authorities in Europe, the U.S. and Asia since Bloomberg News reported that traders at the world’s largest banks colluded to manipulate the benchmark WM/Reuters rates.

Even staff who aren’t being probed are reassessing career plans as the scandal forces firms to change fundamental practices as revenue falls.

The Libor Scandal Sets Off a Wave of Probes

“Currency traders are now sitting in an unprecedented and unwelcome spotlight,” said John Purcell, chief executive officer of Purcell & Co., a London-based executive-search firm. “Regulatory pressures, scandals and attendant reputational issues are making it a much more challenging environment.”

Photographer: Jin Lee/Bloomberg

Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has...

Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has authority over financial institutions chartered in his state, including several non-U.S. banks that do business in the country.

Photographer: Jin Lee/Bloomberg

Benjamin Lawsky, the superintendent of New York’s Department of Financial Services, has authority over financial institutions chartered in his state, including several non-U.S. banks that do business in the country.

At least 16 traders have been suspended or put on leave amid the global probe. Citigroup last month fired European spot trading chief Rohan Ramchandani.

http://www.bloomberg.com/news/2014-02-05/currency-market-unsettled-by-trader-exits-as-lawsky-opens-probe.html

Memphis:  Ready? Sleeves rolled up? :thug:

The foreign-exchange trading business was in upheaval across Wall Street as senior executives resigned and others were fired amid an expanding probe of possible currency manipulation.

Memphis [note: The big banks are firing people and top level execs are resigning. If this does not cause us to pause and ask questions then we are asleep at the wheel! These guy's respect nothing and the above ACTIONS on their part is already an admission of....guilt.

What is it that they have been doing behind closed doors for a very long time and further? Why are their indiscretions being made public? Why now? ]

Benjamin Lawsky, superintendent of New York’s Department of Financial Services, asked more than a dozen firms including Deutsche Bank AG (DB), Goldman Sachs Group Inc. (GS) and Citigroup Inc. (C) for documents on their currency-trading practices, said a person with knowledge of the matter.

Deutsche Bank, the top foreign-exchange trader, fired four dealers after an internal probe, people with knowledge of the move said. Goldman Sachs lost two partners while Citigroup said its foreign-exchange chief will leave in March.


Memphis [note: Mr. Lawsky is a state banking regulator. He is (forgive the pun) "the law". How's that for irony? This is a very big probe into the shadow banking world, the investment side of the big banks that is seldom spoken of publicly and certainly never seen by the public.

Have you noticed how hard it is to get a bank loan these days for ANYTHING? Even student loans are being rejected because the banks will not lend with interest rates so low as there is no incentive to do so.

Politicians and even the FED do not recognize that there is always a cause and effect to every action and this fake market of zero interest rates has actually ENCOURAGED the big investment banks to be even more reckless in their speculations.

Note again here that these banks are firing senior people after only INTERNAL probes. These guys are scared and for good reason. What is being revealed to the world is a gross example of unfettered greed. A level of greed that you cannot begin to imagine. More on that later...]

Lawsky’s investigation is at least the 12th opened by authorities in Europe, the U.S. and Asia since Bloomberg News reported that traders at the world’s largest banks colluded to manipulate the benchmark WM/Reuters rates....

Memphis [note : the banksters have been manipulating FOREX (foreign exchange rates) of the world's currencies and profiting on this. They have been rigging the game at the highest level and none of the New York regulators have come close to trying to stop this game.

 The inbreeding in New York is so vast that no one has dared to bring suit against a big bank.

Such a law firm would be black listed and their practice ruined! Not only can gov 't be pointed to as the cause for this unfettered greed (i.e. The repeal of Glass- Stegall under Clinton, suppressed interest rates, etc) but this immense display of man's greed has gone unchecked ALSO because of government!

Answer this: What is the natural deterrent ( the force that stands opposed) to man 's greed? The answer is FEAR.

The fear of loss, of being wrong, and losing everything, is the natural "check and balance" that prevents reckless behavior. But gov't has given the big banks cover by bailing them out for these reckless trades that go wrong.

Do not think for a minute that all of these "traders" have great minds! The level of reckless and foolish betting is on a level that would make you sick.

These people are largely idiots that have been profiting at insane levels with no barriers for years because they have had a seat at the table where the rules are made and THAT is the story here. The rules are changing....

If you are in the camp that believes this will lead to a pure system where the banks will all turn from being Mr. Potter and suddenly become George Bailey and we will all dance in fields of flowers with unicorns? Sorry, think again.

What is manifesting is simply rooted in the sovereign debt crisis that is sweeping the world.

The days of government's stepping in to settle the massive debts incurred by these banksters is.....over.

The banks are being served notice and this scandal (and it 's step brother named LIBOR) are the evidence. Early projections are that this manipulation in FOREX will dwarf that of the LIBOR probe that is bringing billions in fines against the worst offenders.

Also, these events are natural progressions in the unfolding cycle that we see playing out. The cycle of the fall of all developed nations who have recklessly borrowed against their yet to be born generations.

As proof of my assertion that we are not heading to utopia here with gumdrops and lollipops for all here is a marker to look for:

If high level bankers go to jail? Then I was wrong. If however, you see banks paying fines (a slap on the wrist) then It is still business as usual with some restraint being forced upon these guys INTERNALLY to actually make good bets.

Gov't regulation is never the answer, the market will pick the winners and losers based on performance. But I digress....]

Even staff who aren’t being probed are reassessing career plans as the scandal forces firms to change fundamental practices as revenue falls.

Memphis [note: "reassessing career plans" Doesn't that seem a bit extreme? Let me digress here and say (again) that our ability to ask the right questions makes all the difference in the pursuit of critical thought.

America has a huge unemployment problem. Much larger than reported. I have followed the numbers for over four years as reported weekly and my best CONSERVATIVE estimate is in excess of 25% of the workforce with over half of Americans on some form of gov't assistance. But these guys are looking for a career change? To do what? :popcorn:

Clue #1 - the above quote: "...to change fundamental practices..." Tells us that the rules are changing, that in the future they will have to work much harder to find true value in the market and actually answer for their mistakes when trades go bad.

Clue#2 - Fear for their lives. In the past two weeks (leading up to some initial testimony from the banks) there have been several unexplained suicides from high level bank executives from the very same banks who are being fingered in this probe.

There is a connection here, I have no doubt on that point and neither do the co-workers of these (now dead) high level targets.]

The Libor Scandal Sets Off a Wave of Probes

“Currency traders are now sitting in an unprecedented and unwelcome spotlight,” said John Purcell, chief executive officer of Purcell & Co., a London-based executive-search firm. “Regulatory pressures, scandals and attendant reputational issues are making it a much more challenging environment.”


Memphis [note: The proper question to ask is why are governments going after this publicly? No one said a word when CitiBank manipulated the bond market in Greece a few years ago, playing with the wealth of an entire nation of people as if they were pawns in a game simply because they could.

They shorted Greece and raped the unsuspecting people of a vast fortune and yet nothing was made public? Did anyone go to jail over that one? Nope, there is a deeper issue at play here. Let me paraphrase the above words: "attendant reputational issues..."

what they are really saying here?

"Our gross misdeeds are being brought forward in some measure and we have to show repentance in any way possible and then claim ignorance when all else fails. Beyond that, we are going to have to actually research opportunities in the future to avoid losses. We are not happy..."]

Memphis [note : in the coming months many more evidences will unfold (across Europe and the US) as state and local municipalities begin to crumble under the weight of their debt burdens and the massive pension liabilities that can never (and COULD never) be paid.

They will all follow the same play book as did Detroit. Bankruptcy is the only way out as they cannot print money and a total default is the only solution. These will be important markers to follow.

To close here, banks will no longer be bailed out by sovereign gov't that has no money and we as individuals must not be found behind the curve on this trend.

Going forward it will not be the taxpayer who is stuck with the bill. On the surface this seems a good thing right? Think again...

The tab is going to be laid at the feet of the banks themselves. THEY will have to pay for their own misdeeds. Again, seems a good thing right? Think again...

This means that the investors in the bank will be left holding the bag. As a bank becomes not only insolvent but ALSO their liquidity dries up they will begin to simply close their doors and seek protection thru the courts.

THIS is where the investors will be left holding the tab as they see their money simply go poof. As of January 01, 2014 a major change has taken place in America regarding our relationship with our banker.

Your money in the bank is no longer treated as a deposit.

You are legally assigned as an investor in your bank
and further you take a subordinate position to the primary investors meaning that they get paid 1st and then you get paid....last. In Cyprus the people only lost about 60% of deposits so let's think positive here....]

Blessings,  Memphis

"As We Seek A Safe Place For Capital" Part 2

"As We Seek A Safe Place For Capital"  Part 2

02/08/2014
Post From KTFA By Memphis » February 8th, 2014, 2:20 am   •  [Post 95] 

So how do we account for this?

This afternoon I spent a few hours forming a post in my mind and then making it a reality. This was done not for lack of things to do but out of great concern for people to recognize the times in which we live. If you have not read post #8 on page one then I will encourage it's reading prior to THIS post.

The VALUE is in being informed and that step cannot be skipped. If you fail to appreciate the big issues faced by our nation, it's monetary system, it's crisis of debt and it's illiquid banking system then simply reading here in search for some quick answers is like cheating! I am here to help people as God gives me the ability.

The times in which we live will not be forgiving of willful ignorance.
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If it seems I am being overly dramatic here then let me dial it up a notch and say that in the medium to long term discussion I am 100% convinced that America's monetary system will crumble in a heap of ruin leaving most people wondering what happened while many are left crying out to a bankrupt gov't to make it all better.

My point here is simply to impress that yes, some of these things DO matter to me and my family. There is a lot of "noise" in the world making it confusing for many to recognize VALUE.

I can promise you that anything that I post on is a result of extensive study. One of my strengths is that I recognize value. Along those lines is an ability to see value in people....and their words. When I see it, I pause and take notes. When I do not, I walk on by....

In response to my post earlier:

Post By jaxjags » February 7th, 2014, 7:46 pm • [Post 27]  Memphis, Thank you for your post...........however, thinking forward how do we protect our future deposits????

Do you spread them out through several banks/credit unions???Do we go overseas?

Post By agold » February 7th, 2014, 7:33 pm • [Post 20]  Thank you Memphis. I know the "problem" with bank accounts have come up before, but given the last sentence and your conclusion please comment on what should a wise person do given their assests in a bank account are not owned by them but "investments" in the bank - all this without the usual investment agreement and clauses?

I think time is right for us to discuss and learn as much as we can of the wisdom of holding assets in a bank accounts under these sircumstances. Thank you. Perhaps this is a topic for a series on "sound off"?

And from a PM (edited for privacy):  ...are credit unions going to be any safer than major banks? I am aware that a credit union doesn't usually handle large accounts.   Other than sound investments in finances, real estate, would you offer any other ideas that might help...?

Memphis:  OK, 1st off as agold asked: "Perhaps this is a topic for a series on "sound off"?"

I consider that if a thing is of importance then it is best served up as publicly as possible. This is why I no longer answer PM's. If we can discuss it openly for all to profit then count me in! I am quite capable of speaking in generalities here and not give direct specific advice.

As to using credit unions, smaller local banks, etc? IMO the cracks will 1st develop in the big banks as it is they who have been engaged in the proprietary lending and making reckless bets like drunken sailors.

The timing of these cracks is of course the key and the quick but important answer is to not be caught behind the curve. In the extreme discussion, trying to time things closely and for me withdraw all my money from bank "A" the day prior to it closing it's doors is beyond insanity.

Going a step further down this rabbit hole we have to ask this question:

"What is the problem? What event am I trying to avoid or mitigate?

The answer here leads us to an entirely separate discussion concerning the monetary system. The FED has debased our currencies value thru recklessly increasing it's supply.

This is not simply a marker for coming inflation it is in fact the very definition of inflation. If I give you a nice tall glass of sweet tea, the kind that's so sweet you can use it on pancakes?

What value would you find in this sweet tea if I placed it under a faucet that is left to trickle water (ever so slowly) until eventually your tall glass of fine southern sweet tea tastes like a weak sugar water?

This is the debasement of our nations money that continues today and it will have consequences just as it has all thru history. This is not a new thing folks. Developed nations have been following this play book for many centuries.

The nation of Lydia had the 1st known currency that was based in metals. At around 550BC they were movers and shakers with gold coins used for large national trade and silver coins minted for daily use at a ratio of 12.5 (gold to silver). That system somehow fell into ruin tho?

How is that possible to have a gold backed system of money and yet it get debased (deflated, deluted) to nothing? Glad you asked....

They found a need for more money to fund their massive war effort to fight off their neighbors who decided to not play nice. As a result their GOVERNMENT began issuing the next iteration of money but it somehow seemed different than before.

They simply made the same coins with the same face value as before but with less gold/silver in them. This practice continued until eventually the metal was no longer even close to pure in content.

Their monetary system crashed BECAUSE gov't controlled it.

Why do these cycles repeat? Because man's nature is the same.

Our governments grow in power until they think that it is they who are the sovereign and not the people and the politicians become so desperate to preserve their power that they cannot see the futility of their actions until it all simply crumbles.

"History never repeats itself, but it does rhyme." ~ Mark Twain

If this reply seems lengthy, I haven't even scratched the surface yet but let's conclude with this.....

If the monetary system is our concern then in the long term discussion we must isolate ourselves from the USD. Name any financial instrument that you own and then ask yourself if it is ultimately denominated in the USD.

 If yes, then you are exposed to an event that will be costly. Post RV, I will minimize this exposure using all means at my disposal and facilitated by the best minds that I can source in their respective fields.

This reply obviously moves us past the question of what US bank do we use?

I am not a proponent of fear so understand that some of these events are going to play out over time (perhaps a few years) and others may manifest sooner. Bottom line? When given the opportunity to act, take it.

***And before running to the bank on day #1 after the RV waving your dinar with your hair of fire consider that the one asset class that we likely all have in common that is sheltered from the USD is that same one that you cannot wait to surrender! :popcorn:

Post From KTFA By Memphis » February 8th, 2014, 5:40 am   •  [Post 109] 

donardek wrote on February 8th, 2014, 3:26 am:  MEMPHIS.......You have changed my entire outlook on this event, I am looking at it with a whole new clarity. From the sincerest place in my heart, THANK YOU!!!!

Memphis:  I feel compelled to say that posts such as this....move me.

God has placed so many things in my heart that I would love to share and yet I am driven daily to be a good steward of the short time that remains before we all get promoted. And with any promotion comes greater responsibility!

Randy's excellent opening post gave me a great opening to share a personal story of God's promise to my home concerning this promotion and certain other events in my life that I would love to share would leave people amazed at God's wonderful and amazing grace and yet....

Here I am, driven by God's Spirit in another direction to be a simple student and to share with others only the best parts, the cream that I see continually rising.

It is a blessing to know that others see value in being prepared. :gracias:

Briefly let me respond to this post:

Post By ehankins » February 8th, 2014, 2:09 am • [Post 102]  MEMPHIS,, I'VE HEARD YOUR VOICE FOR A LONG TIME ON THIS FORUM WITH A REALIZATION THAT YOU ARE A SINCERE MAN..NO SMOKE HERE. READING THIS POST HAS ASSURED ME OF THE SUSPICIONS AHEAD.

Memphis [note: thanks]

Ehankins:  WHEN LISTENING TO YOU ON A CC 1-2 WEEKS AGO SET ME FIRM THAT "THE NORM " IS OVER. I ASK A SIMPLE OBVIOUS QUESTION OR TWO OF YOU. YOU SAID, "HOW TO KEEP IT" OUR MONEY.

THAT'S THE OBVIOUS DELEMA COMING....WHEN THE RV OCCURES WE CASH IN WILL IT BE THAT STRAIGHT FORWARD RIGHT AWAY THAT THE BANKS KEEP IT? AN IMMEDIATE STRUGGLE OR WILL THIS BEGIN IN A COUPLE OF YRS.

Memphis [note: this is a point open to debate. I look at everything from the extremes to help establish a position and one such extreme here is that very soon we will have tens of thousands of new millionaires placing these monies on deposit within our banking system and that our currency will be devalued soon thereafter

OR that the banks will simply seize large portions of these funds. IMO, the likelihood of this extreme playing out in the near term is quite low... but not impossible.

With FATCA now firmly in place our gov't can sleep well at night knowing where every penny is so that it can be taxed. Further, it is likely that we will see banking failures happening across Europe prior to the US.

Some analysts even predict the fall of Germany's largest bank Deustche (sp) before years end so I see some probability that such events might serve as warning signs or harbingers.

The other extreme here would be that nothing happens to the US banks or our monetary system for years.

 I see many cycles converging in about 18mo that will portend hard times ahead for the US.

I do not plan on waiting that long because one simple variable in all of this that WILL cause events to accelerate and come seemingly out of nowhere is the "confidence game". Once people's confidence erodes? Imagine the bank run scene from It's a Wonderful Life....on steroids.

Beyond this, I hesitate to speculate further until more information comes my way.]

Ehankins:  IT'S CLEAR NOT TO INVEST IN ANY BANK. SO, I BELIEVE BUYING GOLD, SILVER, REAL ESTATE ANY TANGEBLE ASSET WOULD BE THE ANSWER? YES A QUESTION BECAUSE I'M IN THE DARK.

Memphis [note: get in line sir, that's exactly what China is doing. Think they are trying to stay ahead of the game?

Your thoughts here are very sound ones. Has anyone researched the concept of State Banks such as exists in North Dakota? Not a recommendation, just food for thought as they operate independent of the FED.]

Ehankins:  I'VE WORKED FOR 45 YRS. AND NOW I HAVE THE DINAR IN HOPES OF LEAVING A LEGACY FOR MY CHILDREN AND THEIRS. SO, I'LL KEEP READING YOUR POSTS AS THEY ARRIVE. I FEEL YOUR HEART IN THIS MATTER. YOU ARE A BLESSING. THANKS

Memphis [note: may your legacy extend to the end of this age! As to MY posts? There are many smart people who pop in here and can add great value to the discussion. I will gladly give an opinion if one exists and if not? I have no problem saying so,]

One last comment for the day. I try to avoid discussions of the GCR but in light of my posts today and the discussion of our sovereign debt crisis let me pose a question:

The premise of a GCR as presented to me is that many/most of the world's currencies will be re-priced such that a proper balance will be made manifest and things will be made right in the world so my question becomes....

What about all the debt?

 Show me how re-pricing a currency actually fixes anything and if the answer contains a reference to a gold standard or other asset backed support for the currency how does THAT fix the debt issue?

My last post gave historical evidence that ANY currency controlled by the gov't (or even worse, a central bank) is always subject to debasement.

I have no axe to grind, just questions that need answers to help me understand...

Blessings,  Memphis

http://www.dinarrecaps.com/1/post/2014/02/as-we-seek-a-safe-place-for-capital-part-2.html

Spanish Princess testifies in royal corruption case

Spanish Princess testifies in royal corruption case

   Published: Saturday, 8 Feb 2014




Albert Salame | Anadolu Agency | Getty Images
Spain's Princess Cristina arrives at the courthouse to hear the accusations of being a fraud and money laundering in Palma de Mallorca
Spain's Princess Cristina gave testimony before a judge on Saturday in a corruption case that has deepened public anger over graft among the ruling class and discontent with the royal family.
Cristina, the younger daughter of King Juan Carlos, faces preliminary charges of tax fraud and money laundering linked to her use of funds from a shell company she co-owned with her husband Inaki Urdangarin, who is charged with crimes including embezzling 6 million euros of public money.
It is the first time since the monarchy was restored in 1975 after the Francisco Franco dictatorship that a member of the royal family has been summoned in a criminal proceeding.
The princess, 48, arrived at the courthouse shortly before 10 am (0900 GMT) to face dozens of questions from the judge in a closed-door hearing in Palma de Mallorca, capital of the Balearic Islands.
Urdangarin, a former Olympic handball player, is accused of using his royal connections to win generous no-bid contracts from the Balearic government to put on sports and marketing events during the boom years before a 2008 property market crash, when local governments were awash with cash.
He and his partners in a consulting firm called the Noos Institute are accused of overcharging, and of charging for services never provided.
The court gave the princess - accused of using Noos Institute proceeds to pay for items such as an expensive remodelling of her Barcelona mansion - special permission to be driven to the courthouse door, citing security reasons.
The decision sparked public outrage because it allowed the princess to dodge hundreds of television cameras and further heated a debate over whether she has been given favourable judicial treatment.
She was driven down the ramp and walked the last few steps to the courthouse, smiling at the press and dressed soberly in a white shirt and black jacket.
Spanish broadcasters have incessantly replayed footage of her grim-faced husband walking into court along a pedestrian ramp when he went before the judge last year.
"I'm a monarchist, but if they have done wrong they should return what they stole and be exposed just like the rest of us," said Angel Rodriguez, an 80-year-old pensioner passing by the court.
There were almost 400 reporters outside the court and around 200 police officers.
The scandal has run parallel to a prolonged slide in the popularity of the once-revered King Juan Carlos after a series of gaffes showed his high-flying lifestyle to be woefully out of step with a nation suffering economic hardship.
An opinion poll released last month put the king's popularity at a record low, with almost two thirds of Spaniards wanting him to abdicate and hand the crown to his son.
As Spain slowly shakes free of a prolonged economic and financial crisis, national and local governments are tightening their belts and judges are looking into hundreds of corruption cases from the easy-money years before 2008.
The multiple probes of top politicians, union leaders and bankers are being pushed by anti-graft groups, while state prosecutors balk at tackling politically sensitive cases.
That is the case with Judge Jose Castro's investigation of Princess Cristina. He has pursued the case spurred on by private anti-corruption groups and despite resistance from the state prosecutor, who has come out in defence of the princess.
After Saturday's hearing, Castro could formalise the charges and move to trial, or he could drop the charges or allow the princess to plea to lesser charges.
Many Spaniards think she will get off lightly.
"This is a country where there are no consequences for being corrupt. They get a free ride," said Maria Gomila, an 18-year-old student.
Dozens of civil servants demonstrated near the courthouse late on Friday against public spending cuts and "institutionalised corruption".
Castro brought the preliminary charges against the princess in January in a 227-page ruling. Last year he brought charges of aiding and abetting, only to have them thrown out by a higher court. The investigation began four years ago.
Both the princess and Urdangarin - who have not represented the Crown at official events since 2011 - have denied wrongdoing.
The princess has stuck by her husband, but last year moved with their four children to Switzerland to escape media attention. She works for a charitable foundation there.
More than 200 extra police officers were on hand in Palma de Mallorca in case of protests near the courthouse and road blocks were put up in the neighborhood.
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