The Banking Cartel: The Greatest Scam On Earth

The global financial system is controlled by a powerful group of institutions known as the banking cartel. This cartel, consisting of the world's largest banks and central banks, has been manipulating economies and enriching themselves at the expense of the general public for decades. Their actions have led to economic instability, rampant inflation, and widening wealth inequality, impacting the daily lives of people around the world.

 

The Formation and Rise of the Banking Cartel

The origins of the banking cartel can be traced back to the early 20th century, when a group of influential bankers and financiers sought to consolidate their power and control over the global monetary system. The formation of the Federal Reserve in the United States in 1913 was a pivotal moment, as it gave a small group of private banks the ability to dictate the country's money supply and interest rates [1]. 

Over the following decades, the banking cartel expanded its reach, establishing central banks in other countries and forging close ties with governments and policymakers. Through tactics like fractional reserve banking and the creation of fiat currency, the cartel was able to expand the money supply, generate debt, and extract wealth from the public [2]. 

 

The Banking Cartel's Tactics and Influence

The banking cartel's power is maintained through a complex web of interconnected institutions and policies. Central banks, which are often portrayed as independent entities, are in reality heavily influenced by the cartel's interests [3]. These central banks have the ability to manipulate interest rates, control the money supply, and bail out failing financial institutions, all of which serve to benefit the cartel at the expense of the general public.

One of the most egregious examples of the banking cartel's influence is the 2008 financial crisis. Despite their role in creating the conditions that led to the crisis, the cartel was able to secure massive bailouts from governments, effectively transferring the burden of their reckless actions onto taxpayers [4]. This not only allowed the cartel to maintain its power, but also further entrenched the perception that certain financial institutions are "too big to fail."

 

The Case of the Forex Cartel

The recent case of the "Forex Cartel" provides a striking illustration of the banking cartel's reach and influence. In this case, a group of the world's largest banks, including HSBC, Barclays, and JPMorgan Chase, were found to have colluded to manipulate the foreign exchange (forex) market, one of the largest and most liquid financial markets in the world [5]. 

The banks involved in the Forex Cartel used tactics such as sharing confidential client information, coordinating their trading strategies, and engaging in "front-running" to profit at the expense of their clients and the broader market. The scale of the manipulation was staggering, with the cartel estimated to have caused over $1.5 trillion in overcharges between 1990 and 2016 [6].

Despite the severity of the Forex Cartel's actions, the banks involved were able to negotiate relatively lenient settlements with regulators, highlighting the cartel's ability to evade meaningful consequences for their misdeeds.

 

The Impact of the Banking Cartel's Manipulation

The banking cartel's manipulation of the global financial system has had far-reaching consequences for individuals, governments, and the global economy as a whole. Rampant inflation, driven by the cartel's expansion of the money supply, has eroded the purchasing power of consumers, making it increasingly difficult for people to afford basic necessities [7]. 

Moreover, the cartel's actions have contributed to the widening of wealth inequality, as the benefits of their policies tend to accrue disproportionately to the wealthy and well-connected. This has fueled social unrest and undermined public trust in the financial system [8].

Governments, too, have been impacted by the cartel's influence. Central banks, which are supposed to serve the public interest, have often prioritized the interests of the cartel, leading to suboptimal economic policies that fail to address the needs of the broader population [9].

 

The Urgent Need for Transparency and Reform

The banking cartel's manipulation of the global financial system has become one of the greatest scams perpetrated against the public. It is a complex and deeply entrenched system that has been designed to enrich a small group of powerful institutions at the expense of the majority.

To address this issue, it is crucial that the public becomes more aware of the banking cartel's activities and the extent of their influence. By shining a light on the cartel's tactics and the consequences of their actions, we can begin to demand greater transparency, accountability, and reform within the financial system.

Ultimately, the solution to the banking cartel's scam lies in the hands of the people. By educating ourselves, sharing this information with others, and advocating for meaningful change, we can work towards a more equitable and sustainable financial system that serves the interests of the many, not the few.

 

[1] NBER Working Paper No. 18823, "The Impact of Cartelization, Money, and Productivity Shocks on the International Great Depression"

[2] Nottingham Commercial Law Centre, "Cartels: the Hidden Enemy Behind Rising Prices and What Can we do About Them"

[3] Competition Tribunal, "Tribunal rules that it has jurisdiction to hear the 'Forex Cartel case' against foreign and local banks"

[4] Tookitaki, "How Drug Dealers Launder Money: A Look at Money Laundering Techniques"

[5] Ibid.

[6] Nottingham Commercial Law Centre, "Cartels: the Hidden Enemy Behind Rising Prices and What Can we do About Them"

[7] NBER Working Paper No. 18823, "The Impact of Cartelization, Money, and Productivity Shocks on the International Great Depression"

[8] Ibid.

[9] Competition Tribunal, "Tribunal rules that it has jurisdiction to hear the 'Forex Cartel case' against foreign and local banks"

 

Citations:

[1] [PDF] NBER WORKING PAPER SERIES THE IMPACT OF CARTELIZATION ... https://www.nber.org/system/files/working_papers/w18823/w18823.pdf

[2] Cartels: the Hidden Enemy Behind Rising Prices and What Can we do ... https://www.nottingham.ac.uk/research/groups/commercial-law-centre/blog/cartels-the-hidden-enemy-behind-rising-prices.aspx

[3] Tribunal rules that it has jurisdiction to hear the “Forex Cartel case” against ... https://www.comptrib.co.za/info-library/case-press-releases/tribunal-rules-that-it-has-jurisdiction-to-hear-the-forex-cartel-case-against-foreign-and-local-banks

[4] How Drug Dealers Launder Money: A Look at Money ... - Tookitaki https://www.tookitaki.com/compliance-hub/how-do-drug-dealers-launder-money

[5] Cartels Revisited | Cairn.info https://www.cairn.info/revue-economique-2013-6-page-989.htm

[6] Money-laundering methods of drug cartels and the capture of El Chapo https://legal.thomsonreuters.com/en/insights/white-papers/money-laundering-methods-of-drug-cartels-and-the-capture-of-el-chapo

[7] How a big US bank laundered billions from Mexico's murderous drug gangs https://www.theguardian.com/world/2011/apr/03/us-bank-mexico-drug-gangs

[8] The Five Biggest Money Laundering Scandals - Sanction Scanner https://sanctionscanner.com/blog/the-five-biggest-money-laundering-scandals-317

[9] What Is a Cartel? Definition, Examples, and Legality - Investopedia https://www.investopedia.com/terms/c/cartel.asp

[10] History of banking in the United States - Wikipedia https://en.wikipedia.org/wiki/History_of_banking_in_the_United_States

[11] [PDF] DRUG MONEY IN A CHANGING WORLD: https://www.unodc.org/pdf/technical_series_1996-01-01_2.pdf

[12] 24 people charged in money laundering scheme ... - AP News https://apnews.com/article/sinaloa-cartel-fentanyl-mexico-china-los-angeles-034ad51dd03d0606767215b44aed2e91

[13] Cartels cases and statistics - Competition Policy - European Union https://competition-policy.ec.europa.eu/antitrust-and-cartels/cartels-cases-and-statistics_en

[14] CDPP withdraws charges in bank criminal cartel case - ACCC https://www.accc.gov.au/media-release/cdpp-withdraws-charges-in-bank-criminal-cartel-case

[15] Drug money saved banks in global crisis, claims UN advisor https://www.theguardian.com/global/2009/dec/13/drug-money-banks-saved-un-cfief-claims

[16] The International Banking Cartels and Those who have Opposed Them https://steemit.com/money/%40atlasarthur/the-international-banking-cartels-and-those-who-have-opposed-them-part-1

[17] 2 2 Banking Cartels and Industrial Concentration in Britain https://academic.oup.com/book/12620/chapter-abstract/162531019?redirectedFrom=fulltext

[18] Federal Indictment Alleges Alliance Between Sinaloa Cartel and Money ... https://www.dea.gov/press-releases/2024/06/18/federal-indictment-alleges-alliance-between-sinaloa-cartel-and-money

[19] Sinaloa Cartel accused of laundering $50 million with Chinese banking ... https://www.cbsnews.com/losangeles/news/sinaloa-cartel-accused-of-laundering-50-million-with-chinese-banking-group-in-los-angeles/

[20] The Bankers' Cartel - Mises Institute https://mises.org/mises-daily/bankers-cartel