What I'm about to tell you is a true story that highlights just how pathetic the banking system has become.

A few months ago I was presented with a compelling opportunity to invest with a prominent, well-established private business based in the UK.

And, after extensive due diligence, I decided to make the investment… around $4 million.

Because this particular investment happened to be denominated in US dollars, though, the funds were routed through the United States via one of the major Wall Street banks.

We've talked about this before– the vast majority of global trade and commerce is denominated in US dollars and clears through the US banking system.

As an example, the agriculture company that I founded in Chile a few years ago is rapidly becoming one of the largest blueberry producers in the world.

We sold blueberries to a big wholesaler in Ireland this season– and they paid us in US dollars. Their payment was routed from their bank in Ireland, through the US banking system, to our bank in Chile.

Nothing about that deal had anything to do with the United States. But regardless, the money still had to pass through a US bank. And that's how the global financial system has functioned for 70+ years.

Yet over the past decade, banks in the US have really started to abuse their status as critical financial intermediaries.

A big part of this is because banks are under intense pressure from the federal government to stamp out money laundering, terrorist financing, tax evasion, and any criminal activity they can find.

These are reasonable objectives to pursue… but their execution has been dismal.

Unable to tell for certain whether that $5,000 wire transfer to Aunt Sally was for legitimate purposes or part of some grand tax evasion scheme, banks have defaulted to being suspicious of everyone and everything.

Deposit or withdraw a few thousand dollars in cash to/from your own account? Suspicious.

Make an investment in a private business they've never heard of? Suspicious.

Transfer funds to an account overseas? Suspicious.