How is the circulation of money monitored between institutions internationally and internationally? Is this supervision robust enough to maintain all parties under the provisions of policies? What kind of bodies is retaining the power to control these movements without an additional layer of oversee? Is this a cause for a defective economy? Is the association idea between capital markets and the economy a falsehood to ensure a safety net of ongoing investments? Who is truly the highest authority in supervising all these transactions? Is “daylight theft” of capital markets opposing the unilateral accord of direct investments punishable in political monopolies? What is the relationship between cryptocurrencies and fraud?
Monetary concerns in developed and developing countries are based on guidance lacking
Money refers to power, as what most people say nowadays. Maintaining the same magnitude of power requires jumping hoops, such as frequency betting of volatile assets, or safe settling with a firm yet decaying currency index. As explained in “Unusual Times and Aggressive Policies Leading to Unconventional Financing Habits,” quantitative easing measurements have caused a rise in paper printing that is contributing to inflation but halted from near-zero interest rates. The concerning issue confronted by ethical investors today is the rising levels of improper or unequal monetary supervision in developing countries. Risk-loving investment banks from developed countries usually add assets from that part of the world to their basket for investors where the stakes are as high as the returns expected, given the betting nature driven by risk to return ratios in a COVID plus politically restless economies. The difference in the lack of supervision between developed and developing countries is relative to the level of diplomacy. Developed countries are facing difficulties with advanced developments of monetary handling softwares that seek to cut out the middle man, supervisory bodies, and empower stronger levels of privacy using advanced encryption techniques between parties to the transaction, even if illegal and illicit results are achieved. On the other hand, developing countries face trouble with outright embezzlement and corruption stemming from political monopoly or penetrated democracy in the wake of continuous cultural differences and political divisions supported by third parties, where supervision is under the wing of a single monopolizing party.
Monopolizing politics in financial markets is the leading cause of daylight theft
The impact of the ongoing derivation of policies on the free flow structure of a market may sometimes be hindering its activity. According to high-frequency traders in stock exchanges from developing countries, even if commission boards are enforcing legitimate and transparent records of transactions to ensure legal practices and trading, loopholes in procedures keep on expanding with perpetually developing policies that foreign bodies are exploiting continually. Sometimes, corruption plays a severe role in such a sensitive industry. In the MENA region, a significant sum of money that is supposed to be traced at every node by ensuring its endless circulation between an unlimited amount of parties is seemingly having an endpoint with blank space thereafter. Not only are foreign bodies and local market mafias ensuring their financial existence without strict supervision, but also governments with corrupt officials are monopolizing industries in the name of commercial openness to all players. The politics behind a lack in complete oversee, according to investors, is due to executing policies on a group while exempting others. This policy-execution discrimination according to hierarchy and social placement weakens the pillars of a free-flowing market that should be internationally acknowledged for controlled and healthy growth.
According to a simulation on successful trading in a monarchist Arab country, a specific government party, who rules the area and owns the security trading commissions with large stakes in most publicly traded companies, is always successful on the capital trading floor, even though values are more fluctuating than in other regions. Ruling out insider trading and the fact that their ownership yields large support without opposition internally or supervision externally, their political control over the area causes a monopolized, partial, discriminant, and corrupted doings that domestic policing and adhered securities law directly ban or contradict. According to the evaluators of those trading floors, shell companies are concluding most transacting to the extent that monitoring their data and existence became “unnecessary for the benefit of global participation.” If an entity can run freely without legal remedies or consequences on their political monopoly or commercial abuse, then the thorough search for the currency distribution‘s endpoint is precisely known yet overlooked. This is known as commercial “daylight theft” that cannot be punished.
Capital markets and the general economy are disconnected in nature
According to Nobel laureate in economic sciences, Paul Krugman, the stock market is disconnected and does not have a direct impact on the general economy. The main idea is attributed to the financial market’s optimism and green ticks, where Apple reached $2 trillion market capitalization during COVID and 2020’s massive economic backlash, on the contrary to the general economy’s condition and forecast. The main factors observed are employment, production, and government output, those of which that cover the economy as a whole. Any economic downturns, on the contrary to what most paid or sponsored analysts say, are not derived from low demand, multiple short future positions, expiring contracts, or excessive junk trading in capital markets. These points are relative to a financial market collapse. The ending point for currency and money-based transactions is a significant factor that contributes to economic illness and high levels of inflation rates, based on the need for more quantitative easing measures. Someday, near-zero interest rates will not make up for the money printing required to accommodate “lost money.”
The increase in untraceable beginnings of currencies necessary for economic stability is cause for a rising level in money laundering
According to a simulation on money trails and commission positions, legitimate currencies are disappearing while illegitimate currencies are appearing in major areas in the Arab countries. Not only are endpoints an untackled problem, but also the beginning points to a large sum of money is of unknown origins. The exponential increase in money mafias, as explained by former banking supervisors, coming from abroad causes an uncertain outlook on the performance of local markets, creating the need for more and more new money to flow and stabilize the economy. An economy that is based on this kind of money exemplifies authoritarian corruption by the country’s management. The large gap of untraceable money encountered by central banks originated from monopolized markets and unscathed politics due to abusive control by one party. Money laundering is among the most considerable quick returns for syndicated politics. According to financial bodies tied to governments, political monopolies in certain areas are taking near 20% to clean and legitimize currencies without traceable beginnings that stem from illegal activities abroad.
Have you ever seen a storefront that has no customers but set up shop for many years without ever closing, especially in luxury sectors? That’s how money laundering is often visible to the naked eye, which is the significant yet ignorant population. Anything relating to excessive luxury, including mansions and donations from unknown sources, is usually titled “businessman,” for media and people’s relevancy. Tracing the circulation of money is almost the only way of connecting the relationship between nodes of providers and receivers, often stamped by taxation and federal authorities, found between the subject and object to the matter. The negative connotation of ”businessman” from the financial industry was created by irregular methods of business in clearing money through the judiciary, parliamentary, and executive branches of government, usually found in monarchies and tragically penetrated democracies. This created a social understanding of hierarchy in commercial power without proper authority or policing.
Cryptocurrencies are today’s coin for international black-market trading
Late risky assets, as known as cryptocurrencies, have the highest chance of concealing money’s origins given they were initially designed as an encrypted currency to be used over the internet’s black market through a relative public list. People intending to land a striking deal of arms, drugs, mercenaries, or hiding money transfers over the internet rely on cryptocurrency to conceal their activity, as explained by stakeholders from emerging countries. According to the latest news, digital coin scandals are amounting to nearly ten figures, which caused financial tensions between institutions of developed countries. Estonia recently reported of mishaps occurring in its virtual coin trading space where 500 firms licenses were revoked given that $220 billion were moved from Denmark’s largest lender, Danske Bank, facilitating laundered money through a small Estonian branch of digital currency. Estonia was known for its ease nature in setting up virtual coin trading branches, attracting several foreign bodies. Yet, given the recent developments, operations became stricter. The strangest yet amusing issue is the fact that most of these foreign branches do not have operations since 2017, calling their existence as shell companies for monetary movements out of Europe.
People’s reliance on digital coins to hide or anonymize their identity should be worried given that a lump sum of their inner data is withheld by the group organizing the free-flowing structure of blockchain that advertises to be public, transparent, and permanent. Given these currencies are most frequently used for illicit activities and unlawful trading of unlicensed goods or services abroad, besides the given fact of its public and permanently stored transaction, this incentivizes entities to create shell companies and virtual addresses on their information and “wallet,” covering their actual data and identities, causing more immense pressure on commissions to follow the improper or fraudulent circulation of currency. Before it was a shell account in Panama, now its a shell account on the extensive blockchain network jumping from one host to the other.
In light of the above, any judiciary body operating under the controlled free flow market and protection of people against immoral activities with careful monetary supervision should demand its embargo. Industry sharks that faced continuous hassle from security commissions and tax bodies in the era of “precrypto” had more difficulty in concealing their unlawful activities, given the less digital or advanced nature of finance. With fintech and cryptocurrency, great white sharks are unstoppable, and government-backed monopolies are growing in strength and increasingly hiding in nature with a globalized reach to illegal goods or services. Bitcoin farming bodies, also known as the backbone of the cryptocurrency, are the hosts of these scandals and transactions. Without them, cryptocurrency would cease to exist, given the value of anonymity in dealings. According to a simulation on bitcoin and parties involved, benefitting stakeholders of its value, worth and privacy-wise, are mostly political. Was this planned all along?
The history of Bitcoin represents “risk” in character and worth
At the start of bitcoin in 2008, by an anonymous group naming themselves Satoshi Nakamoto, the purpose was for creating a digital currency in the peer to peer network over the internet where both transparency and privacy were advertised. Yet, given the high levels of cryptography encryption involved masking the information of the users, and the nature of its usual usage, it is not a directly supervised system by the administration. The creation of a new currency yielded both support from individuals with privacy a complex, relative to the nature of their doings, and outcry from policymakers seeking to keep movements under control and supervision. The value of bitcoin since its first appearance in the market in 2009 was near zero until April of 2013 when the price rallied to $100, which fluctuated up until the end of November of 2013 to break the $1,000 value. From then, the increased trend of fluctuations brought the price up in a very volatile way to 2017 when the value skyrocketed to shatter expectations with an excess of %1,500 in mere days.
This boom and a plunge in value thereafter demonstrated the betting nature of high-frequency trading by risk-loving entities and funds, as well as supporting bodies enjoying the power of this revelation. According to high ranking analysts from developing countries, the high valuation per coin was studied to resemble the high cost of illegal goods and services sold on the dark web. The low price a decade ago was not an efficient valuation of the actual usage of these coins. For more effective utilization, 5 figure valuation was most appropriate given the limited 21,000,000 coins supply available and their relatively high demand. “Tracking down purchases and transactions became a near-impossible task,” he adds, “experts in the network and hosts of valuable information were neither known nor very cooperative.” This way, black market goods acquisition between countries becomes much simpler and more active.
Cryptocurrency has a direct relationship with scandalous money laundering cases
Cryptocurrency and money laundering‘s relationship has a positive correlation. An increase in cryptocurrency and its circulation leads to higher amounts of fraud cases and money laundering scandals. There is a high chance that hollow endpoints, mostly turning crypto, are the reason for limited funds and currency at financial institutions that are disappearing unknowingly, directly linked to an ongoing uncertain state of the macroeconomy since the last 3-5 years. If banks ultimately fail as a result, where middle to lower class individuals rely on as their only safe haven for depositing their average income, a catastrophic economic downturn will be the result destroying a significant portion of livelihoods, causing struggles for placement, and driving survival of the fittest contests will be the outcome in a time filled with a wildfire virus outbreak with a controversial source, and continuous unrest in politics in both developing and developed countries.