You've probably seen the maps or the late-night YouTube rabbit holes. It’s a wild idea. Basically, the theory claims there’s a secret "Empire of the City" consisting of three independent, sovereign states that actually run the world: the City of London (finance), Vatican City (religion), and the District of Columbia (military).
It sounds like a blockbuster movie script.
Honestly, the reality is a mix of boring legal technicalities and actual, historical quirks that people tend to blow way out of proportion. We aren't talking about a Bond villain's lair. Instead, we're looking at a series of unique jurisdictions that evolved over centuries. If you want to understand how the world actually functions, you have to peel back the layers of these "city-states" without falling for the more outlandish myths.
What People Get Wrong About the City of London
Most people think the City of London is just a nickname for London. It isn't.
The City of London is a tiny, 1.12-square-mile area in the heart of the greater London metropolis. It's often called "The Square Mile." This place has its own police force, its own Lord Mayor (not the same as the Mayor of London), and its own unique governing body called the City of London Corporation. It's old. Really old. It has rights and privileges that predate the Magna Carta of 1215.
Because it has this weird legal status, conspiracy theorists claim it's a "sovereign state" outside the reach of the UK government. That's just not true. While the City has a lot of autonomy, it is still subject to Acts of Parliament. It doesn't have its own seat at the UN. It doesn't have its own army.
But here is where it gets interesting: the City is a global powerhouse of finance. According to the Bank for International Settlements (BIS), London—specifically the Square Mile—is the world's largest center for foreign exchange trading. That concentration of wealth is what fuels the Empire of the City narrative. When billions of dollars move through a tiny geographical area governed by a corporation that feels like a medieval relic, people get suspicious. They see a secret empire where others see a historical anomaly that got really good at banking.
The Vatican: A Religious Microstate with Real Borders
Then we have Vatican City. This one is actually a sovereign state.
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Unlike the City of London, the Vatican is recognized internationally as an independent entity. It has its own stamps, its own coins (euros with the Pope's face), and its own tiny army, the Swiss Guard. It’s the smallest country in the world, covering about 121 acres.
The Empire of the City theory ties the Vatican in as the "spiritual" head of a global trio. Historically, the Catholic Church held massive political power over European kings and queens for centuries. That’s a fact. However, since the Lateran Treaty of 1929, the Vatican’s role has been strictly diplomatic and religious. It maintains one of the world's oldest and most extensive diplomatic corps. If you want to talk about soft power, the Vatican is the master of it. But is it part of a secret cabal running the military-industrial complex of the US? There's zero evidence for that beyond "well, they all have obelisks."
Washington D.C. and the 1871 Act Myth
The third pillar of this theory is Washington, D.C.
People who push the Empire of the City narrative often point to the District of Columbia Organic Act of 1871. They claim this act turned the United States into a corporation and made D.C. a foreign entity on American soil.
Let's be clear: that’s a total misreading of the law.
The 1871 Act was basically a municipal reorganization. Before then, the District was a messy patchwork of different local governments for Washington, Georgetown, and the County of Washington. The Act just streamlined them into a single corporate entity for the sake of administration. It didn't "sell" the country to the Queen or the Pope.
D.C. is unique, though. It’s a federal district, not a state. Its residents have no voting representation in Congress, which is a genuine democratic quirk that people (rightly) complain about. But being a "federal district" is not the same as being a "sovereign state" like the Vatican. It is the seat of the US military and political power, which is why the theory labels it the "military" arm of the trio.
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Why This Theory Still Matters to Researchers
Why do people keep talking about this?
Because power is concentrated.
When we look at the influence of the City of London over global tax havens or the influence of the US military-industrial complex, we are looking at massive centers of gravity. The "Three Cities" theory is a simplified way—a mythic way—for people to explain why things feel out of their control. It’s much easier to blame a secret "Empire of the City" than it is to untangle the messy, complicated web of international banking laws, lobbying, and historical inertia.
The Role of Symbols
You can't talk about this without mentioning the obelisks.
- London has Cleopatra’s Needle on the Victoria Embankment.
- The Vatican has an Egyptian obelisk in the center of St. Peter's Square.
- Washington has the Washington Monument.
For theorists, these are the "signatures" of the empire. For historians, they are examples of 19th-century Egyptomania or stolen war trophies. The Washington Monument, for instance, wasn't even built until long after the US was founded. Symbols are powerful, but they aren't proof of a secret treaty.
Critical Analysis of the Sovereignty Claim
If the Empire of the City were real, we would see evidence in international law.
We don't.
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Sovereignty isn't just a vibe. It's a legal status. A sovereign state can enter into treaties, declare war, and issue passports that other countries recognize.
- City of London: Its "sovereignty" is purely ceremonial. It cannot sign a peace treaty with France.
- Washington D.C.: It is governed by the US Congress (Article I, Section 8 of the Constitution).
- Vatican City: This is the only one that is actually sovereign in the eyes of the UN.
The theory suggests these three are connected by a common goal. While the US, the UK, and the Holy See often align on certain geopolitical issues, they also clash constantly. During the lead-up to the Iraq War, for example, Pope John Paul II was one of the loudest critics of the US-led invasion. If they were one "Empire," you'd expect a bit more coordination on the big stuff.
Moving Beyond the Conspiracy
Instead of looking for a secret empire, it's more useful to look at how these three hubs interact in the real world.
The City of London does facilitate the movement of offshore capital. Washington does project military force globally. The Vatican does exert moral and diplomatic influence on billions of people. These are real things. They are documented. They have budgets.
The danger of the Empire of the City narrative is that it makes the problem seem supernatural or unreachable. It makes people feel like the "system" is a magical, unbreakable bond between three cities. In reality, the systems are just laws and policies made by people. And things made by people can be changed by people.
Actionable Insights for the Curious
If you want to understand the actual power dynamics at play here, skip the conspiracy forums and look at the following:
- Study the City of London's "Remembrancer": This is a real person whose job is to sit in the House of Commons and ensure the City's interests are protected. It's weird, it's controversial, and it's a matter of public record.
- Look into the Lateran Treaty: Read how the Vatican became a state. It wasn't a secret ritual; it was a gritty political deal with Mussolini to end decades of conflict between the Church and the Italian state.
- Follow the Money (Literally): Research the "Financial Secrecy Index" by the Tax Justice Network. You'll see how the City of London and its network of overseas territories (like the Caymans) actually function. This is more "empire-like" than any secret treaty.
- Analyze the US Federal District Laws: Understand why D.C. doesn't have statehood. It has more to do with 18th-century fears of "mob rule" than 19th-century secret societies.
Understanding the world requires looking at the boring stuff. The "Empire" isn't a secret cabal in a basement; it's a collection of legal loopholes, historical accidents, and concentrated financial interests that operate in broad daylight. You don't need a secret map to find it—you just need to follow the legislation.