Business Insider reported a bombshell this afternoon. It reports, by translating Spanish-language reporting from El Universal, that the US government has had a relationship with Mexico’s Sinaloa drug cartel since the Clinton administration. That relationship/alliance was used to damage Mexico’s other drug cartels, but at a great price: Sinaloa alone imports about 80% of the illegal drugs that make their way to Chicago. The alleged deal allowed the cartel to import drugs virtually without fear of capture or punishment by the US government.

While the relationship predates the Obama administration, El Universarl reports that one part of it does not. The information came out after the arrest of a Sinaloa capo

[Sinaloa cartel officer Vincente] Zambada-Niebla also alleged that Operation Fast and Furious was part of an agreement to finance and arm the cartel in exchange for information used to take down its rivals. (If true, that re-raises the issue regarding what Attorney General Eric Holder knew about the gun-running arrangements.)

A Mexican foreign service officer told Stratfor in April 2010 that the U.S. seemed to have sided with the Sinaloa cartel in an attempt to limit the violence in Mexico.

The story reports that DEA agents met with high-level Sinaloa officials more than 50 times since 2000. The DEA has not commented on the story.

At the very least, this story should re-open what had become a dormant investigation into Fast and Furious.