snapped shot

As one of "the bloggers" circulating this story, I've done my best to couch everything in terms of this being an intriguing possibility, and may have made some emotional comments towards the implications of it being true, but have otherwise not found any conclusive evidence to support my claims.

I can't make it clear enough: The facts of the matter are in no way clear on whether or not the bills are counterfeit, from sitting at a desk here in Virginia. If you look back at my original thread on the topic, you'll note that each and every one of my "proofs" of the money being counterfeit, based on the wire photo evidence, were quickly and summarily dismissed.

Well, in light of the evidence, it's pretty clear that I might have another "Foiled Again!" on the way. I really am on a roll this week!

So where does that leave us? Well, if the "major banking center(s)" in Lebanon are accepting these hundred-dollar bills, then there's little doubt that the money is, in fact, quite real. (Or, at the least, that it's too good a counterfeit to be detected—not to stoke the flames of controversy, though!) With that in mind, the debate now needs to move in the direction of identifying the source of Hezbullah's fortune.

Iran? We've heard repeatedly that they are fully supportive of Hezbullah, and have been sending cash to Lebanon.

Saudi Arabia? No word on any connection there, but it wouldn't surprise me to see a wealthy cousin of the Royal Family pouring money into an anti-Israeli organization.

International Charities? Well, the U.S. Treasury has frozen the funds of one of 'em, so that's always an option.

As always, I'm interested in hearing what you, the Reader, think of these new developments. And I'm eagerly awaiting further input from Mike, who's certainly a valuable resource I haven't had in the past: A source on the ground.

I'll keep you posted as this new twist in the story develops!

UPDATE 11:50 EST: Mike Hornbrook, in the news:

• Attack on Israel was mistake, Hezbollah leader says
  
• Reluctant Europeans ponder role in Lebanon

UPDATE 14:15 EST: Mike has written us back. Here're some of the most relevant parts of his e-mail:

I decided to check out the counterfeit story after one of my editors forwarded a column by David Frum (fmr Bush speechwriter who coined the phrase "axis of evil"). Frum keyed on your speculation and that of other bloggers to suggest reporters were being suckered by Hezbollah's 'counterfeit' generosity. I respect Frum and read his columns whenever I see them, but knew he was way off the mark this time. As I mentioned earlier, such a fraud would be detected instantly in a place like Beirut and it would discredit Hezbollah. It's not their style.

Now, where does the money come from? I haven't poked around extensively on this but a professor of banking in Beirut, with good contacts in the industry, told me there's no doubt it comes from Iran. With oil at $70/barrel, the mullahs are swimming in cash and can afford to fund a guerrilla war in another country.

How does it get in? Some of it arrives the same way the weapons do—across the Syrian border in suitcases stuffed with $100 bills. But there are other, murkier, ways to get money to Hezbollah. I've been told the Iranian Saradar Bank may have a hand in it (surprise!). Also, money can be transferred from abroad to companies that are owned by Hezbollah or their supporters. Lebanon has strict bank confidentiality rules—stricter than the Swiss, I'm told—so pinning down this stuff is very difficult if not impossible. With Lebanon's dysfunctional political culture even the US government wouldn't get much help pressuring the banks to open their books.

Pls don't take what I've said as definitive. I haven't done enough research to write a story on this. I'm passing along the thrust of conversations I've had with two locals who know a few a few things about what goes on in Lebanon.

Even with the disclaimer, this is quite a bit of good information to go on. It seems that I may have guessed correctly when I speculated that they're shipping cash across the border in suitcases, though the additional information Mike provides us on Lebanon's banking industry certainly implies that more complex transactions might also be taking place here. Once again, my sincerest thanks to Mike for sharing these insights with us!

For those of you new to the story, here's a recap of my stories leading up to this one. Other blogs are linked within, so be sure to check out what everyone else is saying:

Cash-bollah—Charity via Counterfeit?
A sudden lack of context (The story that started it all!)
The Salvation Army (of Terrorists)
The latest on the Funny Money Scandal
More Money Shots
Mike Hornbrook from the CBC: The Cash Is Real! NEW 31-AUG-2006