Streetwise Professor

Yesterday the WSJ broke a story about a strange coincidence: nearly simultaneously with the release of four Americans held prisoner by Iran, the US shipped $400 million to Iran. The administration denies any connection between these two events, claiming that the money is related to resolution of a longstanding dispute dating back to the days of the Shah.

But who you gonna believe, them or your lying’ eyes? And truth be told, the administration–as desperate for a deal with Iran as it was–had to know how bad the optics were. If it had any choice in the matter, it would have insisted on a decent interval between the prisoner release and the flow of the money. If there wasn’t a connection, the Iranians would have likely accommodated. But the fact that they didn’t tells you that it was a deal: money for the bodies. What’s more, bad optics from the American side were good optics to Iran.

But let’s put aside the issue of whether this was a swap. Let’s suspend disbelief and assume that the bodies and money flowed pursuant to totally separate deals negotiated in hermetically sealed rooms separated by 50 Chinese walls preventing a flow of information between those negotiating about the money and those negotiating about the Americans held captive.

Even granting that wildly implausible hypothesis, the deal stinks to high heaven because of the way the money flowed. In cash. Once in Iranian hands, it was basically untraceable and there is no way the US can use its dominance of the banking system to stop the money flowing to illicit uses, or even detect when it does.

The Iranians now have $400 million of USD, EUR, and CHF to direct to terrorist groups. Even worse, you know who wants cash more than Iran because it is unable to use the banking system? North Korea. You know who has been cooperating with Iran on nuclear and missile technology? North Korea. Now the administration has gifted Iran hundreds of millions that it can send without a trace to North Korea in exchange for nuclear and missile technology. What’s even more astounding is that this coincided with a deal that was intended to delay Iran’s development of nuclear weapons. But this Air $n€ flight to Iran is directly contrary to that purpose, because it facilitates Iranian evasion of restrictions on its nuclear program.

Not to mention that it will also likely bolster another extremely bad actor, North Korea. Funding work on NoKo nuke and missile technology will make two unpredictable and dangerous regional troublemakers stronger.

This makes Operation Fast and Furious look benign and intelligent.  How soon before a US special operations raid on terrorists seizes currency sent to Iran on the night flight from Geneva? How soon before that money pays for an intensification of NoKo and Iranian weapons development?

It gets better. The Iranians, apparently knowing a sucker when they see one, have seized two more Americans. And now that he has reaped most of the financial gains from the nuclear deal, Khamenei is expressing reservations about it and suggesting that Iran will pul out.

For those who have been to the bazaar, you will realize that these are means of extracting even more from Uncle Sucker. And as long as Obama and  his hapless Sancho Panza, John Kerry, are in office, they will almost certainly get their wish.