FOLLOW THE MONEY

In this case, we learn that the insurgency has become like the Mafia - it can support itself. What happened to "last throes"???

U.S. Finds Iraq Insurgency Has Funds to Sustain Itself

By JOHN F. BURNS and KIRK SEMPLE
Published: November 26, 2006
NEW YORK TIMES

BAGHDAD, Nov. 25 — The insurgency in Iraq is now self-sustaining financially, raising tens of millions of dollars a year from oil smuggling, kidnapping, counterfeiting, connivance by corrupt Islamic charities and other crimes that the Iraqi government and its American patrons have been largely unable to prevent, a classified United States government report has concluded.

The report, obtained by The New York Times, estimates that groups responsible for many insurgent and terrorist attacks are raising $70 million to $200 million a year from illegal activities. It says $25 million to $100 million of that comes from oil smuggling and other criminal activity involving the state-owned oil industry, aided by “corrupt and complicit” Iraqi officials.

The report offers little hope that much can be done, at least soon, to choke off insurgent revenues. For one thing, it acknowledges how little the American authorities in Iraq know — three and a half years after the invasion that toppled Saddam Hussein — about crucial aspects of insurgent operations. For another, it paints an almost despairing picture of the Iraqi government’s ability, or willingness, to take steps to tamp down the insurgency’s financing.

If the $200 million a year estimate is close to the mark, it amounts to less than what it costs the Pentagon, with an $8 billion monthly budget for Iraq, to sustain the American war effort here for a single day.