JERUSALEM (Reuters) - The reluctance of banks to risk U.S. sanctions and lawsuits by dealing with a Hamas-led government has pushed the Palestinian Authority to the brink of financial collapse sooner than donors had expected, diplomats said. That is interesting. The Islamics have pretty much shut down Western newspapers through the cartoon jihad. We have eliminated their cash flow (in places) through the money jihad. I'd put it down to lack of strategic thinking on the part of the Islamics.
The rapid onset of a banking crisis -- within days of Hamas's swearing-in on March 29 -- could further depress Palestinian incomes, fuel political unrest and speed the arrival of a humanitarian crisis with which donors are not yet prepared to cope, according to diplomats and Palestinian officials.
Western diplomats and private-sector experts said Hamas's troubles finding a bank has for now eclipsed Western aid cuts as the biggest immediate threat to the new government's viability.
See also my previous articles on jihadi money flow problems in Follow the Money and Follow the Gold.
Middle East Peace Process, Radical Islamists, Palestine, Hamas, Follow the Money, Terrorism, Israel
Tuesday, April 11, 2006