JEFF STEIN is a Washington-based editor and investigative reporter of long standing, specializing in U.S. intelligence, defense and foreign policy. In 2005, he launched SpyTalk as a weekly column at Congressional Quarterly, where he was the founding editor of CQ Homeland Security , and later, national security editor. In 2007 SpyTalk went daily, and in 2010 moved to The Washington Post. An Army Intelligence case officer in Vietnam, Jeff has been a frequent contributor to most national magazines, as well as the opinions and book review pages of the Washington Post and New York Times, among many others. Today he contributes regularly to The Washington Post Sunday Magazine. In the 1980s he was deputy foreign editor for the old pre-Moonie UPI. He has appeared regularly on CBS, CNN, MSNBC, Fox News Channel, the BBC, NPR and several documentary films as a commentator on national security issues. He is also the author of "A Murder in Wartime: The Untold Spy Story that Changed the Course of the Vietnam War" (St. Martin's Press 1992), which TIME hailed as "the best military morality tale since the Caine Mutiny." Email spytalk[at]me.com (preferred) or (202) 812-3034. 

 Perhaps the opposition researchers who dumped that story about Newt Gingrich's $250,000-$500,000 "revolving charge account" at Tiffany & Co. only wanted people to make fun of his gilded lifestyle, but it also raises more concrete, scandalous questions. Namely: Why would Tiffany's give the Gingriches a no-interest credit account? 
 
 CBS' Bob Schieffer asked Newt Gingrich about the account over the weekend, and Gingrich curtly explained that it was a "standard, no-interest account." Now it's very possible that Gingrich was just making up that "standard, no-interest" line entirely, to avoid sounding like your run-of-the-mill idiot who takes on hundreds of thousands of dollars in consumer credit without considering the usurious interest rates that are attached. But what if he was serious about the terms of the account? Then, as the Washington Post's Glenn Kessler has explained, it would appear as though he got some sort of non-standard deal from the jeweler: 
 
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 Then, we looked at the current installment credit application form posted by Tiffany on its Web site. That form shows an annual interest rate of 21 percent for the state of Virginia, where Gingrich and his wife live. That interest rate is charged if you do not pay the balance off in full within 25 days after the close of each billing cycle. [...] We checked with credit-card experts. They said Gingrich's comments made little sense. "It doesn't sound plausible to me," said Ben Woolsey, director of marketing and consumer research at CreditCards.com. "Store credit cards almost never carry these kinds of terms, and it is highly unlikely for an exclusive retailer like Tiffany's." [...] Gingrich's claim that he had a "standard, no-interest account" as part of the "normal way of doing business" appears highly dubious. Tiffany does not appear to provide such a revolving line of credit account to regular customers. And Callista Gingrich's disclosure documents clearly show the debt was carried for at least two years. 
 
 And what was Callista Gingrich doing during those years? She was a big wig over at the House Agriculture Committee, which has jurisdiction over mining policy — an area where Tiffany's lobbyists were making a big push. From an excellent post at SpyTalk: 
 
 Filings by Tiffany's lobbyist, Cassidy & Co., and other government records show that the firm's spending on "mining law and mine permitting-related issues" in Congress, as well as the Forest Service, the Interior Department, and Interior's Bureau of Land Management shot up sharply between during the period when Callista Gingrich was chief clerk at the House Agriculture Committee. Tiffany's annual lobbying expenditures rose from about $100,000 to $360,000 between 2005 and 2009, according to records assembled by the Center for Responsive Politics, a nonpartisan government watchdog organization. 
 
 So far, there's no smoking gun here for, you know... bribery. But this story is now more than a silly joke about Newt Gingrich covering himself in bling, like a clown. 
 
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 [via Felix Salmon; image via AP] 

 NEWT GINGRICH: You know, we don't do elaborate things. 
 
 BOB SCHIEFFER: Did you owe a half-million dollars to a jewelry company at one point? 
 
 GINGRICH: We had a revolving fund. 
 
 SCHIEFFER: Well, what does that mean? 
 
 GINGRICH: It means that we had a revolving fund. It was a – 
 
 SCHIEFFER: I mean, who buys a half-million dollars worth of jewelry on credit? 
 
 GINGRICH: No. It's a — go talk to Tiffany's. It's a standard, no-interest account. 
 
 SCHIEFFER: How long did you owe it? 
 
 GINGRICH: I have no idea, but it was paid off automatically. We paid no interest on it. There was no problem with it. It's a normal way of doing business. 
 
 SCHIEFFER: Well, I mean, it's very odd to me that someone would run up a half-million-dollar bill at a jewelry store. 
 
 GINGRICH: Well, go talk to Tiffany's. All I'm telling you is we are very frugal. We, in fact, live within our budget. We owe nothing. 
 
 — Exchange on CBS’s “Face the Nation,” May 22, 2011 
 
 Former House Speaker Newt Gingrich’s claim of being “very frugal” reminded us of this Reliable Source item from 1999: 
 
 When Newt and lady love Callista Bisek shared dinner at the Old Angler's Inn in Potomac Saturday night, he ordered the priciest item on the wine list — a $450 bottle of 1983 Chateau Latour. That's twice the price of the restaurant's next most expensive wine — a $220 Opus One Baron de Rothschild 1996 from California's Mondavi Vineyard. 
 
 Unfortunately for Gingrich, he overpaid — the 1983 was a mediocre year for the Latour vineyard. But perhaps he learned his lesson from overpaying for so-so wine and now he’s frugal? 
 
 We’re not sure. But we are also puzzled by his claim that he had a “standard, no-interest account” at Tiffany & Co. The disclosure filings that Gingrich’s third wife, Callista, provided to the House of Representatives when she worked for the Agriculture Committee listed debts to Tiffany of $250,001 to $500,000 on a “revolving charge account” for two straight years. (The disclosure forms also show debts of $15,001 to $50,000 to American Express.) 
 
 Would Tiffany really charge no interest for that period of time on that amount of money? 
 
 The Facts 
 
 As Gingrich urged, we tried first to talk to Tiffany. We e-mailed and called three different spokesmen in the New York headquarters. One spokeswoman curtly said they were aware of Gingrich’s comments and they would try to respond. But so far, we have received no answer or explanation. 
 
 Then, we looked at the current installment credit application form posted by Tiffany on its Web site. (Please see update with comment from Tiffany here.) That form shows an annual interest rate of 21 percent for the state of Virginia, where Gingrich and his wife live. That interest rate is charged if you do not pay the balance off in full within 25 days after the close of each billing cycle. 
 
 That would be a hefty interest charge in a year—about $50,000 on a $250,000 loan. Gingrich’s wife’s filings cover the 2005 and 2006 calendar years, and indicated the couple at that time had between $1 million and $2.5 million in assets. 
 
 The filings also certainly suggest that the Tiffany bill was not paid off every month in full, since the same figure is listed for two years straight. (Callista Gingrich then left the staff of the House Agriculture Committee, and was no longer required to file a disclosure statement, so it is unclear whether or when the loan was paid off.) 
 
 We checked with credit-card experts. They said Gingrich’s comments made little sense. 
 
 “It doesn’t sound plausible to me,” said Ben Woolsey, director of marketing and consumer research at CreditCards.com. “Store credit cards almost never carry these kinds of terms, and it is highly unlikely for an exclusive retailer like Tiffany’s.” 
 
 Some department stores, such as Sears, might offer a few months of “same as cash” credit for buying major appliances. But Woolsey said a store like Tiffany is not going to offer zero-interest credit for purchases of jewelry, given the type of clientele it attracts. “Maybe with Zales, but not with Tiffany’s,” he said. 
 
 John Ulzheimer, president of consumer education at SmartCredit.com, said Gingrich’s comments made sense only “if he had some sort of no-interest grace period. You can't revolve a balance and not pay interest unless there is a zero percent interest rate. Carrying a balance of up to $500,000 and not paying interest is anything but ‘normal.’ ” 
 
 However, he added that Tiffany “isn't your normal retailer, and upscale retailers are notorious for cutting special deals with VIPs like entertainers, athletes, and political figures.” 
 
 We queried Gingrich’s spokesman, Rick Tyler, for further explanation but as usual did not get a response. 
 
 The Pinocchio Test 
 
 Gingrich’s claim that he had a “standard, no-interest account” as part of the “normal way of doing business” appears highly dubious. Tiffany does not appear to provide such a revolving line of credit account to regular customers. And Callista Gingrich’s disclosure documents clearly show the debt was carried for at least two years. 
 
 So either Gingrich and his wife paid high rates of interest on their Tiffany’s debt — or they received a special deal because of his political prominence. The fact that Tiffany won’t say a word — after Gingrich said to “go talk” to them — certainly raises questions. 
 
 Given the facts at hand, under the “reasonable-man” standard, Gingrich earns three Pinocchios for his statement. If new facts come to light, we could adjust this ruling. 
 
 Three Pinocchios 
 
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 UPDATE: Tiffany's responds. Please see this update. 
 
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– At first, self-professed "frugal" Newt Gingrich's Tiffany bill of up to $500,000 just made him look ridiculously out of step with cash-strapped Americans. But now, the financial arrangement with the jewelry behemoth is raising questions about influence, notes Gawker. Gingrich and his wife enjoyed a special interest-free line of credit from Tiffany's while Callista Gingrich worked as chief clerk for the House Agriculture Committee. That's when Tiffany was lobbying the committee to influence silver mining policy, Spy Talk points out. Callista Gingrich listed debts to Tiffany of as much as $500,000 during two years at that time, notes the Washington Post. Interest on that bill for a typical consumer runs 21%, meaning the powerhouse couple ducked tens of thousands of dollars in interest fees. Spending by Tiffany's lobbyist, Cassidy & Co., zoomed while Callista worked for the committee. Now it looks like diamonds might not turn out to be a girl's—or a presidential candidate's—best friend.