08/25/2010 01:19 pm ET | Updated May 25, 2011

Colbert Realizes He's Actually A Terrorist (VIDEO)

Last night on "The Report," Colbert addressed Jon Stewart's recent report that Prince Alwaleed bin Talal, who Fox News called a 'terror funder,' is actually a shareholder of Rupert Murdoch's News Corp. Using Fox's own "follow the money" logic, as Stewart did the night before, Colbert traced Prince Alwaleed's money back to none other than... Himself!

It turns out that Prince Alwaleed's son Khaled bought the infamous portrait of Colbert from his old set and donated the money to the Yellow Ribbon Fund. This led Colbert to believe that not only are the troops who benefit from the Yellow Ribbon Fund "terror troops," but he himself is therefore a terrorist for being part of the money trail.

"Oh my God! I'm a terrorist!" Colbert exclaimed. "Why did they let me build my studio so close to Ground Zero?"