• Featured
  • Australasia
  • The Americas
  • Europe
  • Africa
  • Market
  • Precious Metals
  • Resources
  • Currencies
  • Real Estate
  • The Bonner Diaries

Is There an Exit Strategy in Iraq?


By William Rees-Mogg • December 7th, 2006 • Related Articles • Filed Under

About the Author

William Rees-MoggLeading political editor William Rees-Mogg is former editor-in-chief for The Times and a member of the House of Lords. He has been credited with accurately forecasting glasnost and the fall of the Berlin Wall – as well as the 1987 crash. His political commentary appears in The Times every Monday. His financial insights can only be found in the Fleet Street Letter, the UK's longest-running investment newsletter.

See All Articles by This Author

  • None Found
Filed Under: Market

Strategic Insider - 7 December 2006 

Is there an exit strategy in Iraq?

About 60 per cent of Iraqis are Arab Shia Muslims.  Saddam Hussein and the Baath Party had their power base in the Arab Sunni community, who account for another 20 per cent of the population.  The remaining 20 per cent are largely Kurdish, with some other minority ethnic groups such as the Turkoman.  This division of the population into ethnic and religious groups led to the regional governments of the area in the period of the Ottoman Empire.

It is surprising that the United States, in its obviously deficient post-war planning, paid so little attention to the possibility of a federal Iraq, with Shia, Sunni, and Kurdish regions.  In fact the Kurds have been able to maintain virtual independence in the post-war period.  Iraq would probably have become a federation, but for two problems.  Baghdad is a multi-ethnic city; whether or not one regards Iraq as being in a state of civil war, Baghdad certainly is.  There is no effective government outside the Green Zone, and the rate of casualties is very high.

The second problem is oil.  It would be possible to design a federation in which there was very little oil revenue for the Sunni areas, but plenty of oil money for Shia and Kurdish provinces.  That would be unacceptable to the Sunni and unworkable in Baghdad.

In one of his farewell messages, the Secretary General of the United Nations, Kofi Annan, has said that the ordinary Iraqi might well feel that things were better under Saddam Hussein himself than they are under a democratic government unable to control anarchy and terrorism.  Whenever the possibility of splitting Iraq into a federal system is suggested, the United States rejects it.  But there is an obvious temptation to look for a strong man.  This was one of the phases of the Vietnam War, when Washington hoped that General Diem could lead South Vietnam to victory against the North.  That project failed, and the Americans eventually had to lead a coup against their own strong man, in which Diem was killed.

Obviously, a strong man for Iraq would need to have some democratic credentials;  he would have to come from the Shia majority;  he would have to have some military force of his own, and some influence on the Iraqi army, which has been established under the elected Government.  No-one wants a strong man who is a loser.

On December 4th, President Bush held talks in the White House with Abdul Aziz-al-Hakim, a Shia leader who has many of these qualifications.  He is the leader of the supreme Council for Islamic Revolution, which has the largest group of Members of the Iraq Parliament.  He has ties to Iran, which has considerably influence on the Shia community of South Iraq.  He controls a militia of 25,000 members.  Above all he is not Moqtada al-Sadr, the Shia militia who has caused such trouble to the United States.  For twenty years of the Saddam Hussein tyranny al-Hakim actually lived in Iran.

We do not know what the two men actually discussed, but there may, for the first time, be the outlines of a deal.  If al-Hakim can put together the support of the Shia, Iran, the United States and the elected government, he can be the strong man who can see off Moqtada al-Sadr, do a deal with the Kurds, take over the Iraq army, and restore some element of order.  That is a big shopping list, and it requires a rapprochement between Iran and the U.S.  But it might look very attractive to President Bush.

William Rees-Mogg

Strategic Insider - 7 December 2006

VN:F [1.9.11_1134]
please wait...
Rating: 0.0/10 (0 votes cast)
VN:F [1.9.11_1134]
Rating: 0 (from 0 votes)




P.S. to get The Daily Reckoning direct to your inbox sign up to our free e-mail newsletter or if you prefer to use RSS, subscribe to the Daily Reckoning RSS feed.

Related Articles:

  • None Found

About the Author

William Rees-MoggLeading political editor William Rees-Mogg is former editor-in-chief for The Times and a member of the House of Lords. He has been credited with accurately forecasting glasnost and the fall of the Berlin Wall – as well as the 1987 crash. His political commentary appears in The Times every Monday. His financial insights can only be found in the Fleet Street Letter, the UK's longest-running investment newsletter.

See All Posts by This Author

Post a Response

Comment moderation policy: Port Phillip Publishing supports free speech and frank and open conversation. But we reserve the right to modify or delete your comments if we consider them to be offensive or in violation of any laws, including Australia's anti-discrimination laws

By submitting your comment you agree to adhere to our comment policy.


  • Why Should I Sign Up?   We Value Your Privacy
  • Master trader predicts next move for ASX...

    Latest Slipstream Trader Video Market Update Just In... watch for free below.


    One viewer said these prediction videos were “scarily accurate”... another said Murray Dawes was “well on the money”... To find out where the Slipstream Trader thinks the market is headed next, and what that could mean for your investments, click below now to watch his latest video update...

    8th February 2012 - Market Update

    It’s one thing to have a view on where the market is headed next... It’s another to have specific stock trading recommendations emailed to your inbox.

    To take a 90-day, no obligation trial of Slipstream Trader, click here
  • Search

    The Markets

    All Ordinaries4359.400  chart+36.800
    S&p/asx 2004285.100  chart+39.800
    China Shanghai Co2351.854  chart-0.126
    Gold Sep 110.00  chart0.00
    Clj11.nym0.00  chartN/A
    Nikkei 2258999.18  chart+52.01
    Indu0.00  chartN/A
    S&P 5001342.64  chart-9.31
    Ftse 1005911.58  chart+59.19
    2012-02-13 00:35

    Most Comments

    • Australian House Prices Are Severely and Seriously Unaffordable (312)
    • Majority of Australians Believe House Prices Will Rise in Next Twelve Months (293)
    • Gas is the New Oil (256)
    • A Date for an Aussie House Price Collapse (251)
    • How to Profit From the Path of Progress (230)

    Archives

  • Headline Archive

  • Slipstream Trader

    Thousands now trade the markets who never thought they could...

    Breakthrough in trading techniques helps regular investors:

    • Determine how much to risk in a trade
    • Lock in profits while the position is still open...
    • Exit a losing position before a share tanks...

    If you thought trading was too complicated, prepare to be surprised... click here
  • Australian Wealth Gameplan

    "A rapid contagion is spreading.
    Even if you think you are relatively safe, this is a new, permanent risk. It will be with us for the next decade, or even two”.

    - Edward Morse, Veteran oil trader

    Right now a ‘paradigm shift’ is taking place that could present you with the single biggest investment opportunity of your lifetime.

    It also represents risks to your portfolio that could surpass those of the Global Financial Crisis fallout.

    Get full details in this just-completed presentation. (turn on your speakers)
  • Diggers & Drillers

    “Why a mining executive told me to F*** Off
    in front of a whole room of investors”
    Dr. Alex Cowie doesn’t have the most popular of jobs. At least – not inside the mining industry. For his readers, it’s another matter entirely.

    As Laurence says: “I have never bought a stock and got a 100% return before … thanks for providing the information for me to have that experience – and all within two months too!”

    Right now Alex has unearthed six “must buy” resource stocks for the year ahead. His method for finding them might annoy a few people in the industry… but it could help make a lot of money in 2012 too.

    Find out why, right here

  • Home
  • Newsletters
  • About
  • Subscribe
  • Columnists
  • Contact Us
  • RSS

All content is © 2005 - 2011 Port Phillip Publishing Pty Ltd All Rights Reserved

We encourage you to republish our material, all we ask is that you provide a working text link back to the original article on this site.
Port Phillip Publishing Pty Ltd holds an Australian Financial Services License: 323 988. ACN: 117 765 009 ABN: 33 117 765 009
email: dr@dailyreckoning.com.au Tel: 1300 667 481 Fax: (03) 9558 2219
Port Phillip Publishing Attn: The Daily Reckoning PO Box 899 Braeside VIC 3195

Terms and Conditions | Privacy Policy | Financial Services Guide

SEO Powered by Platinum SEO from Techblissonline