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It would be better for us internationally to kill everyone in Iraq as a statement of power than to cut and run declaring the war lost. If we pull out before killing every bad guy there (and more arrive or are created every day), then we are going to see the NKs, Iranians, and their ilk developing nukes full speed ahead in clear violation of any treaty we might negotiate with them. Because we will be seen as weak
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To go even further then the above. Theoretically our foreign relations and other dealings with the world. Would be better off if we Nuked Iraq and completely decimated the country. Making it inhospitable for years. Instead of retreating. As bad as it sounds. The message would be. Even if you defeat our ground forces. You will lose in the end. Make victory for the enemy impossible. Send the message that if we can't win, no one can. Anything is better then retreating. This tactic may be to extreme but this type of attitude is needed to win.