This is an old one. They were looting. The U.S. Army is judge and jury. I'm sure the hooches the troops build for themselves is all from properly requisitioned supplies.
Where is the Iraqi law enforcement? Less than a month until the "Transfer of Power." Shouldn't Iraqi's be taking care of law enforcement in Iraq? Are there any laws in Iraq currently?
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People Are Stupid. People can be made to believe any lie, either
because they want it to be true or because they fear that it is.
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