Peace in our time? Maybe Not.

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[this is good]
They could simply leave. While the this is the morally correct option, the U.S. invested billions of dollars in the operation and is unlikely to accept no ROI.
I agree. US is not going to leave, and if the privatizations will actually go through - they will leave only once ALL oil resources are exhausted.

They could start killing off Parliamentarians. This is achievable given the unique status of law and order in Iraq, but is more likely to sway pro-American politicains to push for withdrawl than frighten anti-American ones to quieting down.
Don't underestimate the power of fear. I think it's a possibility. They just need to organize a few assasinations, blame them on some terrorists, but allow enough of the truth to be known for the people to get the message.

They could kill all the Parliamentarians, install a new Saddam and abandon the 'democracy' pretense.
In order to abandon "democracy" pretense they neither need to kill anybody, nor do they need to install an official "military dictator". They can have a "presidential republic" with carefully selected president and advisory (e.g. powerless) parlament. It's not that far off what we got there now - just a few minor changes to complete the picture. They can for example portray the parlament as inefficient in say "fighting Al-Qaeda" or "reaching sectarian compromise" and push for some changes in constitution that would tip the balance in their favor.

They could simply ignore the Iraqi government and continue as they are. The Iraqi armed forces are no match for the U.S. and would not be stupid enough to fight back, but could simply let the Iraqi resistance do it for them. Without Iraqi help in identifying it's enemies, the MNF-I could be seriousy bloodied.
Possible, but there will always be some level of pretense that we are doing it for Iraqi people, democracy, freedom, bluh-bluh-bluh. They might think like Ann Coulter, but they will never speak out like she does.

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