All your sovereign nations are belong to U.S.
Tim over at Road to Surfdom has a post on the proposed US Embassy in Iraq - Baseless allegations, and reminds us that permanent military bases will help define the sovereign nation, currently being 'constructed';
If not quite a city-state, on completion it will resemble an embassy-state. In essence, inside Baghdad's Green Zone, we will be building another more heavily fortified little Green Zone.
Number 1, baby.
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