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Careful, Tim. Bush told Matt Lauer that he didn't think the war on terror could be won. That's perfectly true, the same way the war on bank robbery can never be won. There will always be somebody with a new reason and a new idea for doing terror.
But -- you're playing Bush's game. Bush's remark to Lauer is utterly irrelevant to the war in Iraq, because that war is not part of the war on terror! If anything, the war in Iraq serves to provoke terrorists, not fight them.