Iraq’s government revoked the license of military contractor Blackwater USA—which protects the U.S. embassy—after a Baghdad shootout that killed eight people. The the Blackwater guards—who are among 20,000 private security contractors in Iraq—were providing security for a U.S. diplomatic convoy when the shooting started.

“Well, this should be interesting,” said Kevin Drum on WashingtonMonthly.com. This puts the Bush administration and the Iraqi government alike in a very tight spot. “The Maliki government is already hanging by a thread, and forcing them to back down on this after they've already gone public could deal them a death blow.”

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