But the truth is, neither party is fully reckoning with the reality of Iraqâ€”which is that the insurgents, by most accounts, are winning. Even Secretary of State Colin Powell, a former general who stays in touch with the Joint Chiefs, has acknowledged this privately to friends in recent weeks, NEWSWEEK has learned. The insurgents have effectively created a reign of terror throughout the country, killing thousands, driving Iraqi elites and technocrats into exile and scaring foreigners out. "Things are getting really bad," a senior Iraqi official in interim Prime Minister Ayad Allawi's government told NEWSWEEK last week. "The initiative is in [the insurgents'] hands right now. This approach of being lenient and accommodating has really backfired. They see this as weakness."[emphases mine]
From Newsweek via MSNBC.