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Global Outlook


August 14, 2014, Thursday, 21:59 GMT | 16:59 EST | 02:29 IST | 04:59 SGT
Contributed by eResearch

This week's reason to worry for Wall Street may be Iraq. We already know that the Islamist group known as ISIS is trying to take over Iraq, and the following may make it easier: there is chaos in Baghdad.

From the online WSJ...

BAGHDAD—Prime Minister Nouri al-Maliki denounced Iraq's president on national television Sunday for failing to nominate him for another term as prime minister, as security forces deployed in unusual numbers throughout the capital.

It was unclear early Monday how far Mr. Maliki intended to press his concerns; he said only that he would take the newly-elected President Fuad Masum to court for allegedly violating the constitution.

But his fiery tone, history of obstinacy and the surprising deployment of security forces in Baghdad sparked whispers that the prime minister may intend to cling to power by force. That could throw further political instability on a country already cleaved apart by a powerful Islamist uprising.

"We have noticed suspicious security movements in Baghdad, distribution for forces and tanks which, if they persist, can be considered a coup," a former senior Kurdish official involved in the negotiations said. "So far, we haven't reached that point. It's only Maliki showing his muscles."

"The president has violated the constitution twice: once when he extended the deadline to assign the prime minister after Thursday, August 7, and the second time when he refused to assign the post to the candidate from the State of Law bloc, the biggest bloc in parliament," Mr. Maliki said.

"I formally will submit a complaint to the high federal court against the president."

This news will probably have to get worse before the market cares, because it is going higher this evening. Is this really a coup as some have said? Will this bring the U.S. military back into Iraq? Only time will tell.

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