Saddam uderstands that this is a public relations battle as much as anything else. He doesn't have to win, he just has to make it long and bloody enough that international & domestic pressure rises and forces Bush into a position of having to commit political suicide to continue the war.
Whether he can put up still enough resistance to do that remains to be seen, but the reports of supply shortages, low morale, and 'pauses' have already begun to spread.
Somewhere in a bunker, Saddam is laughing. I think this war is going pretty well for him so far.
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