Facing Reality

George Bush gambled that overthrowing Saddam without the U.N.'s help and boxing out Arafat would pay big dividends. Now all bets are off as the Administration adjusts its strategy. HERE ARE THE NEW CA

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It's nice to think that the French and Germans, the Indians and Turks, might help Bush's political fortunes. But even if they open their wallets, their generosity is not going to score many points with American voters. Iraq and the war on terrorism now define the Bush presidency. There is no money for any popular domestic initiatives. Already some Republicans can be heard muttering that the huge federal budget deficit may make it prudent to delay some of Bush's promised tax cuts. Two years ago, Bush set himself a bold--audacious--set of tasks. How well they turn out will determine how politically strong he is in a year's time. That is the reality for George Bush, and it bites. --Reported by Massimo Calabresi, Matthew Cooper, John F. Dickerson, Mark Thompson and Douglas Waller/Washington, James Graff/Paris and Romesh Ratnesar/Jerusalem

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