Iraq's debt risk rises despite US troop surge

Mark Davis Political Correspondent
October 12, 2007

SENIOR Australian ministers from the Prime Minister down reckon the US-led troop "surge" strategy in Iraq is making headway, pointing to declining civilian fatalities and evidence of political progress in Baghdad.

But despite the debates in Washington, London and Canberra, world financial markets have already delivered a negative verdict on the decision by the US President, George Bush, to boost American troop numbers by 30,000 - from 132,000 at the start of the year to 162,000.