With all the news of the weakening U.S. economy and the dollar , we should not fail to see the weakening of our enemies in Iraq.

Muqtata al-Sadr, a leading Shiite cleric in Iraq and commander of the feared Mahdi Army, admitted he has lost many followers and much influence. Al-Sadr said "materialistic reasons" drove former loyalists to defect from him, but also conceded that "the presence of the occupier" contributed to his movement's failure "to liberate Iraq."

This is another sign that the positive effects of the "Anbar Awakening"-itself a consequence of the surge-are multiplying.

Al-Sadr instructed officers in the Mahdi Army to extend the cease-fire he agreed to last summer for another six months. The cease-fire, which began in August 2007, was a key to the security gains obtained by Generals David Petraeus and Ray Odierno. Since then, Baghdad has become relatively more peaceful and secure (despite the blast which killed five U.S. soldiers Monday), raising the possibility of Sunni-Shia reconciliation and political progress.

In the meantime, al-Qaeda in Iraq is floundering-and eating its own. Iraqis who formerly helped al-Qaeda are being hunted down and executed for giving up on the terrorist network. How's that for poetic justice?

There is even some good news from across the border. A new poll in Iran suggests that Iranians want more democracy and less theocracy , including the power to elect their Supreme Leader. Three-quarters also wished for normal relations and trade with the U.S.