let's go way back to the ancient times

here is a good piece from the washington post, on the reagan administration helping saddam in Iraq's war against Iran:

"To prevent an Iraqi collapse, the Reagan administration supplied battlefield intelligence on Iranian troop buildups to the Iraqis, sometimes through third parties such as Saudi Arabia. The U.S. tilt toward Iraq was enshrined in National Security Decision Directive 114 of Nov. 26, 1983, one of the few important Reagan era foreign policy decisions that still remains classified. According to former U.S. officials, the directive stated that the United States would do "whatever was necessary and legal" to prevent Iraq from losing the war with Iran.

The presidential directive was issued amid a flurry of reports that Iraqi forces were using chemical weapons in their attempts to hold back the Iranians. In principle, Washington was strongly opposed to chemical warfare, a practice outlawed by the 1925 Geneva Protocol. In practice, U.S. condemnation of Iraqi use of chemical weapons ranked relatively low on the scale of administration priorities, particularly compared with the all-important goal of preventing an Iranian victory."

also, note that perpetual war portfolio (sidebar link) is up a few points, even as both the NASDAQ and the Dow are down...