This is clearly *not* a "good one" -- as you say f_d -- this is a crass joke on children, played by a mildly racist US soldier with no spine who is trying to get on "the good side" of his larger, more bullying, more racist and thickheaded squad "buddies".

Considering that most people "in support" of the "war" in Iraq think that we are there for "installing democracy" (total twaddle, of course), this pic is an insult to the very concept of democratic egalitarianism.

A pox on the poster.
A triple pox on the photographer and the soldier.

Although all three people in the pic (+ photog) are probably dead now.