My take on all this is that pressure to institute martial law will come from the military after another terrorist attack. If the attack is before the election, elections are cancelled. If the attack is after the election, then either Bush or Kerry will preside over the imposition of martial law.
I don't think it's something that either of them would want to do. They just won't feel they have a choice. After Iraq, the military is outraged, and it'll insist on calling the shots.
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