Sentence:  "People like to talk about a neoconservative cabal in the White House," he said, referring to the chief architects of the Iraq War, Vice President Dick Cheney, Secretary of Defense Donald Rumsfeld, and his deputy, Paul Wolfowitz. "But what you really have is an <WSD>ineptocracy</WSD>: these people can't do anything right." 
Meaning of the word marked with <WSD> tags:  A government characterized by incompetent leaders.