internecine - adj - Of or relating to conflict within a nation, an organization or a group; mutually destructive; involving or accompanied by mutual slaughter; deadly; destructive
Armageddon comes to mind.
I was reading this article (http://money.cnn.com/magazines/fortune/fortune_archive/2007/05/28/100033867/index.htm) today which talks about patent Armageddon, a situation in which companies sue each other into oblivion over patent infringement issues.
In some ways the precipitation of hostilities during the Cold War could have been described in the same way.
Dire, no matter how you cut this one.
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