A word for an inescapable and pointless situation?

I've heard this word used before but I can't remember it!

I've heard it used to describe wars like Iraq and Vietnam. Something you can't escape easily and is causing large problems, like a pit? Here is an example:

The American government has decided to pour extra money into the war in Iraq, unable to escape the ______ it has entered.

Answer

"Quagmire" is certainly a fitting word for your example:

"The American government has decided to pour extra money into the war in Iraq, unable to escape the quagmire it has entered."

Definition from M-WO:

2: a situation that is hard to deal with or get out of : a situation that is full of problems

The first definition (also from M-WO) is helpful in understanding how "quagmire" came to be used for other tricky, dangerous situations:

1: soft miry land that shakes or yields under the foot

EDIT: "Quagmire" was apparently quite commonly used to describe the US' involvement in the Vietnam War as is illustrated in the book, "The Making of a Quagmire: America and Vietnam During the Kennedy Era" by David Halberstam, Daniel J. Singal (Editor & Contributor)