By invading Georgia the Russians are assuring the Iranians of Moscow’s readiness to confront the U.S. By invading Georgia the Russians are exacerbating the global energy crisis by strengthening all anti-American forces in the Middle East.

The price of oil isn’t merely about oil. It is about food, the U.S. dollar and power-politics. Westerners, however, are always “mystified” when the Russians seem to act contrary to their own economic interest (as if economic interests were the only interests). It is true that Russia has benefitted from high energy prices. More significantly, Russia will benefit even more when the U.S. dollar collapses.

In every strategic equation losses are relative. If you are somewhat hurt and your enemy is crippled, you’ve won a great victory. After all, war is about accepting damage as well as inflicting damage. And war between America and Russia has been the game all along. Only the American side has consistently refused to recognize the fact. In Washington they have deluded themselves about Russia’s long term strategic intentions. And even now they will continue to delude themselves. American pundits will puzzle over Russia’s invasion of Georgia. And perhaps the Russians will pull back, having gained some significant concession from Washington. It is hard to say at this early hour.

If we look at Russian rhetoric and Russian actions over the past nine years we will find a pattern. In recent months the Russians have been acting as if they want to provoke a break with the Americans. They want to put themselves openly and honestly on the other side of the fence. If there is global conflict anywhere in the world the Russian government wants to take the side of America’s enemy. In Venezuela, in Africa, in the Middle East, in the Far East, the Russians want to renew the confrontation between East and West.

http://www.financialsense.com/stormwatch/geo/pastanalysis/2008/0808.html