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To reiterate and clarify:

I believe that Irregardless of the Bush administrations reaction, there will be important Geo-political and Diplomatic Consequences and Repercussions for Russia.

Putin seems to have won a quick tactical victory in conquering S Ossetian and Abkhzia, and *appears* to be on the cusp of acheiving a strategic goal by re-integrating Georgia into the Russian fold, and controlling the Caucussian Oil routes.

BUT, They will face the following Geo-political fallout:

- The Russian government will now be seen by the G7 and democratic allies, in full daylight, for the kleptocracy they truly are.

- The Russians have likely handed John McCain a victory in the upcoming US elections.

- A defeat for Pelosi, with the opening of fields on US continental shelf, Alaskan ANWAR, and just about anywhere else the American wildcatters can stick a pipe in the ground, with a goal of the collapse of oil prices. (Worked against the Soviets)

- more conservative governments coming to power in Euroland. (Britain is due for Elections soon ?)

- Resurgence of the NATO Alliance and Re-militarization of the NATO allies.

- Full NATO support for Missile Defense Sheild.

- Russia has provided the Bush (or McCain) administration with political and diplomatic cover for the upcoming military confrontation with Iran

I don’t believe that Bushes reaction will be to directly confront the Russians, as the US Military has a pretty full plate in Iraq, Afghanistan/Pakistan, and the pending action with Iran, and honestly America is not going to directly confront another Nuclear power without GREAT provocation.

Much like Iraq (and Iran), the likely course of action will likely be to:

- Diplomatically isolate Russia.

- Economic Sanctions, ie. expulsion from the G8.

- Expanded Train & Equip missions to Ukraine, the Stans, etc.

- Insurgency Warfare in Georgia (and other points of pain).

- Increased direct and indirect action against Russia’s proxy’s.