The risk of a new era of east-west confrontation triggered by Russia's invasion of Georgia heightened yesterday when Moscow reserved the right to launch a nuclear attack on Poland because it agreed to host US rockets as part of the Pentagon's missile shield. 

The US and the Europe today demanded that any settlement of the conflict in Georgia had to be based on recognition of the small Black Sea country's territorial integrity. But after overrunning Georgia in five days with troops, tanks, and bombers, Russia rejected the terms. 

Russian behaviour in Georgia has 'called into question the entire premise' of relations between Washington and Moscow, Defense Secretary Robert M. Gates said yesterday, even as the Bush administration appeared willing to let Russia take its time removing its forces from disputed areas inside the former Soviet republic. 

World oil prices, which have plunged from recent record heights, could spike higher again should the market be rocked by new supply-side shocks, according to industry experts.

Oil Prices Risk New Rises On Supply Shocks, Analysts Warn

Russia has continued air raids deep inside Georgia, after it rejected Tbilisi's announcement that it had called a ceasefire and wanted talks. 

Jets bombed targets near Tbilisi, including the airport, and Russia said its warships had sunk a Georgian boat that approached and tried to attack.

Opposition treasury spokesman Malcolm Turnbull has accused the Government of making tough economic times tougher and undermining confidence in the Australian economy.

Yesterday the Reserve Bank kept interest rates steady at 7.25 per cent after figures pointed towards a sharp slowdown of the economy. Economists have now predicted there could be an interest rate cut as early as next month. 

The Federal Government is continuing to attack the record of former treasurer Peter Costello, as speculation increases about him taking over the Liberal leadership. 

I'm on the road right now, will be back in a few days, with only sporadic contact with the virtual world of the blogosphere - and the hallucinated world of 'higher politics.' 

from Crikey ….. 

Mungo: Howard's detention regime diminished us all 

Opposition Leader Brendan Nelson says he will lead the Coalition to the next election.

Dr Nelson's handling of the Coalition's policy on an emissions trading scheme has led to speculation his leadership is in trouble, with some MPs withdrawing their support.

However, today he told ABC Local Radio in Adelaide that he was sticking with the job.

After spending much of the summer searching for an effective line of attack against Senator Barack Obama, Senator John McCain is beginning a newly aggressive campaign to define Mr. Obama as arrogant, out of touch and unprepared for the presidency.

Nikita Khrushchev said the Soviet Union would bury us, but these days, everybody seems to think that China is the one wielding the shovel.  

The People's Republic is on the march - economically, militarily, even ideologically. 

Can you enjoy the benefits of exercise without the pain of exertion? The answer may one day be yes — just take a pill that tricks the muscles into thinking they have been working out furiously. 

Liberal MPs are denying that Opposition Leader Brendan Nelson's job is under threat after his apparent backdown on emissions trading at yesterday's shadow cabinet meeting.

Last week Dr Nelson foreshadowed he would push for a tougher policy on a carbon trading scheme, in direct opposition to leadership rival Malcolm Turnbull.