This is fascinating as well as terrifying. It suggests that Bush and his faithful water carrier both really believe their own bullshit -- not just in terms of viewing Hezbollah and Hamas as the mindless tools of Syria and Iran, but also in their rosy-lensed assessments of how things are going in the Middle East these days.
The biggest thing I take from the exchange, and response of the United States as a whole to the growing conflict, is that this is just yet another example of the cold war mindset that the clowns running our foreign policy are stuck in. They simply cannot bring themselves to see any world event outside the influence of state actors. All the recent talk of "WW III" from Gingrich and other neocons just highlight this mindset.
It demonstrates once again why George W Bush and Tony Blair are exactly the wrong men for our time. They lack the imagination or the mindset to truly keep the us secure by dealing effectively with our true enemies: loosely organized, shadowy terrorist organizations. Their continued efforts to pound the square peg into the round hole only seeks to make things worse.
Add to that their "rosy-lensed assesment of how things are going in the Middle East," as Billmon put it, and there isn't much hope for a responsible change in course anytime soon.