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While President Mahmoud Ahmadinejad continues to make belligerent noises about Israel and the West, others in Tehran have hinted that they're ready for a change. In a Mar. 21 speech, Supreme Leader Ali Khamenei trotted out standard anti-American rhetoric but also indicated a willingness to talk. And Ahmadinejad's probable opponent in the June presidential election, former Prime Minister Mir Hossein Moussavi, favors negotiations with the US. "Obama has prompted Iranians to have an open debate about the relationship they want to have with the US," says Gary Sick, an Iran specialist at Columbia University in New York. "This is something that hasn't been seen in 30 years."

Most Iranian executives seem to be rooting for Moussavi. Although he is an old-guard leftist, businesspeople hope he would lead a reform-minded administration that could ease Iran's isolation. "Ahmadinejad has done serious damage to Iran's reputation and the reputation of Iranian business," says Mohammad Reza Behzadian, a former head of the Tehran Chamber of Commerce who runs Tondar Middle East, a trading company in Tehran.

Facing pressure from Washington, major European banks have stopped doing business in the country. So Iranians must pay exorbitant rates for trade financing from second- and third-tier banks in Europe, the Middle East, and Asia. Some Iranians work around the restrictions by setting up subsidiaries in the United Arab Emirates and playing cat-and-mouse with American inspectors. But such solutions are expensive, adding billions of dollars to Iran's soaring import bill-$57 billion for the year that ended in March. "It's a challenge finding banks that we can trust," says Parviz Aghili, CEO of Karafarin Bank in Tehran.

Sanctions also restrict the development of Iran's vital energy reserves. Tehran wants to boost oil production capacity by 25 percent, to 5 million barrels a day, but with little foreign help and aging fields in rapid decline, it's tough even to maintain current output. That's one reason Iranian oil officials are quick to say they want American help. "We don't have any problems with US investment," says M.A. Khatibi Tabatabaei, Iran's representative on OPEC's board of governors.

Ahmadinejad's erratic policies make things worse. The populist President has spent freely on everything from loans to small businesses of questionable viability to imported food and cash handouts for the poor. And he has pressured banks to shovel out easy credit, leading to a real estate boom. But worried that oil earnings will start to peter out, the central bank has tightened up, starving factories of capital and prompting a sharp fall in property prices.

Last year, when oil prices surged, the Iranian economy could shrug off its problems. With oil's steep decline and the global financial crunch, though, some fear social unrest. Many factories are months behind on salaries, says Ali Reza Mahjoub, a member of Parliament and head of Workers' House, a labor group. He estimates that unemployment, officially 12.5 oercent, is really closer to 17 oercent. As financing dries up, building is grinding to a halt, says developer Amir-Mohamad Mazaheri. "This is a very dangerous situation," he says, puffing on a cigarette in a new tower in North Tehran. "There will be 3-4 million construction workers looking to any activity to support themselves."

Even with sanctions in place, savvy foreigners have managed to make a mark in Iran-though it takes persistence. Renault, for instance, has a $200 million joint venture to build the Logan compact. But late payments from the Iranians and difficulties training enough suppliers to meet a requirement of 60 percent local content have slowed progress, Renault says. The venture, Renault Pars, has cut its output target for the Logan by 25 percent, to 150,000 cars per year. "You need a lot of time and energy," says Renault Pars chief Jean-Michel Kerebel. "What takes five hours in Europe could take five days here."

Kavi Chongkittavorn, a columnist and editor at The Nation, an English-language newspaper, said that despite the numbers in the streets, Mr. Thaksin’s challenge was fading in strength.

Wearing the red shirts of Thaksin loyalists, the demonstrators streamed into Bangkok throughout the day from his political strongholds in the rural north and northeast and by early evening the police estimated the crowds at 100,000.

The protests were reminiscent of the political paralysis that gripped Thailand last year. Those demonstrations, which were sometimes violent, forced the previous government to abandon Government House, paralyzed the workings of the administration and eventually shut down Bangkok’s two major airports. The protests were led by the “yellow shirts” of the People’s Alliance for Democracy.

The protests ended in December when — with the airports blockaded, tourism crippled and the economy at a virtual standstill — the Constitutional Court found the governing party guilty of election fraud. The court ruling led eventually to Mr. Abhisit’s selection as prime minister by Parliament in December.

The dismal state of the Thai economy has been another cause of anger among protesters. Just this week the World Bank revised its growth prospects downward: The bank now expects a 2.7 percent decline in Thailand’s gross domestic product in 2009, the country’s first contraction in more than a decade.

Yes, the United States does need to think carefully before launching a serious effort to rearm Georgia. The obvious yet painful reality is that Georgia simply is no match militarily for Russia, and we should not pretend otherwise. Giving less military support might also reinforce the U.S. message that the military option for resolving the South Ossetia and Abkhazia problems is out of the question.

Supporting Georgia's NATO aspirations, however, is a matter of principle. Last April in Bucharest, the alliance declared, "[We] welcome Ukraine's and Georgia's Euro-Atlantic aspirations for membership in NATO." Even while aiming to reset relations with Russia, President Obama has pledged to uphold the principle that "countries who seek and aspire to join NATO are able to join NATO." For NATO's own credibility, Russia cannot be granted a de facto veto over other countries' aspirations for membership. Nor should wishful thinking of better relations with Russia get in the way of Georgia's aspirations, which the United States has encouraged.

The US recently invested millions of dollars in a bridge connecting Tajikistan and Afghanistan, which will almost certainly be used to transport the supplies.

The announcement follows a decision by Kyrgyzstan to close a US air base - the only US military base in Central Asia.

It comes after Kyrgyzstan accused the US of not paying enough to rent the air base at Manas, near the capital city of Bishkek.

The licence to close the base was signed into law this week by Kyrgyz President Kurmanbek Bakiyev. The Kyrgyz foreign ministry said on Friday that it had officially issued an eviction notice giving the US 180 days to vacate the area.

Analysts have suggested that Kyrgyzstan's leaders will not carry out their threat to evict the US, but are using the law as a bargaining chip to get more rent money from Washington. US Defence Secretary Robert Gates sought to play down the Kyrgyz spat on Thursday, saying the US was open to negotiation on the rent. "We are prepared to look at the fees and see if there is justification for a somewhat larger payment," he told a news conference.