The New York Times: "Russia escalated its assault on Sunday despite strong diplomatic warnings from Mr. Bush and European leaders, underscoring the limits of Western influence over Russia at a time when the rest of Europe depends heavily on Russia for natural gas and the United States needs Moscow's cooperation if it hopes to curtail what it believes is a nuclear weapons threat from Iran."

More: Earlier, Vice President Dick Cheney expressed a strong warning for Russia. In a telephone conversation with the Georgian president, he said 'that Russian aggression must not go unanswered, and that its continuation would have serious consequences for its relations with the United States, as well as the broader international community,' a spokeswoman, Lea Anne McBride, said in a statement released by the White House."

From the New York Times' news analysis of the situation: "As a column of soldiers passed through Gori, a black-robed priest came out of his church and made the sign of the cross again and again. One soldier, his face a mask of exhaustion, cradled a Kalashnikov. 'We killed as many of them as we could,' he said. 'But where are our friends?'"

"It was the question of the day. As Russian forces massed Sunday on two fronts, Georgians were heading south with whatever they could carry. When they met Western journalists, they all said the same thing: Where is the United States? When is NATO coming?"

A companion piece: "[T]he war risked becoming a foreign policy catastrophe for the United States, whose image and authority in the region were in question after it had proven unable to assist Georgia or to restrain the Kremlin while the Russian Army pressed its attack."

Bill Kristol -- always a hawk -- seems perplexed at what to pontificate on this issue. "Will the United States put real pressure on Russia to stop? In a news analysis on Sunday, the New York Times reporter Helene Cooper accurately captured what I gather is the prevailing view in our State Department: 'While America considers Georgia its strongest ally in the bloc of former Soviet countries, Washington needs Russia too much on big issues like Iran to risk it all to defend Georgia.' But Georgia, a nation of about 4.6 million, has had the third-largest military presence — about 2,000 troops — fighting along with U.S. soldiers and marines in Iraq. For this reason alone, we owe Georgia a serious effort to defend its sovereignty. Surely we cannot simply stand by as an autocratic aggressor gobbles up part of — and perhaps destabilizes all of — a friendly democratic nation that we were sponsoring for NATO membership a few months ago."

So what about the candidate reactions? "The candidates' responses to the crisis were initially very different in tone. Sen. McCain forcefully blamed Russia, a country he has taken a hard stand on in the past. He has called for ejecting Russia from the Group of Eight leading nations and has mocked President George W. Bush's statement that he saw goodness in former Russian President Vladimir Putin. Sen. McCain said that when he looked into Mr. Putin's eyes, he 'saw three letters: K-G-B.'"

"'Russia should immediately and unconditionally cease its military operations and withdraw all forces from sovereign Georgian territory,' Sen. McCain said Friday morning. He credited Georgia for having called for a cease-fire."

"Sen. Obama's initial response was more measured, not blaming either side. 'Now is the time for Georgia and Russia to show restraint, and to avoid an escalation to full-scale war,' he said. Later Friday, Sen. Obama toughened his position, calling for restraint on both sides but blaming Russia for invading its neighbor. Saturday, he went further, saying, 'Russia has escalated the crisis in Georgia through its clear and continued violation of Georgia's sovereignty and territorial integrity.'"

"Obama foreign-policy adviser Michael McFaul, an expert on the region at Stanford University, said that at first it wasn't clear that Russia was entirely at fault. 'I just don't think at that point it was useful to start assigning blame. The first thing you need to do is stop the violence,' he said."

By the way, McCain's top foreign policy adviser, Randy Scheunemann, was a lobbyist for Georgia. "But given the rapid escalation of the fighting, and the fact that Georgia is being viewed as a victim of its neighbor's aggression, Mr. Scheunemann's ties to the small nation and its pro-Western Georgian President Mikheil Saakashvili may look less like a weakness and more like a strength in the first foreign-policy crisis of the general election campaign."

On Friday, Edwards admitted to an affair with a filmmaker his PAC hired in 2006. The Boston Globe: “The surprise admission by Edwards, prompted initially by reports on the affair in the National Enquirer, severely damages his political future, perhaps irreparably, according to analysts and former associates.”

One of the mysterious players in this saga is a guy named Bob McGovern, the person John Edwards thought he was meeting at the Beverly Hilton. The New York Times attempts to profile him, but doesn't get much as he was unavailable for an interview.

And if you can't get enough about Rielle Hunter, then don't miss Newsweek's Darman on his encounters with the woman. His lead: "The first time I laid eyes on Rielle Hunter, I could tell she was a story. She had frizzy blond hair with DARK roots, wore bright nail polish and moved like someone who knew how to work a room. She was on a cramped commuter flight and she was flirting with a candidate for president of the United States."

Would Hillary have won? Former Clinton aide Howard Wolfson says we'd be speculating about Hillary's veep if the mainstream media had exposed Edwards' affair before the Iowa caucuses. "I believe we would have won Iowa, and Clinton today would therefore have been the nominee." And: "Our voters and Edwards' voters were the same people. They were older, pro-union. Not all, but maybe two-thirds of them would have been for us and we would have barely beaten Obama."

Sunday's New York Times looked at McCain's management style. "Out of his hearing, Mr. McCain is called the White Tornado by some people who have worked for him over the years. Throughout his presidential campaign, he has been the overseer of a kingdom of dissenting camps, unclear lines of command and an unsettled atmosphere that keeps aides constantly on edge. Even now, after a shake-up that aides said had brought an unusual degree of order to Mr. McCain's disorderly world in the last month, two of his pollsters are at odds over parts of the campaign's message, while past and current aides have been trading snippy exchanges debating the wisdom of attack advertisements he has aimed at Mr. Obama."

"In an interview, Mr. McCain said he believed an organization consisting of sometimes colliding centers of power made sure that a candidate, or a president, reached fully informed decisions. 'You've got to have competing opinions,' he said. 'I think a certain amount of tension is very healthy, and a certain amount of different views," he said. "Because of the bubble that a president is in, and the bubble that a candidate is in, sometimes you find out afterwards something that — "Oh boy, I wish I had heard thus and such and so and so." So I appreciate and want some of the tension; I don't want too much of it, obviously, because we have to have certain efficiencies. But I think there is a balance there.'"

The New York Times also notes how McCain has the week to himself, and the piece gets into the weariness issue. "'I think if you were going to take a week off, this is probably an intelligent time to do it,' Mr. McCain, the presumptive Republican nominee for president, told a small group of reporters on his campaign plane in a brief session on Friday night. As for himself, 'what we do is try to take a day or two down, but it seems when I do that they fill it up with briefings and prep and issues and meetings.'"

"What makes the difference, Mr. McCain said, is getting enough rest. 'If I can sleep in until about 7:30 or 8, then it really helps me,' he said. 'I think when I get up real early, like 5:30 or 6, and don't go to bed until 10, 10:30 or 11, it seems to help me get up a little later in the morning.'"

"Mr. McCain has made a number of verbal gaffes in recent months, including referring three times to Czechoslovakia, a country that has not existed since 1993. In his comments on the plane, Mr. McCain did not address whether his gaffes had anything to do with fatigue, but he seemed to suggest that they might have. 'If I put in three or four 18-hour, 20-hour days in a row, then I'm not sharp,' Mr. McCain said. 'It's just a fact.'"

"McCain on Saturday issued a scathing critique of Barack Obama's judgment and readiness to be commander in chief, telling a veterans' group his Democratic rival had tried to "legislate failure" in Iraq and placed his own ambition ahead of military success there." 
 
Meanwhile, Obama attacked McCain in a TV ad over his support of storing nuclear waste at Yucca Mountain. The AP: "The ad does not include McCain's full comments from the May 2007 interview, in which the Republican also said he believed the transport of waste could be made safe and that the current storage situation was also dangerous. 'What people forget is the option of leaving this waste in areas outside, maybe unprotected, certainly not well protected, all over America, rather than having it in a safe and secure repository for it,' McCain said. 'I preferred not having the status quo. And, I think it is a national security issue.'"

The New York Times looks at the ballot initiatives on social issues in some key battleground states. "Divisive social issues will be on the ballot in several states in November, including constitutional amendments banning same-sex marriage in Arizona, California and Florida, and limitations on abortion in California, Colorado and South Dakota."

"Although research indicates that ballot measures do not drastically alter voter turnout, they have begun attracting the attention of both presidential campaigns. Unlike 2004, when same-sex marriage bans were considered in 11 states, no single issue will dominate statewide ballots."

A pro-Obama indie group, PowerPac (a 501c4 non-profit) plans to spend some $10 million to help on the voter registration front in some Southern states.

The Washington Post has a good piece on the issue of restoring voting rights to ex-convicts.

INDIANA: McCain's Indiana co-chair sums up the differences in state organization between the two campaigns: "What we're trying to communicate is that a lot of this ribbon-cutting and office openings (for Obama) has been establishing an infrastructure that already exists in the Republican Party in this state, so we will be working through these county operations just as we have in the past."  (The state party has about a dozen offices staffed full-time; Obama's campaign has 18 new field offices.)

IOWA: NBC/NJ's Carrie Dann writes of a long-simmering civil war among Iowa Republicans that comes to a head just as McCain hopes to mount an uphill battle there.

MICHIGAN: McCain makes his fourth trip to Michigan this week.

NORTH CAROLINA: Registration numbers for Africans Americans are rising at a faster rate in this state than among white voters. "According to data reported Aug. 2 by the State Board of Elections, there are 1,224,545 black registered voters, compared with 1,114,798 on Election Day in 2004. That's an increase of 109,747, or 9.8 percent."

"Meantime, there are 4,421,919 white registered voters, compared to 4,226,473 on Election Day in 2004. That's an increase of 195,446, or 4.6 percent. Those numbers put black voters at 20 percent of the electorate and white voters at 75 percent, roughly where they were in 2004."

"Black voters' share of the electorate is a little below the 23 percent threshold that some say Barack Obama would need to win North Carolina, on the basis of current polls. Still, voter registration is not a good indicator of turnout. Historically, black voters have turned out at a lower rate in North Carolina, making their percentage of actual voters a few points below their percentage of the electorate."

NEW JERSEY: The McCain camp says the Arizona senator will pick up a "significant" endorsement in this state today.

A little after 6:00 pm ET last night, NBC's Lauren Appelbaum reports that this message went out from Obama's text-messaging service: "Barack will announce his VP candidate choice through txt msg between now & the Conv. Tell everyone to text VP to 62262 to be the first to know! Please forward."

Per NBC/NJ's Mike Memoli, Obama spokesman Robert Gibbs says this does NOT mean Obama has made his pick -- only that when he does he will announce via text.

USA Today has some pretty good vetting-problem bullet points on a few candidates, including Kaine, Bayh, Pawlenty and Cantor.

McCain "loves Lieberman. And he is on the [short]list because Lieberman has never embarrassed anyone, never misspoken. The first rule is, don't take someone who costs you votes," an adviser told The Financial Times. "Conservatives would be p---ed as hell - I think you would have a revolt, but sometimes John does what John wants to do."

More compiled by NBC/NJ's Matthew Berger and Carrie Dann...
REPUBLICANS: Former Pennsylvania Gov. Tom Ridge and McCain will campaign together today and tomorrow, after dining together Sunday night. McCain even landed at "Ridge Field" in Erie, Pa., the former governor's hometown.

Richard Land, president of the Southern Baptist Convention's Ethics and Religious Liberty Commission touts Alaska Gov. Sarah Palin, Mitt Romney and Eric Cantor, while saying Ridge would be a "catastrophe." 
 
Louisiana Gov. Bobby Jindal will travel to Detroit this week to persuade General Motors to keep a plant in Shreveport alive.

DEMOCRATS: Obama and Bayh are co-authoring a bill on fatherhood -- the Responsible Fatherhood and Healthy Families Act. "It would provide job training, remove marriage penalties from the tax code, and support domestic violence prevention efforts." 
  
Virginia Gov. Tim Kaine, fresh from vacation, offered a few veep-spec soundbites to reporters at the annual meeting of the Southern Governor's association this weekend. "I've always thought it was kind of a long shot, or not all that likely."

The Obama campaign has announced its primetime speakers for the Democratic convention.
Michelle Obama will speak on the first night.

Hillary Clinton will headline the second night of the convention; Chelsea is slated to introduce her mom. "The former first lady will speak on … Tuesday, Aug. 26 -- the 88th anniversary of the women's right to vote."

The third night will feature Obama's veep; Bill Clinton will also speak that evening.

And Obama speaks from Invesco Field on Thursday.

The Obama campaign, along with Kansas Gov. Kathleen Sebelius, holds a conference call at 10:00 am ET to discuss the nightly themes for the Democratic convention.

M.E. Sprengelmeyer has a 10-part convention series in the Rocky Mountain News called "Unconventional Wisdom."

From NBC's Chuck Todd and Jim Popkin
Fred Baron, John Edwards' campaign finance chairman and longtime confidante, told NBC News in telephone interviews, he has been providing financial assistance to both Andrew Young and Rielle Hunter.

Young is the married Edwards campaign staffer who has admitted to fathering Hunter's child. Earlier today, Edwards admitted to also having an affair with Hunter.

Baron said he was personally upset with how the National Enquirer was harassing the two and helped them relocate out of North Carolina. He has continued to help them with their overhead. 

Baron insisted Edwards never knew what Baron did for Young and Hunter; he believes Edwards didn't even have an inkling that Baron was doing this.

He added that he provided Hunter and Young "with the means" to move away from North Carolina and the tabs' prying eyes.

"My role is to be supportive of these two families," he said.

Hush money? "Of course it wasn't hush money!"

In a separate e-mail response he said he used no campaign funds for the relocation.

"Personal funds only -- no campaign funds," he writes. 

Baron added that Edwards decided to do the interview with ABC News after seeing the photo in the National Enquirer; it was a total fraud, according to Baron. The photo of Edwards is at least six months old; the photo of the baby is two-months old and the picture is potentially Photo Shopped into the picture of the hotel room, Baron said.
 
It was that National Enquirer photo which was the straw that made Edwards decide he needed to come clean, Baron said. Baron also believes the interview itself is remarkable and is upset that it is not the first word on this entire story. The original intention of the ABC interview was for the news made to be held until the airing of the interview.
 
Baron said he and Edwards decided to go public today because the attacks from the National Enquirer have been so vicious and there have been so many lies.

"Everything the National Enquirer has done is nefarious," Baron said.

Edwards did the interview to clear up mistakes and mostly to stop the tabloids from hounding Hunter and her child and Andrew Young and his family, Baron said.

From NBC's Chuck Todd and Domenico Montanaro
John Edwards admitted in a statement that he had an affair and that he "made a serious error in judgment" but denied he fathered a child or that he'd paid her off. In fact, Edwards went further, saying, "I am and have been willing to take any test necessary to establish the fact that I am not the father of any baby, and I am truly hopeful that a test will be done so this fact can be definitively established. I only know that the apparent father has said publicly that he is the father of  the baby."

Full statement below:
STATEMENT OF SENATOR  JOHN EDWARDS
August 8, 2008

Chapel Hill, North Carolina

In 2006, I made a serious error in judgment and conducted myself in a way that was disloyal to my family and to my core beliefs.  I recognized my mistake and I told my wife that I had a liaison with another woman, and I asked for her forgiveness.  Although I was honest in every painful detail with my family, I did not tell the public. When a supermarket tabloid told a version of the story, I used the fact that the story contained many falsities to deny it.  But being 99% honest is no longer enough. 

I was and am ashamed of my conduct and choices, and I had hoped that it would never become public. With my family, I took responsibility for my actions in 2006 and today I take full responsibility publicly. But that misconduct took place for a short period in 2006. It ended then. I am and have been willing to take any test necessary to establish the fact that I am not the father of any baby, and I am truly hopeful that a test will be done so this fact can be definitively established.  I only know that the apparent father has said publicly that he is the father of  the baby.  I also have not been engaged in any activity of any description that requested, agreed to or supported payments of any kind to the woman or to the apparent father of the baby.

It is inadequate to say to the people who believed in me that I am sorry, as it is inadequate to say to the people who love me that I am sorry.  In the course of several campaigns, I started to believe that I was special and became increasingly egocentric and narcissistic.  If you want to beat me up -- feel free.  You cannot beat me up more than I have already beaten up myself.  I have been stripped bare and will now work with everything I have to help my family and others who need my help. 

I have given a complete interview on this matter and having done so, will have nothing more to say.

From NBC's Chuck Todd
John Edwards admitted to having an affair with Rielle Hunter in an interview at his home in Chapel Hill, N.C., a senior Edwards adviser who was briefed on the interview with ABC said. 

Edwards talked a lot of how he told his wife, Elizabeth, and other members of his family in 2006. Edwards said the affair ended before he announced for president.

Edwards, according to the source, said he's not aware of any financial transactions to Hunter;

He also talked about how he could reach a point in his life where something like this could even happen -- that he was perhaps blinded by being a celebrity.

Edwards denied being the father of Hunter's child, which was born in Feb. 2008 with no name on the child's birth certificate. Edwards aides Andrew Young -- also married with children -- had admitted to being the child's father. But Young has not commented since the Edwards revelation.

Edwards said he went to the Beverly Hilton, where the National Enquirer claims to have photographed him, to meet not with Hunter, but Bob McGovern, a friend of Hunter's, the source said, adding that this was part of Edwards' effort to keep the affair secret.

As far as the Democratic convention, Edwards doesn't know if he's going to go, the source said, adding, he hasn't been asked.

From NBC's Mark Murray and Lauren Appelbaum
October 10, 2007: The National Enquirer first reports on an alleged affair between Edwards and Hunter.

October 11, 2007: Hunter denies the affair through a statement on the liberal blog, MyDD:
"The innuendoes and lies that have appeared on the internet and in the National Enquirer concerning John Edwards are not true, completely unfounded and ridiculous. My video production company was hired by the Edwards camp on a 6 month contract, which we completed December 31, 2006. When working for the Edwards camp, my conduct as well as the conduct of my entire team was completely professional. This concocted story is just dirty politics and I want no part of it."

October 11, 2007: Speaking to reporters in Summerton, SC, Edwards denies the affair. "I've been in love with the same woman for 30-plus years and, as anybody who's been around us knows, she's an extraordinary human being, warm, loving, beautiful, sexy and as good a person as I have ever known," Edwards said. "So the story's just false."

December 19, 2007: National Enquirer reports that Hunter is pregnant and Edwards is the father of the child.

December 19, 2007: An ex-Edwards aide, Andrew Young, admits that he is the father of Hunter's child through attorney Pamela J. Marple: "As confirmed by Ms. Hunter, Andrew Young is the father of her unborn child. Senator Edwards knew nothing about the relationship between these former co-workers, which began when they worked together in 2006. As a private citizen who no longer works for the campaign, Mr. Young asks that the media respect his privacy while he works to make amends with his family."

July 22, 2008: National Enquirer reports that it caught Edwards visiting Hunter at the Beverly Hilton in Los Angeles, CA.

July 23, 2008: At an ACORN press conference in Houston, Edwards said "the tabloid trash is full of lies."

August 6, 2008: National Enquirer publishes photos of Edwards with Hunter.

From NBC's Mark Murray
ABC reports: "In an interview for broadcast tonight on Nightline, Edwards told ABC News correspondent Bob Woodruff he did have an affair with 44-year old Rielle Hunter, but said that he did not love her."

"Edwards also denied he was the father of Hunter's baby girl, Frances Quinn, although the one-time Democratic Presidential candidate said he has not taken a paternity test."

"Edwards said he knew he was not the father based on timing of the baby's birth on February 27, 2008. He said his affair ended too soon for him to have been the father."

From NBC's Domenico Montanaro
The closing of a DHL facility that would cost the town of Wilmington, Ohio, more than 8,000 jobs, has been a hot-button local issue that has crept into the presidential race. On Thursday, McCain met behind closed doors with a group of Wilmington residents at Wilmington College to discuss the situation at the DHL Air Park.

Now the Obama campaign is seizing on McCain's and Campaign Manager Rick Davis' role in helping foreign-owned DHL acquire the space in 2003 with a radio ad running in the crucial swing state of Ohio.

"It was McCain who used his influence in the Senate to help foreign-owned DHL buy a U.S. company and gain control over the jobs that are now on the chopping block in Ohio," an announcer says.

But is this a fair hit? It's true that, as the Cleveland Plain Dealer pointed out on Tuesday, "In 2003, Davis lobbied the Senate to accept the proposal by DHL to buy Airborne Express for $1.05 billion. Airborne Express at the time ran the airport and package-sorting facility in Wilmington."

But is that a smoking gun? Not exactly. The Plain Dealer also pointed out that the acquisition "resulted in expansion, not retraction" and "several Wilmington civic leaders said that what happened in 2003 created an economic gain for their community, lasting several years."

The president of the Ohio AFL-CIO, a union that has endorsed Obama, places the blame squarely on Mccain and Davis. "Those jobs are on the chopping block because Sen. McCain and his campaign were involved in a deal that resulted in control of those positions being shifted to a foreign corporation, and there's no getting around that," Joe Rugola told the Plain-Dealer.

But can McCain and Davis really be held responsible for job cuts five years later after the initial acquisition created growth for the town? And would an American company really have acted any differently if it found a way to cut cost to keep steady or increase profit?

Here's the script:
ANNCR:   July 9.  2008. Portsmouth, Ohio. Here's what John McCain said about DHL's plans to eliminate 8,200 Ohio jobs.

JOHN MCCAIN (from Ohio town hall):  I gotta look you in the eye and give you straight talk. I don't know if I can stop it or not or if it will be stopped.

ANNCR:  But there's something John McCain's not telling you: It was McCain who used his influence in the Senate to help foreign-owned DHL buy a U.S. company and gain control over the jobs that are now on the chopping block in Ohio. And that's not all: McCain's campaign manager was the top lobbyist for the DHL deal...helped push it through.  His firm was paid $185,000 to lobby McCain and other Senators. Now 8,200 Ohioans are facing layoffs, and foreign-owned DHL doesn't care.

JOHN MCCAIN (from Ohio town hall): I gotta look you in the eye and give you straight talk.

ANNCR:   John McCain. Same old politics.  Same failed policies.

BARACK OBAMA:  I'm Barack Obama, candidate for President, and I approved this message. Paid for by Obama for America.

From NBC's Domenico Montanaro
McCain claims in an ad released today that "Obama voted to raise taxes on people making just $42,000. He promises more taxes on small business, seniors, your life savings, your family."

But when it comes to promises, it's worth pointing out that, according to the non-partisan Tax Policy Center's analysis of both candidates' proposed plans, Obama would cut taxes for those making in the range of $38,000 to $66,000 three to almost eight times more than McCain would.

Under Obama's plan, according to the center, by 2009, those making $37,595 would see an average increase in their income of 3.6%, or a tax cut of $892; those making an average of $66,354 would see an increase in their income of 2.4%, or a tax cut of $1,042.

On the other hand, Under McCain's plan, those making $37,595 would see an increase in their income of only about 0.5%, or $113 tax cut; those making $66,354 would see only an increase of 0.7% in their income, or a tax break of $319.

From NBC/NJ's Adam Aigner-Treworgy and Domenico Montanaro
After deplaning in Des Moines, Iowa, McCain spoke with reporters on the tarmac to discuss the current situation in Georgia. He called for the U.S. to immediately convene an emergency meeting of the U.N. Security Council and to work with the EU and NATO to create a neutral peacekeeping force to ensure Georgia's security.

Obama's campaign released the following statement on the situation:
"I strongly condemn the outbreak of violence in Georgia, and urge an immediate end to armed conflict. Now is the time for Georgia and Russia to show restraint, and to avoid an escalation to full scale war. Georgia's territorial integrity must be respected. All sides should enter into direct talks on behalf of stability in Georgia, and the United States, the United Nations Security Council, and the international community should fully support a peaceful resolution to this crisis."

Here's McCain's statement: "[T]he news reports indicate that Russian military forces crossed an internationally recognized border into the sovereign territory of Georgia. Russia should immediately and unconditionally cease its military operations and withdraw all forces from sovereign Georgian territory. What is most critical now is to avoid further confrontation between Russian and Georgian military forces. The consequences of Euro-Atlantic stability and security are grave. The government of Georgia has called for a ceasefire and for a resumption of direct talks on South Ossetia with international mediators. The U.S. should immediately convene an emergency session of the United Nations Security Council to call on Russia to reverse course. The U.S. should immediately work with the EU and the OSCE to put diplomatic pressure on Russia to reverse this perilous course that it has chosen. 

"I repeat, the government of Georgia has called for a ceasefire and for a resumption of direct talks on South Ossetia with international mediators. The United States should immediately convene an emergency session of the United Nations Security Council and to call on Russia to reverse course. The U.S. should immediately work with the EU and the OSCE to put diplomatic pressure on Russia to reverse this perilous course that it has chosen. We should immediately call a meeting of the North Atlantic Council to asses Georgia's security and review measures NATO can take to contribute to stabilizing this very dangerous situation. Finally, the international community needs to establish a truly independent and neutral peacekeeping force in South Ossetia."

NBC's Jeannie Ohm reports White House Press Secretary Dana Perino made this comment to reporters off-camera about the situation in Georgia: "We urge restraint on all sides - that violence would be curtailed and that direct dialogue could ensue in order to help resolve their differences. We will continue to be engaged."

President Bush did speak with Russian Prime Minister Vladimir Putin about the issue earlier in the day at a luncheon in China. Please note they spoke several hours before these latest developments.

From NBC's Jeannie Ohm
Despite some reports claiming that Vice President Dick Cheney would NOT appear at the Republican convention, Cheney's office just confirmed that he WILL attend and will speak.

Said Cheney's spokeswoman, Megan Mitchell: "The Vice President looks forward to participating in the Republican National Convention and continuing to work for the election of Sen. McCain and other Republican candidates in the coming months."

Mitchell says details are still being worked out regarding which night Cheney will speak.

*** UPDATE *** McCain's campaign has confirmed that Cheney will speak on the Monday of the convention, the same day that President Bush will speak.

From NBC's Mark Murray
The McCain campaign has announced it's running yet another TV ad hitting Obama for his "celebrity" and for wanting to raise taxes.

The campaign says the ad is being cycled into its buy in Colorado, Iowa, Michigan, Missouri, Nevada, New Hampshire, New Mexico, Ohio, Pennsylvania, Virginia (Northern Virginia), and Wisconsin.

But the ad makes some dubious claims:
1) When it says that Obama voted "to raise taxes on people making just $42,000," that was on a non-binding budget resolution vote that didn't actually raise or lower taxes. From Factcheck.org: "The resolution does not contain a specific provision to raise tax rates, but rather assumes that most of the 2001 and 2003 tax cuts expire as scheduled in 2011."

2) According to Obama's economic plan, he would raise taxes only on those making more than $250,000 per year, and would provide tax cuts to those making less than that. Factcheck.org: "Obama has stated repeatedly that his plan would increase taxes only for those making more than $250,000 per year."

The script:
ANNCR: Life in the spotlight must be grand, but for the rest of us times are tough. Obama voted to raise taxes on people making just $42,000.
He promises more taxes on small business, seniors, your life savings, your family. Painful taxes, hard choices for your budget. Not ready to lead. That's the real Obama.

JOHN MCCAIN: I'm John McCain and I approved this message.

*** UPDATE *** Says Obama spokesman Hari Sevugan in a a statement: "This ad is a lie, and it's part of the old, tired politics of a party in Washington that has run out of ideas and run out of steam. Even though a host of independent, nonpartisan organizations have said this attack isn't true, Senator McCain continues to lie about Senator Obama's plan to give 95% of all families a tax cut of $1,000, and not raise taxes for those making under $250,000 a single dime. The reason so many families are hurting today is because we've had eight years of failed Bush policies that Sen. McCain wants to continue for another four, and that's what Barack Obama will change as President."

From Chuck Todd, Mark Murray, and Domenico Montanaro
*** The Olympics lull: Now we've entered the real lull in the presidential race. Not only is it August, but the Olympics officially start today and Obama begins a weeklong vacation to Hawaii. But, as you've probably guessed, the race won't completely come to a standstill. For one thing, McCain will campaign today in Iowa, and Hillary Clinton picks up the slack for the vacationing Obama by stumping in battleground Nevada, a contest she won back in January. And both McCain and Obama will be running TV ads on the Olympics. Here's Obama's ad, which focuses on the economy and energy (and has background music reminding us of his Super Bowl ad): "The hands that built this nation can build a new economy. The hands that harvest crops can also harvest the wind. The hands that install roofs can also install solar panels. The hands that build today's cars can build the next generation of fuel-efficient vehicles. Barack Obama. A new vision for our economy. Fast track alternative fuels. Create five million jobs developing home-grown energy technologies because America's future is in our hands."

*** I feel good … I knew that I would now: While the overall political environment remains bleak for Republicans, they're starting to feel much better than they have in a long time. Peggy Noonan is the latest to express this sentiment: "For the first time the idea began to take hold that John McCain can win this thing. You saw the USA Today-Gallup poll this week, with Mr. McCain gaining six points since late June among those Gallup dubbed likely voters. Mr. McCain took the lead, 49% to 45%. Among registered voters, it's still Barack Obama, 47% to 44%. A poll came out saying people are tired of hearing about Mr. Obama. Mr. McCain took the lead in YouTube hits. Small stuff, and there will be a lot of twists and turns before this is over, but there's movement down there beneath the crust of the Earth." Of course, that USA Today/Gallup poll is the ONLY major national poll that has shown McCain with a lead; the rest have him down, often in the mid-single digits. The question for Republicans is whether this is as good as it gets -- like a losing basketball team cutting a lead down to single digits, before eventually getting routed -- or whether it's the beginning of a comeback. We won't know the answer until after the conventions. But if this is the low point for Obama, and McCain is still behind, that isn't necessarily good news for the GOP. But attitude is an important thing, and we also sense the optimism with Republicans for the first time in months. Remember the groundskeeper in "Major League" who couldn't speak English? One can sense some Republican backseat drivers of the McCain campaign are muttering, "they're not so s*#@**&"

VIDEO: NBC Political Director Chuck Todd gives his first read on Bill Clinton's role at the Democratic convention and Hillary Clinton's first solo campaign trip stumping for Obama.

*** No more drama? Is the Clinton-Obama drama finally coming to an end? NBC's Andrea Mitchell reported last night that the Obama folks had offered Bill Clinton a prime-time speaking slot at the convention. Mitchell adds that Obama campaign officials insist it was never in doubt that Bill would speak, but it was only after Obama reached out and called the former president himself that a prime-time speech for Clinton was confirmed. The speech is likely to come Wednesday night, probably early evening, not necessarily in the 10:00 pm ET hour when the VP candidate is expected to speak. But imagine this: What if it's Bill Clinton who nominates Obama? Two questions remain unresolved. One, will Hillary submit her name, in writing, to be on the ballot? And two, will any more news come out from Clinton Land about Obama that could put the entire relationship in question again -- say a national magazine article to come out next week that has uncovered about 200 internal Clinton campaign memos discussing Obama and campaign strategy?

*** The fundraising mess: As expected, McCain decided to return some money yesterday involving the sub-bundler used by uber-bundler Harry Sargeant. Now one thing the Clinton and Obama campaigns will probably advise the McCain folks is that once you start returning SOME money, you'll end up having to return ALL of it at some point. It's amazing how many campaigns always think they can return some money and somehow hope that's enough. Obama tried it with Rezko and ended up having to return an even greater sum at a later date. Ditto for Clinton and Norman Hsu. Can McCain use the Olympics lull to avoid returning more Sargeant money money? It's possible, but history suggests otherwise.

*** And the Detroit mess: One of the intangibles in McCain's favor in Michigan has to do with the political mess that surrounds Detroit Mayor Kwame Kilpatrick. Obama obviously needs to do well in Detroit and the surrounding suburbs to win Michigan. It doesn't help his cause that he can't even visit the area without potentially having to be asked about the Kilpatrick issue. It's a distraction on a number of levels, and the McCain folks believe it's just one of the odd intangibles in their favor which could help them pull the upset in a state Republicans haven't carried in two decades. That said, Obama is probably lucky the Kilpatrick news occurred now and not in October…

*** Cohen wins: Facing tons of negativity -- Ku Klux Klan images, less-than-subtle references to his Jewish faith -- incumbent Rep. Steve Cohen (who is white) easily won his primary against challenger Nikki Tinker (who is black) in yesterday's Democratic primary in a majority-black congressional seat in Memphis, TN. Obama even weighed in on the race yesterday, saying in a statement that Tinker's "incendiary and personal attacks have no place in our politics, and will do nothing to help the good people of Tennessee. It's time to turn the page on a politics driven by negativity and division so that we can come together to lift up our communities and our country." However, the Cohen folks weren't all that pleased that Obama never endorsed Cohen over Tinker.

*** On the trail: The butter cow is back! McCain is in Des Moines, where he attends the Iowa State Fair and later attends a fundraiser. He then heads to Arkansas, where he holds a media avail and raises money. Obama travels to Hawaii for his weeklong vacation there. And Hillary Clinton stumps for Obama in Henderson, NV.

Countdown to Dem convention: 17 days
Countdown to GOP convention: 24 days
Countdown to Election Day 2008: 88 days
Countdown to Inauguration Day 2009: 165 days
 
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Obama and McCain write of their faiths in TIME magazine. Here's McCain's essay.
 
Here's Obama's. 

The Wall Street Journal takes a look at both campaigns' $500,000 bundlers, a first for a presidential campaign.

A new liberal group is being formed to target major conservative donors as an attempt to scare these folks from contributing to any new 527s or indie groups.

The Wall Street Journal's Peggy Noonan looks at the last month of the campaign and concludes that she actually believes McCain can now win this thing.

In his appearance yesterday in an Ohio town that might lose DHL jobs overseas, McCain did his best to duck the role campaign manager has Rick Davis played on the issue, and he called on DHL's CEO to come to OH to discuss what's happening.

The Washington Post: "Mindful of the state's place on the electoral map and the need to demonstrate empathy about the economy, McCain told about two dozen company employees and civic leaders he would do everything possible to stop the job losses. He said he will urge the German owners of DHL to visit with residents of Wilmington."

"But he also told them to prepare for the worst. 'I don't know if all of this will work. I have to say that. I have to give you straight talk. I do,' he said. 'I can't assure you that this train wreck isn't going to happen, but I will do everything in my power to see that we avert it.'"

The DHL-Rick Davis angle to yesterday's McCain event got covered just about everywhere this morning. More from the LA Times: "McCain's campaign said Thursday that Davis has not lobbied for DHL since 2005 and had no role in the current controversy. He took a leave of absence from his lobbying practice to run McCain's campaign. But the politically sensitive case has embarrassed McCain, who has railed against the role of special interest groups in Washington, and it threatens to undermine his efforts to capture this crucial state in November."

"In news releases, conference calls and local street protests, Democrats and union groups have blamed McCain and Davis for backing the original deal, and accused McCain of ignoring the workers' plight. During a campaign visit last month, Barack Obama, the presumptive Democratic presidential nominee, met with Wilmington's mayor, David Raizk, and pledged his help if elected."

OK, it looks that the only Clinton not speaking at the Democratic convention is Chelsea, although we bet that changes soon. Bill Clinton "was offered an invitation to speak on Aug. 27, three senior Democratic officials said, before the address by the party's vice-presidential nominee. The Obama campaign extended the offer on Thursday to Mr. Clinton, who accepted it."

Per NBC's Andrea Mitchell, Obama campaign officials insist it was never in doubt that Bill Clinton would speak, but it was only after Obama reached out and called the former president himself that a prime-time speech for Clinton was confirmed.

The Washington Post: "The Obama and Clinton camps said this week that they agree on a central point: They would like to avoid an embarrassing display of discord from Clinton's most ardent backers when the national convention begins in just over two weeks. Conversations about how to achieve that have increasingly focused on the question of whether Clinton's name will be offered in a roll-call vote by delegates to determine the nominee, even though she has said she is not challenging Obama's claim as the party's standard-bearer."

With Obama headed to Hawaii, the AP looks at how island life shaped the Illinois senator.

Chuck Schumer added to the voices of Democrats critical of Obama's response to the Paris Hilton-Britney Spears ad. "I thought the Britney Spears commercial was powerful," Schumer told the Politico... "They're trying to say, 'He's not one of us,'" Schumer said. "I would answer back hard. What do you mean he's not one of us? It's John McCain who wears $500 shoes, has six houses and comes from one of the richest families in his state." He added, "When they say, 'He's not one of us,' you don't say, 'Here's our plan on health care.'"

"With the existing 33,000 square feet on the 11th floor of a Chicago office building starting to feel like a crowded sweatshop, the campaign headquarters for Sen. Barack Obama is expanding," the Chicago Tribune reports. "On Thursday, the Democratic presidential campaign started moving into an additional 12,000 square feet of space in the same building."

The Los Angeles Times looks at the minefields both candidates are navigating with their potential VP picks. "Economic conservatives cringe at Mike Huckabee. Conservative evangelicals like Huckabee but wince at Mitt Romney. Gay rights activists are trying to rule out Sam Nunn. The women's movement is wary of several prominent Democrats who support abortion restrictions."

"That's the minefield Barack Obama and John McCain are tiptoeing across as they choose their vice presidential nominees. The goal of each: to find a running mate who adds appeal to the ticket -- while steering around the candidates who would leave key groups angry and ready to abandon the party."

Tim Pawlenty gets the New York Times' front-page treatment. "As is his way, Gov. Tim Pawlenty made a self-deprecating aside on a local radio show this spring during the ceremonial start of the state's beloved fishing season. He praised his wife's willingness to fish with him and to watch hockey games, then added, 'And I jokingly say, "Now, if I could only get her to have sex with me."'" 

"Some Minnesotans cringed. Others, including his wife, Mary, a former judge who met her future husband in law school, said he was just being himself, joker and all. Outside his home state, Mr. Pawlenty is among the least-known of the prospects Senator John McCain is said to be considering as a vice-presidential partner. But those who have followed his political rise here say Mr. Pawlenty's personal story — his direct, everyman appeal to ordinary people — is among his most powerful attributes." 
 
Mitt Romney went to bat for Joey Cheek, a former speedskater and Darfur activist whose visa was denied by Chinese officials. "Romney, who was en route to Beijing yesterday for today's start of the Games, personally intervened in Cheek's case, writing a letter to top Chinese government officials and the Chinese Olympic committee president. 'It's a very serious error on their part,' Romney said in a telephone interview from Washington between flights. 'Joey Cheek is by no means an out-of-control radical. He's a very serious, sober, responsible individual, and his support for human rights certainly can't be in any way a detraction from the Games.'"

More from NBC/NJ's Matthew E. Berger and Carrie Dann…
REPUBLICANS: The folks at Radar link to this archived St. Pete Times piece from 2007, when Florida Gov. Charlie Crist visited the Middle East: "Waiting for Crist on the helipad at the king's residence was Harry Sargeant of Palm Beach County, a fraternity brother of Crist's at Florida State University in the 1970s and a supporter of his gubernatorial campaign last year. Sargeant loaned a corporate jet to Crist's campaign, and Sargeant's family and companies gave $248,000 to the state Republican Party in 2006." 
 
Rep. Eric Cantor's hometown paper points out that the Republican congressman barely made it out of the 2000 primary that eventually won him his House seat. "But for 263 votes, Rep. Eric I. Cantor, R-7th, wouldn't be potentially a heartbeat from the presidency."

DEMOCRATS: A Virginia columnist says that Virginia Gov. Tim Kaine's father-in-law, a former Republican governor of the state, could help with the "Obamacan" movement. "If Mr. Kaine ends up on the Democratic ticket, expect to see a lot of Mr. Holton on the campaign trail, as a prominent "Republican for Obama."

Leon Panetta?

National Journal's Mercurio has this idea: "What if presidential candidates no longer kept their VP searches under lock and key? What if, instead, they opened up the process to intense scrutiny and public debate by voters and the media?"

The "racially charged Democratic primary [in Memphis, TN] ended with an incumbent congressman trouncing the opponent who ran an ad linking him to the Ku Klux Klan. Unofficial results showed Democrat Steve Cohen with 79 percent of the vote to 19 percent for Nikki Tinker, a black corporate lawyer who was his chief opponent in the district that covers Memphis, with all precincts reporting. Cohen is the first white congressman from Memphis in more than three decades and one of only two white congressmen representing a majority black district."
 
Also in Tennessee, freshman incumbent Rep. David Davis (R) lost to Johnson City Mayor Phil Roe by about 500 votes last night. "Being linked to 'big oil' turned into a big problem for [Davis] ..., who became the first congressman from that state to lose in a primary in more than four decades." In 2006, Davis eked out a victory over Richard Venable, Richard Roberts and Roe by a 22%-21%-18%-17% margin, respectively.

From NBC's Andrea Mitchell
NBC News has learned that the Obama campaign, in an effort to quiet talk of the Obama-Clinton drama, has offered Bill Clinton a speaking role on Wednesday night at the Democratic convention -- before the vice presidential running mate speaks.

Sources say that Clinton in fact will speak.

The campaign rushed tonight to resolve the issue after network news reports about the Clintons and Obama.

From NBC/NJ's Matthew E. Berger and Carrie Dann
THE SHORT LIST:
Sen. Hillary Clinton said on a Web chat that she was "completely committed" to helping Obama. She said she would "respect the privacy of that process" by not speaking about the veep speculation.

Per NBC's Lauren Appelbaum, McCain praised former Rep. Rob Portman in an interview with NBC affiliate WLIO in Lima, Ohio: "We're just doing the process that you have to go through and if we mention names, then there's endless speculation. But I have been asked about Rob Portman here in Ohio. And certainly I have not said anything except Rob Portman is one of the next generation of leaders of our party. But, I'm sorry that we can't mention any names or where we are in this process. I'm sorry. I apologize."

Obama said his team and Clinton's team were working out details about whether she'd be placed in nomination: "I don't think we're looking for catharsis. I think what we are looking for is energy and excitement about the prospects of changing this country, and I think that people who supported a whole range of different candidates during the primaries are going to come out of that convention feeling absolutely determined that we have to take the White House back."

ON THE RECORD:
An Ohio voter had some unsolicited vice presidential advice for John McCain Thursday. "I lay awake at night worrying," the man asked. "You get these reports on television that it's a neck and neck race. I would like to see a landslide victory for you, and I'd like to vote in November for a McCain/Rice ticket." Others shouted "Romney" and "Lieberman."

Former Gov. Mitt Romney said he is angry the Chinese government revoked the visa of Joey Cheek, a former Olympian who is working for peace in Sudan. "I hope the Chinese government is able to reconsider this," Romney said in a phone interview between flights in Washington. "Joey Cheek is by no means an out-of-control radical. He's a very serious, sober, responsible individual, and his support for human rights certainly can't be in any way a detraction from the games."

WHAT THEY'RE UP TO:
Clinton will campaign for Obama at Green Valley High School in Henderson, NV Friday.

Portman will lead the U.S. delegation to Santo Domingo on Aug. 16 for the inauguration of the new president of the Dominican Republican. He will be joined by former major league baseball player Julio Franco and New York Mets general manager Omar Minaya.

The Chicago Tribune's Swamp reports: "John McCain is scheduled to return to Pennsylvania Monday for a two-day swing through the western and central part of the state, this time with former Gov. Tom Ridge at his side."

Minnesota Gov. Tim Pawlenty will host his weekly radio show on WCCO 830 AM.

BUZZ METER:
The National Review looks at dark horse candidate Frederick W. Smith. "While Smith's life story and hands-on experience managing a large, successful corporation in the era of globalization would be a lovely addition to any future administration, Smith's potential flaws as a running mate are clear. He has never held elected office, nor sought it, which would complicate the "experience" charge used against Obama."

Bet you'd never heard of Shirkieville, Indiana (pop. 50), but veep buzz over hometown boy Sen. Evan Bayh reached a crescendo there this week. "'Everybody's pretty sure that he's going to get it,' said Carolyn Powers, co-owner of the Midway Bar and Grill in the heart of Shirkieville. 'It would put the Midway on the map, wouldn't it?'"

CHATTERING CLASS:
Pawlenty's visit to Washington got mixed reviews. "the New York Times, calls it "low voltage," but the Washington Post's Dana Milbank terms it a "strong audition" for the veepstakes."

From NBC's Jim Popkin
A spokesman for McCain said campaign officials are reviewing hundreds of thousands of dollars in campaign contributions following newspaper reports that a foreign national may have helped bring in some of that money.

"We want to make sure that all the contributions to this campaign are appropriate," McCain spokesman Brian Rogers told NBC News.

The McCain campaign letter.

The New York Times reported today that the business partner of a major McCain "bundler" is a foreign national who helped collect campaign-donation checks.

Rogers said the McCain campaign has issued a letter to all donors who sent their contributions through bundler Harry Sargeant III, the finance chairman of the Florida Republican Party. Sargeant's longtime business partner is Mustafa Abu Naba'a, a dual citizen of Jordan and the Dominican Republic. Sargeant told the Times that he at times left the task of collecting the checks to Naba'a.

It's illegal for foreigners to contribute their own money to U.S. campaigns.

"Due to recent news reports, we are writing to remind you of the legal requirement for making contributions to federal candidates," the McCain letter states. "John McCain 2008 is prohibited by federal law from accepting contributions from…foreign nationals," it adds.

*** UPDATE *** McCain's campaign is returning more than $40,000 in campaign donations that were solicited by a foreign national, a McCain spokesman tells NBC News. "As a precautionary measure, we are going to return any contributions that were solicited by Mr. Abu Naba'a," spokesman Brian Rogers said.