How Strong Is Russia?

Most of the discussion around the Russian invasion of Georgia seems to assume that the country is still a powerful enemy, the same way it was during the Cold War. But that surely is a mistake. Russia has been booming economically, but that is the result of the oil price being so high. It increasingly look like Saudi Arabia with snow. The money is being squandered on arms spending, and by playboys in London. It isn't being used to build a modern economy. Meanwhile, it has a rapidly falling population, which means there won't be many 18-year old boys around to invade even tiny nations like Georgia.