The guy is baiting us big time. Doubt he even believes what he's saying. He knows Bush has his eyes on Iran and is provoking him to play his cards out before he has the capacity. Starting another war now before we're done with excursion in Iraq and Afghanistan would be foolhardy and Ahmadinejad knows this fully. Sure he'd lose militarily but fundamentalist Islam would get a huge boost and be unstoppable as a force. And actually, maybe they wouldn't lose since we have no idea what the Soviets or Chinese would do if they saw their huge trading partner attacked. Those guys have limits to their patience especially with the resurgence of nationlism and pride going on in their borders.

Better to treat the idiot as laughable and insane and use his words to help inflame the more moderate elements within Iran.