Listening to your story angers me. These are my options:
1) Grab my girls hand and make out with her in front of this guy and look him right in the eye.
2) Take my girls hand and walk away from there. (Not the very best move though)
3) Tell the guy that he should come up with something better if he wants to impress my girlfriend, play it cool and probably talk to her and cut this guy off the conv. slowly
4) Everytime he says something to rude to me I'd say 'funny..you are really funny' and immediately make out with my girlfriend. It should be a pattern that he understands that everytime he trys to insult me he would have to see me make out with my girlfriend.
5) I would tell my girlfriend in private that I dont like her touching anyone else. Period, and if she does that then she is on her own.
6) If I were really pissed than I would basically bang the shit outta her for an entier week and then end the relationship with her. (banging is imp here

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Dude she is flirting with another guy at a bar. What is she doing with her hands on his knees !! that too infront of you. Thats disrespect. Would it be ok if you had your hand on some girl's knees ?
Bang the bitch and dump her, period. dont take disrespect from anyone.