Jealousy?

I own two wonderful dogs, a two-year old Border Collie, and a Golden Retriever puppy that was born around late April/early May. Things immediately became obvious: the collie was jealous. Anytime the new pup came towards me, the collie would pin him down and proceed to shake him viciously until pulled off. Gradually, lots of water guns, screaming, and constant patching up wounds on the pup, we've gotten to where it's less rare for him to outright attack the pup: maybe once a week, as opposed to every day. I've considered this as a dominance thing (both are unneutered males), as well as a possessiveness of me thing: it also occurs when the pup goes for a toy, food, or even water. Is there any more tips on how to cure the collie of this behavior? He's a wonderful dog, and while I'd prefer not to neuter him (as he did have plans for being a stud-male once he earned his title), but it seems this may have to be done to curb the aggression, as well as the fact I'd prefer not breeding a bad-tempered dog. Since I'm sure others have had problems like this, I was hoping for suggestions.

Both dogs currently live in separate, temporary 10'x10' kennels while I move. Exercise is not the issue: this was happening when the dogs were in a massive pasture with horses, a pasture that extends down to a creek, woods, and so forth. Right now, both dogs are removed from kennels at the same time, and played fetch with for over an hour: we've pretty much cured the toy-possessiveness things with certian toys (toys the collie knows aren't exclusively his, however when it's his red ball, things change.). It still happens with food (main issue), water, and rarely, me. Since both dogs are going to be moved into a bigger lot, atleast 24'x32', I am seriously considering whether or not I should spend extra money to buy 24' more of fence and divide it into two 12'x16' lots instead. I'd prefer not, as these dogs will eventually have to live together when I move away for college/better job qand they tag along,  thus I'd like to handle the problem now while both dogs are young.

That comes to another problem. If anyone has owned your strong herding instincts dogs, they know 'the eye'. The collie gives the golden this all the time, and quite frankly, the golden has gotten more submissive around the collie and runs to me for protection. This occurs usually with the toys: while the collie no longer outright attacks the golden, he merely stares him down. If you've ever seen a herding collie before, these dogs are pretty intense.

However, I will say that the collie listens better around the golden than before. He comes near-instantly on command (I suppose to get to me first), sits instantly on command, downs on command, and does his trained herding perfectly. I'd almost go as far to say he's showing off. Another problem arises, however: since the collie's constant bullying of the pup, the pup has receeded in his commands. He no longer sits on commands, and usually hesitates on coming on command. Even without the collie within sight, it's the same case. I have unfortunately decided I need to retrain him completely.

So, that's the entire situation. Hopefully someone will have some suggestions.