English subtitles for clip: File:3-25-09- White House Press Briefing.webm

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MR. GIBBS: Good afternoon. I'll make a couple of brief

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announcements before we get started.

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The President just had a good meeting on the hill with

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Senators Dorgan and Conrad, Representative Pomeroy of North

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Dakota, Senator Klobuchar and
Representative Peterson

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of Minnesota.

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The President is following the
situation in Minnesota and North

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Dakota closely.

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He approved the disaster
declaration last night and

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assured members of Congress that
he will act on any request for

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assistance quickly.

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Secretary of Homeland Security
has spoken to the North Dakota

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Governor to ask for what he
needed and to convey that the

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government was coordinating at
all levels.

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The ice floes in the river bear
watching closely and the

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President assured members --
assured the members that the

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administration will do that, and
remains ready to react as

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necessary.

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I'd also note that the President
has watched with admiration as

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students whose schools have been
closed joined volunteers from

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all over both states to assist
first responders with sandbags

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and additional preparations.

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Secondly, I want to announce the
bilateral meetings that

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President Obama will hold in
London next week at the

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G20 summit.

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In addition to meeting,
obviously, with Prime Minister

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Gordon Brown, the President will
also meet with

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Her Majesty Queen Elizabeth II.

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On Wednesday, April 1st,
President Obama will meet

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President Hu of China.

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Also on the 1st, President Obama
will meet for the first time

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with Russian President Medvedev.

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On Thursday, April 2nd,
President Obama will meet with

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Indian Prime Minister Singh, in
addition to the President of the

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Republic of Korea, Lee -- that's
also on April 2nd.

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And lastly, the President, as
you know, has been on Capitol

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Hill this morning and is
enormously pleased with the

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progress that both the House and
the Senate are making on working

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toward a budget that reflects
the priorities and the

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investments that he wanted to
see in a budget.

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He's happy that those
investments are on track to be

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made in this budget, and is also
pleased that the budget also

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fulfills his goal of cutting the
budget deficit that he inherited

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in half over the course of his
term in office.

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Again, significant investments
in health care reform, energy

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independence, and in education.

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So I'm sure there will be some
more on that topic.

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And with that, Ms. Loven.

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Q: Thank you.

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Can you just describe a little
bit more fully the meetings he

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had on the Hill, what some of
the give-and-take was between

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them?

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MR. GIBBS: I'll get a better
readout from -- Josh Earnest

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went up there with the
President; I did not -- I did

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not travel with the President up
to Capitol Hill today.

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I know that -- to answer more
broadly, as I just said, I think

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the President is enormously
pleased with the progress that

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the two committees are making;
that the progress demonstrates

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that what the President set up
and what those two budget

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committees are working on is to
make important investments, as I

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said, in health care reform and
ensuring that our children are

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educated for a 21st-century
global economy, and to make

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necessary and needed investments
in energy independence, all

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while cutting the budget deficit
in half over the course of his

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term in office.

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Q: And I just had, quickly, a
different topic.

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And did he come away from these
meetings, do you think, with any

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more certainty that Democrats
won't be -- up to this point,

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Democrats have been almost as
loudly critical of the budget as

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Republicans and wanting certain
changes made to it.

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Does he feel any differently
about their -- Democrats'

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position after this meeting?

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MR. GIBBS: Let me focus, I
think, on what Peter Orszag said

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in a conference call with some
of you all this morning.

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The budget documents that the
House and Senate are now

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considering -- they are about a
98 percent -- or about 98

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percent the same.

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So I know there's a tendency in
this town to focus on the two of

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a hundred that you might not be
getting.

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The President prefers to focus
on the 98 percent that are in

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these budgets that are similar
or identical to what he hoped

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each of the House and the Senate
would do, and more importantly,

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as he's talked about and talked
about last night, put our

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country on the path not just to
renewed fiscal responsibility,

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but to making important
investments that have long been

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delayed and instituting a strong
foundation for long-term

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continued economic growth.

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I think both these budget
documents appear to be headed

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strongly in that direction, and
the President is

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pleased with that.

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Q: Can you say anything about the F-22 crash in California?

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MR. GIBBS: I just saw it as I
was coming out, so I don't have

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anything on it, but we will try
to get something on that.

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Q: In the meeting the President
had with the NATO Secretary

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General today, was he able to
brief him on the details of the

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Afghanistan review?

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And when is he going to make
those details available to the

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public, and in what format?

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Is he going to give a speech
about it or --

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MR. GIBBS: I think it is -- when
the President is ready to make

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an announcement, obviously we
will -- that's likely to happen

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before we go overseas, and I
would look for that as early as

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the next few days.

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I know that the President spoke
about it today in the meeting.

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I don't know to the degree to
which he fully briefed on that.

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But obviously, I think it's
something you'll see as early as

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the next few days.

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Q: Okay, just one other question
on a very different topic.

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I just wanted to follow up on
the question that Major asked to

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the President last night about
the dollar.

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MR. GIBBS: You mean Garrett?

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(Laughter.)

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Q: Ha ha ha.

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(Laughter.)

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Q: I'm just wondering is it -- is it a concern

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that the President is

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even being asked about the
status of the dollar at a time

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when he's going to the G20
trying to show leadership on the

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economy, that questions are
being raised about currency?

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MR. GIBBS: I don't blame Major
at all for the question that he

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asked the President last
evening.

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(Laughter.) No, I'm kidding.

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No, no, I --

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Q: Do you think that it makes a
statement about the questions

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that are being raised abroad
about the American economy and

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its strength and the dollar --

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MR. GIBBS: No, the President's
first job in -- when he walked

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into this White House was to do
everything he could to

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strengthen our economy, to
create jobs, to get it back on a

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sound footing, to put it on a
path towards sustained economic

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growth, but also to acknowledge
that we've gotten away from

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fiscal sanity, and that this
budget puts us back on a path

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towards doing something far more
responsible with our budget.

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I've said, and the President has
said now a couple of different

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times, that America is the
strongest and safest place to

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invest in the world.

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And I think that will continue
to be the case for

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a long, long time.

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But the President is -- the
President is going to do what he

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thinks is in the best interest
of the American people in

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getting the American economy
growing and moving again.

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I think the steps that have been
taken thus far in the Recovery

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Plan and in financial stability
plans -- we've seen already

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domestically a drop in mortgage
rates, some of which are

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attributable to the plan that
was put forward to stabilize the

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housing market.

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I think the President is pleased
with the progress that we've

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made, understanding that we've
got a long way to go.

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And I don't think he's too
worried about what other people

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might think about the actions
that we're taking.

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Dan.

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Q: To focus on that 2 percent for a moment:

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Is the President at

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all disappointed that the
middle-class tax cuts that he

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talked so much about on the
campaign trail may not end up in

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the budget?

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MR. GIBBS: Well, let's
understand what is -- what's

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already been signed into law.

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Q: Beyond --

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MR. GIBBS: Right.

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But let's understand, again,
that within the first month of

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walking into the White House,
the President got his

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middle-class tax cut and Making
Work Pay for 95 percent of

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working families in this country
to be law for the first two

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years of his administration.

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Look, we're -- we understand
that legislating

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is an active sport.

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But we've got now a couple of
years to make decisions about

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how to include that for the long
term.

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Again, I'd -- it's hard for me
to focus exactly on what's going

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to happen in years three and
four, when I think we feel

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pretty good about what we've
gotten in years one and two.

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Obviously OMB announced today
the creation of a task force to

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look into ideas of tax
simplification and closing the

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tax gap in this country as a way
of bringing about ideas --

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bringing ideas forward as to how
to make Making Work Pay

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permanent, and it still remains
one of the President's

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priorities.

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Q: On another unrelated issue,
the National Urban League today

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released a study talking about
the disparity -- African

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Americans twice as likely to be
unemployed, three times as

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likely to live in poverty, six
times as likely

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to be incarcerated.

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What is the President's reaction
to this?

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And I know that the Urban League
is calling on the President to

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do something about these
disparities.

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What's his reaction and what can
he do to make this --

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MR. GIBBS: Well, I think the
best way to address a number of

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the statistics that you just
mentioned are the same way the

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President talked about this last
night, which is we have to get

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this economy moving again; we
have to give job opportunities

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and hope to everybody in
America, that -- and the best to

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do that is to get the economy
moving again.

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Obviously the President has
worked on, throughout his career

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in Illinois and in Washington,
ways to reduce recidivism, to

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provide a second chance, and is
working day and night to get

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that economy moving again and
provide the opportunity that's

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needed to reduce homelessness
and unemployment.

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Yes, sir.

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Q: If the President is as pleased as

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you say with progress today

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on the budget, does that mean
that he got the leadership of

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his party to drop some of the
conditions that they were

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beginning to put in there, like
taking out health care, taking

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out -- perhaps taking out --

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MR. GIBBS: Well, I don't -- I
think if you'll read the budget

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document that is being worked on
in the House and the Senate,

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health care is not taken out of
the budget.

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The budget that we proposed was
-- you've already -- you're

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already looking a little forlorn
in my answer.

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We proposed --

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Q: I'm looking at Ed; I've got
more. (Laughter.)

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MR. GIBBS: Good, all right.

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Let me -- let me address the
here and now.

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We can get to the what's next.

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The President proposed a
deficit-neutral reserve fund for

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health care reform.

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Contained in the budget today is
a deficit-neutral reserve fund

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for health care reform.

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We're quite pleased with that
and think we're making progress

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towards cutting costs and
reducing the

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number of uninsured.

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Q: If it cuts the deficit in half as you say --

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MR. GIBBS: I don't say that.

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No, hold on, let's be fair --
hold on, let me do the

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here and now.

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I don't say that it cuts the
deficit in half.

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The House Budget Committee
document says it cuts the budget

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deficit in half. The Senate --

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Q: All right, fair enough.

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MR. GIBBS: Hold on, I'll finish.

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The Senate document says it cuts
the budget deficit in half.

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We proposed a plan that would
cut the budget deficit in the

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House, and both the House and
the Senate concur that that goal

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was met.

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Q: Using which assumptions?

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The OMB or the CBO?

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MR. GIBBS: Using the assumptions
that they are to create the

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budget document that has to pass
each committee before going to

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the floor and approved by both
House and reconciled together to

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create the budget of the United
States of America.

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Q: It seems less likely that they could get there using the

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CBO assumptions than they could
using your

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00:14:02,967 --> 00:14:04,837
more rosy assumptions.

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MR. GIBBS: I think Congress is,
if I'm not mistaken, legally

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00:14:07,700 --> 00:14:13,670
bound to using its own budget
office for assumptions.

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So if the House has determined
that the budget document that

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it's considering in its
committee cuts the budget

249
00:14:19,400 --> 00:14:23,530
deficit in half using the
congressionally mandated

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00:14:23,533 --> 00:14:26,733
assumptions of the Congressional
Budget Office, doesn't it meet

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00:14:26,734 --> 00:14:29,764
the test you just laid
out for me?

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Q: If they --

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MR. GIBBS: And if the Senate were to do the same

254
00:14:32,200 --> 00:14:36,330
thing using the congressionally
mandated assumptions in the

255
00:14:36,333 --> 00:14:40,933
Congressional Budget Office,
wouldn't that also meet the test

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00:14:40,934 --> 00:14:42,634
of cutting the budget deficit in
half?

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00:14:42,633 --> 00:14:46,533
Q: Yes, if in fact that's what's
happened.

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00:14:46,533 --> 00:14:49,433
MR. GIBBS: Well, I would suggest
that a quick call to somebody on

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00:14:49,433 --> 00:14:53,203
Capitol Hill will denote that --
if I'm believing what I read in

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the press -- and sometimes I
temper that -- but I understand

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that we've met those objections
and I think

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you can feel relieved.

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00:15:02,900 --> 00:15:07,530
Q: And the President still gets
what he wants in terms of energy

264
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and health care?

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MR. GIBBS: We have a
deficit-neutral reserve fund for

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health care reform.

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There's a reserve fund for
energy independence that will

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allow us to make critical
investments in energy

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independence. That's in there.

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There are increases in education
funding in addition to the $100

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billion in education increases
that we saw in the Recovery and

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00:15:28,500 --> 00:15:32,770
Reinvestment Plan, including in
the budget changes that will

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update Pell Grants -- all of
which magically using the

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00:15:36,734 --> 00:15:39,764
Congressional Budget Office
estimates cut the budget deficit

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in half in his first term as he
pledged he would do.

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00:15:43,934 --> 00:15:48,964
Q: Well, I want to get into this
98 percent that you claim --

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00:15:48,967 --> 00:15:53,897
because to go to -- one of the
things they do is -- so if you

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00:15:53,900 --> 00:15:57,530
have no middle-class tax cut
that they take out, if there is

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no more honest budgeting as far
as the TARP funds are concerned,

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that's one thing -- they seem to
take it --

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MR. GIBBS: Well, I think they --
you know, they've just --

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they've accounted --

283
00:16:06,200 --> 00:16:07,270
Q: -- cap and trade, which is
something you

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00:16:07,266 --> 00:16:08,336
needed to account for.

285
00:16:08,333 --> 00:16:09,003
You guys were --

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MR. GIBBS: Well, understand that
--

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00:16:09,800 --> 00:16:11,070
Q: -- revenue from cap and trade.

288
00:16:11,066 --> 00:16:13,096
MR. GIBBS: Right, well, that's
why -- I mean, that's why Make

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00:16:13,100 --> 00:16:15,530
Work Pay is not in years three
and four of the budget.

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00:16:15,533 --> 00:16:18,603
Q: I guess I'm just trying to
figure out how you get to 90 --

291
00:16:18,600 --> 00:16:19,970
why you believe this is a
document that's 98 percent?

292
00:16:19,967 --> 00:16:23,667
And also, you guys made the case
-- and I'm not going to judge

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00:16:23,667 --> 00:16:26,197
whether 10 years or five years
is more honest budgeting -- but

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00:16:26,200 --> 00:16:29,770
you guys made a big deal out of
this 10-year projection.

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00:16:29,767 --> 00:16:31,497
And they're out saying, no, no,
no, no, no, five-year

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00:16:31,500 --> 00:16:32,170
projection.

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00:16:32,166 --> 00:16:35,796
They also have the AMT -- they
are taking the AMT fix out,

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00:16:35,800 --> 00:16:37,030
which you said was part of it.

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00:16:37,033 --> 00:16:39,003
So I'm just trying to figure out
how you get to 98 percent --

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MR. GIBBS: Well, because --

301
00:16:39,934 --> 00:16:42,004
Q: -- because this was a document that's 98 percent, when

302
00:16:42,000 --> 00:16:43,930
there's a lot of things that you guys bragged about --

303
00:16:43,934 --> 00:16:44,904
MR. GIBBS: Right, the spending
--

304
00:16:44,900 --> 00:16:46,070
Q: -- when you unveiled this
budget, that's gone.

305
00:16:46,066 --> 00:16:48,296
MR. GIBBS: I think I would refer
you to Peter's transcript, which

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I don't have with me --

307
00:16:49,967 --> 00:16:50,697
Q: I have it.

308
00:16:50,700 --> 00:16:51,770
MR. GIBBS: -- that showed -- do
you have it?

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00:16:51,767 --> 00:16:52,267
Great.

310
00:16:52,266 --> 00:16:56,266
I think it's on page two where
he's asked specifically about

311
00:16:56,266 --> 00:16:58,566
the spending differences in the
House and the Senate.

312
00:16:58,567 --> 00:17:01,397
And I think the spending
difference in the House is less

313
00:17:01,400 --> 00:17:05,200
than 1 percent, and the spending
difference in the Senate is less

314
00:17:05,200 --> 00:17:08,100
than 1.5 percent.

315
00:17:08,100 --> 00:17:10,670
Q: But you're saying the
President is satisfied to sort

316
00:17:10,667 --> 00:17:13,867
of -- there's some parts of the
honest budgeting thing that you

317
00:17:13,867 --> 00:17:14,767
guys were really proud of --

318
00:17:14,767 --> 00:17:18,597
MR. GIBBS: And change is not
easy to bring in Washington.

319
00:17:18,600 --> 00:17:21,130
The President -- would the
President like to see a

320
00:17:21,133 --> 00:17:22,133
10-year budget?

321
00:17:22,133 --> 00:17:25,703
Would the President like to see
disasters fully accounted for?

322
00:17:25,700 --> 00:17:29,700
Would the President like to see
budgeting that accounts for the

323
00:17:29,700 --> 00:17:33,800
possibility of more money to
stabilize our financial system?

324
00:17:33,800 --> 00:17:35,100
Yes.

325
00:17:35,100 --> 00:17:36,270
Q: And you acknowledge that --

326
00:17:36,266 --> 00:17:38,336
MR. GIBBS: I hesitate to say I'm
almost positive that many in

327
00:17:38,333 --> 00:17:41,663
this room, including Bill, have
yet to give the President credit

328
00:17:41,667 --> 00:17:43,667
for such a thing.

329
00:17:43,667 --> 00:17:44,937
Q: But you acknowledge that
Congress doesn't have any of

330
00:17:44,934 --> 00:17:45,964
that stuff in there.

331
00:17:45,967 --> 00:17:49,337
MR. GIBBS: Well, I'm going to
wait, like Bill, and see what's

332
00:17:49,333 --> 00:17:50,633
in there. (Laughter.)

333
00:17:50,633 --> 00:17:52,503
Q: But that's 98 percent -- I
mean -- I don't mean -- but you

334
00:17:52,500 --> 00:17:55,300
throw the 98 percent out there
as a way to, you know, to sort

335
00:17:55,300 --> 00:17:57,170
of lecture us, saying, oh, you
guys are just focused on 2

336
00:17:57,166 --> 00:17:57,736
percent.

337
00:17:57,734 --> 00:17:59,804
But is it really -- are we
really focusing on 2 percent?

338
00:17:59,800 --> 00:18:01,370
It's a lot of --

339
00:18:01,367 --> 00:18:02,597
MR. GIBBS: Or
one-point-something percent like

340
00:18:02,600 --> 00:18:03,300
Peter --

341
00:18:03,300 --> 00:18:05,270
Q: No, but that's a lot of
rhetorical pledges that you guys

342
00:18:05,266 --> 00:18:06,336
talked about earlier that --

343
00:18:06,333 --> 00:18:07,633
MR. GIBBS: Yes, well -- I mean,
look --

344
00:18:07,633 --> 00:18:08,603
Q: -- that have been --

345
00:18:08,600 --> 00:18:09,600
MR. GIBBS: But let's also
understand -- again, let's

346
00:18:09,600 --> 00:18:10,500
understand what's in the budget.

347
00:18:10,500 --> 00:18:13,370
The President wanted a
deficit-neutral reserve fund for

348
00:18:13,367 --> 00:18:15,237
health care reform, and he gets
one.

349
00:18:15,233 --> 00:18:18,933
The President wanted investments
in clean energy, so that we

350
00:18:18,934 --> 00:18:21,964
wouldn't be at the whim of
foreign countries for the

351
00:18:21,967 --> 00:18:24,437
importation of our fuel, and we
get one.

352
00:18:24,433 --> 00:18:26,763
The President wanted increases
in educational spending to

353
00:18:26,767 --> 00:18:29,867
create a workforce that's ready
for a 21st century economy, and

354
00:18:29,867 --> 00:18:30,867
he gets it.

355
00:18:30,867 --> 00:18:35,437
The President wanted to cut the
deficit in half over the course

356
00:18:35,433 --> 00:18:38,963
of his first four years in
office, and it happens.

357
00:18:38,967 --> 00:18:42,397
The President wanted Congress to
budget for and account for the

358
00:18:42,400 --> 00:18:45,130
spending in the wars in IraQ: and Afghanistan,

359
00:18:45,133 --> 00:18:46,633
and that's in there.

360
00:18:46,633 --> 00:18:48,503
Did the President get everything
he wanted?

361
00:18:48,500 --> 00:18:49,330
No.

362
00:18:49,333 --> 00:18:51,833
I think Presidents rarely do get
everything they want.

363
00:18:51,834 --> 00:18:53,964
Is the President satisfied that
we're making critical

364
00:18:53,967 --> 00:18:57,897
investments in health care
reform, education reform, energy

365
00:18:57,900 --> 00:19:00,900
independence, all while cutting
the deficit in half in just four

366
00:19:00,900 --> 00:19:03,370
years? He's pleased with that.

367
00:19:03,367 --> 00:19:04,767
Q: Strictly speaking on budget
shortfalls, the Postal Service

368
00:19:04,767 --> 00:19:07,837
is up there testifying today
they may not be able to make

369
00:19:07,834 --> 00:19:11,934
payroll without a bailout.

370
00:19:11,934 --> 00:19:13,964
MR. GIBBS: The check isn't in
the mail. (Laughter.)

371
00:19:13,967 --> 00:19:18,697
Q: That's part of the problem:
People aren't mailing checks.

372
00:19:18,700 --> 00:19:20,970
So they don't have -- they may
not be able to make payroll in

373
00:19:20,967 --> 00:19:23,597
September, at the end of their
fiscal year.

374
00:19:23,600 --> 00:19:26,030
Does the President -- and they
may want to cut back and say,

375
00:19:26,033 --> 00:19:28,563
where's the President on this --
MR. GIBBS: I can certainly check

376
00:19:28,567 --> 00:19:29,537
on that.

377
00:19:29,533 --> 00:19:30,063
Q: -- does he --

378
00:19:30,066 --> 00:19:31,596
MR. GIBBS: I don't have anything
on the Postal Service for you,

379
00:19:31,600 --> 00:19:34,230
but I can certainly check. Laura.

380
00:19:34,233 --> 00:19:35,203
Q: Thank you.

381
00:19:35,200 --> 00:19:38,500
You said that you were not in
the meetings with the President

382
00:19:38,500 --> 00:19:40,570
on the Hill today, and I respect
that.

383
00:19:40,567 --> 00:19:45,037
But going into the meeting, what
was the President's message to

384
00:19:45,033 --> 00:19:46,203
the Democrats that he met with?

385
00:19:46,200 --> 00:19:50,470
Was it: Here are my priorities,
and this is what I'd like you --

386
00:19:50,467 --> 00:19:52,297
my priorities to be your
priorities; we're all on the

387
00:19:52,300 --> 00:19:55,630
same team. Was it party unity? What exactly did he --

388
00:19:55,633 --> 00:19:57,063
MR. GIBBS: I think a little bit
of both.

389
00:19:57,066 --> 00:20:01,636
But I don't think he has to
convince the members of the

390
00:20:01,633 --> 00:20:05,003
Democratic Senate Caucus that we
need to make important

391
00:20:05,000 --> 00:20:08,230
investments in health care,
energy, education, and put

392
00:20:08,233 --> 00:20:11,933
ourselves back on the path
toward fiscal responsibility.

393
00:20:11,934 --> 00:20:13,804
Q: What did he want to say to
them that --

394
00:20:13,800 --> 00:20:15,970
MR. GIBBS: Well, the President
talked to -- the President did

395
00:20:15,967 --> 00:20:22,197
as he did last night in front of
many of you, which was to

396
00:20:22,200 --> 00:20:28,070
advocate for his budget and his
priorities, to understand that

397
00:20:28,066 --> 00:20:33,596
for a long period of time we've
failed to make investments, to

398
00:20:33,600 --> 00:20:38,500
lay a path toward long-term
economic growth, that instead

399
00:20:38,500 --> 00:20:43,570
we've sort of depended on bubble
and bust; that we are making

400
00:20:43,567 --> 00:20:46,167
those investments, putting
ourselves back on a path toward

401
00:20:46,166 --> 00:20:48,736
fiscal responsibility, and that
working together we can

402
00:20:48,734 --> 00:20:50,364
see this happen.

403
00:20:50,367 --> 00:20:52,537
Q: So his message to them was no
different than the things he's

404
00:20:52,533 --> 00:20:54,203
been saying publicly all along?

405
00:20:54,200 --> 00:20:55,130
MR. GIBBS: Yes.

406
00:20:55,133 --> 00:20:59,733
Q: And how concerned are you in
terms of if there is additional

407
00:20:59,734 --> 00:21:02,004
bailout funds, which you
referred to a moment ago, if

408
00:21:02,000 --> 00:21:04,700
they are not included in the
budget, how concerned are you

409
00:21:04,700 --> 00:21:08,400
about the administration's
ability to deal with another

410
00:21:08,400 --> 00:21:11,070
problem if it were to come
along?

411
00:21:11,066 --> 00:21:16,236
MR. GIBBS: The economic team is
confident in the resources that

412
00:21:16,233 --> 00:21:21,203
they have previously
appropriated in the Troubled

413
00:21:21,200 --> 00:21:24,330
Asset Recovery Program.

414
00:21:24,333 --> 00:21:29,763
And obviously the plan that
Treasury put forward earlier

415
00:21:29,767 --> 00:21:36,537
this week uses a mix of public
and private investors to ensure

416
00:21:36,533 --> 00:21:37,433
that stability.

417
00:21:37,433 --> 00:21:42,963
So I think the plan that they
outlined leverages a much larger

418
00:21:42,967 --> 00:21:47,737
amount of money to stabilize the
system, and they think they're

419
00:21:47,734 --> 00:21:48,604
okay.

420
00:21:48,600 --> 00:21:50,530
Q: So if you're confident you'll
be fine, then why did you ask

421
00:21:50,533 --> 00:21:52,303
for $750 billion?

422
00:21:52,300 --> 00:21:56,130
MR. GIBBS: Well, we asked for as
part of a budget plan to account

423
00:21:56,133 --> 00:21:59,063
for the possibility that it may
be needed.

424
00:21:59,066 --> 00:22:04,566
But obviously I think in the
middle -- middle to late April

425
00:22:04,567 --> 00:22:07,997
we'll get bank health
assessments back that give us a

426
00:22:08,000 --> 00:22:13,030
better sense of exactly what
banks are holding and what might

427
00:22:13,033 --> 00:22:19,133
be necessary in a worst-case
economic downturn.

428
00:22:19,133 --> 00:22:25,363
You know, we wanted to account
for that -- for the possibility

429
00:22:25,367 --> 00:22:27,167
that it ultimately might be
needed.

430
00:22:27,166 --> 00:22:29,936
Q: Robert, can you talk a little
bit about tomorrow's online

431
00:22:29,934 --> 00:22:31,704
forum, how the questions are
going to be chosen?

432
00:22:31,700 --> 00:22:34,200
I know that there's some voting
going on online right now, but

433
00:22:34,200 --> 00:22:36,600
is there going to be another
process to kind of go through

434
00:22:36,600 --> 00:22:38,570
all of them, make sure that
they're all read?

435
00:22:38,567 --> 00:22:39,397
And also, what --

436
00:22:39,400 --> 00:22:41,870
MR. GIBBS: Bill is voting right
now. (Laughter.)

437
00:22:41,867 --> 00:22:43,437
Q: And what is the President
hoping to get

438
00:22:43,433 --> 00:22:44,463
accomplished with this?

439
00:22:44,467 --> 00:22:47,097
I mean, is this another way to
sort of pitch his budget, or

440
00:22:47,100 --> 00:22:48,100
what's the intent?

441
00:22:48,100 --> 00:22:52,100
MR. GIBBS: Well, I think the --
I mean, obviously -- and I'm a

442
00:22:52,100 --> 00:22:54,600
little less tech-savvy than the
folks that are putting this

443
00:22:54,600 --> 00:22:58,970
together, but we -- (laughter)
-- we wanted to -- look, I think

444
00:22:58,967 --> 00:23:01,937
the President wanted to give the
opportunity for people that

445
00:23:01,934 --> 00:23:09,104
might watch all over the country
to vote on areas in which we've

446
00:23:09,100 --> 00:23:11,570
talked about and that are
important priorities for the

447
00:23:11,567 --> 00:23:16,197
administration, like education,
energy independence and health

448
00:23:16,200 --> 00:23:21,830
care reform, to give them a
chance to ask the President

449
00:23:21,834 --> 00:23:25,604
about some of those issues,
along with our

450
00:23:25,600 --> 00:23:27,770
economic recovery.

451
00:23:27,767 --> 00:23:32,167
The President just thinks it's
another opportunity to talk

452
00:23:32,166 --> 00:23:34,566
directly with the American
people about the challenges that

453
00:23:34,567 --> 00:23:38,397
we have, the choices and the
decisions that we're making, and

454
00:23:38,400 --> 00:23:43,800
the path that we're -- the path
that we're taking to get us back

455
00:23:43,800 --> 00:23:45,770
to prosperous days.

456
00:23:45,767 --> 00:23:50,237
So it's a -- it's not a whole
lot different than when we were

457
00:23:50,233 --> 00:23:53,433
in California doing the meeting,
it's just we'll have people

458
00:23:53,433 --> 00:23:56,063
hooked up from a lot of
different places all

459
00:23:56,066 --> 00:23:57,066
over the country.

460
00:23:57,066 --> 00:24:01,636
But he'll be able to do all that
from the East Room.

461
00:24:01,633 --> 00:24:03,103
Yes, sir.

462
00:24:03,100 --> 00:24:06,430
Q: Robert, there are a couple of
legislative proposals floating

463
00:24:06,433 --> 00:24:09,663
around on the plight of the
nation's newspapers -- tax

464
00:24:09,667 --> 00:24:13,067
considerations and other issues.

465
00:24:13,066 --> 00:24:15,766
Has the administration weighed
in on this, and what, if

466
00:24:15,767 --> 00:24:20,097
anything, do you think the
government's role should be?

467
00:24:20,100 --> 00:24:21,870
MR. GIBBS: Boy, I'm going to
answer this question carefully.

468
00:24:21,867 --> 00:24:24,137
(Laughter.) Joking.

469
00:24:24,133 --> 00:24:27,133
I have -- I will check and see
if the administration has

470
00:24:27,133 --> 00:24:30,033
weighed in, in any way.

471
00:24:30,033 --> 00:24:32,733
I saw a blurb about them, but I
don't know whether or not the

472
00:24:32,734 --> 00:24:38,734
administration has in any way
taken a position

473
00:24:38,734 --> 00:24:40,464
on that legislation.

474
00:24:40,467 --> 00:24:42,967
Q: From a philosophical standpoint, do you think the

475
00:24:42,967 --> 00:24:46,437
government should have a role in
saving companies --

476
00:24:46,433 --> 00:24:50,263
MR. GIBBS: Let me -- let me get
some specifics from folks who

477
00:24:50,266 --> 00:24:56,496
would have a better sense --
obviously, strong believer in

478
00:24:56,500 --> 00:25:00,400
freedom of speech and -- but I
don't have anything on the

479
00:25:00,400 --> 00:25:03,000
specific -- let me check on
whether there's any specific

480
00:25:03,000 --> 00:25:05,200
guidance on the legislation.

481
00:25:05,200 --> 00:25:07,730
I'll note that a radio guy asked
that question.

482
00:25:07,734 --> 00:25:12,734
(Laughter.) David Jackson seems
relieved.

483
00:25:12,734 --> 00:25:13,734
(Laughter.)

484
00:25:13,734 --> 00:25:17,734
Q: An hour or so ago there were
some reports about missiles on a

485
00:25:17,734 --> 00:25:20,634
launch pad in North Korea.

486
00:25:20,633 --> 00:25:23,063
Is that causing any concern
here?

487
00:25:23,066 --> 00:25:25,566
What -- can you tell us anything
about that?

488
00:25:25,567 --> 00:25:30,997
MR. GIBBS: I have not seen those
reports.

489
00:25:31,000 --> 00:25:33,700
Q: All right. Another question.

490
00:25:33,700 --> 00:25:37,270
On Friday, the President is
having bankers come in.

491
00:25:37,266 --> 00:25:41,536
Can you talk to us a little bit
about the nature of that, who's

492
00:25:41,533 --> 00:25:43,203
coming, and why?

493
00:25:43,200 --> 00:25:47,470
And is he making any requests of
the bankers?

494
00:25:47,467 --> 00:25:50,967
MR. GIBBS: Well, I think along
the lines of what the President

495
00:25:50,967 --> 00:25:54,497
said in interviews -- in an
interview over the weekend --

496
00:25:54,500 --> 00:26:02,000
and we'll provide a list of the
CEOs that will be here.

497
00:26:02,000 --> 00:26:06,200
I think the President wants to
talk to them -- obviously

498
00:26:06,200 --> 00:26:11,830
Secretary Geithner will testify
tomorrow on regulatory reform.

499
00:26:11,834 --> 00:26:19,034
The President and the Secretary
have talked about the idea of

500
00:26:19,033 --> 00:26:25,333
giving the government the
ability to resolve systemic

501
00:26:25,333 --> 00:26:32,263
risks that pose great problems
to our financial system were

502
00:26:32,266 --> 00:26:35,236
they to get into trouble.

503
00:26:35,233 --> 00:26:38,733
I think the President looks
forward to getting an update on

504
00:26:38,734 --> 00:26:42,864
what they're seeing happening in
the economy.

505
00:26:42,867 --> 00:26:47,867
And I think, much as the
President said, like he said

506
00:26:47,867 --> 00:26:53,437
this past weekend, that Main
Street and Wall Street, all of

507
00:26:53,433 --> 00:27:00,563
us are in this together. We're all in the same boat.

508
00:27:00,567 --> 00:27:04,897
We have to understand that what
is -- what is good for one has

509
00:27:04,900 --> 00:27:07,430
to be also good for the other.

510
00:27:07,433 --> 00:27:11,733
So I think the President will
talk to the bankers about --

511
00:27:11,734 --> 00:27:18,504
about that, and I anticipate
that some of the concerns that

512
00:27:18,500 --> 00:27:22,800
we've read about over the past
two weeks will be mentioned.

513
00:27:22,800 --> 00:27:25,230
It's not intended in any way to
be the focus of the meeting, but

514
00:27:25,233 --> 00:27:29,103
I think the President wants to
have a discussion with the

515
00:27:29,100 --> 00:27:32,170
leading bankers in America about
ways to get the economy

516
00:27:32,166 --> 00:27:34,196
stabilized and moving again.

517
00:27:34,200 --> 00:27:36,570
Q: Is executive compensation
going to be on the agenda?

518
00:27:36,567 --> 00:27:40,737
MR. GIBBS: I imagine that will
be mentioned in the meeting,

519
00:27:40,734 --> 00:27:42,434
yes. Major.

520
00:27:42,433 --> 00:27:44,103
Q: Robert, last night the
President said he does not

521
00:27:44,100 --> 00:27:46,730
believe there's any need for a
global currency.

522
00:27:46,734 --> 00:27:48,864
This morning, at the Council on
Foreign Relations, Treasury

523
00:27:48,867 --> 00:27:52,697
Secretary Geithner was asked
about that, and he said that the

524
00:27:52,700 --> 00:27:55,030
suggestion originally made by
the Chinese Central Bank

525
00:27:55,033 --> 00:27:59,663
Governor is one that deserves
consideration, and he called the

526
00:27:59,667 --> 00:28:02,567
Governor someone whose
credibility is -- has a great

527
00:28:02,567 --> 00:28:03,867
record of credibility.

528
00:28:03,867 --> 00:28:06,437
And it sounded as if the
Treasury Secretary was at least

529
00:28:06,433 --> 00:28:08,733
opening the door to this as a
concept.

530
00:28:08,734 --> 00:28:12,104
Since this is likely to come up at the G20, can you say

531
00:28:12,100 --> 00:28:13,770
definitively that it's not
something that the

532
00:28:13,767 --> 00:28:16,137
administration is open to and is
not going to consider

533
00:28:16,133 --> 00:28:17,133
under any basis?

534
00:28:17,133 --> 00:28:20,933
MR. GIBBS: Well, I think the
Secretary of Treasury has put

535
00:28:20,934 --> 00:28:28,134
out a statement saying that and
echoing what the President said

536
00:28:28,133 --> 00:28:35,003
last night, that the dollar will
be the reserve currency for a

537
00:28:35,000 --> 00:28:37,870
long, long time.

538
00:28:37,867 --> 00:28:38,737
Q: Two other quick ones.

539
00:28:38,734 --> 00:28:42,004
Yesterday on the Hill,
representatives of the Fed and

540
00:28:42,000 --> 00:28:45,000
the FDIC briefed folks on the
Banking Committee saying, if in

541
00:28:45,000 --> 00:28:47,870
fact there is cram-down
legislation passed and signed by

542
00:28:47,867 --> 00:28:50,797
the President, it could diminish
the value of some of the very

543
00:28:50,800 --> 00:28:53,930
toxic assets the administration,
with the plan announced this

544
00:28:53,934 --> 00:28:58,064
week, is hoping outside
investors will purchase.

545
00:28:58,066 --> 00:29:00,696
Does the administration believe
these two things are now on a

546
00:29:00,700 --> 00:29:03,530
collision course, and what would
it choose to -- what would it

547
00:29:03,533 --> 00:29:04,463
prefer to do?

548
00:29:04,467 --> 00:29:08,667
Not have cram-down legislation
and let the toxic asset plan

549
00:29:08,667 --> 00:29:11,137
that's been announced proceed?

550
00:29:11,133 --> 00:29:13,563
Or have cram-down legislation
that could diminish the value of

551
00:29:13,567 --> 00:29:14,937
these things and make them hard
to sell?

552
00:29:14,934 --> 00:29:20,034
MR. GIBBS: Let me -- I'm not
aware of what FDIC and Fed --

553
00:29:20,033 --> 00:29:23,633
I'm not aware of what they spoke
about.

554
00:29:23,633 --> 00:29:25,763
Let me get some idea --

555
00:29:25,767 --> 00:29:28,737
Q: In general, is the cram-down
legislation something that could

556
00:29:28,734 --> 00:29:30,164
complicate this plan?

557
00:29:30,166 --> 00:29:33,396
MR. GIBBS: Well, again, let me
get some better understanding of

558
00:29:33,400 --> 00:29:34,430
what they told the committee.

559
00:29:34,433 --> 00:29:40,463
I think the President, the FDIC
and the Fed have worked -- all

560
00:29:40,467 --> 00:29:45,097
worked together to develop the
plan that Secretary Geithner

561
00:29:45,100 --> 00:29:47,430
talked about on Tuesday.

562
00:29:47,433 --> 00:29:55,103
So I think it's very safe to
assume that in working together

563
00:29:55,100 --> 00:29:57,870
they're all supportive of that
idea.

564
00:29:57,867 --> 00:30:05,367
They're also supportive of the
ability to resolve systemic

565
00:30:05,367 --> 00:30:10,237
risks in our economy, as the
Secretary and the Fed Chair

566
00:30:10,233 --> 00:30:11,763
talked about yesterday.

567
00:30:11,767 --> 00:30:13,597
I don't have anything
specifically on -- I'll look for

568
00:30:13,600 --> 00:30:15,200
some guidance on that and we can
talk.

569
00:30:15,200 --> 00:30:15,830
Q: Last quick one.

570
00:30:15,834 --> 00:30:18,734
The Washington Post blogged last
night that there's an effort to

571
00:30:18,734 --> 00:30:21,434
expunge or get rid of the
terminology "global war on

572
00:30:21,433 --> 00:30:23,003
terrorism."

573
00:30:23,000 --> 00:30:25,730
Can you tell me if that's true
or untrue and what, if anything,

574
00:30:25,734 --> 00:30:29,934
the administration has for or
against that particular phrase?

575
00:30:29,934 --> 00:30:32,904
MR. GIBBS: Well, I -- you know,
I saw the blog and I saw the

576
00:30:32,900 --> 00:30:40,700
comments from OMB.

577
00:30:40,700 --> 00:30:46,470
There's no language or memo
certainly that I've seen or has

578
00:30:46,467 --> 00:30:50,367
been passed around.

579
00:30:50,367 --> 00:30:53,537
I think from the President's
perspective, I think the

580
00:30:53,533 --> 00:30:57,633
phraseology is -- he's far less
concerned with and much more

581
00:30:57,633 --> 00:31:02,163
concerned with steps that he's
taken and that we need to take

582
00:31:02,166 --> 00:31:06,196
as a country to protect our
citizens and to keep our

583
00:31:06,200 --> 00:31:08,130
homeland safe.

584
00:31:08,133 --> 00:31:11,303
And I think that's what he's
focused on.

585
00:31:11,300 --> 00:31:14,000
But I'm -- I have not seen or am
unaware of said memo.

586
00:31:14,000 --> 00:31:14,570
Mike.

587
00:31:14,567 --> 00:31:16,437
Q: Robert, can you talk a little
more about what the President

588
00:31:16,433 --> 00:31:18,903
would like to see come out of
this tax reform panel?

589
00:31:18,900 --> 00:31:22,130
Is he looking for ideas to raise
revenue, close loopholes?

590
00:31:22,133 --> 00:31:25,863
I know Orszag talked about
corporate welfare, and could you

591
00:31:25,867 --> 00:31:27,137
give some example of that?

592
00:31:27,133 --> 00:31:30,533
MR. GIBBS: Well, I -- you know,
without getting too far ahead of

593
00:31:30,533 --> 00:31:35,663
where the task force is,
obviously, as Peter described in

594
00:31:35,667 --> 00:31:38,367
his call -- and if you guys
don't have a transcript, we can

595
00:31:38,367 --> 00:31:44,867
certainly make it available --
there is obviously a tax gap in

596
00:31:44,867 --> 00:31:45,667
the country.

597
00:31:45,667 --> 00:31:52,497
Many have talked about the fact
that several hundred billion

598
00:31:52,500 --> 00:31:56,770
dollars each year of taxes goes
uncollected.

599
00:31:56,767 --> 00:32:02,897
The President addressed the need
and necessity to close tax

600
00:32:02,900 --> 00:32:09,600
loopholes in his budget in order
to institute fairness

601
00:32:09,600 --> 00:32:11,370
in our tax code.

602
00:32:11,367 --> 00:32:17,337
And so the President has asked
the recovery board to take a

603
00:32:17,333 --> 00:32:24,503
look at and forward to him by
Friday, December 4th, ideas for

604
00:32:24,500 --> 00:32:28,700
exactly how -- what loopholes
might be looked at or might be

605
00:32:28,700 --> 00:32:37,230
closed; that the size of the tax
gap and ways to ensure that

606
00:32:37,233 --> 00:32:39,003
that's closed, as Peter said.

607
00:32:39,000 --> 00:32:43,700
I think the charge of the board
is to do all of those things,

608
00:32:43,700 --> 00:32:50,000
and understand that
recommendations -- the President

609
00:32:50,000 --> 00:32:51,800
is not interested in
recommendations that would

610
00:32:51,800 --> 00:32:56,970
affect people that make $250,000
or less, as he said repeatedly

611
00:32:56,967 --> 00:32:58,397
during the campaign.

612
00:32:58,400 --> 00:33:00,370
Q: Did Mr. Orszag have anything
specific in mind when he talked

613
00:33:00,367 --> 00:33:01,767
about corporate welfare?

614
00:33:01,767 --> 00:33:08,897
MR. GIBBS: No, I -- look I think
we've talked about -- we've

615
00:33:08,900 --> 00:33:11,030
talked about some of them, and
some of them are certainly in

616
00:33:11,033 --> 00:33:17,263
the budget, whether it's cuts in
ag spending for large corporate

617
00:33:17,266 --> 00:33:20,036
farms, things like that.

618
00:33:20,033 --> 00:33:24,803
Obviously this is -- the hope of
what this task force will do is

619
00:33:24,800 --> 00:33:29,200
take an honest look at the
budget and go through and

620
00:33:29,200 --> 00:33:34,600
determine if there are steps
that can be taken by Congress

621
00:33:34,600 --> 00:33:38,430
and this President to institute
greater fairness in the tax code

622
00:33:38,433 --> 00:33:41,663
and how that would affect
putting us back on that path to

623
00:33:41,667 --> 00:33:44,137
fiscal sustainability. Sheryl.

624
00:33:44,133 --> 00:33:47,233
Q: Robert, the President talked
last night about urging

625
00:33:47,233 --> 00:33:49,763
Americans to look beyond their
self-interest.

626
00:33:49,767 --> 00:33:52,067
Tonight he's going to two
political fundraisers, one of

627
00:33:52,066 --> 00:33:54,696
them $30,000 a couple.

628
00:33:54,700 --> 00:33:57,270
Is that an example of looking
beyond our self-interest?

629
00:33:57,266 --> 00:34:00,366
And are you worried about the
tone that that sets in a time

630
00:34:00,367 --> 00:34:01,937
when Americans are struggling?

631
00:34:01,934 --> 00:34:05,334
MR. GIBBS: No, I think you -- I
think when you -- though I hope

632
00:34:05,333 --> 00:34:10,863
he's not placid and unsmiling --
I think you'll see in the

633
00:34:10,867 --> 00:34:13,837
remarks he makes tonight and I
think you can be rest assured in

634
00:34:13,834 --> 00:34:17,734
the remarks he's made yesterday
that he fully understands the

635
00:34:17,734 --> 00:34:22,664
hardships and the troubles that
the American people are

636
00:34:22,667 --> 00:34:25,637
undergoing in their lives each
day.

637
00:34:25,633 --> 00:34:29,063
But I think it's also safe to
assume that the President wants

638
00:34:29,066 --> 00:34:33,766
to see a strong party system in
this country.

639
00:34:33,767 --> 00:34:37,937
And I would mention that in
that, the -- we haven't seen

640
00:34:37,934 --> 00:34:46,804
politics by either party stop in
this period, though I think the

641
00:34:46,800 --> 00:34:48,900
President fully understands
the situation

642
00:34:48,900 --> 00:34:50,830
the American people face.

643
00:34:50,834 --> 00:34:54,964
Q: Will he urge some of those
donors to contribute to charity

644
00:34:54,967 --> 00:34:57,867
or use his remarks in some other
way to --

645
00:34:57,867 --> 00:34:59,737
MR. GIBBS: Well, I -- look, I --

646
00:34:59,734 --> 00:35:01,304
Q: note the broader situation as
--

647
00:35:01,300 --> 00:35:04,230
MR. GIBBS: Well, I think the --
I think the situation will -- I

648
00:35:04,233 --> 00:35:05,863
think the remarks will denote
the situation.

649
00:35:05,867 --> 00:35:10,197
I think the remarks will denote
the actions that he's taking to

650
00:35:10,200 --> 00:35:12,630
change the situation in this
country.

651
00:35:12,633 --> 00:35:18,903
I think the President has been
focused every day on how to make

652
00:35:18,900 --> 00:35:24,000
the situation for average
Americans better.

653
00:35:24,000 --> 00:35:27,870
He always encourages people to
get involved, to knock on doors,

654
00:35:27,867 --> 00:35:33,197
to give to charity, and to do
whatever they can to help out

655
00:35:33,200 --> 00:35:34,970
their neighbors. Yes, sir.

656
00:35:34,967 --> 00:35:36,467
Q: Robert, just a couple quick -- more about

657
00:35:36,467 --> 00:35:38,597
tomorrow's online forum.

658
00:35:38,600 --> 00:35:40,830
First of all, is this going to
be a regular feature, has the

659
00:35:40,834 --> 00:35:42,304
President had in mind doing
something like this?

660
00:35:42,300 --> 00:35:45,000
MR. GIBBS: Yes, I -- you know,
again, it's a way for the

661
00:35:45,000 --> 00:35:51,230
President to do what he enjoys
doing out on the road, but saves

662
00:35:51,233 --> 00:35:56,033
on gas. (Laughter.)

663
00:35:56,033 --> 00:35:59,633
Q: Should we also see this in the context of the weekend --

664
00:35:59,633 --> 00:36:02,463
you know, going door to door,
political organization as well

665
00:36:02,467 --> 00:36:07,567
as -- sort of like nonstop,
24/7, keeping in touch with the

666
00:36:07,567 --> 00:36:08,367
American people?

667
00:36:08,367 --> 00:36:12,097
MR. GIBBS: Well, I mean, again,
I think the President -- this

668
00:36:12,100 --> 00:36:15,000
was part of what he wanted to do
last night and what he told the

669
00:36:15,000 --> 00:36:21,000
American people in his opening
statement, which was -- I think

670
00:36:21,000 --> 00:36:23,470
he looks at all these
opportunities as a way of

671
00:36:23,467 --> 00:36:28,237
providing an update to the
American people about the steps

672
00:36:28,233 --> 00:36:31,963
that we're taking to get us, as
he said last night, from

673
00:36:31,967 --> 00:36:35,667
recession to recovery; to
document the challenges that we

674
00:36:35,667 --> 00:36:43,997
have; but also understand that
steps are being taken and that

675
00:36:44,000 --> 00:36:48,630
if we follow through on this,
that brighter days are ahead, as

676
00:36:48,633 --> 00:36:49,663
they always have been for this
country.

677
00:36:49,667 --> 00:36:51,697
So I think it's just another
opportunity for him to

678
00:36:51,700 --> 00:36:53,270
communicate with the American
people.

679
00:36:53,266 --> 00:36:54,666
Q: I guess what I'm asking is, is this

680
00:36:54,667 --> 00:36:58,767
another sign of never-ending campaign?

681
00:36:58,767 --> 00:37:02,437
MR. GIBBS: I don't -- only if
you look at press conferences

682
00:37:02,433 --> 00:37:06,333
like last night as a sign that
there's a never-ending political

683
00:37:06,333 --> 00:37:10,433
campaign or a Saturday radio
address as if it were part of a

684
00:37:10,433 --> 00:37:12,603
never-ending political campaign.

685
00:37:12,600 --> 00:37:13,900
Q: Why would he do that?

686
00:37:13,900 --> 00:37:15,600
(Laughter.)

687
00:37:15,600 --> 00:37:17,470
MR. GIBBS: To give the -- to
give you guys something to

688
00:37:17,467 --> 00:37:20,597
report at 7:06 a.m. Jon.

689
00:37:20,600 --> 00:37:29,330
Q: I just had a clarification --
I had a clarification on Roger's

690
00:37:29,333 --> 00:37:30,833
question, before I ask my
question.

691
00:37:30,834 --> 00:37:34,604
Friday, with the CEOs/bankers --
I'm not clear as to what these

692
00:37:34,600 --> 00:37:36,030
folks are, but --

693
00:37:36,033 --> 00:37:37,363
MR. GIBBS: It's bank CEOs,
sorry.

694
00:37:37,367 --> 00:37:38,237
Q: Okay.

695
00:37:38,233 --> 00:37:41,063
MR. GIBBS: I think it's -- I
don't have the schedule in

696
00:37:40,767 --> 00:37:43,897
I believe it is Friday afternoon
here.

697
00:37:41,066 --> 00:37:42,366
front of me.

698
00:37:43,900 --> 00:37:44,770
Q: Okay.

699
00:37:44,767 --> 00:37:45,967
And I just was wondering, in
terms of what the President is

700
00:37:45,967 --> 00:37:48,537
going to be promoting or
alleviating fear about -- are we

701
00:37:48,533 --> 00:37:51,533
talking mostly about Geithner's
plan to unfreeze credit markets

702
00:37:51,533 --> 00:37:53,333
with the budget, or both?

703
00:37:53,333 --> 00:37:54,363
MR. GIBBS: I think both.

704
00:37:54,367 --> 00:37:56,767
I think -- and as I said, I
think the agenda will be

705
00:37:56,767 --> 00:37:57,467
broader.

706
00:37:57,467 --> 00:38:00,797
I think you'll -- like I said, I
think you'll get into some of

707
00:38:00,800 --> 00:38:02,430
the issues that we talked about
last week.

708
00:38:02,433 --> 00:38:06,633
I think he'll talk about --
they'll have a discussion about

709
00:38:06,633 --> 00:38:11,163
the administration's plan to
institute new rules of the road

710
00:38:11,166 --> 00:38:16,336
in regulatory reform or in the
plans that Secretary Geithner

711
00:38:16,333 --> 00:38:23,403
laid out in terms of resolution
authority.

712
00:38:23,400 --> 00:38:28,800
I think -- look, I also think --
just from the point of view of

713
00:38:28,800 --> 00:38:32,700
the President getting an update
from what they're seeing in the

714
00:38:32,700 --> 00:38:38,200
global credit markets and what
that means for

715
00:38:38,200 --> 00:38:39,270
economic recovery.

716
00:38:39,266 --> 00:38:43,936
So I think the conversation will
be broad and wide-ranging.

717
00:38:43,934 --> 00:38:48,964
Q: And the Czech Prime Minister I believe today referred to

718
00:38:48,967 --> 00:38:50,237
Obama administration's

719
00:38:50,233 --> 00:38:54,563
economic plans
as "the road to hell."

720
00:38:54,567 --> 00:38:57,467
Beyond just your reaction to
that, aren't you -- isn't the

721
00:38:57,467 --> 00:39:00,967
President scheduled to meet with
this leader next week in Prague?

722
00:39:00,967 --> 00:39:04,267
And doesn't this complicate that
meeting at all?

723
00:39:04,266 --> 00:39:08,766
MR. GIBBS: No, the President
looks forward to his first

724
00:39:08,767 --> 00:39:14,237
meeting with the EU as an
opportunity to discuss issues of

725
00:39:14,233 --> 00:39:19,963
transatlantic cooperation; we're
going to be in Prague, and he

726
00:39:19,967 --> 00:39:23,797
looks forward to a deepening
relationship

727
00:39:23,800 --> 00:39:28,630
with the Czech people.

728
00:39:28,633 --> 00:39:33,763
From what I can tell, the
speaker has some domestic

729
00:39:33,767 --> 00:39:41,137
political problems that might
speak more to what he was

730
00:39:41,133 --> 00:39:46,833
talking about, and I think the
Czech people and the American

731
00:39:46,834 --> 00:39:49,204
people can stand assured that
the President of the United

732
00:39:49,200 --> 00:39:55,930
States of America is going to do
all and everything in his power

733
00:39:55,934 --> 00:40:00,534
to get our economy moving again
and to restore confidence in

734
00:40:00,533 --> 00:40:03,133
that economy. John.

735
00:40:03,133 --> 00:40:05,333
Q: Set aside the budget
resolution, since most of the

736
00:40:05,333 --> 00:40:08,103
tough policy questions are going
to be settled down the line in

737
00:40:08,100 --> 00:40:12,070
the process anyway; it does seem
to me that the most important

738
00:40:12,066 --> 00:40:14,766
part of your program that's got
a real political challenge in

739
00:40:14,767 --> 00:40:18,237
terms of its prospects for
passing is cap and trade.

740
00:40:18,233 --> 00:40:21,603
What is your assessment of the
viability of that program

741
00:40:21,600 --> 00:40:23,000
specifically?

742
00:40:23,000 --> 00:40:25,970
And if you can't pass it, what
are alternatives that might

743
00:40:25,967 --> 00:40:28,067
achieve the President's goals?

744
00:40:28,066 --> 00:40:36,296
MR. GIBBS: Well, as you know,
the House Energy and Commerce

745
00:40:36,300 --> 00:40:39,400
Committee is working on cap and
trade legislation.

746
00:40:39,400 --> 00:40:42,630
There are ideas that are
bouncing around in the Senate

747
00:40:42,633 --> 00:40:50,633
and have for some time about --
about ways to institute a cap

748
00:40:50,633 --> 00:40:54,233
and trade program that the
President and the administration

749
00:40:54,233 --> 00:41:00,433
are looking at and are
encouraged by.

750
00:41:00,433 --> 00:41:04,963
I think, though, that the
President believes, whether it's

751
00:41:04,967 --> 00:41:10,697
- - whether it's funding in the
recovery or moving forward with

752
00:41:10,700 --> 00:41:13,300
more comprehensive energy --
legislation on energy

753
00:41:13,300 --> 00:41:18,130
independence, that there are
steps outside of a cap and trade

754
00:41:18,133 --> 00:41:21,333
program that he talked about
during the campaign and has

755
00:41:21,333 --> 00:41:26,133
talked about as President that
can put our country on a greater

756
00:41:26,133 --> 00:41:29,933
path towards energy independence
-- whether that's increased

757
00:41:29,934 --> 00:41:34,764
domestic production, whether
that's something like the stop

758
00:41:34,767 --> 00:41:41,997
he did last week on battery
technology, alternative fuels,

759
00:41:42,000 --> 00:41:46,470
investments in tax credits for
wind and solar power generation

760
00:41:46,467 --> 00:41:49,537
-- that all of those things, be
it in the budget, in the

761
00:41:49,533 --> 00:41:53,503
recovery plan, or in separate
energy legislation, the

762
00:41:53,500 --> 00:41:56,700
President believes we have the
opportunity to do what hasn't

763
00:41:56,700 --> 00:41:57,800
been done in quite some time.

764
00:41:57,800 --> 00:42:02,670
And I've talked about it here
where -- I think you go back to,

765
00:42:02,667 --> 00:42:04,567
and it's probably even farther
than that, but you go back to

766
00:42:04,567 --> 00:42:08,637
Nixon, and every President stood
up in front of a joint session

767
00:42:08,633 --> 00:42:13,733
of Congress or in a big speech
and declared the desire to see a

768
00:42:13,734 --> 00:42:17,034
lessening of our dependence on
foreign oil.

769
00:42:17,033 --> 00:42:19,603
The President believes that
we've taken important steps in

770
00:42:19,600 --> 00:42:27,070
the recovery and in this budget,
as well as steps that we can

771
00:42:27,066 --> 00:42:32,066
take through the separate
legislative process to put us on

772
00:42:32,066 --> 00:42:33,136
that path.

773
00:42:33,133 --> 00:42:35,903
Q: So you're not looking at cap
and trade specifically as the

774
00:42:35,900 --> 00:42:37,270
test for achieving his --

775
00:42:37,266 --> 00:42:38,136
MR. GIBBS: Well, no.

776
00:42:38,133 --> 00:42:43,503
I think there's a number of
different ways that -- I think

777
00:42:43,500 --> 00:42:47,230
in many ways a cap and trade
system and investments in

778
00:42:47,233 --> 00:42:50,963
alternative energy and
alternative fuels work very much

779
00:42:50,967 --> 00:42:56,267
hand in hand.

780
00:42:56,266 --> 00:42:57,396
And I think the President sees
that as an important step

781
00:42:57,400 --> 00:43:01,800
forward in how we can reduce our
dependence on foreign oil.

782
00:43:01,800 --> 00:43:07,070
This is a conversation that is
largely joined sometime in the

783
00:43:07,066 --> 00:43:11,596
middle or late summer when gas
prices spike.

784
00:43:11,600 --> 00:43:16,570
And hopefully, the President
believes, we can take steps now

785
00:43:16,567 --> 00:43:20,667
to avoid some of those price
spikes in the future, and not be

786
00:43:20,667 --> 00:43:24,067
at the whim of a foreign country
for our energy.

787
00:43:24,066 --> 00:43:24,696
Q: Thank you.

788
00:43:24,700 --> 00:43:25,400
MR. GIBBS: April.

789
00:43:25,400 --> 00:43:28,500
Q: Robert, I want to piggyback
off of Ann Compton's question

790
00:43:28,500 --> 00:43:31,100
last night on race.

791
00:43:31,100 --> 00:43:34,470
Today, the National Urban League
came out with the State of Black

792
00:43:34,467 --> 00:43:37,837
America 2009: A Message to the
President.

793
00:43:37,834 --> 00:43:41,264
Also, this month marks the
one-year anniversary of

794
00:43:41,266 --> 00:43:45,366
President Obama's famous race
speech in Philadelphia.

795
00:43:45,367 --> 00:43:48,837
Now, going back to the State of
Black America, it says there's a

796
00:43:48,834 --> 00:43:51,504
tale of two black Americas.

797
00:43:51,500 --> 00:43:55,100
One is for pride for the
President, Barack Obama.

798
00:43:55,100 --> 00:43:58,830
And then the other one, it goes
on to say our prisons are

799
00:43:58,834 --> 00:44:01,734
disproportionately populated by
African American males, the

800
00:44:01,734 --> 00:44:04,434
economic crisis is hitting our
communities especially hard,

801
00:44:04,433 --> 00:44:07,803
leaving huge numbers of African
Americans without homes, jobs,

802
00:44:07,800 --> 00:44:08,970
or life savings.

803
00:44:08,967 --> 00:44:12,037
We see an unemployment rate
that's double that of whites,

804
00:44:12,033 --> 00:44:14,163
and wide academic achievement
gaps.

805
00:44:14,166 --> 00:44:15,466
What say you?

806
00:44:15,467 --> 00:44:18,637
And how is this administration
going to deal with the issues on

807
00:44:18,633 --> 00:44:23,503
a socioeconomic level, as well
as the issue of race,

808
00:44:23,500 --> 00:44:25,470
compassion, heart issue?

809
00:44:25,467 --> 00:44:30,567
MR. GIBBS: Well, as I talked
about earlier, the best way to

810
00:44:30,567 --> 00:44:36,837
deal with a number of the
statistics that you talk about;

811
00:44:36,834 --> 00:44:42,904
a rising achievement gap, rising
unemployment, and a disparity --

812
00:44:42,900 --> 00:44:47,270
in that is to make important
investments in things like

813
00:44:47,266 --> 00:44:50,596
health care and education, and
to work toward an

814
00:44:50,600 --> 00:44:51,970
economic recovery.

815
00:44:51,967 --> 00:44:56,797
I think the President believes
we took a step forward in that

816
00:44:56,800 --> 00:45:01,700
in his plan that he believes
will save or create 3.5 million

817
00:45:01,700 --> 00:45:07,830
jobs; that will make critical
investments, down payments in

818
00:45:07,834 --> 00:45:13,734
education reform; open up the
doors of opportunity not just

819
00:45:13,734 --> 00:45:18,034
for young people and early
childhood education, but also

820
00:45:18,033 --> 00:45:21,533
through tax credits to make
college more affordable, or in

821
00:45:21,533 --> 00:45:27,463
this budget, that will raise the
level of Pell Grants that are

822
00:45:27,467 --> 00:45:30,997
available for students.

823
00:45:31,000 --> 00:45:34,970
I think the President believes
that we've got a long way to go

824
00:45:34,967 --> 00:45:40,467
in this country to providing
more hope and opportunity, and

825
00:45:40,467 --> 00:45:42,667
to get our economy moving again
is one of the

826
00:45:42,667 --> 00:45:44,397
best ways to begin that.

827
00:45:44,400 --> 00:45:46,600
Q: Is some of this a heart issue, an issue of compassion?

828
00:45:46,600 --> 00:45:49,100
I mean, you know, there are
disproportionate numbers across

829
00:45:49,100 --> 00:45:52,430
the board, according to this
book from the Urban League.

830
00:45:52,433 --> 00:45:56,103
Is some of this a heart issue
versus just policy?

831
00:45:56,100 --> 00:45:57,430
MR. GIBBS: Well, absolutely.

832
00:45:57,433 --> 00:46:01,203
I mean, I think, first of all,
you have to -- and I think the

833
00:46:01,200 --> 00:46:04,070
President is a believer in this
-- and that is you have to use

834
00:46:04,066 --> 00:46:10,266
your heart in your policy; that
the President believes strongly

835
00:46:10,266 --> 00:46:14,866
in the investments that he's
asked the Congress to join him

836
00:46:14,867 --> 00:46:17,437
in, in this budget.

837
00:46:17,433 --> 00:46:22,363
That's why priority was put on a
big expansion in education

838
00:46:22,367 --> 00:46:27,737
funding in the Recovery Plan,
again, to ensure that kids were

839
00:46:27,734 --> 00:46:31,934
getting a healthy head start.

840
00:46:31,934 --> 00:46:35,134
We all know the statistics about
early childhood education and

841
00:46:35,133 --> 00:46:38,533
the difference that it makes
even before kids get to

842
00:46:38,533 --> 00:46:39,903
kindergarten.

843
00:46:39,900 --> 00:46:44,800
As the President talked about a
few weeks ago, investing

844
00:46:44,800 --> 00:46:48,730
in our teachers.

845
00:46:48,734 --> 00:46:54,334
The single most important aspect
of any child's education is who

846
00:46:54,333 --> 00:46:59,733
is standing in front of their
classroom each day, instructing

847
00:46:59,734 --> 00:47:03,334
them and helping them learn --
whether at a young age, the

848
00:47:03,333 --> 00:47:09,103
basics, or math and science as
they get older and into high

849
00:47:09,100 --> 00:47:15,530
school, and hopefully, providing
more and more young people with

850
00:47:15,533 --> 00:47:18,833
the grades and the opportunity
to seek higher education.

851
00:47:18,834 --> 00:47:25,864
And I think the President
challenged all of America to, in

852
00:47:25,867 --> 00:47:29,467
his speech to Congress, to seek
one year of post-high school

853
00:47:29,467 --> 00:47:33,597
education, whether it's
vocational training or college

854
00:47:33,600 --> 00:47:41,300
education, to create a more
educated workforce that can meet

855
00:47:41,300 --> 00:47:43,570
the growing demand for the jobs
of the future.

856
00:47:43,567 --> 00:47:44,797
George -- I'll take one more.

857
00:47:44,800 --> 00:47:48,430
Q: On the upcoming summit, first
a logistical question.

858
00:47:48,433 --> 00:47:49,663
What are the briefing plans?

859
00:47:49,667 --> 00:47:54,297
Will there be a briefing this
week?

860
00:47:54,300 --> 00:47:56,170
MR. GIBBS: We talked about -- I
don't know whether this is going

861
00:47:56,166 --> 00:48:01,796
to be Friday or early next week
or not, but we will -- we will

862
00:48:01,800 --> 00:48:08,270
do a logistical briefing to run
you through some of what I

863
00:48:08,266 --> 00:48:13,466
talked about here today and some
of the upcoming events that the

864
00:48:13,467 --> 00:48:17,297
President will have on his
schedule over the course of the

865
00:48:17,300 --> 00:48:19,300
many days that we're overseas.

866
00:48:19,300 --> 00:48:22,470
Q: And a quick follow on your
answer to Major and Caren, isn't

867
00:48:22,467 --> 00:48:25,967
he on the defensive going into
this summit with all the things

868
00:48:25,967 --> 00:48:30,267
that were talked about there --
on the dollar, the Czech --

869
00:48:30,266 --> 00:48:33,296
MR. GIBBS: No, I think the
President is -- as he said last

870
00:48:33,300 --> 00:48:37,600
night, I think the President
looks forward to working in

871
00:48:37,600 --> 00:48:41,900
concert with the G20 to get our
economy moving again.

872
00:48:41,900 --> 00:48:45,800
And I think what you'll see come
out of this summit will be an

873
00:48:45,800 --> 00:48:54,130
agreement on further evaluating
what efforts need to be taken to

874
00:48:54,133 --> 00:48:56,333
meet the drop in global demand.

875
00:48:56,333 --> 00:49:01,563
I think you'll see the President
talk about -- and there will be

876
00:49:01,567 --> 00:49:04,937
some broad agreement on a
changing of the rules of the

877
00:49:04,934 --> 00:49:07,564
road and financial regulation.

878
00:49:07,567 --> 00:49:11,737
And lastly, I think you've
already seen agreement among

879
00:49:11,734 --> 00:49:15,334
many of the nations that are
going to be involved in the G20

880
00:49:15,333 --> 00:49:23,963
to look for ways at stimulating
export growth that we've seen

881
00:49:23,967 --> 00:49:27,667
pull back considerably in this
global recession and how that

882
00:49:27,667 --> 00:49:33,697
has affected and impacted
developing nations most of all

883
00:49:33,700 --> 00:49:37,270
-- what that means for each
individual countries are exports

884
00:49:37,266 --> 00:49:38,766
and real jobs.

885
00:49:38,767 --> 00:49:42,697
And so I think the President
looks forward to that.

886
00:49:42,700 --> 00:49:46,530
I think the President believes
that what will come out of this

887
00:49:46,533 --> 00:49:49,933
will be broad agreement among
the G20 on the steps that we

888
00:49:49,934 --> 00:49:52,064
have to take to get our economy
moving again.

889
00:49:52,066 --> 00:49:52,866
Thanks, guys.