English subtitles for clip: File:1-7-13- White House Press Briefing.webm

1
00:00:01,266 --> 00:00:02,166
Mr. Carney:
Thank you all for being here.

2
00:00:02,166 --> 00:00:05,699
It is wonderful to see you for
the first time in the New Year.

3
00:00:05,700 --> 00:00:13,266
I hope everyone here had some
time off and time with family.

4
00:00:14,533 --> 00:00:15,500
The Press:
What Washington were you --

5
00:00:15,500 --> 00:00:18,567
(laughter)

6
00:00:18,567 --> 00:00:21,066
Mr. Carney:
I'm sure there were many
of you, like many of us,

7
00:00:21,066 --> 00:00:26,333
who had too little of
both, but it is what it is.

8
00:00:26,333 --> 00:00:28,200
And with that I'll
take your questions.

9
00:00:28,200 --> 00:00:29,433
The Press:
Thank you.

10
00:00:29,433 --> 00:00:33,166
I noticed that in the nomination
ceremony in the East Room,

11
00:00:33,166 --> 00:00:35,699
the President, as he was
speaking about Senator Hagel,

12
00:00:35,700 --> 00:00:38,667
never mentioned Israel,
never mentioned Iran.

13
00:00:38,667 --> 00:00:41,934
Those have been two of the main
criticisms of Senator Hagel.

14
00:00:41,934 --> 00:00:45,567
Does the President feel like
Hagel needs to address his past

15
00:00:45,567 --> 00:00:49,433
comments on Israel and Iran
before he can be confirmed, or

16
00:00:49,433 --> 00:00:54,166
does he feel like those comments
are irrelevant to this process?

17
00:00:54,166 --> 00:00:57,166
Mr. Carney:
Well, today the President
announced his nominees for

18
00:00:57,166 --> 00:01:00,566
Secretary of Defense and
the Director of the Central

19
00:01:00,567 --> 00:01:05,934
Intelligence Agency, and he made
broad comments about why the two

20
00:01:05,934 --> 00:01:11,133
men he nominated are the
right people for the jobs.

21
00:01:11,133 --> 00:01:17,533
There will be a process in each
case where the Senate reviews

22
00:01:17,533 --> 00:01:21,100
the nominees and the President
asked the Senate to move quickly

23
00:01:21,100 --> 00:01:24,065
because these positions
are very important for

24
00:01:24,066 --> 00:01:25,700
our national security.

25
00:01:25,700 --> 00:01:30,934
And I know Senator Hagel and
John Brennan look forward to

26
00:01:30,934 --> 00:01:36,333
that process and to fair
hearings in both cases.

27
00:01:38,367 --> 00:01:42,900
It is a routine part of this
exercise that nominees are asked

28
00:01:42,900 --> 00:01:45,367
about their views
on various issues.

29
00:01:45,367 --> 00:01:50,567
And on the matters you just
raised, Senator Hagel has been

30
00:01:50,567 --> 00:01:56,366
a staunch supporter of Israel,
of the Israeli-American

31
00:01:56,367 --> 00:02:01,834
relationship, of the United
States' support for Israel's

32
00:02:01,834 --> 00:02:04,400
security throughout his career.

33
00:02:04,400 --> 00:02:07,867
And he has also been, as
demonstrated by his record,

34
00:02:07,867 --> 00:02:12,900
a supporter of the broad
sanctions regime that this

35
00:02:12,900 --> 00:02:15,567
President has put into
place against Iran --

36
00:02:15,567 --> 00:02:18,567
a sanctions regime that is
unprecedented and which as

37
00:02:18,567 --> 00:02:22,567
recently as I think last spring,
Senator Hagel wrote about

38
00:02:22,567 --> 00:02:27,767
favorably and urged Washington
as a whole to continue.

39
00:02:27,767 --> 00:02:29,633
So I know --

40
00:02:29,633 --> 00:02:33,200
I'm sure Senator Hagel looks
forward to discussing his record

41
00:02:33,200 --> 00:02:35,132
in his nomination hearings.

42
00:02:35,133 --> 00:02:37,166
The Press:
But does the President feel
like it's important that Hagel

43
00:02:37,166 --> 00:02:39,500
clarify some of the
statements that he made?

44
00:02:39,500 --> 00:02:41,133
Even after the President's
announcement today we saw

45
00:02:41,133 --> 00:02:44,066
statements from various
lawmakers asking him to

46
00:02:44,066 --> 00:02:46,066
clarify what he meant.

47
00:02:46,066 --> 00:02:49,567
Mr. Carney:
I think that the process will
allow for what it always does,

48
00:02:49,567 --> 00:02:54,567
which is a review by the Senate
of presidential nominees.

49
00:02:54,567 --> 00:02:57,367
I think that Senator Hagel's
record on those issues and so

50
00:02:57,367 --> 00:03:01,266
many others demonstrate
that he is in sync with

51
00:03:01,266 --> 00:03:02,367
the President's policies.

52
00:03:02,367 --> 00:03:05,834
And, on the first
issue, let's be clear.

53
00:03:05,834 --> 00:03:10,100
President Obama has, in his
administration, overseen the

54
00:03:10,100 --> 00:03:15,367
closest, most substantial
support for Israel's defense

55
00:03:15,367 --> 00:03:17,132
of any administration in history.

56
00:03:17,133 --> 00:03:20,533
And that is a judgment that is
not just made by me or others in

57
00:03:20,533 --> 00:03:23,466
the President's administration;
it's a judgment that has been

58
00:03:23,467 --> 00:03:27,867
made and expressed by Prime
Minister Netanyahu and by

59
00:03:27,867 --> 00:03:31,033
Defense Minister Ehud Barak.

60
00:03:31,033 --> 00:03:33,433
And that is a policy that will
continue under President Obama

61
00:03:33,433 --> 00:03:36,867
with all the members of
his national security team.

62
00:03:36,867 --> 00:03:40,266
But again, the process is what
it's supposed to be, and I'm

63
00:03:40,266 --> 00:03:44,100
sure that there will be the kind
of proceedings that normally

64
00:03:44,100 --> 00:03:48,132
take place when nominees for
these positions are put forward.

65
00:03:48,133 --> 00:03:50,767
The Press:
The President also said that
with national security positions

66
00:03:50,767 --> 00:03:52,799
in particular it's
important to not have a gap.

67
00:03:52,800 --> 00:03:56,066
Over at Treasury, Secretary
Geithner has said that he plans

68
00:03:56,066 --> 00:03:58,467
to leave by about January 20th.

69
00:03:58,467 --> 00:04:00,967
Given all of the fiscal issues
that are coming up and all of

70
00:04:00,967 --> 00:04:02,934
the deadlines that are coming
up, does the President also feel

71
00:04:02,934 --> 00:04:05,800
that it's important to not have
a gap between when Secretary

72
00:04:05,800 --> 00:04:08,734
Geithner leaves and his
replacement is confirmed?

73
00:04:08,734 --> 00:04:11,567
Mr. Carney:
Well, I have no other
announcements to make or

74
00:04:11,567 --> 00:04:15,533
updates to give with
regards to personnel.

75
00:04:15,533 --> 00:04:19,700
I am sure that when the
President nominates a successor

76
00:04:19,700 --> 00:04:23,000
to Secretary Geithner, he
will look forward to speedy

77
00:04:23,000 --> 00:04:24,400
consideration by the Senate.

78
00:04:24,400 --> 00:04:25,799
But I don't have a
timetable for that.

79
00:04:25,800 --> 00:04:28,133
The Press:
So we shouldn't expect
something before Geithner

80
00:04:28,133 --> 00:04:29,599
leaves on January --

81
00:04:29,600 --> 00:04:33,200
Mr. Carney:
I have no guidance to
give you on the timing.

82
00:04:33,200 --> 00:04:37,033
It's very important for any
President to have time and space

83
00:04:37,033 --> 00:04:40,166
to consider his or her nominees
for these important positions,

84
00:04:40,166 --> 00:04:44,467
and when he's ready to make
an announcement, he will.

85
00:04:44,467 --> 00:04:45,133
Reuters.

86
00:04:45,133 --> 00:04:48,667
The Press:
The fiscal cliff deal, as
you know, included a package

87
00:04:48,667 --> 00:04:52,500
of tax breaks for businesses
worth about $64 billion,

88
00:04:52,500 --> 00:04:55,467
including the wind tax credit.

89
00:04:55,467 --> 00:04:58,800
And Republicans are saying that
the President insisted on these,

90
00:04:58,800 --> 00:05:01,500
and I'm wondering why, given all
of the difficulty reaching that

91
00:05:01,500 --> 00:05:05,233
final deal, the President
really insisted on including

92
00:05:05,233 --> 00:05:06,934
these business tax breaks.

93
00:05:06,934 --> 00:05:09,200
Mr. Carney:
Well, you're assuming that what
you've been told is correct.

94
00:05:09,200 --> 00:05:11,967
I would simply say that it would
strain the credulity of everyone

95
00:05:11,967 --> 00:05:16,800
in this room to suggest that
Republicans did not support or

96
00:05:16,800 --> 00:05:19,600
want tax credits for business.

97
00:05:19,600 --> 00:05:21,734
That would truly be turning
Washington on its head,

98
00:05:21,734 --> 00:05:23,567
and that is not what happened.

99
00:05:23,567 --> 00:05:29,100
The President did support giving
certainty to American businesses

100
00:05:29,100 --> 00:05:31,967
and consumers by including in
the fiscal deal the bipartisan

101
00:05:31,967 --> 00:05:34,066
extenders package that the
Senate Finance Committee,

102
00:05:34,066 --> 00:05:39,200
this summer -- or summer
of 2012 -- passed 19 to 5.

103
00:05:39,200 --> 00:05:42,133
And more than 90% of the cost
of the extenders package is

104
00:05:42,133 --> 00:05:46,433
associated with longstanding
provisions in the tax code,

105
00:05:46,433 --> 00:05:49,233
with clear policy rationale
for businesses or individuals,

106
00:05:49,233 --> 00:05:53,633
including the R&D tax credit to
support domestic job-creating

107
00:05:53,633 --> 00:05:56,200
research investments; the
production tax credit,

108
00:05:56,200 --> 00:05:59,900
which you mentioned, which
supports clean energy jobs --

109
00:05:59,900 --> 00:06:03,599
if this key support had been
allowed to expire, as you know

110
00:06:03,600 --> 00:06:07,600
because it was discussed during
the campaign, as many as 37,000

111
00:06:07,600 --> 00:06:12,100
clean energy jobs could have
been lost; mortgage debt relief

112
00:06:12,100 --> 00:06:14,767
to help homeowners, which
protect homeowners from paying

113
00:06:14,767 --> 00:06:17,633
taxes on up to $2
million of forgiven debt.

114
00:06:17,633 --> 00:06:20,467
And the list goes on
-- bonus depreciation.

115
00:06:20,467 --> 00:06:26,133
So again, going back to the
first point, this package of

116
00:06:26,133 --> 00:06:30,133
tax extenders was supported on
a bipartisan basis by the Senate

117
00:06:30,133 --> 00:06:31,567
Finance Committee.

118
00:06:31,567 --> 00:06:32,600
The President supported it.

119
00:06:32,600 --> 00:06:37,433
But it is, again -- you would
have to suspend disbelief to

120
00:06:37,433 --> 00:06:39,900
accept the premise that
Republicans did not.

121
00:06:39,900 --> 00:06:40,433
Ann.

122
00:06:40,433 --> 00:06:41,266
The Press:
Thanks, Jay.

123
00:06:41,266 --> 00:06:43,633
Is there a moment that the
President sat down with Senator

124
00:06:43,633 --> 00:06:46,866
Hagel and offered him the job,
and had a heart-to-heart talk

125
00:06:46,867 --> 00:06:49,734
about what kind of shape he
would like to see, or what

126
00:06:49,734 --> 00:06:51,799
direction he'd like to
see the Pentagon move in?

127
00:06:51,800 --> 00:06:54,233
Mr. Carney:
Well, the President did formally
offer Senator Hagel the job,

128
00:06:54,233 --> 00:06:56,233
I believe, by phone
over the weekend.

129
00:06:56,233 --> 00:07:01,900
But the fact is that Senator
Hagel and President Obama have

130
00:07:01,900 --> 00:07:05,400
a long relationship that dates
back to their service together

131
00:07:05,400 --> 00:07:06,866
in the United States Senate.

132
00:07:06,867 --> 00:07:09,467
As the President mentioned today,
they traveled together abroad.

133
00:07:09,467 --> 00:07:16,099
And Senator Hagel, after he left
the Senate, was co-chair of the

134
00:07:16,100 --> 00:07:17,600
President's Intelligence
Advisory Board.

135
00:07:17,600 --> 00:07:23,867
So they have had an ongoing
conversation about this nation's

136
00:07:23,867 --> 00:07:28,867
national security needs and the
President's policies in the last

137
00:07:28,867 --> 00:07:33,033
four years, which I think
is clear that Senator Hagel

138
00:07:33,033 --> 00:07:35,467
believes have been the right
policies and that he looks

139
00:07:35,467 --> 00:07:40,133
forward to helping implement, if
he is confirmed by the Senate.

140
00:07:42,367 --> 00:07:44,000
Front row is kind of docile,
but I'll go to Chuck.

141
00:07:44,000 --> 00:07:44,734
Yes.

142
00:07:44,734 --> 00:07:45,967
(laughter)

143
00:07:45,967 --> 00:07:48,599
The Press:
What in the President's
background -- what in Chuck

144
00:07:48,600 --> 00:07:50,867
Hagel's background gave the
President confidence that he

145
00:07:50,867 --> 00:07:54,567
could run a bureaucracy
as big as the Pentagon?

146
00:07:54,567 --> 00:08:01,567
Mr. Carney:
Well, among the items on Senator
Hagel's rather unique resume is

147
00:08:01,567 --> 00:08:04,333
the fact that he was a
CEO, and a successful one,

148
00:08:04,333 --> 00:08:05,667
and ran a business.

149
00:08:05,667 --> 00:08:10,967
And that is one of the many
attributes that he brings to

150
00:08:10,967 --> 00:08:13,467
the job of running, as you say,
an institution as large as the

151
00:08:13,467 --> 00:08:15,265
Defense Department.

152
00:08:15,266 --> 00:08:18,467
And that's part of a record
that, as the President noted

153
00:08:18,467 --> 00:08:20,667
today, is really
quite remarkable.

154
00:08:20,667 --> 00:08:23,599
Here is someone who fought
and bled for his country, who

155
00:08:23,600 --> 00:08:30,000
enlisted as a volunteer to serve
and fight in Vietnam, who was

156
00:08:30,000 --> 00:08:36,133
awarded the Purple Heart twice,
who then served in the VA and as

157
00:08:36,133 --> 00:08:39,900
head of USO, and then as
a United States senator,

158
00:08:39,900 --> 00:08:43,600
and since then as an advisor to
the President on intelligence

159
00:08:43,600 --> 00:08:45,900
matters on the Intelligence
Advisory Board.

160
00:08:45,900 --> 00:08:51,132
This is a remarkable career of
service in which all of Senator

161
00:08:51,133 --> 00:08:53,600
Hagel's many talents
are reflected.

162
00:08:53,600 --> 00:08:55,500
And he will bring those
talents to the job.

163
00:08:55,500 --> 00:08:59,667
The Press:
Did anything that was out there
trouble the President enough

164
00:08:59,667 --> 00:09:02,467
where he re-interviewed
Senator Hagel?

165
00:09:02,467 --> 00:09:03,834
Like, when he saw
a report about --

166
00:09:03,834 --> 00:09:05,300
Mr. Carney:
I'm not going to go
through the process of --

167
00:09:05,300 --> 00:09:08,599
The Press:
I mean, how -- did he make
Senator Hagel answer some of

168
00:09:08,600 --> 00:09:09,500
these questions --

169
00:09:09,500 --> 00:09:10,133
Mr. Carney:
Again, I'm not --

170
00:09:10,133 --> 00:09:15,867
I won't go through the
process that the President

171
00:09:15,867 --> 00:09:20,766
uses to select nominees,
except that he does so

172
00:09:20,767 --> 00:09:22,533
in a very deliberate fashion.

173
00:09:22,533 --> 00:09:26,567
He looks for the very best
people for these jobs both in

174
00:09:26,567 --> 00:09:30,333
the national security arena and
elsewhere in the administration.

175
00:09:30,333 --> 00:09:33,934
When it comes to Senator Hagel,
as I was just saying, he has

176
00:09:33,934 --> 00:09:37,500
known Senator Hagel for a fairly
long time and has worked with

177
00:09:37,500 --> 00:09:41,266
him directly both in the
Senate and as President.

178
00:09:41,266 --> 00:09:46,333
So the President knows his
record, he knows Senator Hagel's

179
00:09:46,333 --> 00:09:49,433
commitment, and he has full
confidence that Senator Hagel

180
00:09:49,433 --> 00:09:54,567
will be an excellent Secretary
of Defense who will look out,

181
00:09:54,567 --> 00:10:02,333
as the President said, for those
who serve in our armed forces as

182
00:10:02,333 --> 00:10:07,266
volunteers, as he did, who
implement the policies, the

183
00:10:07,266 --> 00:10:10,934
decisions that are made here in
Washington, often at such a far

184
00:10:10,934 --> 00:10:13,300
remove from the battlefield.

185
00:10:13,300 --> 00:10:18,766
And he has great confidence
that Senator Hagel will be an

186
00:10:18,767 --> 00:10:20,033
excellent Secretary of Defense.

187
00:10:20,033 --> 00:10:22,233
The Press:
On John Brennan, what makes it
different today than four years

188
00:10:22,233 --> 00:10:25,400
ago when John Brennan withdrew
his name from consideration for

189
00:10:25,400 --> 00:10:28,834
the CIA over at the time
was thought to be --

190
00:10:28,834 --> 00:10:31,800
there was going to be -- that he
wasn't ready to answer questions

191
00:10:31,800 --> 00:10:34,367
about his role in
devising the enhanced --

192
00:10:34,367 --> 00:10:38,065
in being a part of the enhanced
interrogation technique?

193
00:10:38,066 --> 00:10:38,800
Mr. Carney:
Well, I'd say two things.

194
00:10:38,800 --> 00:10:42,733
One, at the time, Mr. Brennan
wrote a letter in which he made

195
00:10:42,734 --> 00:10:47,166
clear that he opposed so-called
enhanced interrogation techniques.

196
00:10:47,166 --> 00:10:50,133
And two, for the past four
years, John Brennan has served

197
00:10:50,133 --> 00:10:54,700
as this President's chief
counterterrorism advisor.

198
00:10:54,700 --> 00:10:58,767
And it is this President who
banned torture as one of his

199
00:10:58,767 --> 00:11:03,000
first acts in office, and he has
implemented that policy and many

200
00:11:03,000 --> 00:11:06,467
others with the remarkably
capable assistance of

201
00:11:06,467 --> 00:11:07,734
John Brennan.

202
00:11:07,734 --> 00:11:12,033
The Press:
And finally would you respond
to secretary -- sorry -- Senator

203
00:11:12,033 --> 00:11:17,467
McConnell over the weekend
said the tax issue is now done.

204
00:11:17,467 --> 00:11:19,333
Does the White House
share his view?

205
00:11:19,333 --> 00:11:24,300
Mr. Carney:
No, we believe that any further
deficit reduction, of which

206
00:11:24,300 --> 00:11:27,400
there must be, in the
President's view --

207
00:11:27,400 --> 00:11:32,333
must be pursued with the same
balanced approach that the

208
00:11:32,333 --> 00:11:34,333
President has
insisted on up to now.

209
00:11:34,333 --> 00:11:35,632
The Press:
-- now, though?

210
00:11:35,633 --> 00:11:40,900
Mr. Carney:
I'm not going to itemize
how it breaks down.

211
00:11:40,900 --> 00:11:43,567
But the fact is as part
of the overall $4 trillion

212
00:11:43,567 --> 00:11:46,834
deficit-reduction package that
the President put forward, the

213
00:11:46,834 --> 00:11:49,400
ratio was more like $2 in
spending cuts for every

214
00:11:49,400 --> 00:11:50,233
$1 in revenue.

215
00:11:50,233 --> 00:11:51,300
The Press:
Going forward now,
now that this --

216
00:11:51,300 --> 00:11:53,632
Mr. Carney:
Well, again, you'd have to break
down the numbers and look at it.

217
00:11:53,633 --> 00:11:56,467
And I'm not going to
prejudge any proposals

218
00:11:56,467 --> 00:11:57,367
that might come forward.

219
00:11:57,367 --> 00:11:59,834
But one of the things you heard
the President of the United

220
00:11:59,834 --> 00:12:06,032
States say on New Year's Day
when this fiscal cliff challenge

221
00:12:06,033 --> 00:12:11,400
was resolved is that the
agreement enshrined the

222
00:12:11,400 --> 00:12:16,199
principle that we must have
balance as we move forward

223
00:12:16,200 --> 00:12:17,900
in our deficit reduction.

224
00:12:17,900 --> 00:12:21,600
In the spending cuts that were
part of the fiscal cliff deal,

225
00:12:21,600 --> 00:12:25,266
they were paid for in a
balanced way with both --

226
00:12:25,266 --> 00:12:27,967
rather the buy-down of the
sequester was paid for in a

227
00:12:27,967 --> 00:12:29,199
balanced way with both --

228
00:12:29,200 --> 00:12:31,800
roughly 50% spending
cuts and 50% revenue.

229
00:12:31,800 --> 00:12:35,000
And that is an approach
the President -- balance,

230
00:12:35,000 --> 00:12:36,633
anyway, is an approach the
President believes is very

231
00:12:36,633 --> 00:12:38,066
important to continue.

232
00:12:38,066 --> 00:12:43,266
And when members of Congress
suggest that revenues are now

233
00:12:43,266 --> 00:12:45,567
somehow not part of the equation
it doesn't really make a lot of

234
00:12:45,567 --> 00:12:50,033
sense, because as I stood here
and discussed with you the

235
00:12:50,033 --> 00:12:52,767
various proposals going back and
forth during the fiscal cliff

236
00:12:52,767 --> 00:12:56,166
negotiations, when the President
was seeking in negotiations with

237
00:12:56,166 --> 00:13:02,166
Speaker Boehner a big deal, one
that would address our long-term

238
00:13:02,166 --> 00:13:05,400
fiscal challenges through
broader deficit reduction,

239
00:13:05,400 --> 00:13:07,766
the Speaker put on the table
what he claimed was an $800

240
00:13:07,767 --> 00:13:13,100
billion revenue proposal made
up entirely of the closure of

241
00:13:13,100 --> 00:13:17,533
loopholes and the capping
of deductions -- tax reform.

242
00:13:17,533 --> 00:13:21,100
Now, either that was good policy
that they no longer support, or

243
00:13:21,100 --> 00:13:24,066
Republicans also believe, as the
President does, that through tax

244
00:13:24,066 --> 00:13:27,467
reform we can achieve
an improved tax --

245
00:13:27,467 --> 00:13:29,066
The Press:
So you think the Republicans
are going to put forward $800

246
00:13:29,066 --> 00:13:30,066
billion in tax increases --

247
00:13:30,066 --> 00:13:34,934
Mr. Carney:
Well, again, I would ask you
what about that $800 billion

248
00:13:34,934 --> 00:13:38,000
proposal was okay then,
it's not okay now.

249
00:13:38,000 --> 00:13:40,967
And the President believes,
as Republicans have said they

250
00:13:40,967 --> 00:13:45,367
believe, that we need to reform
our tax code, and that there are

251
00:13:45,367 --> 00:13:49,867
loopholes that are crying out to
be closed that no longer serve

252
00:13:49,867 --> 00:13:52,834
the country, if they ever did,
and that there are ways of

253
00:13:52,834 --> 00:13:58,099
capping deductions and reforming
our tax code that can produce

254
00:13:58,100 --> 00:14:01,266
more revenue in a fair way
that, again, does not burden

255
00:14:01,266 --> 00:14:05,000
the middle class, but asks
the wealthiest to pay more.

256
00:14:05,000 --> 00:14:08,834
The Press:
Jay, since you talked about
the conversation with Boehner,

257
00:14:08,834 --> 00:14:12,666
at that last stage it was
$1.2 trillion of revenue

258
00:14:12,667 --> 00:14:14,633
the President put on the
table in the last conversation

259
00:14:14,633 --> 00:14:15,567
with Boehner.

260
00:14:15,567 --> 00:14:18,000
Does that mean the President
is looking for ballpark

261
00:14:18,000 --> 00:14:20,767
$600 billion-$700 billion
more in tax reform revenue?

262
00:14:20,767 --> 00:14:25,533
Mr. Carney:
I prefer not to get into
the negotiations for how

263
00:14:25,533 --> 00:14:28,834
we eliminate the sequester,
which the President obviously

264
00:14:28,834 --> 00:14:32,467
is interested in doing,
from this podium today.

265
00:14:32,467 --> 00:14:35,633
But it is clear from the
proposals the President put

266
00:14:35,633 --> 00:14:40,166
forward dating back to his
submission to the super

267
00:14:40,166 --> 00:14:43,600
committee, through his budget
proposals, and through the

268
00:14:43,600 --> 00:14:46,166
negotiations with Speaker
Boehner, what his principles

269
00:14:46,166 --> 00:14:50,266
are, where he believes we can
appropriately reform our tax

270
00:14:50,266 --> 00:14:53,666
code and produce more revenue,
and the balance that we need to

271
00:14:53,667 --> 00:14:57,567
inform us as we make the kind of
spending cuts that are necessary

272
00:14:57,567 --> 00:14:59,200
for broader deficit reduction.

273
00:14:59,200 --> 00:15:02,900
But the fact is, going
back to Chuck's question,

274
00:15:02,900 --> 00:15:07,800
is that we know that balance
is the way to go here.

275
00:15:07,800 --> 00:15:11,699
It is the path that
the public supports,

276
00:15:11,700 --> 00:15:14,467
and it is inconceivable
to the President --

277
00:15:14,467 --> 00:15:16,567
and I would think
to many of you --

278
00:15:16,567 --> 00:15:20,867
that the Republicans want to, as
we approach the coming months,

279
00:15:20,867 --> 00:15:26,433
have as a basic position that
what we really need to do is --

280
00:15:26,433 --> 00:15:28,700
for example, going back to some
of their previous proposals like

281
00:15:28,700 --> 00:15:34,867
the Ryan budget -- voucherize
Medicare or slash benefits for

282
00:15:34,867 --> 00:15:37,599
seniors without asking
the wealthy to do any more.

283
00:15:37,600 --> 00:15:40,767
I don't think that's a position
that is plausible to take, and

284
00:15:40,767 --> 00:15:42,867
it's certainly not a position
the President supports.

285
00:15:42,867 --> 00:15:45,233
The Press:
Is he adamantly opposed
to a revenue-neutral tax

286
00:15:45,233 --> 00:15:46,934
reform approach?

287
00:15:46,934 --> 00:15:50,800
And would he veto a bill that
was operating on that premise?

288
00:15:50,800 --> 00:15:54,733
Mr. Carney:
Well, you're getting way
ahead of any process that's

289
00:15:54,734 --> 00:15:55,433
in place now.

290
00:15:55,433 --> 00:15:56,200
He is --

291
00:15:56,200 --> 00:15:57,200
The Press:
But Republicans have said --

292
00:15:57,200 --> 00:15:58,166
Mr. Carney:
Well, let me just
on the first --

293
00:15:58,166 --> 00:16:00,900
The Press:
-- revenue neutrality is their
opening bid on tax reform.

294
00:16:00,900 --> 00:16:02,967
Mr. Carney:
Well, I appreciate that it's
their opening bid, but for some

295
00:16:02,967 --> 00:16:08,266
reason it was viable a few weeks
ago to find $800 billion in

296
00:16:08,266 --> 00:16:12,065
revenue through closed loopholes
and capped deductions that

297
00:16:12,066 --> 00:16:14,667
presumably aren't
good for the economy.

298
00:16:14,667 --> 00:16:18,800
And the President believes
that tax reform can and should

299
00:16:18,800 --> 00:16:22,867
produce more revenue, because
balance is essential as we

300
00:16:22,867 --> 00:16:24,400
achieve further
deficit reduction --

301
00:16:24,400 --> 00:16:27,567
because it is not the
President's position, as he made

302
00:16:27,567 --> 00:16:31,500
clear from this podium just last
week, that we will reduce our

303
00:16:31,500 --> 00:16:36,100
deficit going forward simply by
asking seniors or middle-class

304
00:16:36,100 --> 00:16:39,033
families or parents with
kids in college to bear

305
00:16:39,033 --> 00:16:40,166
the burden solely.

306
00:16:40,166 --> 00:16:42,467
The Press:
How long does the President
-- the tepid reaction of Senate

307
00:16:42,467 --> 00:16:45,967
Democrats to Senator
Hagel's nomination --

308
00:16:45,967 --> 00:16:49,633
Mr. Carney:
The President believes that
when the Senate considers the

309
00:16:49,633 --> 00:16:55,967
totality of Senator Hagel's
career that they will confirm

310
00:16:55,967 --> 00:16:59,766
him as the next
Secretary of Defense.

311
00:16:59,767 --> 00:17:06,667
The Senator's record is
exemplary both in uniform

312
00:17:06,666 --> 00:17:10,733
and in the private sector, and
as a United States Senator, and

313
00:17:10,733 --> 00:17:14,265
as an advisor on intelligence
matters to the President.

314
00:17:14,266 --> 00:17:16,700
And I know that Senator Hagel
looks forward to discussing that

315
00:17:16,700 --> 00:17:18,000
record with the Senate.

316
00:17:18,000 --> 00:17:26,200
And I won't bore you or tie up
too much of your time by reading

317
00:17:26,200 --> 00:17:30,133
the number of endorsements that
Senator Hagel's nomination has

318
00:17:30,133 --> 00:17:33,333
already received from a variety
of quarters, but they are

319
00:17:33,333 --> 00:17:35,767
numerous and we expect
that more will come.

320
00:17:35,767 --> 00:17:39,300
The Press:
Is it your position that when
Hagel was skeptical of sanctions

321
00:17:39,300 --> 00:17:43,767
on Iran in 2006, 2005, called
for direct negotiations with

322
00:17:43,767 --> 00:17:46,500
Hezbollah -- all that stuff was
that was then and this is now,

323
00:17:46,500 --> 00:17:47,834
it just isn't relevant
to the record at all?

324
00:17:47,834 --> 00:17:51,300
Mr. Carney:
Well, those are I think
descriptions of the positions

325
00:17:51,300 --> 00:17:54,433
that are slightly skewed
by the current debate.

326
00:17:54,433 --> 00:17:56,533
They're not part of -- the fact
is on sanctions, for example,

327
00:17:56,533 --> 00:18:01,667
Senator Hagel supported an
aggressive sanctions regime

328
00:18:01,667 --> 00:18:02,433
against Iran.

329
00:18:02,433 --> 00:18:04,934
And he, as recently as last
year, wrote about the need

330
00:18:04,934 --> 00:18:08,700
to continue to isolate and
pressure Iran through sanctions.

331
00:18:08,700 --> 00:18:11,967
The Press:
-- in their roll-call
votes in 2005-2006 --

332
00:18:11,967 --> 00:18:15,567
Mr. Carney:
Again, there is the approach
that President Obama has taken

333
00:18:15,567 --> 00:18:17,600
-- which has been vastly more
effective and which has been

334
00:18:17,600 --> 00:18:20,699
multilateral in nature, and
therefore more effective,

335
00:18:20,700 --> 00:18:22,500
to Iran -- and there are
individual votes that you

336
00:18:22,500 --> 00:18:25,967
can isolate and say represent
the whole, which they do not.

337
00:18:25,967 --> 00:18:30,166
The fact is Senator Hagel
supports a sanctions regime

338
00:18:30,166 --> 00:18:31,166
against Iran.

339
00:18:31,166 --> 00:18:37,033
And as Secretary of Defense, he
will aggressively implement the

340
00:18:37,033 --> 00:18:42,533
President's policies, including
his very aggressive approach to

341
00:18:42,533 --> 00:18:45,199
sanctioning Iran for its failure
to meet its international

342
00:18:45,200 --> 00:18:48,767
obligations with regards
to its nuclear program.

343
00:18:48,767 --> 00:18:49,867
The Press:
What about Hezbollah?

344
00:18:49,867 --> 00:18:53,767
Mr. Carney:
Again, Senator Hagel's
record is exemplary on

345
00:18:53,767 --> 00:18:55,166
all of these issues.

346
00:18:55,166 --> 00:19:01,200
And he will, I'm sure, when he
has the opportunity to have a

347
00:19:01,200 --> 00:19:03,967
confirmation hearing, be asked a
lot of questions about what his

348
00:19:03,967 --> 00:19:05,266
views are on policies.

349
00:19:05,266 --> 00:19:08,266
Fundamentally, what's important
to remember is that members of

350
00:19:08,266 --> 00:19:10,467
this President's national
security team, just like

351
00:19:10,467 --> 00:19:15,967
members of his broader team,
are hired for and do the work

352
00:19:15,967 --> 00:19:19,967
of implementing the
President's policies.

353
00:19:19,967 --> 00:19:24,600
And when it comes to Israel, to
the Middle East, to Hezbollah,

354
00:19:24,600 --> 00:19:27,600
to Hamas, to Iran, this
President's policies are

355
00:19:27,600 --> 00:19:28,600
very clear.

356
00:19:28,600 --> 00:19:34,533
And Senator Hagel will, as
Secretary of Defense, carry

357
00:19:34,533 --> 00:19:37,000
out those policies, just as John
Brennan will as Director of the

358
00:19:37,000 --> 00:19:41,533
CIA, and as other members of the
President's team have and will

359
00:19:41,533 --> 00:19:46,033
going forward, including, as you
know, Secretary Gates, one of

360
00:19:46,033 --> 00:19:49,766
this President's Secretaries of
Defense who just a few moments

361
00:19:49,767 --> 00:19:54,467
ago expressed his admiration
for Senator Hagel and his desire

362
00:19:54,467 --> 00:19:57,000
that Senator Hagel be confirmed
as Secretary of Defense.

363
00:19:57,000 --> 00:20:00,900
The Press:
Jay, in light of that, what
do you make of Senator Lindsey

364
00:20:00,900 --> 00:20:03,767
Graham's assertion that
the Hagel nomination is

365
00:20:03,767 --> 00:20:07,000
an "in your face" nomination
that suggests an in-your-face

366
00:20:07,000 --> 00:20:08,500
second-term President?

367
00:20:08,500 --> 00:20:12,900
Mr. Carney:
Well, again, I'm not going to
get into a rebuttal of every

368
00:20:12,900 --> 00:20:17,233
stray comment made by
members of Congress.

369
00:20:17,233 --> 00:20:20,000
The fact of the matter
is Senator Hagel's record

370
00:20:20,000 --> 00:20:21,734
is exemplary.

371
00:20:21,734 --> 00:20:27,265
He fought for his country in
uniform as an enlisted member

372
00:20:27,266 --> 00:20:29,433
of the armed
services in Vietnam.

373
00:20:29,433 --> 00:20:32,633
He served his country in
the United States Senate.

374
00:20:32,633 --> 00:20:38,767
And it is rather remarkable to
hear some of the critics out

375
00:20:38,767 --> 00:20:44,900
there question Senator Hagel and
whether or not he should have

376
00:20:44,900 --> 00:20:48,367
this position when you look back
at what those very same members

377
00:20:48,367 --> 00:20:52,533
of the Senate said effusively in
praise of Senator Hagel just a

378
00:20:52,533 --> 00:20:54,533
few years ago.

379
00:20:54,533 --> 00:20:59,966
He is the same man today,
the same patriot today,

380
00:20:59,967 --> 00:21:03,567
the same intellect today
that he was then.

381
00:21:03,567 --> 00:21:07,700
And we agree with, for example,
Senator McCain who said not too

382
00:21:07,700 --> 00:21:10,200
many years ago that "Chuck
Hagel will be an excellent

383
00:21:10,200 --> 00:21:11,633
Secretary of State."

384
00:21:11,633 --> 00:21:13,667
The President happens to believe
that he would be an excellent

385
00:21:13,667 --> 00:21:15,065
Secretary of Defense.

386
00:21:15,066 --> 00:21:18,734
The Press:
On another matter, the Vice
President has been charged with

387
00:21:18,734 --> 00:21:23,166
what we are to understand will
be a broad approach to dealing

388
00:21:23,166 --> 00:21:24,800
with the problem
of gun violence.

389
00:21:24,800 --> 00:21:26,800
Senator McConnell says he
doesn't want to talk about

390
00:21:26,800 --> 00:21:30,533
anything but fiscal matters
for the next few years.

391
00:21:30,533 --> 00:21:34,399
Does that mean we shouldn't
expect any movement, any

392
00:21:34,400 --> 00:21:37,600
recommendations from the
Vice President over the

393
00:21:37,600 --> 00:21:38,433
next few months?

394
00:21:38,433 --> 00:21:39,867
I'm sorry, I said
years, I meant months.

395
00:21:39,867 --> 00:21:45,200
Mr. Carney:
Well, with respect to Senator
McConnell, I think the President

396
00:21:45,200 --> 00:21:50,333
will move forward with his
agenda in a timely fashion,

397
00:21:50,333 --> 00:21:55,867
and that includes the work that
Vice President Biden is doing on

398
00:21:55,867 --> 00:22:01,399
the effort to examine measures
that we can take to address the

399
00:22:01,400 --> 00:22:02,900
problem of gun violence
in this country.

400
00:22:02,900 --> 00:22:05,767
I think that many
Americans, if not most --

401
00:22:05,767 --> 00:22:10,033
I believe most Americans would
disagree with the idea that in

402
00:22:10,033 --> 00:22:13,632
the wake of what happened in
Newtown, Connecticut, that we

403
00:22:13,633 --> 00:22:17,667
should put off any action on
the issue of gun violence.

404
00:22:17,667 --> 00:22:23,100
I think that sentiment would be
met with surprise by the vast

405
00:22:23,100 --> 00:22:25,600
majority of the American people
who don't watch the Sunday

406
00:22:25,600 --> 00:22:28,399
shows, especially on the
Sunday after New Year's Day.

407
00:22:28,400 --> 00:22:30,100
But it's certainly
not a sentiment the

408
00:22:30,100 --> 00:22:31,100
President supports.

409
00:22:31,100 --> 00:22:34,632
The Press:
And talk to me about a broad
effort as opposed to something

410
00:22:34,633 --> 00:22:36,633
that deals with
strictly gun laws.

411
00:22:36,633 --> 00:22:39,667
Mr. Carney:
Well, I can cite the President
on several occasions where he

412
00:22:39,667 --> 00:22:43,632
talked about the fact
that issues that --

413
00:22:43,633 --> 00:22:48,567
that approaches that address
access to guns including

414
00:22:48,567 --> 00:22:51,767
legislation like the assault
weapons ban, or legislation that

415
00:22:51,767 --> 00:22:54,934
would ban high-capacity gun
clips, or legislation that would

416
00:22:54,934 --> 00:22:58,567
close the many loopholes in
our background check system

417
00:22:58,567 --> 00:23:01,200
are only -- while very
important and he supports

418
00:23:01,200 --> 00:23:04,300
congressional actions right
away on those matters --

419
00:23:04,300 --> 00:23:07,000
are only part of the
problem and only address

420
00:23:07,000 --> 00:23:08,000
part of the problem.

421
00:23:08,000 --> 00:23:10,800
And he believes that issues
of mental health, issues of

422
00:23:10,800 --> 00:23:16,734
education, for example, are part
of this problem and need to be

423
00:23:16,734 --> 00:23:18,567
addressed as part of the
effort that Vice President

424
00:23:18,567 --> 00:23:20,000
Biden is undertaking.

425
00:23:20,000 --> 00:23:21,066
Alexis.

426
00:23:21,066 --> 00:23:24,200
The Press:
Jay, on the Hill,
Senators had greeted --

427
00:23:24,200 --> 00:23:27,967
or had criticized Susan Rice,
who was not nominated for a new

428
00:23:27,967 --> 00:23:31,700
position, in a way that prompted
the President to suggest that if

429
00:23:31,700 --> 00:23:34,734
in fact she was being used
as a proxy, that they were

430
00:23:34,734 --> 00:23:36,367
actually criticizing him.

431
00:23:36,367 --> 00:23:39,000
Does the President listen to the
criticism of Senator Hagel in

432
00:23:39,000 --> 00:23:42,767
much the same way, believing
that the criticism is more aimed

433
00:23:42,767 --> 00:23:45,367
at him than it is
at Senator Hagel?

434
00:23:45,367 --> 00:23:51,000
Mr. Carney:
Well, I will reject the
temptation to compare one

435
00:23:51,000 --> 00:23:52,000
to the other.

436
00:23:52,000 --> 00:23:54,233
I will simply say that the
President believes very firmly

437
00:23:54,233 --> 00:24:00,600
as you heard him just moments
ago say, that Senator Hagel will

438
00:24:00,600 --> 00:24:02,966
make, if confirmed, and
excellent Secretary of Defense,

439
00:24:02,967 --> 00:24:09,500
that his record is exemplary and
unique in that, as the President

440
00:24:09,500 --> 00:24:15,033
said, Senator Hagel would be the
first Vietnam veteran to run the

441
00:24:15,033 --> 00:24:18,265
Defense Department, the first
enlisted person to run the

442
00:24:18,266 --> 00:24:23,200
Defense Department, and with
that he would bring a keen

443
00:24:23,200 --> 00:24:25,400
understanding of and
appreciation for the

444
00:24:25,400 --> 00:24:28,600
men and women who serve
throughout our armed forces.

445
00:24:28,600 --> 00:24:32,833
So he looks forward to a speedy
consideration by the Senate and

446
00:24:32,834 --> 00:24:39,200
believes that Senator Hagel's
record will convince the Senate

447
00:24:39,200 --> 00:24:42,633
to confirm him as the
next Secretary of Defense.

448
00:24:42,633 --> 00:24:44,700
The Press:
And a quick follow-up on Major's
question about the process

449
00:24:44,700 --> 00:24:46,166
towards sequestration.

450
00:24:46,166 --> 00:24:49,166
For those who think that the
President maybe learned from the

451
00:24:49,166 --> 00:24:52,433
process he just went through on
the fiscal cliff that he will

452
00:24:52,433 --> 00:24:56,266
not be dealing with Speaker
Boehner, does the President --

453
00:24:56,266 --> 00:24:59,233
can you just clarify, does he
fully intend to have continuing

454
00:24:59,233 --> 00:25:01,767
conversations directly with
the Speaker, to negotiate

455
00:25:01,767 --> 00:25:02,867
with him directly?

456
00:25:02,867 --> 00:25:05,633
Mr. Carney:
Well, the President believes
that as part of our system of

457
00:25:05,633 --> 00:25:11,200
government the executive branch
engages with and negotiates with

458
00:25:11,200 --> 00:25:13,333
the legislative branch,
and that will continue --

459
00:25:13,333 --> 00:25:17,633
on a range of issues, not just
economic and fiscal matters.

460
00:25:17,633 --> 00:25:22,767
And the President, as he said,
is very open to compromise on a

461
00:25:22,767 --> 00:25:26,667
range of issues when it comes to
addressing our fiscal challenges

462
00:25:26,667 --> 00:25:31,233
and putting in place policies
that help our economy grow and

463
00:25:31,233 --> 00:25:34,433
continue to create jobs.

464
00:25:34,433 --> 00:25:40,633
He will not negotiate over
Congress's responsibility to

465
00:25:40,633 --> 00:25:43,166
pay the bills that
Congress has incurred.

466
00:25:43,166 --> 00:25:46,966
As you know as a veteran
reporter here in Washington,

467
00:25:46,967 --> 00:25:51,266
a President cannot by himself or
herself spend a single dollar.

468
00:25:53,667 --> 00:25:55,265
Congress passes the laws.

469
00:25:55,266 --> 00:25:57,200
Congress appropriates the funds.

470
00:25:57,200 --> 00:26:00,133
Congress racks up the bills and
Congress must pay the bills.

471
00:26:00,133 --> 00:26:05,300
And it is simply inappropriate
and extremely dangerous to

472
00:26:05,300 --> 00:26:12,265
suggest that in the name of
a political agenda we would

473
00:26:12,266 --> 00:26:16,000
default, for example, on our
obligations to pay our bills.

474
00:26:16,000 --> 00:26:17,667
That is Congress's
responsibility and the President

475
00:26:17,667 --> 00:26:21,065
will not negotiate with Congress
over Congress's responsibility

476
00:26:21,066 --> 00:26:22,100
to pay its bills.

477
00:26:22,100 --> 00:26:24,734
The Press:
Jay, the Speaker, prior to --

478
00:26:24,734 --> 00:26:25,433
Mr. Carney:
Glenn, how are you?

479
00:26:25,433 --> 00:26:26,767
Happy New Year.

480
00:26:26,767 --> 00:26:27,367
The Press:
Happy New Year.

481
00:26:27,367 --> 00:26:28,100
Mr. Carney:
Where's your hat?

482
00:26:28,100 --> 00:26:30,065
(laughter)

483
00:26:30,066 --> 00:26:31,533
The Press:
I'll put it on for you later.

484
00:26:31,533 --> 00:26:32,867
(laughter)

485
00:26:32,867 --> 00:26:35,834
Mr. Carney:
It's a little -- the lights are
bright and they reflect and --

486
00:26:35,834 --> 00:26:37,734
(laughter)

487
00:26:37,734 --> 00:26:39,033
The Press:
It's polite to take
your hat off --

488
00:26:39,033 --> 00:26:40,166
it's good manners.

489
00:26:40,166 --> 00:26:41,233
Mr. Carney:
It is, actually.

490
00:26:41,233 --> 00:26:45,500
I remind my son of
that periodically.

491
00:26:45,500 --> 00:26:46,400
Thank you for that.

492
00:26:46,400 --> 00:26:47,300
The Press:
I will respond to that later.

493
00:26:47,300 --> 00:26:48,867
(laughter)

494
00:26:48,867 --> 00:26:50,300
Mr. Carney:
I don't want to read that.

495
00:26:50,300 --> 00:26:51,265
(laughter)

496
00:26:51,266 --> 00:26:55,500
The Press:
The Speaker apparently said
explicitly to his own conference

497
00:26:55,500 --> 00:26:58,233
prior to his reelection as
Speaker last week that he does

498
00:26:58,233 --> 00:27:00,734
not want to negotiate directly
with the President anymore.

499
00:27:00,734 --> 00:27:01,899
Do you think that's appropriate?

500
00:27:01,900 --> 00:27:03,500
And what's the
President's response?

501
00:27:03,500 --> 00:27:08,834
Mr. Carney:
This is not personal and this
is about putting in place the

502
00:27:08,834 --> 00:27:10,266
policies that are
best for the country.

503
00:27:10,266 --> 00:27:12,433
That's how the
President looks at it.

504
00:27:12,433 --> 00:27:16,100
There's no question that
President Obama, in the course

505
00:27:16,100 --> 00:27:21,233
of his four years in office, has
learned a great deal about how

506
00:27:21,233 --> 00:27:25,834
to work with Congress and how to
enlist public support on behalf

507
00:27:25,834 --> 00:27:31,567
of policies that are very
important to the lives of

508
00:27:31,567 --> 00:27:33,033
everyday Americans
across the country.

509
00:27:33,033 --> 00:27:35,766
And as we've discussed in recent
months, the President will

510
00:27:35,767 --> 00:27:41,033
continue to make the case to the
American people for the policies

511
00:27:41,033 --> 00:27:45,300
that he believes are right,
and even as he works with

512
00:27:45,300 --> 00:27:48,399
and negotiates with
Congress on matters of

513
00:27:48,400 --> 00:27:49,400
legislative importance.

514
00:27:49,400 --> 00:27:53,967
So I'm not -- I only
heard about this indirectly.

515
00:27:53,967 --> 00:27:55,734
I didn't obviously have this
conversation directly with the

516
00:27:55,734 --> 00:27:57,934
Speaker or even read the article
that you're talking about.

517
00:27:57,934 --> 00:27:58,734
But I did hear this.

518
00:27:58,734 --> 00:28:01,734
I think it is incumbent upon
the leaders in Washington to

519
00:28:01,734 --> 00:28:07,466
continue to work together to
get the necessary work done to

520
00:28:07,467 --> 00:28:12,567
advance the economy, continue
to create jobs, and to ensure

521
00:28:12,567 --> 00:28:15,867
that we're doing everything
possible to make America safe.

522
00:28:15,867 --> 00:28:18,399
And that includes confirming,
for example, presidential

523
00:28:18,400 --> 00:28:20,900
nominees for a
national security post.

524
00:28:20,900 --> 00:28:23,200
The Press:
Is he committed to pressing
that with Speaker Boehner?

525
00:28:23,200 --> 00:28:25,300
Will he try to talk to
Boehner even if Boehner --

526
00:28:25,300 --> 00:28:27,700
Mr. Carney:
Well, I think the distinction
I'm trying to make here,

527
00:28:27,700 --> 00:28:32,266
in answer to Alexis's question,
is that he is, as he said from

528
00:28:32,266 --> 00:28:37,066
here, eager to and willing to
compromise in order to achieve

529
00:28:37,066 --> 00:28:42,133
policies that advance our
economic growth and help the

530
00:28:42,133 --> 00:28:44,266
economy create jobs, and
bring down our deficit in a

531
00:28:44,266 --> 00:28:46,233
responsible and balanced way.

532
00:28:46,233 --> 00:28:47,567
He will continue to do that.

533
00:28:47,567 --> 00:28:51,100
And we have, as a result of the
fiscal cliff, two more months

534
00:28:51,100 --> 00:28:55,000
to deal with the so-called
sequester, and that's something

535
00:28:55,000 --> 00:28:58,867
that the President will
obviously be addressing.

536
00:28:58,867 --> 00:29:03,166
What he will not do, as he has
made clear, is negotiate with

537
00:29:03,166 --> 00:29:06,734
Congress over Congress's sole
responsibility to pay the bills

538
00:29:06,734 --> 00:29:09,132
that Congress has
already incurred.

539
00:29:09,133 --> 00:29:13,800
Nobody forced Congress to rack
up the bills that it incurred.

540
00:29:13,800 --> 00:29:19,100
And it is an abdication of
responsibility to say that we're

541
00:29:19,100 --> 00:29:22,667
going to let the country default
and cause global economic

542
00:29:22,667 --> 00:29:27,500
calamity simply because we're
not getting what we want in

543
00:29:27,500 --> 00:29:29,834
terms of our ideological agenda.

544
00:29:29,834 --> 00:29:31,700
The President is not going
to participate in that.

545
00:29:31,700 --> 00:29:38,700
And I would remind you of the
damage caused to our economy

546
00:29:38,700 --> 00:29:42,066
by the approach that House
Republicans took on this matter

547
00:29:42,066 --> 00:29:44,500
just in the summer of 2011.

548
00:29:44,500 --> 00:29:47,433
As a result of their
flirtation with default,

549
00:29:49,700 --> 00:29:50,967
the stock market plummeted.

550
00:29:50,967 --> 00:29:54,934
The DOW fell 7%, or almost 900
points, in late July and early

551
00:29:54,934 --> 00:29:56,533
August of 2011.

552
00:29:56,533 --> 00:30:00,233
The United States was downgraded
and the DOW fell another 10%,

553
00:30:00,233 --> 00:30:03,966
or 1100 points after the S&P
downgraded the United States.

554
00:30:03,967 --> 00:30:06,734
Consumer confidence plummeted
to its lowest point since the

555
00:30:06,734 --> 00:30:08,600
financial crisis in 2008.

556
00:30:08,600 --> 00:30:11,300
Uncertainty for
businesses froze hiring.

557
00:30:11,300 --> 00:30:13,867
Widespread uncertainty for
middle-class families was

558
00:30:13,867 --> 00:30:15,066
created and caused.

559
00:30:15,066 --> 00:30:19,967
And job figures, job growth in
August of 2011 was the lowest

560
00:30:19,967 --> 00:30:22,200
of any month in our
economic recovery.

561
00:30:22,200 --> 00:30:26,066
And that is what you get when
you play games with the full

562
00:30:26,066 --> 00:30:27,567
faith and credit of
the United States.

563
00:30:27,567 --> 00:30:30,734
We don't expect, and
certainly don't hope --

564
00:30:30,734 --> 00:30:33,166
or certainly hope that the
Congress does not engage in

565
00:30:33,166 --> 00:30:33,966
that kind of activity.

566
00:30:33,967 --> 00:30:36,734
-- and then CNN.

567
00:30:36,734 --> 00:30:39,233
The Press:
Back to Senator
Hagel for a second.

568
00:30:39,233 --> 00:30:43,000
In his first interview today,
he said that he was "hanging

569
00:30:43,000 --> 00:30:48,533
out there in no-man's land,"
unable to respond to charges

570
00:30:48,533 --> 00:30:50,332
and falsehoods and
distortions against him.

571
00:30:50,333 --> 00:30:53,066
I'm wondering if you could walk
through what specific groups,

572
00:30:53,066 --> 00:30:55,800
outside groups, outside the
Senate, have Jack Lew and other

573
00:30:55,800 --> 00:30:58,433
administration officials been
reaching out to in hopes of

574
00:30:58,433 --> 00:31:01,333
smoothing this nomination.

575
00:31:01,333 --> 00:31:05,834
Mr. Carney:
Well, I appreciate the
opportunity, but I'll

576
00:31:05,834 --> 00:31:06,967
pass on it.

577
00:31:06,967 --> 00:31:12,767
Obviously, broadly speaking, the
White House is reaching out to a

578
00:31:12,767 --> 00:31:17,200
number of groups and individuals
with regards to this nomination

579
00:31:17,200 --> 00:31:22,100
and others, and will continue
to do so in making the case for

580
00:31:22,100 --> 00:31:23,466
these individuals.

581
00:31:23,467 --> 00:31:29,700
But as far as the initial
part of your question, it is

582
00:31:29,700 --> 00:31:33,033
certainly an unfortunate reality
that has become the norm here in

583
00:31:33,033 --> 00:31:36,300
Washington that even when names
are bandied about in the press

584
00:31:36,300 --> 00:31:42,667
as possible nominees, that a
process begins where critics

585
00:31:42,667 --> 00:31:43,833
jump all over them.

586
00:31:43,834 --> 00:31:47,567
And that's just part of --
well, one of the reasons why

587
00:31:47,567 --> 00:31:51,166
Washington has become
a more fractious place.

588
00:31:51,166 --> 00:31:54,600
But again, the President looks
forward to Senate consideration

589
00:31:54,600 --> 00:31:56,332
of his nominees that
he announced today.

590
00:31:56,333 --> 00:32:01,700
He believes that the Senate will
confirm both Senator Hagel and

591
00:32:01,700 --> 00:32:03,467
John Brennan to those positions.

592
00:32:03,467 --> 00:32:07,467
And in each case, as the
President said, these are

593
00:32:07,467 --> 00:32:11,266
uniquely qualified individuals
for the offices that they will

594
00:32:11,266 --> 00:32:12,633
hold if confirmed.

595
00:32:12,633 --> 00:32:15,133
The Press:
Is the White House enlisting
other outside people, though,

596
00:32:15,133 --> 00:32:17,066
to help with these groups?

597
00:32:17,066 --> 00:32:20,934
Mr. Carney:
No, I think that -- well,
I'll simply say that we

598
00:32:20,934 --> 00:32:23,700
have conversations with
individuals all the time

599
00:32:23,700 --> 00:32:26,300
about -- and groups --
about our policy proposals

600
00:32:26,300 --> 00:32:31,567
and nominees for higher office.

601
00:32:31,567 --> 00:32:33,934
But I don't have anything
specific to report to you and

602
00:32:33,934 --> 00:32:37,066
there's nothing unusual about
that process for either this

603
00:32:37,066 --> 00:32:39,367
administration or
its predecessors.

604
00:32:39,367 --> 00:32:40,066
Brianna.

605
00:32:40,066 --> 00:32:42,700
The Press:
Jay, the recent personnel
announcements that we've heard

606
00:32:42,700 --> 00:32:44,233
have all been men.

607
00:32:44,233 --> 00:32:46,433
I'm wondering how important
it is to President Obama to

608
00:32:46,433 --> 00:32:49,600
have women in prominent
roles in his new Cabinet.

609
00:32:49,600 --> 00:32:51,367
Mr. Carney:
Well, I appreciate the question.

610
00:32:51,367 --> 00:32:54,600
The President does believe that
diversity is very important and

611
00:32:54,600 --> 00:32:58,766
he also believes that picking
the absolute right person for

612
00:32:58,767 --> 00:33:00,100
each job is very important.

613
00:33:00,100 --> 00:33:05,766
And the nominees he announced
today represent that principle

614
00:33:05,767 --> 00:33:08,633
in that he believes Senator
Hagel and John Brennan are

615
00:33:08,633 --> 00:33:11,934
the right individuals for
the jobs to which they have

616
00:33:11,934 --> 00:33:12,934
been nominated.

617
00:33:12,934 --> 00:33:18,000
I would remind you that as part
of President Obama's national

618
00:33:18,000 --> 00:33:21,834
security team we have Secretary
Clinton, who, after four years,

619
00:33:21,834 --> 00:33:22,834
is leaving office.

620
00:33:22,834 --> 00:33:25,433
We have Secretary Napolitano,
who continues as Homeland

621
00:33:25,433 --> 00:33:26,934
Security Secretary.

622
00:33:26,934 --> 00:33:29,667
We have Ambassador Susan Rice,
who has indicated that she will

623
00:33:29,667 --> 00:33:33,300
be staying on in New York as
the U.S. Representative to the

624
00:33:33,300 --> 00:33:35,800
United Nations, a
Cabinet-level position.

625
00:33:35,800 --> 00:33:42,133
And there are obviously other
remarkably capable women in

626
00:33:42,133 --> 00:33:44,500
positions of high office in
this administration and will

627
00:33:44,500 --> 00:33:45,700
continue to be.

628
00:33:45,700 --> 00:33:48,533
The Press:
But presumably, I mean, some of
them will obviously leave over

629
00:33:48,533 --> 00:33:51,632
time, and I'm wondering, in
terms of having a replacement,

630
00:33:51,633 --> 00:33:53,333
for instance, with
Secretary Clinton leaving,

631
00:33:53,333 --> 00:33:56,100
do you think that --

632
00:33:56,100 --> 00:33:58,033
Mr. Carney:
Well, I think that any
suggestion that Secretary

633
00:33:58,033 --> 00:34:00,667
Clinton was chosen because of
her gender would be rejected by

634
00:34:00,667 --> 00:34:01,766
Secretary Clinton and others.

635
00:34:01,767 --> 00:34:06,300
And any suggestion that
nominees not be chosen for their

636
00:34:06,300 --> 00:34:10,766
qualifications would be rejected
by everyone whose interest is

637
00:34:10,766 --> 00:34:13,199
in, as the President's
is, the very --

638
00:34:13,199 --> 00:34:15,600
finding the very best
people for each job.

639
00:34:15,600 --> 00:34:17,199
And that's what he's done
today and that's what he'll

640
00:34:17,199 --> 00:34:18,199
continue to do.

641
00:34:18,199 --> 00:34:27,065
And he, in that process, insists
on diversity on the lists that

642
00:34:27,065 --> 00:34:32,933
he considers for the job because
he believes that in casting a

643
00:34:32,934 --> 00:34:36,433
broader net, you increase
the excellence of the pool

644
00:34:36,433 --> 00:34:38,467
of potential nominees
for these positions.

645
00:34:38,467 --> 00:34:41,834
But in the end, he'll make the
choice that he believes is best

646
00:34:41,833 --> 00:34:43,199
for the United States.

647
00:34:43,199 --> 00:34:45,799
In this case, that would
be Secretary Hagel --

648
00:34:45,800 --> 00:34:49,000
or Senator Hagel for Secretary
of Defense and John Brennan for

649
00:34:49,000 --> 00:34:50,166
Director of the CIA.

650
00:34:50,166 --> 00:34:52,467
The Press:
And on the Biden group,
when will we hear from

651
00:34:52,467 --> 00:34:53,900
the Biden group?

652
00:34:53,900 --> 00:34:56,367
Mr. Carney:
I think the President has
indicated that he wants the

653
00:34:56,367 --> 00:35:01,500
effort led by Vice President
Biden to report to him with

654
00:35:01,500 --> 00:35:05,834
dispatch, but I don't have
a timeline to give you.

655
00:35:05,834 --> 00:35:09,165
The President has already urged
Congress when it comes back to

656
00:35:09,166 --> 00:35:15,567
work to take up initiatives
-- legislation to ban assault

657
00:35:15,567 --> 00:35:22,533
weapons, to ban high-capacity
magazines, and to improve our

658
00:35:22,533 --> 00:35:25,333
background checks system
because it does have loopholes.

659
00:35:25,333 --> 00:35:29,834
The so-called gun show loophole
is a problem that he thinks that

660
00:35:29,834 --> 00:35:32,700
Congress can and should address.

661
00:35:32,700 --> 00:35:36,899
As for the other aspects of what
the President will recommend,

662
00:35:36,900 --> 00:35:38,266
I'll leave it to
him to announce.

663
00:35:38,266 --> 00:35:42,967
The Press:
It seems January was sort of the
absolute last time that he wants

664
00:35:42,967 --> 00:35:45,233
for recommendations, and
there have been some reports

665
00:35:45,233 --> 00:35:47,066
that there will be
listening sessions.

666
00:35:47,066 --> 00:35:48,533
I'm wondering, is there time?

667
00:35:48,533 --> 00:35:54,600
Mr. Carney:
Well, it is January
7th and it would be --

668
00:35:54,600 --> 00:35:56,100
The Press:
Are there going to be
listening sessions?

669
00:35:56,100 --> 00:35:58,033
Mr. Carney:
-- a disservice to the month
of January to assume that it

670
00:35:58,033 --> 00:35:59,567
was over one week in.

671
00:35:59,567 --> 00:36:01,266
(laughter)

672
00:36:01,266 --> 00:36:03,567
So I would ask
you to stay tuned.

673
00:36:03,567 --> 00:36:04,533
I just don't have any --

674
00:36:04,533 --> 00:36:06,266
The Press:
I just wish we
had December back.

675
00:36:06,266 --> 00:36:07,266
(laughter)

676
00:36:07,266 --> 00:36:09,500
Mr. Carney:
December, yes --

677
00:36:09,500 --> 00:36:12,900
The Press:
Will there be a chance for
people to weigh in in the

678
00:36:12,900 --> 00:36:13,633
listening sessions?

679
00:36:13,633 --> 00:36:14,966
Mr. Carney:
I just don't have any
more information for you.

680
00:36:14,967 --> 00:36:18,066
I know that the Vice President
is leading a process that is

681
00:36:18,066 --> 00:36:19,866
very inclusive, that is
including, as I think has been

682
00:36:19,867 --> 00:36:26,100
reported, conversations with
many stakeholders who have a

683
00:36:26,100 --> 00:36:27,667
keen interest in this issue.

684
00:36:27,667 --> 00:36:31,433
And that will continue
to be the case.

685
00:36:31,433 --> 00:36:34,867
Roger Runningen, and
then Mr. Nakamura.

686
00:36:34,867 --> 00:36:37,667
The Press:
Jay, can you tell us who the
sherpas are for each of the

687
00:36:37,667 --> 00:36:38,900
nominees today?

688
00:36:38,900 --> 00:36:40,800
Mr. Carney:
I don't have sherpas for you.

689
00:36:40,800 --> 00:36:43,567
I think a sherpa is
commonly associated with

690
00:36:43,567 --> 00:36:44,633
Supreme Court nominees.

691
00:36:44,633 --> 00:36:49,033
I don't know that there are
such beings in this case.

692
00:36:52,667 --> 00:36:56,600
Senator Hagel and Mr. Brennan
will be assisted as they go

693
00:36:56,600 --> 00:36:59,633
through the process of
confirmation in the Senate

694
00:36:59,633 --> 00:37:01,667
by a number of people, but
I don't have individuals

695
00:37:01,667 --> 00:37:03,200
to provide to you.

696
00:37:03,200 --> 00:37:05,834
The Press:
The Senate Chairman will of
course set the dates on that,

697
00:37:05,834 --> 00:37:08,799
but do you have commitments for
them to set an early date as

698
00:37:08,800 --> 00:37:11,233
soon as they return
on the 22nd or so?

699
00:37:11,233 --> 00:37:15,567
Mr. Carney:
The President, as you heard him
earlier today say, hopes that

700
00:37:15,567 --> 00:37:19,900
the Senate will take up these
nominations, as well as the

701
00:37:19,900 --> 00:37:23,066
nomination of Senator Kerry for
Secretary of State, as soon as

702
00:37:23,066 --> 00:37:26,700
possible because of the
importance of filling these

703
00:37:26,700 --> 00:37:29,966
positions quickly, importance
to our national security.

704
00:37:29,967 --> 00:37:33,633
But I don't have a date certain
for you and, obviously, we defer

705
00:37:33,633 --> 00:37:36,133
to the relevant committees.

706
00:37:36,133 --> 00:37:38,600
The Press:
Jay, just to follow up on
Brianna's question, you talked

707
00:37:38,600 --> 00:37:41,232
just a minute ago about when the
President believes in diversity,

708
00:37:41,233 --> 00:37:44,066
insists on diversity, and that
he casts a broad net when he's

709
00:37:44,066 --> 00:37:47,000
talking about looking
for candidates to serve.

710
00:37:47,000 --> 00:37:53,367
During the campaign, Mitt Romney
was sort of ridiculed for saying

711
00:37:53,367 --> 00:37:55,467
that he wanted a binder full
of women to make decisions on

712
00:37:55,467 --> 00:37:56,133
Cabinet members.

713
00:37:56,133 --> 00:37:58,299
What do you mean by the
President is insisting on

714
00:37:58,300 --> 00:37:59,867
diversity and casts
this broad net?

715
00:37:59,867 --> 00:38:02,967
Does he interview people like
Michele Flournoy for defense

716
00:38:02,967 --> 00:38:05,367
jobs to make sure that he's
really hearing from women, from

717
00:38:05,367 --> 00:38:09,734
other minorities in specifically
this job and other jobs?

718
00:38:09,734 --> 00:38:11,500
Or does he insist
on other ways to find

719
00:38:11,500 --> 00:38:13,266
qualified candidates that --

720
00:38:13,266 --> 00:38:18,667
Mr. Carney:
He, again without addressing
any specific nomination process,

721
00:38:18,667 --> 00:38:20,433
I would say that
the answer is yes.

722
00:38:20,433 --> 00:38:24,533
He speaks with numerous
potential candidates for

723
00:38:24,533 --> 00:38:29,700
various positions and
diverse candidates.

724
00:38:29,700 --> 00:38:34,100
He selects, as I think the
officeholders in his first

725
00:38:34,100 --> 00:38:40,567
administration and first Cabinet
demonstrates, he selects men and

726
00:38:40,567 --> 00:38:45,533
women who he believes are the
right individuals for the jobs

727
00:38:45,533 --> 00:38:46,567
to which they've been appointed.

728
00:38:46,567 --> 00:38:49,867
And that continues
to be his process.

729
00:38:49,867 --> 00:38:53,166
It's not uniform.

730
00:38:53,166 --> 00:38:54,467
It's a broad sentiment.

731
00:38:54,467 --> 00:39:00,300
And he believes that the country
is served by a process that does

732
00:39:00,300 --> 00:39:04,200
seek out the diverse
talent in this country

733
00:39:04,200 --> 00:39:06,366
for different positions.

734
00:39:06,367 --> 00:39:07,767
Jon Christopher.

735
00:39:07,767 --> 00:39:11,834
The Press:
These early nominations to
Senators Kerry and Hagel and

736
00:39:11,834 --> 00:39:15,966
Mr. Brennan -- does this prove
that the President's second-term

737
00:39:15,967 --> 00:39:20,200
agenda will be really focused
in terms of priority on national

738
00:39:20,200 --> 00:39:23,066
security and foreign policy?

739
00:39:23,066 --> 00:39:27,734
Mr. Carney:
It proves that the President,
as he said today, considers the

740
00:39:27,734 --> 00:39:31,100
security of the United States
and the American people his

741
00:39:31,100 --> 00:39:33,834
highest priority
and responsibility.

742
00:39:33,834 --> 00:39:40,366
And that is why he has asked
individuals of such talent and

743
00:39:40,367 --> 00:39:43,600
records of service as John
Brennan and Senator Kerry and

744
00:39:43,600 --> 00:39:46,933
Senator Hagel to serve in the
positions that they've been

745
00:39:46,934 --> 00:39:49,800
nominated for.

746
00:39:49,800 --> 00:39:53,734
Broadly speaking, as he has
said repeatedly, his policy

747
00:39:53,734 --> 00:39:57,633
priority -- I mean, there are
obviously many, but his top

748
00:39:57,633 --> 00:40:03,033
priority continues to be having
our economy grow, having it

749
00:40:03,033 --> 00:40:09,433
create jobs, giving security to
the middle class, and building a

750
00:40:09,433 --> 00:40:12,667
foundation for future economic
growth in the 21st century that

751
00:40:12,667 --> 00:40:16,933
will allow for future
generations to enjoy the

752
00:40:16,934 --> 00:40:21,367
opportunity and promise
of America that previous

753
00:40:21,367 --> 00:40:24,700
generations, including the
President's own, have enjoyed.

754
00:40:24,700 --> 00:40:26,600
That remains his top priority.

755
00:40:26,600 --> 00:40:30,100
But there is no question that,
as he said today, that his

756
00:40:30,100 --> 00:40:33,600
primary responsibility, as he
views it, is the safety and

757
00:40:33,600 --> 00:40:35,866
security of the United
States and its people.

758
00:40:35,867 --> 00:40:38,600
The Press:
Can these two priorities
be basically intertwined?

759
00:40:38,600 --> 00:40:41,667
Mr. Carney:
I think the answer to that is
absolutely yes, because that is

760
00:40:41,667 --> 00:40:47,299
the responsibility of every
President, and one that this

761
00:40:47,300 --> 00:40:51,800
President takes very seriously.

762
00:40:51,800 --> 00:40:53,967
The Press:
I'm going back to the debt
ceiling debate for a minute.

763
00:40:53,967 --> 00:40:57,066
The Bipartisan Policy Center
issued a report today that said

764
00:40:57,066 --> 00:41:00,933
the government would actually
run out of money prior to what

765
00:41:00,934 --> 00:41:04,300
we had normally talked about,
so as early as February 15.

766
00:41:04,300 --> 00:41:06,433
So I was wondering if the
administration was thinking

767
00:41:06,433 --> 00:41:11,333
about asking the IRS to
postpone refunds for people.

768
00:41:11,333 --> 00:41:14,200
Or also, were you all thinking
about issuing an order about

769
00:41:14,200 --> 00:41:16,667
which creditors
would be paid first?

770
00:41:16,667 --> 00:41:19,266
Mr. Carney:
Well, as you know, the Treasury
Department handles questions

771
00:41:19,266 --> 00:41:22,433
like these and has put out
information about it, including

772
00:41:22,433 --> 00:41:27,500
in a letter at the end of the
year about both the estimates as

773
00:41:27,500 --> 00:41:30,467
to when the debt ceiling would
be reached and to the measures

774
00:41:30,467 --> 00:41:33,867
that the Treasury Department has
in the past and is now taking

775
00:41:33,867 --> 00:41:36,767
with regards to that matter.

776
00:41:36,767 --> 00:41:39,600
But I would refer you for the
questions that you asked to

777
00:41:39,600 --> 00:41:40,700
the Treasury Department.

778
00:41:40,700 --> 00:41:41,667
George.

779
00:41:41,667 --> 00:41:43,866
The Press:
You keep saying the
President won't negotiate

780
00:41:43,867 --> 00:41:45,166
on the debt ceiling.

781
00:41:45,166 --> 00:41:48,834
At the risk of sounding naïve,
how does that work practically?

782
00:41:48,834 --> 00:41:52,232
If the leaders of Congress tell
him they don't have the votes to

783
00:41:52,233 --> 00:41:55,166
raise the ceiling, does he just
say, no, I'm not going to talk

784
00:41:55,166 --> 00:41:56,000
about that?

785
00:41:56,000 --> 00:42:01,166
Mr. Carney:
Well, the President believes
that members of Congress were

786
00:42:01,166 --> 00:42:04,467
elected to serve
their constituents.

787
00:42:04,467 --> 00:42:13,467
And as one of their essential
responsibilities, to ensure that

788
00:42:13,467 --> 00:42:18,300
they do no harm in Congress
to this economy and to the

789
00:42:18,300 --> 00:42:21,867
livelihoods of average
Americans, flirting with

790
00:42:21,867 --> 00:42:27,400
default or, even worse, allowing
default, would be a violation

791
00:42:27,400 --> 00:42:29,934
of those primary
responsibilities.

792
00:42:29,934 --> 00:42:33,200
And again, George, I can't be
more clear: These are bills that

793
00:42:33,200 --> 00:42:35,533
Congress racked up.

794
00:42:35,533 --> 00:42:39,667
If Congress felt that they
should not be paying these bills

795
00:42:39,667 --> 00:42:43,600
or that there should be less
spending and less borrowing,

796
00:42:43,600 --> 00:42:46,967
then they should have passed
different legislation that

797
00:42:46,967 --> 00:42:48,300
appropriated funds.

798
00:42:48,300 --> 00:42:52,066
It is not the President's
responsibility to pass

799
00:42:52,066 --> 00:42:53,500
legislation to
raise the debt ceiling;

800
00:42:53,500 --> 00:42:55,333
it is Congress's responsibility.

801
00:42:55,333 --> 00:43:01,633
And he will not engage in a
negotiation with Congress that

802
00:43:01,633 --> 00:43:04,366
as some advocates of this
themselves have described

803
00:43:04,367 --> 00:43:06,033
as a hostage situation --

804
00:43:06,033 --> 00:43:08,366
a hostage situation that would
result, as it did in the summer

805
00:43:08,367 --> 00:43:12,266
of 2011, in great harm to
this economy and great harm to

806
00:43:12,266 --> 00:43:18,200
American businesses and great
harm to average Americans.

807
00:43:18,200 --> 00:43:21,232
So it's just not the
right thing to do.

808
00:43:21,233 --> 00:43:22,700
I think that there will be a --

809
00:43:22,700 --> 00:43:27,700
if we were to travel down that
road for any time, a great deal

810
00:43:27,700 --> 00:43:32,265
of unanimity behind the idea
that it's a terrible proposition

811
00:43:32,266 --> 00:43:35,000
to flirt with default
or to allow default.

812
00:43:35,000 --> 00:43:37,734
And let me remind you that if
the position of Republicans in

813
00:43:37,734 --> 00:43:41,834
Congress will be that your
choice, America, is between

814
00:43:41,834 --> 00:43:47,332
default and therefore economic
chaos on the one hand, or

815
00:43:47,333 --> 00:43:52,500
voucherizing Medicare or
slashing benefits for seniors,

816
00:43:52,500 --> 00:43:56,233
the American people are going
to say no in both instances.

817
00:43:56,233 --> 00:43:58,467
This is not the right way to
do things in this country.

818
00:43:58,467 --> 00:44:02,300
You have to heed to your
responsibilities here,

819
00:44:02,300 --> 00:44:04,633
and that includes paying for
the bills that you racked up.

820
00:44:04,633 --> 00:44:06,600
This has nothing to do
with future spending.

821
00:44:06,600 --> 00:44:09,232
This has to do with spending
that has already been incurred.

822
00:44:09,233 --> 00:44:12,433
And it is Congress's
responsibility to pay its bills.

823
00:44:12,433 --> 00:44:16,734
George, when you get a credit
card bill, you pay it, and if

824
00:44:16,734 --> 00:44:18,299
you don't, you get penalized.

825
00:44:18,300 --> 00:44:21,133
And in the case of not paying
your bills when you're the

826
00:44:21,133 --> 00:44:24,000
United States of America,
when you're the United States

827
00:44:24,000 --> 00:44:26,834
Congress, the penalty is both
real in financial terms and

828
00:44:26,834 --> 00:44:28,966
severe for the economy and
for the American people.

829
00:44:28,967 --> 00:44:31,767
The President won't negotiate
with Congress over Congress's

830
00:44:31,767 --> 00:44:33,399
responsibility to
pay its own bills.

831
00:44:33,400 --> 00:44:34,367
Thank you, all.

832
00:44:34,367 --> 00:44:36,800
The Press:
Jay, the President signed
all of those spending bills,

833
00:44:36,800 --> 00:44:38,166
so why doesn't he
share responsibility?

834
00:44:38,166 --> 00:44:39,567
Mr. Carney:
Well, he did not sign all
of those spending bills.

835
00:44:39,567 --> 00:44:41,133
The President has been
in office for four years.

836
00:44:41,133 --> 00:44:44,600
And in fact, a huge portion of
our current deficit problems

837
00:44:44,600 --> 00:44:45,866
were racked up under --

838
00:44:45,867 --> 00:44:46,934
The Press:
All the spending bills that
were enacted on his watch --

839
00:44:46,934 --> 00:44:48,000
Mr. Carney:
-- previous administrations.

840
00:44:48,000 --> 00:44:50,867
And it is often forgotten by
Republican leaders that this is

841
00:44:50,867 --> 00:44:54,133
the case, that some of the very
Republican leaders in office now

842
00:44:54,133 --> 00:44:57,265
who claim as their objective
deficit reduction, primary

843
00:44:57,266 --> 00:45:00,633
objective, presided over
enormous budget-busting

844
00:45:00,633 --> 00:45:03,500
legislation in the
previous administration.

845
00:45:03,500 --> 00:45:07,600
It is also often forgotten that
the only President in our times

846
00:45:07,600 --> 00:45:11,232
here in Washington to have
balanced the budget was

847
00:45:11,233 --> 00:45:14,800
President Bill Clinton,
and he passed to his

848
00:45:14,800 --> 00:45:17,500
successor surpluses.

849
00:45:17,500 --> 00:45:21,967
And it was actions taken by
Congress in the previous decade

850
00:45:21,967 --> 00:45:26,233
and the administration in office
at the time that eliminated

851
00:45:26,233 --> 00:45:28,667
those surpluses and turned them
into the largest deficits of our

852
00:45:28,667 --> 00:45:29,667
lifetimes, at the time.

853
00:45:29,667 --> 00:45:32,900
So the President takes his
responsibility very seriously,

854
00:45:32,900 --> 00:45:40,033
but when it comes to bills that
Congress has passed and needs to

855
00:45:40,033 --> 00:45:42,165
pay, they ought to take their
responsibilities seriously and

856
00:45:42,166 --> 00:45:43,033
pay those bills.

857
00:45:43,033 --> 00:45:43,700
Thank you.

858
00:45:43,700 --> 00:45:45,700
The Press:
Is the President going to
watch the game tonight?

859
00:45:45,700 --> 00:45:47,033
(laughter)

860
00:45:47,033 --> 00:45:48,366
Mr. Carney:
I haven't asked him.