English subtitles for clip: File:2-11-10- White House Press Briefing.webm

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Mr. Gibbs:
Good afternoon. I need to
get a shot clock up here.

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(laughter)

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The Press:
You never -- obviously it's Dr. Romer who

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made you on time.

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Mr. Gibbs:
Well, you know, I am -- the President and Dr. Romer

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are very good examples, and I thought I'd
follow their lead, Chuck. I want to do two

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quick announcements, and then I will turn this
over to Dr. Romer, the chair of the President's

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Council on Economic Advisers to talk about
the report -- Economic Report to the President.

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The first announcement earlier today, President
Obama called to congratulate President-elect

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Laura Chinchilla of Costa Rica for her recent
electoral win. The President reaffirmed his

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commitment to working in close relationship
with Costa Rice on issues of mutual interest,

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including clean energy, climate change, and
security for the benefit of both countries

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and for the people of the Americas. Secondly,
on February 18th, the President will meet

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with His Holiness the Dalai Lama. The meeting
will take place in the Map Room here at the

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White House. The Dalai Lama is an internationally
respected religious leader and spokesman for

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Tibetan rights. And the President looks forward
to an engaging and constructive dialogue.

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The Press:
Any coverage on that?

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The Press:
Coverage?

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Mr. Gibbs:
I don't have that yet.

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The Press:
Why in the Map Room?

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Mr. Gibbs:
That is the best place that the President

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felt and the team here felt for the meeting
to take place.

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The Press:
Diplomatic considerations?

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Mr. Gibbs:
Pardon?

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The Press:
Diplomatic considerations?

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Mr. Gibbs:
How so?

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The Press:
Deciding not to have it in the Oval Office --

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Mr. Gibbs:
No President has met with the Dalai Lama in

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the Oval Office. Now I'm going to turn it
over to Dr. Christy Romer, who will talk to

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you a little bit about the economic report
that the President will sign in about 20 minutes.

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So, Dr. Romer.

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Dr. Romer:
All right. Well, it is a pleasure to be with

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you all. You have to know that for a chair
of the Council of Economic Advisers, there's

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no bigger day than the day that her first
Economic Report of the President comes out.

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So anyway, so that is what brings me here.
I think for anyone who is not a devoted fan

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of the economic report, I thought it would
be helpful to give just a little bit of background.

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So the Employment Act of 1946 set up the Council
of Economic Advisers to bring the best professional

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advice to the President on economic matters.
It also mandated -- or said it was the role

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of the federal government to promote maximum
employment, production, and purchasing power,

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and that every year the Council of Economic
Advisers of the President were to submit a

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report to Congress saying how we were doing.
And so this year's economic report is the

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64th, I believe, in this line of classics.
Each economic report does three things: It

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talks about the challenges, the economic challenges
that we face as a country; it talks about

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what policies were put into place in the previous
year and how they worked, and it lays out

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the President's economic agenda going forward.
I think -- I like to think that this year's

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economic report is particularly important,
not because of me but because of the times

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that we are facing. I think if you think about
the economic challenges that we face, there's

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probably not for a very long time been as
great a set of economic challenges. And of

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course, these span all the way from of course
the immediate crisis, right? When we came

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in, if you remember back to a year ago, we
were losing close to 800,000 jobs a month.

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Real GDP was plummeting. Our financial system
was certainly very stressed, and there were

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real questions about what would be happening.
But we also know that there was a reason that

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the President had run for President on a lot
of economic issues even before the economic

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crisis -- things like stagnating incomes for
middle-class families, soaring health care

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costs, the fact that as an economy we were
failing to invest adequately in educating

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our children for the jobs of the future, investing
in innovation and other things that would

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help us to grow faster over time. All right,
so I think that certainly makes this volume

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particularly important to document the challenges
that we face. The second thing that I think

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is so important about the volume is to put
down in one place all of the economic actions

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that we've taken. And it's not a surprise
by far the longest chapter in the economic

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report is on the rescue, just simply because
this was an economy in a terrible crisis.

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But it really goes through laying out not
just the American Recovery and Reinvestment

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Act, but what the Federal Reserve did, all
of the policies for financial stability, our

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housing program. But then it also goes through
the policies put in place in a lot of other

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areas. I think it's so easy when we're all
caught up and thinking about what's going

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to happen with the health care reform bill
that is before the House and the Senate, to

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remember back that we passed the reauthorization
of the Children's Health Insurance Program

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that brought health insurance coverage to
an additional 4 million children. And we just

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go through all of those kinds of accomplishments.
We're in the middle of doing financial regulatory

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reform. Let's remember we passed the credit
card bill last spring to try to deal with

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some of the consumer issues there. And so
it really is, in one place, getting a sense

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of the tremendous amount that has been accomplished.
And then of course it lays forward the President's

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economic agenda. And here -- I think one thing
that is I think so important to keep in mind,

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as an economist, the way we think about economic
policy is, you know, what is the problem going

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on in the private market that creates a role
for government. And so talking through what

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are some of the market failures in innovation;
what are some of the market failures present

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in our health care system that give a role
for government; what's the motivation behind

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the President's agenda. But I think one of
the things, again, it's so helpful to see

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the agenda as a coherent whole. And I think
it does paint a picture of a very well-reasoned,

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very important agenda for moving this economy
forward. In terms of themes, I think it will

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sound very familiar to you. It's one, certainly,
that the President has talked about -- rescue.

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There are two chapters, both on what we've
done in the United States, what's been done

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in other countries. There are three chapters
in what I like to refer to as the rebalancing.

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This is what the President often refers to
as getting away from bubble and bust and thinking

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about how are we going to grow more healthfully
going forward. And that is things like we're

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pretty sure that consumers are probably going
to be saving more in the future, and that's

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probably a good and healthy thing. But it
raises a question of, well, where's the demand

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going to come from? And so the President has
talked about the importance of spurring investment,

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the importance of spurring exports as a way
of making sure that there's demand to keep

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people employed. There's of course the budget
deficit. That's a big part of the rebalancing,

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that at the same time we're going to spur
investment, we're going to spur net exports,

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we do need to put in place a plan for getting
our long-run budget deficit under control.

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And here I think the economic report has a
very nice chapter about where our long-run

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deficit problem came from, about what -- 
the reason that one would be concerned about

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it, what it does to the economy; the logic
for the kind of fiscal anchor that we have

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talked about, or the fiscal target that's
talked about the budget; and our concrete

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proposals for dealing with it. I'd also put
in the end of bubble-and-bust financial regulatory

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reform, and there's a very nice chapter talking
about where financial crises come from, what

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financial intermediation is and why it's important,
and the logic of the administration's financial

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regulatory reform proposal. And then, finally,
there are four chapters on what the President

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often refers to as rebuilding the economy
stronger, that wanting to make sure that when

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we come out of this crisis, we don't just
go back to where we were but to something

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better. And that is exactly health care, education,
the transition to clean energy, and spurring

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innovation and trade. All of those are things
that we think can make the economy stronger

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going forward. The last things I'll mention,
just in case you're wondering what's unique

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about this, the 64th Economic Report of
the President, come back to the idea --

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The Press:
It's yours.

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(laughter)

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Dr. Romer:
Well, that's true. But I think much more than

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that is, it is the times -- that I think that
it is a time when economic issues are so incredibly

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pressing. And I think that makes it special. I
also want to -- I think methodology is somewhat

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different. One of the hallmarks, I think of
the Obama administration is the reliance on

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evidence. I often say that you win a policy
argument not by shouting the loudest or talking

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the most but by having the best arguments.
And I think that is a tribute to this President

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and this policy process. And so in this economic
report we try to put forward the good arguments

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for the policies that have been proposed.
There's some original research in here, and

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there are also, for the first time, references,
so you can see the studies that are behind

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some of the things that we have been thinking
about. And the last thing I'll say is it's

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prettier than ever before. So, first time
it's been printed in color. It's going to

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be the first time, staying with our accessibility
and transparency; it will be available in

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electronic form for your Kindle and your Sony
Reader and whatever. So everybody on the beach

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will be reading the Economic
Report of the President.

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(laughter)

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All right.

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The Press:
What beach? The white beach.

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Dr. Romer:
So, you want to take it from here, Robert?

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Mr. Gibbs:
I'll direct some traffic for you.

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Dr. Romer:
Okay.

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The Press:
Dr. Romer, one figure that just leaps off

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the page from this report is that even after
job growth returns, you don't see unemployment

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coming down to 6 percent until 2015. Isn't
that a pretty bleak assessment of what six

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years of the Obama presidency
is going to deliver?

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Dr. Romer:
So the first thing to say is to remind you

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this is exactly the same forecast that you
saw a couple weeks ago when we did the budget,

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right, so it is the administration forecast.
And as I think we described at the time, we

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had -- we tried to do an honest, conservative
forecast to make sure that we were basing

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our budget numbers on sort of as close to
the consensus and reasonable forecast as we

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can. I think it is important to realize that
certainly when we did this forecast, we had

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a placeholder in there for some targeted jobs
measures, but certainly when things were still

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very fluid. And I know for, in particular,
the Council of Economic Advisers are very

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enthusiastic about the small business jobs
and wages tax credit, and certainly things

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that are now moving through both the House
and the Senate in that kind of area. I think

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that's the kind of a proposal that might have the
chance of moving the dial, of being particularly

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effective. So I think what's really going
to matter is you're right that the forecasts

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are certainly something to be concerned about,
and that's why the President has said job

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creation, more of these movements are going
to be important going forward to make sure

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we can get that down as quickly as possible.

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Mr. Gibbs:
Mark, let me just add to that, too, as we've

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discussed the chart that I handed out on Friday,
the hole that we're climbing out of -- it

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currently stands at 8.4 million lost jobs
deep, right? Again, taking the recession in

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1981, 1991, and 2001, they don't cumulatively
equal 8.4 million jobs. So what people --

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most people I think recognize as the worst
downturn in our economy in most memories 

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-- 1981 -- combining that with the most previous
two doesn't equal the downturn in the economy

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that we saw. The job growth alone isn't all
of it. You looked at -- we had the -- I think

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the statistic I saw, that I probably got from
Dr. Romer, was that you had consecutive quarters

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of more than 5 percent, more than negative-5
percent economic retraction for the first

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time since the Great Depression. So I think
it's important to understand the sheer size

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and the magnitude of what we're dealing with.

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The Press:
What you just said leads naturally into what

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some of the critics are saying this morning,
which is that what you've just described as

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documenting the challenges is really
an exercise in blame-shifting. Is it?

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Mr. Gibbs:
No. The fact that we lost 763,000 in January

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of 2009 isn't blame-shifting; it's a fact.
The fact that we were, as Dr. Romer said,

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averaging 700,000 jobs lost a month in that
quarter is a fact. The fact -- the notion

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that we are now where we are losing -- in
November we had positive job growth, but we're

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getting much closer to the margin of zero
-- that's a fact. This isn't blame-shifting.

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Look, there are millions of people in this
country that have lost their job. They've

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lost their job because we had a risky financial
system of which the President wants financial

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regulatory reform to lay down rules of the road so
it never happens again. We had a bubble-and-bust

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economy; again, another chapter that they'll
talk about, where we thought somehow job growth

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could be predicated on the availability to
get an American Express card or a housing

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loan. Okay? That's not going to get fixed
overnight, and it's never -- under the President's

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ideas, not going to happen again. What we
have to do is lay a foundation for the fact

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that, how do we address for the fact -- for
largely for the last decade, we didn't create

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jobs and people saw their wages either flat-line
or stagnate. Those are monumental challenges.

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Whose fault it is will be decided largely
by history. But there are 8.4 million people

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that don't care about what history
decides. They want a job.

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Dr. Romer:
I just want to add, exactly what the entire

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report -- it is all facts, right? It is just
simply -- it's not trying to shift blame,

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it's just trying to say here are the challenges
that we face. And it's fundamentally -- it's

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what the economic report is supposed to do.
It's saying what's the motivation for the

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policies going forward.

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Mr. Gibbs:
Caren.

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The Press:
One of the numbers that that is new in the

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report is the forecast for 95,000 payroll
creation, and that's a pretty tepid growth.

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And I'm just wondering, are you saying that
if you get the jobs bill that you think the

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jobs growth can be stronger than
that, or does it already assume that?

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Dr. Romer:
All right. So the first thing to say, that

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95,000 is very consistent, say, with other
forecasts. I think the blue chip just came

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out yesterday -- they asked a special question
-- they think on average in 2010 it's going

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to be 116,000 jobs a month. So we're very
much in the range of other forecasts. What

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I was saying is that is I think a reasonable
estimate. It's our best estimate going forward.

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It did not have in place -- it didn't take
into account the specific form of any jobs

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bill going forward. We know there's still
a lot of uncertainty about what will come

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out of Congress. At the time we did the forecast
there was even a lot of uncertainty about

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what exactly would be proposed. So that was
certainly the case. The reason we're proposing

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things like small business lending, the jobs
and wages tax credit, the energy retrofit

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program, is because we think those will be
particularly effective. And so I think what

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the President is going to do is to put in
place the best that we can, working with Congress,

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and then see if we can get better performance.
That of course would be what all of us are

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hoping for.

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The Press:
Can you also respond to the Republican argument

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that what is holding back people from hiring
is the uncertainty about legislation on health

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care, cap and trade, and things like that,
that's making businesses more cautious?

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Dr. Romer:
I think, having talked to a number of business

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people -- especially I really found our jobs
summit incredibly useful -- what I certainly

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hear from business people is the main uncertainty
that they face is the economy -- it's not

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legislation, it's not any of that -- it is,
is the demand going to be there, is the economy

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going to grow and be strong? And, you know,
I think that is exactly what the President

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has focused on. And by doing the kinds of
policies that he has proposed and wants to

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continue, I think that's going to be the main
thing that helps us to resolve that uncertainty.

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Just the more we can get good growth, like
we've seen in GDP; I think that's going to

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help with a lot of the uncertainty.

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Mr. Gibbs:
Chuck.

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The Press:
Does your jobs forecast, the 6 percent, does

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that assume no jobs bill gets passed this
year? Does that assume no more government

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stimulus, new stimulus, or --

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Dr. Romer:
So the -- I mean, certainly this is -- the

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forecast that went into the budget, and certainly
it's designed to be a post-policy forecast --

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The Press:
You assume that some jobs stimulus --

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Dr. Romer:
So we pad in the $100 billion targeted kind

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of thing, but it didn't have the format. And
I think one of the things that I've tried

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to describe is I think we have some
ideas for a particularly good format.

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The Press:
Can you talk about housing foreclosures a

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little bit? There was another number that
came out today -- and I assume it's addressed

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a little bit in there -- but are you concerned
that this number is going to keep growing

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since there were so many -- you guys put some
temporary halts in it and then now over the

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next few months it's going to grow? And when
does it stop growing, this foreclosure number?

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Dr. Romer:
So certainly foreclosures are a big issue.

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Housing in general is a big issue. So it's
discussed in both chapter two on the rescue,

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but also chapter four kind of going forward
what do we think is likely to happen sort

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of as we go back to full employment. Obviously
housing has been sort of a major part of where

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this crisis started, with the decline in housing
prices and the problems certainly there. That's

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why we've had a very aggressive housing program,
and again that's described certainly in detail

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in chapter two. I think going forward that
is certainly -- it is one of the headwinds

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that we're facing. I mean, part of the reason
why even -- we are seeing growth but part

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of the reason coming out of this recession
most people are forecasting a number like

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3 percent GDP growth in 2010 is we do know
that we are still facing headwinds. It has

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been just a terrible recession and part of
that is the financial crisis, part of that

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is getting lending back, and certainly part
of that is going to be these persistent problems

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in housing. And I think that is going to be
something that we're working against. We do

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think we have good policies in place, but
it is going to be something that we're going

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to have to be working to deal with.

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Mr. Gibbs:
Chip.

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The Press:
You said overall this is a conservative forecast,

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and you of course may recall that there was
a time when you issued a report I think it

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was 8 or 8.5 percent unemployment you said
would be the max -- and it went up of course

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to 10 percent. Was there an effort here to
avoid being overly optimistic so that you

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didn't get burned politically down the road?
And has anybody in a senior position -- the

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President or anybody else in the White House
-- ever said to you, hey, err on the side

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of conservative rather than optimistic so
we don't get burned politically?

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Dr. Romer:
No, I mean, every time we try to do the best

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we can. I think that's -- the truth is we
don't have a crystal ball. Every year we try

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to do an honest, reasonable, conservative
forecast to make sure that we are basing our

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budget assumptions on the best possible forecast
that we can. We try to inform our decisions

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by looking at what other people talk about.
One of the things I do want to mention, though

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-- I think I mentioned it at the budget press
conference and Peter Orszag said that's economist

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for "I told you so" -- because we did take
a lot of heat last year for both our GDP forecast

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00:20:08,450 --> 00:20:13,060
and our unemployment forecast. And I will
absolutely say the unemployment forecast,

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like many people, we did not forecast how
high the unemployment rate would go. We were

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actually remarkably accurate on the GDP forecast.
So actual when we have the numbers in, we

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now know that over 2009 real GDP grew by 0.1
percent, one-tenth of 1 percent. Our prediction

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had been for three-tenths of 1 percent. So
were in fact quite accurate on the GDP forecast.

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One of the things that we talk about in the
economic report is just how this recession

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has been unusually hard on the labor force
and the degree to which the usual relationship

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between GDP growth and the unemployment rate
has broken down somewhat, and that the unemployment

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rate has risen much more than one would have
predicted based on the behavior of unemployment.

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Mr. Gibbs:
And also, Chip -- we had an occasion to talk

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about this on many outings here -- nobody
predicted what we saw at the beginning of

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the first quarter of 2009. Nobody saw 763,000
jobs lost. In fact, we didn't see 763,000

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jobs lost because there was a revision that
took us from 740,000 to 763,000. So these

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numbers are constantly being revised. But
I think the bottom line is when Dr. Romer

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and Dr. Bernstein came out with that, nobody
had a full grasp -- us included -- on just

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how deep this was. Now, that's not to blame
anybody -- that's just to understand that

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the severity, the slope at which we saw job
loss, was unforeseen not just by us but by

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virtually everybody that enters into the type
of forecasting that these guys enter into.

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Dr. Romer:
Can I just say one thing? You'll actually

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see a table in the economic report in chapter
two that actually shows you what other people

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00:22:00,820 --> 00:22:04,740
were forecasting at the same time we were
doing our forecast, to kind of give you just

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the facts on the degree to which the world
was changing very quickly.

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Mr. Gibbs:
Every day.

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Dr. Romer:
And so I have one minute before I get to go

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get this baby signed.

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Mr. Gibbs:
Yes, she's got to go.

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The Press:
Just quickly on income inequality, the report

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talks about inequality but doesn't make any
specific recommendations on it. How seriously

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should the administration be
treating that right now?

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Dr. Romer:
I think that is an issue that I know the President

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feels deeply about. We have a whole chapter
on strengthening the American labor force,

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because that's where we certainly talk about,
certainly in terms of this recession, the

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degree to which different demographic groups
-- young people, blacks and African Americans

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-- all that have seen higher unemployment
rates relative to the average. I think very

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much the message of that chapter, and I know
it's one, again, I've heard the President

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talk about, is how important education is
in trying to even the playing field and trying

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to prepare all of our children for the good
jobs in the future. So I think that is certainly

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a big part of certainly where I see our economic
agenda trying to make roads in that area.

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Mr. Gibbs:
We've got to let Dr. Romer go for --

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Dr. Romer:
All right. Thank you so much. Enjoy your reading.

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(laughter)

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The Press:
Thank you, Dr. Romer.

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The Press:
Robert, can I come back to WellPoint, which

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the President raised the other day? And also
because, you know, Secretary Sebelius wrote

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that pretty toughly worded letter saying,
justify all this stuff. They've responded.

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They've said basically it's because healthier
people are opting out, they're getting cheaper

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coverage elsewhere, so we're
losing money. Are you satisfied --

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Mr. Gibbs:
Well, I thought they made -- because I saw

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-- I think they made a $2.7 billion
profit last year. So maybe that's --

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The Press:
It sounds like you're not
satisfied with their explanation.

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00:23:53,220 --> 00:23:54,920
Mr. Gibbs:
Maybe that's economic parlance for just breaking

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even. But, look, when health care inflation
goes up at 4 or 5 percent, when a company

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makes a $2.7 billion profit and turns around
and increases rates in the individual market

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by nearly 40 percent, I think there's some
explaining and some investigation that needs

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to be done. I think it also underscores more
than ever why the case that the President

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made about helping people particularly on
the individual market, why that's so important;

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that creating a national exchange, a national
pool, that can have a greater amount of purchasing

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power -- one of the things that the health
care reform bill called for -- is obviously

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needed in this region of the country and,
quite frankly, throughout the country. I will

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look through and get a more detailed response
to the letter. I have not seen the response

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that they wrote. Just again, understanding
that health care inflation is not nearly rising

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at that level, though their profit looks quite
nice. I think more needs to be explained at

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how that number was derived. Caren.

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The Press:
The White House warned earlier this week about

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a crackdown in Iran surrounding the anniversary
of the revolution and there have been reports

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00:25:28,919 --> 00:25:34,439
of a crackdown. And I'm wondering if you could
give your reaction to what's going on there?

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Mr. Gibbs:
Well, look, we continue to monitor events

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00:25:38,419 --> 00:25:47,859
as they happen and try to get the best available
information, understanding that a lot of media,

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Google, and other Internet services have been
basically unplugged. I think the President

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was very clear in his speech in Oslo that
we stand by the universal rights of Iranians

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00:26:03,480 --> 00:26:11,200
to express themselves freely and to do so
without intimidation or violence. Iranians

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have gone out into the streets to do just
that in a peaceful way. And we will continue

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to monitor it and continue to express our
condemnation and dismay for any violence that

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should result as -- should happen as a result
of the exercising of those universal rights.

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The Press:
And you mentioned the Google suspension. Have

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00:26:37,450 --> 00:26:39,920
you heard directly from Google about this?

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00:26:39,919 --> 00:26:44,099
Mr. Gibbs:
I should check with NSC on that. I saw some

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00:26:44,100 --> 00:26:49,380
emails around this yesterday. I don't know
if that was based off of news reports or based

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00:26:49,380 --> 00:26:50,160
off of something that NSC had gotten.

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The Press:
Robert, a follow on Iran? The head of Iran's

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00:27:01,710 --> 00:27:05,500
atomic energy agency, Ali Salehi, has just
in the last few minutes cautioned the President

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00:27:05,500 --> 00:27:09,050
against taking what he calls "wrong steps."
He said, "The consequences are beyond the

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00:27:09,049 --> 00:27:12,879
imagination of anybody. Don't
test Iran." Any reaction to that?

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00:27:12,880 --> 00:27:16,720
Mr. Gibbs:
Well, look, I think Iran has made a series

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00:27:16,720 --> 00:27:21,880
of statements that are far more political
than they are -- they're based on politics,

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00:27:21,880 --> 00:27:28,550
not on physics. Okay? The Iranian nuclear
program has undertaken -- has undergone a

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00:27:28,549 --> 00:27:36,569
series of problems throughout the year. Quite
frankly, what Ahmadinejad says -- he says

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00:27:36,570 --> 00:27:42,620
many things and many of them turn out to be
untrue. We do not believe they have the capability

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00:27:42,620 --> 00:27:47,290
to enrich to the degree to which they now
say they are enriching. I would also say this.

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00:27:47,289 --> 00:27:56,569
If they are serious about the peaceful use
of their nuclear program, then what they should

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00:27:56,570 --> 00:28:03,080
have done was taken more seriously the offer
on the Tehran research reactor, understanding

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00:28:03,080 --> 00:28:13,300
that the increase in -- the increase from
3.5 to nearly 20 percent was what the United

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00:28:13,299 --> 00:28:19,649
States and the IAEA and its partners offered
as part of the Tehran research reactor so

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00:28:19,650 --> 00:28:26,900
that medical patients could have access to
these medical isotopes. Iran cannot replace

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00:28:26,900 --> 00:28:36,460
and continue to operate the TRR at its current
pace. So then not taking the IAEA up and its

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00:28:36,460 --> 00:28:44,650
partners up on a very commonsense offer leads,
quite frankly, the world to believe that Iran

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00:28:44,650 --> 00:28:50,630
has other ideas. That's why -- and I would
say this -- the reactions -- the actions of

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Iran have led the world to be more unified
than at virtually any other point in the past

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many years. They have brought forward, through
their actions, through their statements, our

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00:29:09,250 --> 00:29:14,750
partners in the P5-plus-1 now moving in
accord forward to taking those next steps.

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The Press:
Is there another deadline, new deadline for them?

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00:29:17,299 --> 00:29:22,249
Mr. Gibbs:
Well, you saw yesterday the Treasury institute

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00:29:22,250 --> 00:29:28,020
some sanctions on the IRGC, and obviously
the next phase in this -- as the President

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00:29:28,020 --> 00:29:32,760
talked a few days ago, this is multifaceted
and there will be more phases to this, including

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the United Nations.

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The Press:
Following up on that, the deadline was the

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00:29:40,039 --> 00:29:47,779
end of 2009. Why should the leaders of Iran
think that there are any consequences for

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disobeying what the United States and the
IAEA and the P5 want, given that, with the

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exception of the move by Treasury yesterday,
there have yet to be consequences?

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00:29:55,980 --> 00:29:59,450
Mr. Gibbs:
No, no -- and look, Jake, as you said, the

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00:29:55,980 --> 00:30:02,760
President is working through and with our
partners on making that happen. This was not

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going to happen in Time Square when the ball
hit zero. This was always going to take some

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00:30:09,179 --> 00:30:15,529
important time. But understand this, Jake,
our allies in this are more united than they've

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00:30:15,530 --> 00:30:24,100
ever been to take actions and consequences
based on the statements and the actions of

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the Iranians.

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The Press:
Do you have China on board yet for U.N. sanctions,

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00:30:27,570 --> 00:30:28,370
through Security Council?

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00:30:28,370 --> 00:30:32,990
Mr. Gibbs:
We believe that the Chinese have and will

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00:30:32,990 --> 00:30:38,440
continue to play a constructive role. They
worked with us, again, very constructively

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on the U.N. resolutions dealing with North
Korea, and we believe, and I think they believe

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it's not in their interest to have a worldwide
arms race; it's certainly not in their interest

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00:30:51,770 --> 00:30:53,390
economically to have an arms
race in the Middle East.

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The Press:
So that's a no?

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00:30:53,890 --> 00:30:56,520
The Press:
Yes, I mean, that's not really an answer to

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00:30:56,520 --> 00:30:58,540
whether or not they're on board.

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00:30:58,539 --> 00:31:01,399
Mr. Gibbs:
We are working through with them, with our

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00:31:01,400 --> 00:31:06,190
other partners in the P5-plus-1. This will go
through a process at the United Nations --

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The Press:
When does that process start?

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00:31:09,630 --> 00:31:11,550
Mr. Gibbs:
It already has.

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00:31:11,549 --> 00:31:13,849
The Press:
Well, when is the public process start of

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00:31:13,850 --> 00:31:13,920
bringing sanctions forward --

390
00:31:13,919 --> 00:31:16,429
Mr. Gibbs:
Well, again, the process of writing this and

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00:31:16,429 --> 00:31:19,469
devising these, as you know,
has already started, Jake.

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The Press:
Is the question not whether or not China will

393
00:31:21,690 --> 00:31:23,900
support sanctions but what kind? Or are you
still working on whether they will support --

394
00:31:23,900 --> 00:31:28,980
Mr. Gibbs:
I'm not going to get into the back-and-forth

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00:31:28,980 --> 00:31:34,580
of diplomatic negotiations, understanding,
again, that it's in everybody's interest not

396
00:31:34,580 --> 00:31:36,470
to have an international arms race.

397
00:31:36,470 --> 00:31:38,730
The Press:
Robert, this is a difficult time, a tense

398
00:31:38,730 --> 00:31:42,250
time already with China, and you have the
problem that you're talking about right now,

399
00:31:42,250 --> 00:31:49,450
you need China's help on Iran and many other
issues. Why proceed with the Dalai Lama meeting,

400
00:31:49,450 --> 00:31:50,690
which you know will infuriate them?

401
00:31:50,690 --> 00:31:52,560
Mr. Gibbs:
Well, Jill, we've said this all along. First

402
00:31:52,559 --> 00:31:57,029
of all, we talked to the Chinese about their
currency in Beijing; we talked to the Chinese

403
00:31:57,030 --> 00:32:02,860
about the Dalai Lama in Beijing; we talked
about Internet access and Internet freedom

404
00:32:02,860 --> 00:32:06,990
with the Chinese both in Shanghai during the
town hall meeting and in Beijing. We think

405
00:32:06,990 --> 00:32:13,190
we have a mature enough relationship with
the Chinese that we can agree on issues that

406
00:32:13,190 --> 00:32:17,990
are of mutual interest, but we also have a
mature enough relationship that we know that

407
00:32:17,990 --> 00:32:23,190
two countries on this planet are not always
going to agree on everything and we'll have

408
00:32:23,190 --> 00:32:24,060
those disagreements.

409
00:32:24,059 --> 00:32:32,349
The Press:
There are a couple things in the news that

410
00:32:32,350 --> 00:32:34,200
I was wondering if you could comment on. One,
could you talk about why General Jones is

411
00:32:34,200 --> 00:32:34,230
in Pakistan?

412
00:32:34,230 --> 00:32:34,270
Mr. Gibbs:
No.

413
00:32:34,270 --> 00:32:34,450
The Press:
And the other one is there's been some reporting

414
00:32:34,450 --> 00:32:35,330
about a Haiti recovery commission with Bill
Clinton supposedly being asked to head up

415
00:32:35,330 --> 00:32:35,550
that effort. Is there --

416
00:32:35,549 --> 00:32:44,559
Mr. Gibbs:
I will check on that. I don't have an answer

417
00:32:44,559 --> 00:32:45,359
to that. Chip.

418
00:32:45,360 --> 00:32:52,250
The Press:
Can I follow up with the question I asked

419
00:32:52,250 --> 00:33:00,980
Dr. Romer -- not looking back so much at the
incorrect -- understandably incorrect -- 

420
00:33:00,980 --> 00:33:01,630
or understandably perhaps incorrect projections
on unemployment, but whether or not anybody

421
00:33:01,630 --> 00:33:03,980
in the White House has advised her to be --

422
00:33:03,980 --> 00:33:05,300
Mr. Gibbs:
No. Of course not.

423
00:33:05,299 --> 00:33:06,899
The Press:
-- more conservative rather than --

424
00:33:06,900 --> 00:33:07,950
Mr. Gibbs:
Of course not.

425
00:33:07,950 --> 00:33:09,300
The Press:
That's never come up?

426
00:33:09,299 --> 00:33:10,219
Mr. Gibbs:
Of course not.

427
00:33:10,220 --> 00:33:13,960
The Press:
Okay. To what degree does the administration

428
00:33:13,960 --> 00:33:18,730
-- not just based on the report -- attribute
the job growth, the 95,000, to Recovery Act

429
00:33:18,730 --> 00:33:21,630
and any other legislation that
the President is pushing?

430
00:33:21,630 --> 00:33:26,840
Mr. Gibbs:
Well, look, I think that -- and I can see

431
00:33:26,840 --> 00:33:36,210
if Dr. Romer -- I doubt she's broken it out
to that degree. Obviously she has, CBO has,

432
00:33:36,210 --> 00:33:40,550
underscored the job growth that we've seen
under the Recovery Act. I think the Recovery

433
00:33:40,549 --> 00:33:45,079
Act also spurred economic growth, which we've
seen now two consecutive quarters of positive

434
00:33:45,080 --> 00:33:49,960
economic growth. We did know this: We were
never going to have jobs growth without first

435
00:33:49,960 --> 00:33:58,410
having economic growth. So I think the Recovery
Act has created additional jobs and created

436
00:33:58,409 --> 00:34:04,189
an environment for economic growth that we
believe will ultimately lead businesses to

437
00:34:04,190 --> 00:34:05,550
add to their payrolls.

438
00:34:05,549 --> 00:34:14,439
The Press:
Would the White House respond favorably to

439
00:34:14,440 --> 00:34:15,710
a request for federal disaster aid for states in
the Mid-Atlantic -- Maryland, D.C., Pennsylvania,
Delaware?

440
00:34:15,710 --> 00:34:19,060
Mr. Gibbs:
I don't want to prejudge what they might ask

441
00:34:19,059 --> 00:34:26,279
for. There's a process whereby those disaster
declarations come from the states, or in the

442
00:34:26,279 --> 00:34:32,619
District's case, the mayor, to FEMA, and all
of those are evaluated. Obviously we have

443
00:34:32,619 --> 00:34:39,579
seen an extraordinary amount of winter weather
here in the Mid-Atlantic -- having shoveled

444
00:34:39,579 --> 00:34:47,219
my driveway now what seems like 10,000 times,
I can testify to that. I don't want to prejudge

445
00:34:47,219 --> 00:34:55,489
what might be in -- what each locality might
ask in particular for. The process, though,

446
00:34:55,489 --> 00:35:02,939
is that those declarations come from the state
and locality, in the case of the District

447
00:35:02,940 --> 00:35:05,950
of Columbia, to FEMA and then
they are evaluated there.

448
00:35:05,950 --> 00:35:06,980
The Press:
Is the President satisfied with the way Washington

449
00:35:06,979 --> 00:35:18,769
and the metro areas have handled the snow
removal? And the only reason I bring it up

450
00:35:18,769 --> 00:35:18,809
is not for pedestrian concerns, but because
the federal government has been closed for

451
00:35:18,809 --> 00:35:18,819
four straight days.

452
00:35:18,819 --> 00:35:21,929
Mr. Gibbs:
Well, look, I'm reminded, again, as I shovel

453
00:35:21,930 --> 00:35:30,550
my driveway, that there are no statistics
on record -- or they did not keep -- if there

454
00:35:30,549 --> 00:35:35,949
were snowfall that exceeded what we've had
this winter it happened before they kept statistics

455
00:35:35,950 --> 00:35:42,180
on snowfall during the winter. So I think
everybody understands that what we have seen

456
00:35:42,180 --> 00:35:51,460
here is extraordinary. Look, obviously it
has been an overwhelming weather event. I

457
00:35:51,460 --> 00:35:59,540
know that OPM and others are working to try
to get as much cleared so that the federal

458
00:35:59,539 --> 00:36:01,709
government can open again.

459
00:36:01,710 --> 00:36:04,140
The Press:
To follow up on that?

460
00:36:04,140 --> 00:36:05,530
Mr. Gibbs:
Yes.

461
00:36:05,529 --> 00:36:08,529
The Press:
Is the government considering asking federal

462
00:36:08,529 --> 00:36:10,349
workers to make up their snow days?

463
00:36:10,349 --> 00:36:12,929
Mr. Gibbs:
Let me check with OPM. I need to check with

464
00:36:12,930 --> 00:36:13,820
OPM on that.

465
00:36:13,819 --> 00:36:14,709
The Press:
Okay.

466
00:36:14,710 --> 00:36:17,970
The Press:
Why wasn't the President out
there shoveling the walk?

467
00:36:17,969 --> 00:36:20,109
Mr. Gibbs:
Because he's the luckiest man on the planet.

468
00:36:20,109 --> 00:36:25,689
I told him that on -- (laughter) -- I told
him that this weekend, that, you should never

469
00:36:25,690 --> 00:36:31,990
leave, it's a great deal; you've got a huge
driveway and it's -- my back is killing me.
Jonathan.

470
00:36:31,989 --> 00:36:37,439
The Press:
As Christine Romer said, the longest chapter

471
00:36:37,440 --> 00:36:43,040
in the Economic Report is the chapter -- 
chapter two on the response to the crisis.

472
00:36:43,039 --> 00:36:48,329
And the President's message at the beginning
of the report is unusually long. And I'm wondering

473
00:36:48,329 --> 00:36:53,439
if you think that this is a more political
document than past economic reports, and if

474
00:36:53,440 --> 00:36:59,930
you're using this as a justification for policies
rather than just an exposition of the state

475
00:36:59,930 --> 00:37:00,560
of the economy.

476
00:37:00,559 --> 00:37:03,549
Mr. Gibbs:
Well, look, I think as you saw Dr. Romer,

477
00:37:03,549 --> 00:37:09,219
this is the first time this has been annotated
with references as to where facts were derived

478
00:37:09,219 --> 00:37:14,379
from. This is a factual report to the President
on the state of the economy and where it's

479
00:37:14,380 --> 00:37:21,700
headed. Jonathan, we didn't need a report
from Dr. Romer to justify taking extraordinary

480
00:37:21,700 --> 00:37:30,140
action to save our economy: 763,000 people
in January of 2009 lost their job. I don't

481
00:37:30,140 --> 00:37:36,420
think you need more evidence that something
had to be done. And I think we know this:

482
00:37:36,420 --> 00:37:44,040
that had nothing been done, that hole that
I talked to Mark about would be far deeper.

483
00:37:44,039 --> 00:37:52,829
I think what one of the things this report
I think helps many of you all understand is,

484
00:37:52,829 --> 00:37:58,079
again, the genuine severity of what we were
dealing with, and what we still are dealing

485
00:37:58,079 --> 00:38:07,989
with. And the recession started, mathematically,
in December of 2007. We are still at a period

486
00:38:07,989 --> 00:38:15,519
where we still have not seen consistent positive
job growth. This was economic devastation,

487
00:38:15,519 --> 00:38:17,969
again, unseen since the late 1920s.

488
00:38:17,969 --> 00:38:21,989
The Press:
Senator Bond accused the White House of using

489
00:38:21,989 --> 00:38:24,279
John Brennan for political purposes, saying that

490
00:38:24,279 --> 00:38:27,879
he was being -- doing the role,
your role. This economic report --

491
00:38:27,880 --> 00:38:31,030
Mr. Gibbs:
Let me just address that. Let's understand

492
00:38:31,029 --> 00:38:36,839
this: John Brennan has been working in counterterrorism
for more than 25 years -- right? First as

493
00:38:36,839 --> 00:38:44,369
a CIA agent hired by President George W. Bush
to work at the CIA, and then to stand up the

494
00:38:44,369 --> 00:38:52,619
National Counterterrorism Center. Okay? We
asked him to stay on. I don't have the slightest

495
00:38:52,619 --> 00:38:59,879
idea what political party John Brennan is a
member of. I've never had a political conversation

496
00:38:59,880 --> 00:39:06,530
with John. I know this: John is there each
and every day working in his office to try

497
00:39:06,529 --> 00:39:11,249
to do everything he can to keep the American
people safe. And I would suggest, whether

498
00:39:11,249 --> 00:39:15,789
it's to Senator Bond or others on Capitol
Hill, that these are decisions best left to

499
00:39:15,789 --> 00:39:23,559
people that have an understanding of counterterrorism,
experience in counterterrorism and law enforcement,

500
00:39:23,559 --> 00:39:25,569
rather than to politicians on Capitol Hill.

501
00:39:25,569 --> 00:39:27,709
The Press:
But his specific accusation was that he was

502
00:39:27,710 --> 00:39:36,680
being used in a way that a press secretary
is supposed to -- I mean, that he was enunciating

503
00:39:36,680 --> 00:39:37,200
Obama's policy.

504
00:39:37,200 --> 00:39:38,160
Mr. Gibbs:
I think Kit Bond didn't -- I don't think

505
00:39:38,160 --> 00:39:45,790
Kit Bond liked to hear what he already knew,
which was he'd been told that Abdulmutallab

506
00:39:45,789 --> 00:39:52,229
was in FBI custody after what happened on
Christmas Day. Now, I'll let you, Jonathan,

507
00:39:52,229 --> 00:39:57,879
ask Kit Bond whether he understands the protocols
of how the FBI deals with suspects enough

508
00:39:57,880 --> 00:40:01,990
to understand that at that point it would
have been obvious he would have been read

509
00:40:01,989 --> 00:40:07,449
his Miranda rights. I don't know whether Kit
Bond was confused or whether he just doesn't

510
00:40:07,450 --> 00:40:12,590
want to admit the facts.

511
00:40:12,589 --> 00:40:13,729
The Press:
When will the President sign the debt limit bill?

512
00:40:13,729 --> 00:40:15,399
Mr. Gibbs:
I think there's some discussion of him doing

513
00:40:15,400 --> 00:40:21,960
that at either the end of this week or over
the weekend. I would say this: I think that

514
00:40:21,959 --> 00:40:24,979
that bill also contains something --

515
00:40:24,979 --> 00:40:25,109
The Press:
PAYGO.

516
00:40:25,109 --> 00:40:28,729
Mr. Gibbs:
-- exactly -- that he has spoken for many

517
00:40:28,729 --> 00:40:35,989
times, a very simple concept of
paying for what you want to do.

518
00:40:35,989 --> 00:40:37,219
The Press:
So he will do it publicly?

519
00:40:37,219 --> 00:40:42,569
Mr. Gibbs:
I don't know what the coverage plans are.

520
00:40:42,569 --> 00:40:47,739
The Press:
Just to follow up on Caren's question regarding

521
00:40:47,739 --> 00:40:52,639
Google, is there any concern now that Iran's
actions following Google's dispute with China

522
00:40:52,640 --> 00:40:55,130
could indicate that regimes are now going
to be targeting U.S. companies and Internet

523
00:40:55,130 --> 00:40:56,730
freedoms in general as a
means of tighter control?

524
00:40:56,729 --> 00:40:58,549
Mr. Gibbs:
Well, I think that's been happening for quite

525
00:40:58,549 --> 00:41:08,869
some time. I don't think this is -- I don't
think access to the Internet and to open communications

526
00:41:08,869 --> 00:41:13,349
is something that has just happened recently.
I think this has happened for a while. You

527
00:41:13,349 --> 00:41:17,759
heard the President in Shanghai speak out
about it as it related to China. I do not

528
00:41:17,759 --> 00:41:25,029
have specifics around the degree to which
Google brought any of its concerns to us about

529
00:41:25,029 --> 00:41:26,889
what was happening in Iran.

530
00:41:26,890 --> 00:41:30,230
The Press:
So not whether -- not whether it's escalating

531
00:41:30,229 --> 00:41:31,349
with Iran now?

532
00:41:31,349 --> 00:41:33,329
Mr. Gibbs:
I will check with NSC and see if they have

533
00:41:33,329 --> 00:41:33,599
anything more particular on it.

534
00:41:33,599 --> 00:41:34,079
The Press:
And is the President -- he's meeting with

535
00:41:34,079 --> 00:41:36,079
Secretary of State Clinton later today? I
guess she's going to the Middle East this

536
00:41:36,079 --> 00:41:41,229
week. Is he going to be setting any goals
for her for that trip?

537
00:41:41,229 --> 00:41:48,769
Mr. Gibbs:
Well, look, this is part of their weekly meeting.

538
00:41:48,769 --> 00:41:55,619
I assume there will be a number of topics
that will be discussed. She and others are

539
00:41:55,619 --> 00:42:00,589
traveling in the next few days and few weeks
to the Middle East, and we want to continue

540
00:42:00,589 --> 00:42:03,669
to make progress and get these two parties
back at the table.

541
00:42:03,670 --> 00:42:05,440
The Press:
And one more question. There's a report out

542
00:42:05,440 --> 00:42:07,930
of Damascus that Syria has accepted the President's
candidate for ambassador there, Robert Stephen

543
00:42:07,930 --> 00:42:09,700
Ford. Can you confirm that
he has nominated Ford or --

544
00:42:09,700 --> 00:42:16,620
Mr. Gibbs:
I can check. I don't have anything on that.*

545
00:42:16,619 --> 00:42:17,119
The Press:
Can you get back to all of us on that?

546
00:42:17,119 --> 00:42:20,779
The Press:
The President told Bloomberg BusinessWeek,

547
00:42:20,779 --> 00:42:23,269
in the context of the conversation about dealing
with the deficit and this commission he's

548
00:42:23,269 --> 00:42:30,619
going to set up, "The whole point is to make
sure that all ideas are on the table, so what

549
00:42:30,619 --> 00:42:33,529
I want to do is be completely agnostic in terms
of solutions." That was in -- the write-up

550
00:42:33,529 --> 00:42:34,649
of the interview suggests the context of whether
or not he would be willing to raise taxes

551
00:42:34,650 --> 00:42:35,180
on those Americans -- individuals
earning less than $200,000 --

552
00:42:35,180 --> 00:42:45,340
Mr. Gibbs:
Let me read what he said at the -- when he

553
00:42:45,339 --> 00:42:50,769
was asked the question the first time. "I
don't want to prejudge the commission because

554
00:42:50,769 --> 00:42:54,829
the whole point of it is to make sure that
all ideas are on the table, and let's see

555
00:42:54,829 --> 00:43:00,579
what folks can come up." So what the President
was saying, which I think -- the President

556
00:43:00,579 --> 00:43:05,129
will set up a commission. The President is
not a member of that commission. The President

557
00:43:05,130 --> 00:43:11,180
is not going to prejudge the outcome of a
commission that he's setting up on an issue

558
00:43:11,180 --> 00:43:16,510
as important as getting our deficit and debt
under control. That's up to the commission.

559
00:43:16,509 --> 00:43:23,059
And I would say this, Major. I hope that 
-- we hope that Republicans, many of whom

560
00:43:23,059 --> 00:43:27,259
supported this commission before they had
to vote on this commission, and then they

561
00:43:27,259 --> 00:43:32,339
magically didn't support this commission,
we hope that when the President signs this

562
00:43:32,339 --> 00:43:38,219
executive order and announces his picks for
this commission, that they will demonstrate

563
00:43:38,219 --> 00:43:45,589
their seriousness in dealing with an issue of
this magnitude by taking part in that commission.

564
00:43:45,589 --> 00:43:47,259
The Press:
What's the timeline on that, is
it still going to be this week?

565
00:43:47,259 --> 00:43:50,139
Mr. Gibbs:
The snow got us a little off track, so it'll

566
00:43:50,140 --> 00:43:55,030
be in the next 10 days or so.

567
00:43:55,029 --> 00:43:56,539
The Press:
How is not prejudging compare with what he

568
00:43:56,539 --> 00:43:57,139
said during the campaign?

569
00:43:57,140 --> 00:43:59,380
Mr. Gibbs:
He's not a member of this commission. I think

570
00:43:59,380 --> 00:44:07,400
the President has demonstrated through cutting
taxes for middle class families and for holding

571
00:44:07,400 --> 00:44:12,070
the line on -- the President doesn't believe
our economic growth should be predicated on

572
00:44:12,069 --> 00:44:16,199
raising taxes on middle class families. But
that being said, the President is just not

573
00:44:16,200 --> 00:44:21,570
going to get in the game of prejudging the
outcome of a commission that, one, hasn't

574
00:44:21,569 --> 00:44:23,699
been set up and hasn't met. I think --

575
00:44:23,700 --> 00:44:25,830
The Press:
He remains opposed to any tax increase for

576
00:44:25,829 --> 00:44:27,109
those he outlined during the campaign?

577
00:44:27,109 --> 00:44:29,609
Mr. Gibbs:
He does, and he's not going to prejudge what

578
00:44:29,609 --> 00:44:31,829
the outcome of the commission will be.

579
00:44:31,829 --> 00:44:33,079
The Press:
Doesn't that make him an atheist instead

580
00:44:33,079 --> 00:44:34,529
of an agnostic on that matter?

581
00:44:34,529 --> 00:44:34,789
(laughter)

582
00:44:34,789 --> 00:44:38,569
Mr. Gibbs:
I was going to check on that, but I'm not.

583
00:44:38,569 --> 00:44:38,989
(laughter)

584
00:44:38,989 --> 00:44:40,149
The Press:
You had a lengthy conversation with Savannah

585
00:44:40,150 --> 00:44:50,190
and Todd this morning on Abdulmutallab, and
I want to ask you one question about that.

586
00:44:50,190 --> 00:44:55,900
If Abdulmutallab or a case very similar to
that -- I know each case was different; presents

587
00:44:55,900 --> 00:44:57,490
different facts and different scenarios --
 would you handle it the way it was -- this

588
00:44:57,489 --> 00:44:58,689
case was handled?

589
00:44:58,690 --> 00:45:02,270
Mr. Gibbs:
Well, look, I'll say this. We're quite comfortable

590
00:45:02,269 --> 00:45:07,429
with the way this one was handled. I'm not
going to get into hypotheticals, Major, because

591
00:45:07,430 --> 00:45:12,070
this case is different than what happened,
obviously, on September 11th. This case is

592
00:45:12,069 --> 00:45:20,519
different from the details of what happened
with Richard Reid. It's hard to compare apples

593
00:45:20,519 --> 00:45:21,949
to oranges, in this case.

594
00:45:21,950 --> 00:45:22,020
The Press:
One thing you implied is that there's also

595
00:45:22,019 --> 00:45:27,269
after action, there's always a look back 
-- and in the process of looking back --

596
00:45:27,269 --> 00:45:29,679
Mr. Gibbs:
Absolutely there --

597
00:45:29,680 --> 00:45:33,390
The Press:
-- have you found room for improvement or

598
00:45:33,390 --> 00:45:34,630
methodologies that might be executed differently?

599
00:45:34,630 --> 00:45:37,320
Mr. Gibbs:
I know that John Brennan has been tasked in

600
00:45:37,319 --> 00:45:44,399
a process to implement changes based on the
report that the President originally got on

601
00:45:44,400 --> 00:45:52,400
intelligence failures. And the President asked
for us to examine all of what was done that

602
00:45:52,400 --> 00:45:59,950
day and in the days after to ensure that we
were doing this the best way possible. That's

603
00:45:59,950 --> 00:46:03,400
the President's role. That's
what he asked everyone to do.

604
00:46:03,400 --> 00:46:06,560
The Press:
In a rare alignment, MoveOn.org, Paul Krugman

605
00:46:06,559 --> 00:46:11,759
and Bill Kristol all agreed the President
was wrong when he said he does not begrudge

606
00:46:11,759 --> 00:46:12,769
Wall Street bonuses.

607
00:46:12,769 --> 00:46:14,349
Mr. Gibbs:
The President didn't say that, Major.

608
00:46:14,349 --> 00:46:15,039
The Press:
I'm saying what they're saying he said. He

609
00:46:15,039 --> 00:46:17,039
said "success" -- "I don't begrudge
success, I don't begrudge --

610
00:46:17,039 --> 00:46:18,909
Mr. Gibbs:
Let's not play hypothetical.

611
00:46:18,910 --> 00:46:24,320
The Press:
All right. He said, "I don't begrudge their

612
00:46:24,319 --> 00:46:24,379
success, I don't begrudge their wealth."

613
00:46:24,380 --> 00:46:25,520
Mr. Gibbs:
No, no, no, no, no. "I, like most of the

614
00:46:25,519 --> 00:46:29,149
American people, don't begrudge
people's success or wealth."

615
00:46:29,150 --> 00:46:30,460
The Press:
Well, read the question, too, because the

616
00:46:30,459 --> 00:46:31,219
question was about -- the
question was about the bonuses.

617
00:46:31,219 --> 00:46:32,579
Mr. Gibbs:
No, no, I read the questions. You and I talked

618
00:46:32,579 --> 00:46:35,599
about this like four times the other --

619
00:46:35,599 --> 00:46:36,289
The Press:
I know, but the question was about --

620
00:46:36,289 --> 00:46:36,539
Mr. Gibbs:
I understand. I understand the question was

621
00:46:36,539 --> 00:46:40,449
about bonuses. The question -- and the President
on five different occasions -- just as I emailed

622
00:46:40,450 --> 00:46:44,990
you yesterday, causing you to reexamine what
you'd written based off of the interview 

623
00:46:44,990 --> 00:46:54,510
-- that the President was talking in that
sentence, as he's done many times, about 

624
00:46:54,509 --> 00:46:58,829
-- he does not believe the federal government
should be setting salaries for business in

625
00:46:58,829 --> 00:47:00,299
America. He still believes that.

626
00:47:00,299 --> 00:47:01,849
The Press:
Does he still remain comfortable with the

627
00:47:01,849 --> 00:47:04,269
analogy he made with Major League Baseball
players many have pointed out -- yes, Major

628
00:47:04,269 --> 00:47:07,549
League Baseball players make a lot of money
-- no, many of them will make the World Series,

629
00:47:07,549 --> 00:47:11,129
but none of them had anything to do with the
financial crisis or bad --

630
00:47:11,130 --> 00:47:13,290
Mr. Gibbs:
Well, I don't think the President would argue

631
00:47:13,289 --> 00:47:18,349
that not many baseball players had anything
to do with the financial crisis. I don't think

632
00:47:18,349 --> 00:47:23,689
that's -- the point he was trying to make
was that there are obscene and shocking salaries,

633
00:47:23,690 --> 00:47:30,310
and obscene and shocking compensation that
don't match what happens with your performance.

634
00:47:30,309 --> 00:47:31,449
The Press:
Does Blankfein and Dimon count?

635
00:47:31,449 --> 00:47:33,429
Mr. Gibbs:
Hold on, hold on, let me -- can I just --

636
00:47:33,429 --> 00:47:39,379
let me finish my answer -- that the President
has said that there ought to be -- these ought

637
00:47:39,380 --> 00:47:43,590
to be based on performance,
not on risk-taking, okay?

638
00:47:43,589 --> 00:47:44,849
The Press:
And some of these new ones are.

639
00:47:44,849 --> 00:47:46,679
Mr. Gibbs:
No, that -- right, in the sense that yes,

640
00:47:46,680 --> 00:47:48,680
they're in stock rather than in --

641
00:47:48,680 --> 00:47:50,030
The Press:
Long-term health.

642
00:47:50,029 --> 00:47:51,739
Mr. Gibbs:
There should be a say on pay. Shareholders

643
00:47:51,739 --> 00:47:58,779
ought to be able to weigh in on this. And
he said that salaries like you were talking

644
00:47:58,779 --> 00:48:02,139
about with baseball and these bonuses
are extraordinary and shocking.

645
00:48:02,140 --> 00:48:06,650
The Press:
Blankfein and Dimon -- are those obscene bonuses,

646
00:48:06,650 --> 00:48:07,160
Blankfein's and Dimon's?

647
00:48:07,160 --> 00:48:10,210
Mr. Gibbs:
The President has spoken repeatedly on these

648
00:48:10,209 --> 00:48:15,599
bonuses, and finds them, as he did in here,
extraordinary and shocking.

649
00:48:15,599 --> 00:48:16,479
The Press:
Has he been asked specifically about Blankfein

650
00:48:16,479 --> 00:48:16,519
and Dimon?

651
00:48:16,519 --> 00:48:17,079
Mr. Gibbs:
And he said extraordinary and shocking, specifically.

652
00:48:17,079 --> 00:48:19,559
The Press:
Are they obscene, are they an offense, are

653
00:48:19,559 --> 00:48:21,459
they a violation of our moral principles?

654
00:48:21,459 --> 00:48:24,069
Mr. Gibbs:
The President doesn't have any different view

655
00:48:24,069 --> 00:48:29,719
on bonuses yesterday than he
had 10 days ago or 10 months ago.

656
00:48:29,719 --> 00:48:30,339
The Press:
Are these more palatable because these are

657
00:48:30,339 --> 00:48:35,859
different in type from the ones that were
not linked to long-term health stock?

658
00:48:35,859 --> 00:48:38,549
Mr. Gibbs:
Ensuring the bonuses are paid in that way

659
00:48:38,549 --> 00:48:45,489
is a movement in the right direction, right?
Does that justify the level of these bonuses

660
00:48:45,489 --> 00:48:51,269
when, through only -- only through the taxpayers'
assistance, would these banks still even exist?

661
00:48:51,269 --> 00:48:51,799
Of course not.

662
00:48:51,799 --> 00:48:52,879
The Press:
Thanks, Robert. Senator Corker has said that

663
00:48:52,880 --> 00:48:54,680
he wants to help out with the financial regulatory
reform bill. Senator Grassley is participating

664
00:48:54,680 --> 00:49:05,840
in the jobs bill. How do you account for this
apparent bipartisan good will?

665
00:49:05,839 --> 00:49:12,509
Mr. Gibbs:
Well, the snow may indicate that it's all

666
00:49:12,509 --> 00:49:20,319
frozen over. No, look, I think -- look, I
think -- let's take these individually. Look,

667
00:49:20,319 --> 00:49:31,019
the finance committee has worked -- is working
in a bipartisan way on a series of measures

668
00:49:31,019 --> 00:49:36,489
to create an environment where hiring can
take place, as well as to extend things like

669
00:49:36,489 --> 00:49:42,449
unemployment compensation and health care
for people that have lost their job. Senator

670
00:49:42,449 --> 00:49:49,549
Corker has been very active in this process,
in the process of financial reform. I think

671
00:49:49,549 --> 00:49:56,059
there are certainly many in this town that
want to deal with the problems that people

672
00:49:56,059 --> 00:50:01,949
face, whether it's creating jobs or whether
it's ensuring that we have rules for the road

673
00:50:01,949 --> 00:50:07,659
that protect against the type of excessive
risk-taking that led to the near collapse

674
00:50:07,660 --> 00:50:17,360
of our financial system, and with it our economy.
I hope that many have learned the lesson that

675
00:50:17,359 --> 00:50:24,619
you hear and see people talking about all
the time, and that is that they want this

676
00:50:24,619 --> 00:50:30,199
town to put aside its petty arguments and
move forward on what's important in their

677
00:50:30,199 --> 00:50:35,449
lives. The President used an example the other
day with Senator McConnell about appointments

678
00:50:35,450 --> 00:50:40,980
-- that at this point in President Bush's
tenure, there were six nominees that had been

679
00:50:40,979 --> 00:50:46,659
sitting there for a month or more, right?
This President, before today's action in the

680
00:50:46,660 --> 00:50:56,400
Senate, had 63; as he said to Senator McConnell,
both a quantitative and a qualitative difference.

681
00:50:56,400 --> 00:51:01,700
I think that all of these are examples of
things that are examples of things that are

682
00:51:01,699 --> 00:51:06,769
important to people's lives -- that they believe
Washington should put aside, as I said, the

683
00:51:06,769 --> 00:51:12,629
petty games that normally take up the time
in this town to get something down.

684
00:51:12,630 --> 00:51:19,600
The Press:
You said that people talk about these things

685
00:51:19,599 --> 00:51:20,839
all the time, but the President has been talking
about them more and more this year. Are they

686
00:51:20,839 --> 00:51:21,109
responding to that kind of political pressure
from the President? Do they seem to be responding?

687
00:51:21,109 --> 00:51:22,989
Mr. Gibbs:
I think they're responding to both the political

688
00:51:22,989 --> 00:51:26,519
pressure of the President. I think they're
also responding to the political pressure

689
00:51:26,519 --> 00:51:32,379
from the American people. They have -- the
President went to Capitol Hill -- tried to

690
00:51:32,380 --> 00:51:37,430
go to Capitol Hill to talk to House Republicans
about the recovery plan. As we've talked about

691
00:51:37,430 --> 00:51:40,810
in here, they put out a statement opposing
that plan before the President even got to

692
00:51:40,809 --> 00:51:45,369
Capitol Hill. The President spent a lot of
time trying to work with Republicans on health

693
00:51:45,369 --> 00:51:57,189
care, only to have very few respond. The President
will continue to try to do this in an effort

694
00:51:57,190 --> 00:52:01,700
to demonstrate to the American people that
this town is capable of solving the problems

695
00:52:01,699 --> 00:52:02,759
that we face. Helene.

696
00:52:02,759 --> 00:52:04,929
The Press:
Robert, Haiti? One question on Haiti?

697
00:52:04,930 --> 00:52:06,360
Mr. Gibbs:
Let me go to Helene first.

698
00:52:06,359 --> 00:52:08,499
The Press:
Thanks. I wanted to ask you, just to go back

699
00:52:08,499 --> 00:52:09,569
to Iran first for a minute --

700
00:52:09,569 --> 00:52:10,469
Mr. Gibbs:
Go back to?

701
00:52:10,469 --> 00:52:10,669
The Press:
Iran.

702
00:52:10,670 --> 00:52:10,870
Mr. Gibbs:
Oh, okay.

703
00:52:10,869 --> 00:52:13,509
The Press:
Given the sort of rhetoric that's been coming

704
00:52:13,509 --> 00:52:18,189
out of the Iranian leadership in the past
week in particular, has the President had

705
00:52:18,190 --> 00:52:23,310
any sort of rethink about the whole concept
of engagement with Iran? I know you said that,

706
00:52:23,309 --> 00:52:25,009
you know, you think this outreach --

707
00:52:25,009 --> 00:52:27,459
Mr. Gibbs:
No, because, Helene, we wouldn't be here 

708
00:52:27,459 --> 00:52:33,579
-- we would not be here unified in the
P5-plus-1 were it not for engagement.

709
00:52:33,579 --> 00:52:35,929
The Press:
I understand that, and I see that argument,

710
00:52:35,930 --> 00:52:36,120
but what about --

711
00:52:36,119 --> 00:52:38,459
Mr. Gibbs:
So putting aside that we're at a point in

712
00:52:38,459 --> 00:52:44,479
which those countries have never been more
united and more forward in dealing with the

713
00:52:44,479 --> 00:52:46,719
threat from Iran.

714
00:52:46,719 --> 00:52:47,379
The Press:
Well, we don't know yet from China and what

715
00:52:47,380 --> 00:52:47,610
they're going to do.

716
00:52:47,609 --> 00:52:49,209
Mr. Gibbs:
Right, but you wanted me to leave aside the

717
00:52:49,209 --> 00:52:49,769
united --

718
00:52:49,769 --> 00:52:57,409
The Press:
I want to put aside the united front in the

719
00:52:57,410 --> 00:53:07,880
P5-plus-one and ask you to look specifically
about the relationship with the Iranian regime

720
00:53:07,880 --> 00:53:10,850
as a whole, between the United States and
Iran. Do you see any difference there that

721
00:53:10,849 --> 00:53:11,649
perhaps has come from an engagement and do
you see, is there any rethink about whether

722
00:53:11,650 --> 00:53:13,040
or not there was any --
has gone anywhere at all?

723
00:53:13,039 --> 00:53:14,359
Mr. Gibbs:
No, no, again, I think it demonstrated to

724
00:53:14,359 --> 00:53:20,319
the world that these were decisions that weren't
going to be made by the United States or by

725
00:53:20,319 --> 00:53:26,019
Russia or by China, these were decisions that
were going to be made by the Iranians. Now,

726
00:53:26,019 --> 00:53:32,829
sometimes it's been confusing; sometimes they've
accepted ideas and agreements only to come

727
00:53:32,829 --> 00:53:40,749
back a week or so later and not accept them.
And whether or not there is one or two voices

728
00:53:40,749 --> 00:53:50,499
in Iran speaking for the Iranian regime, or
whether there are many conflicting voices,

729
00:53:50,499 --> 00:54:01,629
I'll let others decide. But because we engaged,
it demonstrated to the world that the choices

730
00:54:01,630 --> 00:54:12,260
that Iran made were choices that it alone
had to vouch for. The Tehran Research Reactor

731
00:54:12,259 --> 00:54:17,689
is, again, a good example. They're going to
run out of the type of medical isotopes that

732
00:54:17,690 --> 00:54:23,520
they need to treat those in their country
that could be helped by this. Right? If your

733
00:54:23,519 --> 00:54:33,219
program is one for peaceful needs, why not
accept the help of the IAEA in ensuring the

734
00:54:33,219 --> 00:54:40,399
health and safety of your people? I think,
again, their walking away from that agreement

735
00:54:40,400 --> 00:54:48,950
demonstrates for the whole world to
see what their intentions really are.

736
00:54:48,949 --> 00:54:53,819
The Press:
Just quick -- U.S. wants Iran to stop their

737
00:54:53,819 --> 00:55:02,539
nuclear weapons program, but Iranian President
is firm on their nuclear program. And they

738
00:55:02,539 --> 00:55:06,129
said that sanctions have not worked in the
past, so how now sanctions will work? And

739
00:55:06,130 --> 00:55:06,430
what do the future --

740
00:55:06,430 --> 00:55:07,910
Mr. Gibbs:
Well, this is a much longer discussion, Goyal.

741
00:55:07,910 --> 00:55:14,940
I think that this is a process that has begun
at the United Nations and I don't want to

742
00:55:14,939 --> 00:55:18,409
get too far on that. You want a Haiti question?

743
00:55:18,410 --> 00:55:20,780
The Press:
Just one thing. From what you've observed

744
00:55:20,779 --> 00:55:28,799
so far, do you believe that the Haitian government
has properly carried out the judicial process

745
00:55:28,799 --> 00:55:33,579
concerning those Americans who are being held?
And also, under the circumstances --

746
00:55:33,579 --> 00:55:35,199
Mr. Gibbs:
I want to point you to State, because I have

747
00:55:35,199 --> 00:55:40,549
not had a lot of time to look at the Haitian
judicial process over the course of many days.

748
00:55:40,549 --> 00:55:48,369
But I know they've had contact with the Haitian
judicial system and with those missionaries,

749
00:55:48,369 --> 00:55:57,139
so I would point you over to State on that.

750
00:55:57,140 --> 00:56:01,430
The Press:
Robert, the Vice President last night said

751
00:56:01,430 --> 00:56:05,800
that Iraq could end up being one of the President's
great achievements. Given that the Vice President

752
00:56:05,799 --> 00:56:06,909
was in favor of a partial partition of the
country and the President opposed the surge

753
00:56:06,910 --> 00:56:07,810
that helped stabilize it, how is that one
of the President's great achievements?

754
00:56:07,809 --> 00:56:10,509
Mr. Gibbs:
Well, putting what was broken back together

755
00:56:10,509 --> 00:56:16,079
and getting our troops home, which we intend
to do in August of this year.

756
00:56:16,079 --> 00:56:19,839
The Press:
But the Status of Forces Agreement to bring

757
00:56:19,839 --> 00:56:22,699
troops home was signed before
the President took office.

758
00:56:22,699 --> 00:56:26,669
Mr. Gibbs:
Something that -- something that I think the

759
00:56:26,670 --> 00:56:33,050
political pressure that the President, as
a then-candidate, helped to bring about. Look,

760
00:56:33,049 --> 00:56:41,189
I think that we will long debate Iraq. We
will long debate whether at a very important

761
00:56:41,189 --> 00:56:48,759
moment in our efforts to root out terrorism
particularly in Afghanistan and on that border

762
00:56:48,759 --> 00:56:53,029
region with Pakistan, whether we took our
eye off the ball. I think historians will

763
00:56:53,029 --> 00:56:59,189
debate that long after we're gone. I think
they will come likely to the conclusion that

764
00:56:59,189 --> 00:57:09,839
no single event took our eye off of what needed
to be done in order to -- in order to occupy

765
00:57:09,839 --> 00:57:17,199
a country that, until we got there, didn't
have a single member of al Qaeda. So, look,

766
00:57:17,199 --> 00:57:23,109
obviously -- look, the Vice President has
been deeply involved in fixing the political

767
00:57:23,109 --> 00:57:32,049
process there so that elections can be held
and so that our troops can come home as scheduled

768
00:57:32,049 --> 00:57:32,579
this summer.

769
00:57:32,579 --> 00:57:37,039
The Press:
Robert, if you are the average Iranian and

770
00:57:37,039 --> 00:57:39,519
you're hearing about the possibility of more
sanctions, what can you do to reassure him

771
00:57:39,519 --> 00:57:40,329
or her that the sanctions will be targeted
against organizations associated with the

772
00:57:40,329 --> 00:57:44,969
government and not them specifically? And
are you worried that these sanctions, if you

773
00:57:44,969 --> 00:57:55,989
do pursue them and they're carried out, will
only serve to solidify the hold of the Iranian

774
00:57:55,989 --> 00:57:58,579
government over the people?

775
00:57:58,579 --> 00:58:03,379
Mr. Gibbs:
Well, look, I think the government's hold

776
00:58:03,380 --> 00:58:10,320
over those people I think -- in the streets
over the past many months is in many ways

777
00:58:10,319 --> 00:58:17,279
called into question. I don't want to get
into the specifics of what is being worked

778
00:58:17,279 --> 00:58:26,449
through, except to say that obviously we do
not want to see a backsliding in progress

779
00:58:26,449 --> 00:58:37,529
and to do things that risk putting the political
changes that are clearly happening in that

780
00:58:37,529 --> 00:58:45,479
country -- to see them fall back. All of that
is being taken into account even as the world

781
00:58:45,479 --> 00:58:55,249
demands not just that the Republic acknowledge
the universal rights of its citizens but also

782
00:58:55,249 --> 00:58:59,049
that it live up to their agreements
around their nuclear program. Bill.

783
00:58:59,049 --> 00:59:04,159
The Press:
Robert, Congresswoman Michele Bachmann has

784
00:59:04,160 --> 00:59:12,020
called the February 25th Blair House meeting
nothing but a PR stunt. My question is do

785
00:59:12,019 --> 00:59:16,349
you know for sure, have you been told that
the Republican leadership is going to attend?

786
00:59:16,349 --> 00:59:18,389
Have they accepted the invitation?

787
00:59:18,390 --> 00:59:23,930
Mr. Gibbs:
I can check with Legislative Affairs. I don't

788
00:59:23,930 --> 00:59:29,740
know if they have said they would come or
not. Bill, it would be an awfully curious

789
00:59:29,739 --> 00:59:36,769
thing that the argument that they made up
until the point in which the President proposed

790
00:59:36,769 --> 00:59:43,419
this was that the President hadn't sat down
-- despite the record -- sat down with Republicans

791
00:59:43,420 --> 00:59:48,530
enough and talked to them about health care
-- I can't imagine a conceivable scenario

792
00:59:48,529 --> 00:59:56,939
in which, after having that invitation, you
would say, well, I know for nine months I

793
00:59:56,939 --> 01:00:04,959
said I wanted that, but I can't possibly fit
it into my schedule now. It just seems silly.

794
01:00:04,959 --> 01:00:08,799
The Press:
Are you proceeding then on the assumption

795
01:00:08,799 --> 01:00:12,169
there will be a meeting and there
will be Republicans at the table?

796
01:00:12,170 --> 01:00:13,450
Mr. Gibbs:
Absolutely. Absolutely. Again, I think it

797
01:00:13,449 --> 01:00:19,229
would be -- well, it would demonstrate a lot
about the willingness of those to actually

798
01:00:19,229 --> 01:00:26,999
solve a problem for the American people. I
know sometimes polls don't get a -- when there

799
01:00:26,999 --> 01:00:33,099
are good numbers in polls they don't get a
lot of attention in this town. But The Washington

800
01:00:33,099 --> 01:00:42,029
Post poll from a couple of days ago had a
number very similar to that of the poll that

801
01:00:42,029 --> 01:00:48,629
they did of voters after the Massachusetts
election, and that is that a overwhelming

802
01:00:48,630 --> 01:00:58,160
majority wanted to see the effort to reform
health care continue. I think that's important.

803
01:00:58,160 --> 01:01:03,360
That's why the President wants to meet with
individuals in both parties to talk through

804
01:01:03,359 --> 01:01:04,879
these solutions. Sam.

805
01:01:04,880 --> 01:01:11,880
The Press:
Just two questions. Basically hours after

806
01:01:11,880 --> 01:01:22,380
the President said he was considering using
recess appointments Senate Republicans filibustered

807
01:01:22,380 --> 01:01:25,030
Craig Becker to the National Labor Relations
Board. The first question is, has the President

808
01:01:25,029 --> 01:01:25,049
given thought to appointing Mr. Becker through
a recess appointment? And secondly, has anyone

809
01:01:25,049 --> 01:01:28,219
at the White House been in touch with either
Senator Harkin or Senator Udall on their proposals

810
01:01:28,219 --> 01:01:33,339
to essentially reform the use
of the filibuster in the Senate?

811
01:01:33,339 --> 01:01:36,149
Mr. Gibbs:
I don't know about the second question, Sam.

812
01:01:36,150 --> 01:01:43,510
I can simply recount the story again that
the President at the meeting a couple of days

813
01:01:43,509 --> 01:01:51,729
ago -- I think it was probably the last 20
or so minutes where the President, during

814
01:01:51,729 --> 01:01:59,519
the bipartisan meeting, asked very specifically
about the reason and the nature for the hold-up

815
01:01:59,519 --> 01:02:12,719
of many qualified appointees that weren't
being held up because of some philosophical

816
01:02:12,719 --> 01:02:18,539
or political disagreement. There were, again,
63 that had been sitting for more than a month,

817
01:02:18,539 --> 01:02:24,269
when in a comparable period of time in the
Bush administration that number was six. Senator

818
01:02:24,269 --> 01:02:29,209
Shelby last week decided to put a hold on
everybody because he didn't get a couple of

819
01:02:29,209 --> 01:02:36,339
earmarks. And it's obvious now that that wasn't
such a good idea, and he pulled back many

820
01:02:36,339 --> 01:02:42,239
of those holds. The President told Senator
McConnell quite clearly the situation that

821
01:02:42,239 --> 01:02:47,459
we have is, again, as I said, quantitatively
and qualitatively different that it was at

822
01:02:47,459 --> 01:02:52,529
the beginning of the Bush administration;
that it had to change and that if it didn't

823
01:02:52,529 --> 01:02:58,089
change the President would use his power for
recess appointments. So that's where we are
now.

824
01:02:58,089 --> 01:02:59,649
The Press:
Any specific discussions about Craig Becker?

825
01:02:59,650 --> 01:03:03,350
Mr. Gibbs:
There wasn't a specific discussion about any

826
01:03:03,349 --> 01:03:10,509
individuals. Obviously the President discussed
those that had been laying over for more than

827
01:03:10,509 --> 01:03:11,529
a month. Thanks, guys.