English subtitles for clip: File:Press Briefing by Deputy Press Secretary Josh Earnest.webm

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Mr. Earnest:
Good afternoon, everybody.

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It's nice to see you
all this afternoon.

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Mr. Carney is not
in the office today,

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as you probably guessed.

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He has traveled to New
Hampshire to drop off his

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son for his first stay
at an overnight camp.

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The Press:
Awww --

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Mr. Earnest:
So he's tending to
some important familial

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responsibilities that actually
seem a lot more fun than we're

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going to have today.

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(laughter)

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But it should be good.

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So in lieu of Mr.
Carney's attendance today,

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as you might say at
the London Olympics,

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I'll be the one catching
your javelins today.

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So, Mr. Kuhnhenn, I'll let
you toss the first one.

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The Press:
Thank you.
Welcome to the podium.

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Mr. Earnest:
Thank you.

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The Press:
Two topics.

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The first one, in Israel,
Governor Romney said that

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culture is a factor that
accounts for economic

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disparity between Israel and
the Palestinian Territory,

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and Palestinian officials
have characterized the

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remarks as racist.

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I was wondering does the
President or the White

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House have a view on
Romney's remarks?

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And two, what does the
President believe accounts

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for that disparity?

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Mr. Earnest:
Well, Jim, I saw the
reports of those remarks.

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I didn't see the
full context of them.

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One of the challenges of being
an actor on the international

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stage, particularly when
you're traveling to such a

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sensitive part of the world,
is that your comments are very

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closely scrutinized for
meaning, for nuance,

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for motivation.

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And it is clear that there are
some people who have taken a

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look at those comments and
are scratching their heads a

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little bit.

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But I would leave it to
Governor Romney to further

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explain what he meant and what
he intended when he said that.

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The Press:
What's the President's
view for what the economic

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disparity is?

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Mr. Earnest:
Well, it's the President's
view that certainly economic

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issues are among the wide
range of issues that need to

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be determined,
need to be settled,

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need to be negotiated and
settled in the context of

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negotiations between the
parties in the region.

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But in terms of the specifics,
I don't have anything more for

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you on that.

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The Press:
Also, last week Jay was
talking about what the

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administration's position
is vis-à-vis Jerusalem as

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the capital.

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Governor Romney declared
flatly that Jerusalem is

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the capital of Israel.

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And I'm wondering, what
does the White House --

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does that undermine the
administration's position?

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Is that a comment that the
administration would have

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preferred gone unsaid?

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How does the
administration view that?

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Mr. Earnest:
Well, our view is that that's
a different position than this

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administration holds.

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It's the view of this
administration that the

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capital is something that
should be determined in final

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status negotiations
between the parties.

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I'd remind you that that's the
position that's been held by

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previous administrations, both
Democratic and Republican.

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So if Mr. Romney disagrees
with that position,

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he's also disagreeing with
the position that was taken

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by Presidents like Bill
Clinton and Ronald Reagan.

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So, again, if he does
disagree with that position,

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I would leave it to
him to explain it.

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The Press:
Last week, we heard about an
Olympic security briefing and

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we had the President
sign a security bill.

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Any chance of anything
unfolding this week?

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Mr. Earnest:
Not that I have
for you right now.

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Thanks for the
question, though.

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(laughter)

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Matt.

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The Press:
I'd like to ask you about not
something that Governor Romney

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said, but what Prime
Minister Netanyahu said

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during Romney's visit.

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Netanyahu said, and I quote,
"We have to be honest that

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sanctions have not set back
the Tehran program one iota,

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and a strong military threat
coupled with sanctions are

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needed to have a chance
to change the situation."

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That seems to suggest quite
strongly the impatience,

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frustration with the approach
that has been pursued by the

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administration so far.

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What's your view on that?

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Mr. Earnest:
Well, I'd start by reminding
you of the situation that the

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President encountered
when he took office.

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When President Obama
took office in 2009,

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the international community
was splintered about how to

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confront the challenge of Iran
and their aspirations for a

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nuclear weapon, while inside
Iran there was unanimity among

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that regime that pursuing a
nuclear weapon was the wisest

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course of action.

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Here we stand,
three years later,

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because of the President's
leadership on the

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international stage, he's
marshaled international

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support and the international
community is now presenting a

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united front to the Iranians
about the importance of living

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up to their international
obligations when it comes to

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their nuclear program.

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This includes passing a
resolution through the

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United Nations Security
Council with the support

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of Russia and China.

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So not an insignificant
development.

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As a result of those --

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of that Security Council
resolution and other actions,

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crippling sanctions have
been put in place against

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the Iranian regime that have
resulted in the Iranian regime

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acknowledging the economic
toll that those sanctions have

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taken, and have started --

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and the Iranian regime is
starting to exhibit some signs

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of dissent within the ranks.

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So that change over the course
of three years I think is

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notable, and thanks in no
small part to the President's

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leadership on this issue.

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Governor Romney, in one of the
interviews that he conducted

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yesterday, actually
acknowledged something similar

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about the impact that economic
sanctions were having on Iran.

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And it is the President's
view that those sanctions are

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taking an important toll and
they are steadily increasing.

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And this administration is
going to continue to work both

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with our international
partners as well as

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unilaterally to continue to
pressure the Iranian regime to

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live up to their obligations
when it comes to their nuclear

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weapons program.

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The Press:
Well, what, if any, concern
is there in the administration

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that those words of
frustration coming from

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Netanyahu could be translated
into unilateral action --

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unilateral military
action against Tehran?

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Mr. Earnest:
Well, you know, Matt, the
policy of this administration

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has been that there
is still a window --

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a shrinking window, but
still a window nonetheless --

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for a diplomatic solution to
be reached to resolve these

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concerns about the Iranians'
failure to live up to their

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international obligations.

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So we're going to continue to
work in coordinated fashion

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with the international
community,

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including with the Israelis.

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We have worked --

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we have marched in
lockstep with them,

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we've been side by side with
them as they've confronted

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this threat, and
will continue to be.

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All options do
remain on the table.

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That's something that
we've said all along,

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that continues to be the case.

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But right now, what we're
focused on is taking advantage

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of this diplomatic window
that remains open to pursue

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a solution that satisfies the
world community and results

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in the international --

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in the Iranian regime
living up to their

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international obligations.

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The Press:
Thanks, Josh.

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In your first answer, are
you suggesting that Governor

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Romney is failing that
challenge of being an

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actor on the world stage?

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Mr. Earnest:
Well, that's not an
assessment that I would

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draw from this podium.

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I will leave it
to you and others,

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who are experienced observers
of candidates and Presidents

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and other world leaders who
have gone onto the world stage

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and have faced that challenge.

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And it's not --

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it wouldn't be appropriate
from my position to grade

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him from here.

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I'm not an Olympic
judge, as it were.

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The Press:
Speaker Pelosi is quoted as
saying that Republican Jews

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are being exploited because
they are more interested in

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the tax cuts that they would
get from the Republican Party

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than the interests of Israel.

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Does the President believe
former Speaker Pelosi is on

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to something with that?

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Mr. Earnest:
Well, I haven't
seen those comments.

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There are --

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there's no question that there
is a difference of opinion

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when it comes to what
congressional Republicans

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are advocating on
tax policy and what

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the President has advocated.

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The President has advocated
that we should seize on the

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common ground that exists to
act immediately to provide

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certainty to 98
percent of Americans --

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all Americans making less
than $250,000 a year,

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97 percent of American
small businesses,

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to prevent their taxes
from going up at the end

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of the year.

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So there's no question that
there's a difference of

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opinion between Democrats and
Republicans on that issue.

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It's something that
the President hopes

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will get resolved.

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I understand that this
is something that House

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Republicans are going
to consider this week.

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But in terms of Leader
Pelosi's comments,

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I haven't seen them so
it's difficult for me

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to react to them.

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The Press:
-- the "To-Do" list for
Congress before it takes

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a break in August?

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Mr. Earnest:
Well, there's a pretty long
"To-Do" list that we've talked

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about quite a bit.

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There are a number of things
in the American Jobs Act that

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Congress could do, from
putting teachers and

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firefighters and police --

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The Press:
This week?

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Mr. Earnest:
Well, I don't set the
congressional schedule.

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If I would, I'd probably have
a pretty long list for them

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because there are a lot of
things that the President

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believes that they should do.

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Some of the important work
that needs to be done to

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support the private sector
as we recover from the worst

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economic calamity since
the Great Depression --

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that there's a lot that
remains to be done,

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a lot of ideas that the
President has put forward,

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that have traditionally
earned bipartisan support,

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that Republicans
haven't acted on.

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And I'll leave it to them to
make up their own to-do list.

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I think what will be
challenging for them --

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as they consider what to
put on that to-do list,

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I would urge them to also
think about the reaction that

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they're going to get from
their constituents when they

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go home and spend the month of
August in town hall meetings

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and traveling across
their districts.

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I do think that there are
going to be some rather

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pointed questions that
Americans have about what

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Congress is doing
to strengthen --

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to support the private
sector as we recover,

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as we continue to strengthen
our economy and we continue

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to recover.

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And hopefully they'll put some
things on their to-do list

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that will strengthen their
answer to that question.

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The Press:
On Mr. Romney's trip, is there
anything that he spoke about

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this weekend, whether it's
regarding moving the U.S.

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embassy to Jerusalem, or
on sanctions on Iran --

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that you think
interferes with

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U.S. foreign policy?

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Mr. Earnest:
Well, there is nothing that
jumps out at me that would in

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any way limit the President's
ability to fulfill his

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responsibilities as
the Commander-in-Chief,

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as the President of the United
States and as the leader of

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the free world.

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And those are priorities and
responsibilities that the

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President takes
very seriously.

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Those are priorities and
responsibilities that the

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00:10:45,233 --> 00:10:48,800
President believes should
be above the partisan fray.

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00:10:48,800 --> 00:10:50,599
And despite the questions
that I'm getting today,

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00:10:50,600 --> 00:10:52,500
I'm doing my best to
live up to that standard.

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00:10:52,500 --> 00:10:54,400
The Press:
But when you say that people
are scratching their heads

249
00:10:54,400 --> 00:10:56,132
about his comments, you mean
because his comments were

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00:10:56,133 --> 00:10:59,567
confusing or out of line?

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00:10:59,567 --> 00:11:01,533
Mr. Earnest:
Well, I think it's in the
way in which Jim posed

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00:11:01,533 --> 00:11:02,533
his question --

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00:11:02,533 --> 00:11:06,367
he asked what the intention or
meaning of Governor Romney's

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00:11:06,367 --> 00:11:08,666
comments were.

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00:11:08,667 --> 00:11:13,000
And so I would leave it to
Governor Romney to explain

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00:11:13,000 --> 00:11:16,867
them to the extent that there
is some measure of confusion

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00:11:16,867 --> 00:11:18,467
that led to Jim's question.

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00:11:18,467 --> 00:11:20,600
Okay. Ed.

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00:11:20,600 --> 00:11:21,900
The Press:
Josh, on the
Commander-in-Chief question,

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00:11:21,900 --> 00:11:25,500
Senator McCain is on a tour
right now about defense

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00:11:25,500 --> 00:11:28,834
sequestration cuts, and he has
been prodding the President,

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00:11:28,834 --> 00:11:30,400
saying he should show
more leadership as

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00:11:30,400 --> 00:11:33,199
Commander-in-Chief to come
together on a deal here.

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00:11:33,200 --> 00:11:34,333
And a Democrat as well --

265
00:11:34,333 --> 00:11:36,233
Dick Durbin -- said
on CNN yesterday,

266
00:11:36,233 --> 00:11:39,433
that the President should --
he said, with the President's

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00:11:39,433 --> 00:11:42,633
leadership, there could be a
bipartisan deal here to prevent

268
00:11:42,633 --> 00:11:43,934
these massive defense cuts.

269
00:11:43,934 --> 00:11:44,834
Where are we on that?

270
00:11:44,834 --> 00:11:46,032
Is the President making calls?

271
00:11:46,033 --> 00:11:50,000
Is he working to get
a bipartisan deal?

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00:11:50,000 --> 00:11:51,667
Mr. Earnest:
I don't have any specific
calls to read out to you

273
00:11:51,667 --> 00:11:52,800
at this point.

274
00:11:52,800 --> 00:11:56,333
What I can tell you is
that the President remains

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00:11:56,333 --> 00:12:00,165
concerned about the impact
that the sequester could have.

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00:12:00,166 --> 00:12:03,633
But it's important for
everybody to remember

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00:12:03,633 --> 00:12:05,934
how we got to this point,
which is that the sequester

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00:12:05,934 --> 00:12:06,934
was put in place --

279
00:12:06,934 --> 00:12:10,867
it was voted into law by
Republicans and Democrats to

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00:12:10,867 --> 00:12:15,367
force Congress to take action
on a plan that would have a

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00:12:15,367 --> 00:12:19,099
meaningful impact on
our long-term deficit.

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00:12:19,100 --> 00:12:21,967
In response to that --

283
00:12:21,967 --> 00:12:25,300
to those extended negotiations
that led up to the sequester,

284
00:12:25,300 --> 00:12:26,900
the President put
forward his own plan.

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00:12:26,900 --> 00:12:29,266
He announced it in a
Rose Garden ceremony.

286
00:12:29,266 --> 00:12:31,400
He posted it on the
White House website.

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00:12:31,400 --> 00:12:32,900
I believe it's still there --

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00:12:32,900 --> 00:12:37,533
a balanced approach to
reducing our deficit by $4

289
00:12:37,533 --> 00:12:39,266
trillion over 10 years.

290
00:12:39,266 --> 00:12:41,867
This is an approach that
includes significant cuts to

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00:12:41,867 --> 00:12:44,165
government programs that in a
different fiscal environment

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00:12:44,166 --> 00:12:46,100
the President might
otherwise support,

293
00:12:46,100 --> 00:12:49,734
but it also includes asking --

294
00:12:49,734 --> 00:12:51,734
important reforms in Medicare
and Medicaid that over the

295
00:12:51,734 --> 00:12:53,834
long term will make
those programs stronger.

296
00:12:53,834 --> 00:12:58,532
But it also includes asking
those who make over $250,000

297
00:12:58,533 --> 00:13:00,433
a year to pay
their fair share,

298
00:13:00,433 --> 00:13:02,800
to pay a little bit more, so
that we can take a balanced

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00:13:02,800 --> 00:13:05,165
approach, that we can share
the burden when it comes to

300
00:13:05,166 --> 00:13:06,767
dealing with our long-term
deficit challenges.

301
00:13:06,767 --> 00:13:09,700
The reason that that's
important is because we're not

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00:13:09,700 --> 00:13:11,433
going to be able to cut our
way out of this problem.

303
00:13:11,433 --> 00:13:14,000
And I think that's what
most Americans understand.

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00:13:14,000 --> 00:13:17,066
We can't gut our
investments in education.

305
00:13:17,066 --> 00:13:19,066
We can't gut our investments
in infrastructure.

306
00:13:19,066 --> 00:13:22,166
We can't gut our investments
in research and development

307
00:13:22,166 --> 00:13:26,433
and in clean energy to solve
our deficit challenges.

308
00:13:26,433 --> 00:13:28,633
What we need to do is we
need to grow our economy,

309
00:13:28,633 --> 00:13:31,400
and so those kinds of
investments are important as

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00:13:31,400 --> 00:13:37,834
we ensure that we have a 21st
century modern infrastructure

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00:13:37,834 --> 00:13:39,199
that can support our economy.

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00:13:39,200 --> 00:13:41,834
So over the long term, what
we're looking to do is to take

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00:13:41,834 --> 00:13:43,900
a balanced approach
to reduce our deficit,

314
00:13:43,900 --> 00:13:46,000
ask those at the top of the
income scale to pay their fair

315
00:13:46,000 --> 00:13:48,400
share, and make the kinds of
investments that are going to

316
00:13:48,400 --> 00:13:50,600
strengthen our economy not
just in the short term,

317
00:13:50,600 --> 00:13:51,834
but also over the long term.

318
00:13:51,834 --> 00:13:52,532
The Press:
A couple other quick topics.

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00:13:52,533 --> 00:13:55,100
Former President Bill Clinton
we hear is going to have a big

320
00:13:55,100 --> 00:13:56,433
role at the convention.

321
00:13:56,433 --> 00:13:58,734
Can you walk us through why
the President chose him?

322
00:13:58,734 --> 00:14:00,900
They have not always
been on the same page.

323
00:14:00,900 --> 00:14:03,367
They've been on the same page
on a lot of other things.

324
00:14:03,367 --> 00:14:05,800
But also there is some
question as to whether

325
00:14:05,800 --> 00:14:09,333
this is going to overshadow
Vice President Biden's role.

326
00:14:09,333 --> 00:14:10,632
Mr. Earnest:
Well, a couple
things about that.

327
00:14:10,633 --> 00:14:15,400
The first is the President
himself, President Obama,

328
00:14:15,400 --> 00:14:19,367
has spoken many times
publicly about his respect

329
00:14:19,367 --> 00:14:21,834
for President Clinton and
President Clinton's ability

330
00:14:21,834 --> 00:14:28,467
to -- well, I should
say it this way --

331
00:14:28,467 --> 00:14:30,633
President Obama has spoken
frequently, publicly,

332
00:14:30,633 --> 00:14:33,400
about President Clinton's
success in dealing with some

333
00:14:33,400 --> 00:14:35,266
of the economic challenges
that this country faced when

334
00:14:35,266 --> 00:14:37,632
President Clinton was
here in the White House,

335
00:14:37,633 --> 00:14:40,367
and President Clinton's
record speaks for itself.

336
00:14:40,367 --> 00:14:42,800
It certainly means that
President Clinton is a very

337
00:14:42,800 --> 00:14:45,400
effective communicator in
terms of talking about the

338
00:14:45,400 --> 00:14:48,100
challenges that we face and
in talking about the kind of

339
00:14:48,100 --> 00:14:51,467
vision that he and President
Obama share in addressing and

340
00:14:51,467 --> 00:14:53,199
confronting these challenges.

341
00:14:53,200 --> 00:14:54,867
The Press:
But could that not
highlight the difficulties

342
00:14:54,867 --> 00:14:57,065
this President has
had meeting those

343
00:14:57,066 --> 00:14:58,500
same economic challenges?

344
00:14:58,500 --> 00:15:00,533
Mr. Earnest:
I don't think so because I
think what ultimately you're

345
00:15:00,533 --> 00:15:03,200
going to find is President
Clinton is going to reinforce

346
00:15:03,200 --> 00:15:05,000
the message that President
Obama himself will be laying

347
00:15:05,000 --> 00:15:08,567
out a day or two later, which
is his belief that if we're

348
00:15:08,567 --> 00:15:10,767
going to strengthen our
economy over the long term,

349
00:15:10,767 --> 00:15:12,567
we need to do it by
strengthening the middle

350
00:15:12,567 --> 00:15:14,100
class, by investing
in the middle class,

351
00:15:14,100 --> 00:15:16,033
and growing our economy
from the middle out.

352
00:15:16,033 --> 00:15:18,200
This stands in stark contrast
to the approach that's

353
00:15:18,200 --> 00:15:21,500
advocated by Governor Romney
and congressional Republicans

354
00:15:21,500 --> 00:15:24,333
who believe that we should
just shower the wealthy with

355
00:15:24,333 --> 00:15:26,900
tax cuts; that if we invest in
those at the top of the income

356
00:15:26,900 --> 00:15:29,165
scale, that all the benefits
will trickle down on everybody

357
00:15:29,166 --> 00:15:30,734
else and we'll all benefit.

358
00:15:30,734 --> 00:15:33,000
We've tried that approach
and it didn't work.

359
00:15:33,000 --> 00:15:34,300
President Clinton's
approach --

360
00:15:34,300 --> 00:15:36,400
a balanced approach that asks
those at the top of the income

361
00:15:36,400 --> 00:15:39,132
scale to pay their fair share
while also dealing with our

362
00:15:39,133 --> 00:15:41,166
deficit, while also making
important investments in

363
00:15:41,166 --> 00:15:43,734
infrastructure, in education,
in research and development --

364
00:15:43,734 --> 00:15:45,600
that that's the way that we're
going to grow our economy.

365
00:15:45,600 --> 00:15:48,367
Those kinds of investments
that ultimately benefit the

366
00:15:48,367 --> 00:15:50,766
middle class, are what's
going to lead to the strongest

367
00:15:50,767 --> 00:15:53,000
economic recovery
for this nation.

368
00:15:53,000 --> 00:15:54,800
And I think the opportunity
that President Clinton will

369
00:15:54,800 --> 00:15:59,065
have to deliver that message
in the convention isn't just

370
00:15:59,066 --> 00:16:01,066
appropriate, it's something
that will be very beneficial

371
00:16:01,066 --> 00:16:01,834
to the President.

372
00:16:01,834 --> 00:16:02,500
The Press:
Last thing on a
different topic --

373
00:16:02,500 --> 00:16:03,333
the bin Laden raid.

374
00:16:03,333 --> 00:16:05,333
There's a book out by an
author, Richard Miniter,

375
00:16:05,333 --> 00:16:08,834
who in context seems like a
critic of the President and is

376
00:16:08,834 --> 00:16:10,532
claiming that he has
information that the

377
00:16:10,533 --> 00:16:12,934
bin Laden raid was
called off a few times,

378
00:16:12,934 --> 00:16:14,867
in part because Valerie
Jarrett suggested to the

379
00:16:14,867 --> 00:16:16,333
President that he call it off.

380
00:16:16,333 --> 00:16:17,867
Does the White House
have any reactions,

381
00:16:17,867 --> 00:16:20,300
whether this is
factually correct?

382
00:16:20,300 --> 00:16:23,367
Mr. Earnest:
That is an utter fabrication.

383
00:16:23,367 --> 00:16:26,333
It seems pretty clear that
Mr. Miniter doesn't know what

384
00:16:26,333 --> 00:16:27,500
he's talking about.

385
00:16:27,500 --> 00:16:29,934
Ms. Jarrett, like many --

386
00:16:29,934 --> 00:16:32,333
like the vast majority of
the President's senior staff,

387
00:16:32,333 --> 00:16:39,567
was not read in the operation,
on the mission against Osama

388
00:16:39,567 --> 00:16:40,900
bin Laden.

389
00:16:40,900 --> 00:16:43,132
So I wouldn't put any
stock into that vignette --

390
00:16:43,133 --> 00:16:45,333
or into the book itself.

391
00:16:45,333 --> 00:16:46,567
Kristen.

392
00:16:46,567 --> 00:16:47,367
The Press:
Josh, thanks.

393
00:16:47,367 --> 00:16:49,266
Going back to Senator
Durbin's comments --

394
00:16:49,266 --> 00:16:51,099
he said this weekend,
specifically,

395
00:16:51,100 --> 00:16:52,834
"We believe there
is a responsible,

396
00:16:52,834 --> 00:16:54,000
reasonable way
to move forward,

397
00:16:54,000 --> 00:16:55,967
and we're going to try to
put something on the table

398
00:16:55,967 --> 00:16:57,100
to be considered."

399
00:16:57,100 --> 00:17:01,100
He almost struck a cautiously
optimistic tone there.

400
00:17:01,100 --> 00:17:04,300
What is the President's level
of optimism that they can

401
00:17:04,300 --> 00:17:05,899
actually get something done?

402
00:17:05,900 --> 00:17:07,934
Mr. Earnest:
Well, this is something that
ultimately Congress is going

403
00:17:07,934 --> 00:17:08,966
to have to move on.

404
00:17:08,967 --> 00:17:12,967
The President has been
very candid about his

405
00:17:12,967 --> 00:17:14,166
views on this.

406
00:17:14,165 --> 00:17:15,966
You have all heard him talk
about this quite extensively

407
00:17:15,967 --> 00:17:18,400
on the road.

408
00:17:18,400 --> 00:17:20,800
You've heard him talk about
it even from this podium.

409
00:17:20,800 --> 00:17:22,733
You've read the plan that
the President has put out,

410
00:17:22,733 --> 00:17:25,165
the detailed plan that is on
the White House website that

411
00:17:25,165 --> 00:17:29,066
the President laid out
almost 11 months ago now.

412
00:17:29,066 --> 00:17:33,066
So the President's views
are quite well known.

413
00:17:33,066 --> 00:17:36,467
And it really is just a
responsibility of Democrats

414
00:17:36,467 --> 00:17:40,367
and Republicans in Congress
to come together to resolve

415
00:17:40,367 --> 00:17:41,166
this challenge.

416
00:17:41,166 --> 00:17:43,767
The President believes that
they should take a balanced

417
00:17:43,767 --> 00:17:47,233
approach to dealing with it,
and that's going to require

418
00:17:47,233 --> 00:17:48,966
Republicans to do something
that they haven't demonstrated

419
00:17:48,967 --> 00:17:53,600
a willingness to do thus far,
which is to stop fighting

420
00:17:53,600 --> 00:17:59,166
tooth and nail to protect the
tax benefits of millionaires

421
00:17:59,166 --> 00:18:00,233
and billionaires.

422
00:18:00,233 --> 00:18:01,667
That can't be
the top priority.

423
00:18:01,667 --> 00:18:04,033
What needs to be the top
priority is dealing with

424
00:18:04,033 --> 00:18:05,033
our deficit.

425
00:18:05,033 --> 00:18:07,600
What needs to be our top
priority is investing in the

426
00:18:07,600 --> 00:18:12,300
kinds of policies that are
going to create a strong

427
00:18:12,300 --> 00:18:14,600
middle class and that are
going to lay the groundwork to

428
00:18:14,600 --> 00:18:17,800
ensure that our economy can
recover over the long term.

429
00:18:17,800 --> 00:18:19,966
Those should be
the priorities.

430
00:18:19,967 --> 00:18:23,200
And thus far, Republicans
have made protecting the tax

431
00:18:23,200 --> 00:18:25,533
benefits of millionaires and
billionaires the top priority.

432
00:18:25,533 --> 00:18:26,567
That's what stood in the way.

433
00:18:26,567 --> 00:18:30,367
As soon as they drop
that priority --

434
00:18:30,367 --> 00:18:33,265
or at least
de-prioritize it --

435
00:18:33,266 --> 00:18:35,100
then I think we're going to
be able to make some ground.

436
00:18:35,100 --> 00:18:38,533
And the reason that that's
important is that neither --

437
00:18:38,533 --> 00:18:41,199
although both Republicans
and Democrats voted for the

438
00:18:41,200 --> 00:18:44,900
sequester in an effort to
force some action on deficit

439
00:18:44,900 --> 00:18:47,400
reduction, neither
Democrats, nor Republicans

440
00:18:47,400 --> 00:18:49,500
support that policy.

441
00:18:49,500 --> 00:18:51,767
So it's in the interest of
both parties to come together

442
00:18:51,767 --> 00:18:53,266
and try to resolve this.

443
00:18:53,266 --> 00:18:56,600
The Press:
Does the President have any
sense of confidence that they

444
00:18:56,600 --> 00:18:59,332
will be able to come to
a resolution on this,

445
00:18:59,800 --> 00:19:01,767
given that they failed so
many times in the past?

446
00:19:01,767 --> 00:19:03,834
Mr. Earnest:
Well, given the stakes, the
President is certainly hopeful

447
00:19:03,834 --> 00:19:10,800
that Republicans will adopt an
approach that is supported by

448
00:19:10,800 --> 00:19:12,332
the vast majority
of Americans --

449
00:19:12,333 --> 00:19:14,066
according to some polls, is
even supported by a majority

450
00:19:14,066 --> 00:19:15,133
of Republicans --

451
00:19:15,133 --> 00:19:16,934
which is that we should
adopt a balanced approach,

452
00:19:16,934 --> 00:19:18,767
that we should ask those at
the top of the income scale,

453
00:19:18,767 --> 00:19:22,800
those making more than
$250,000 a year and higher,

454
00:19:22,800 --> 00:19:24,800
to pay a little bit more,
to do their fair share.

455
00:19:24,800 --> 00:19:28,433
That, coupled with tough
decisions about cuts in

456
00:19:28,433 --> 00:19:32,533
government spending, coupled
with reforms to the Medicare

457
00:19:32,533 --> 00:19:36,033
program and other things that
are part of this balanced

458
00:19:36,033 --> 00:19:39,332
approach, will lead us to a
solution that ultimately is in

459
00:19:39,333 --> 00:19:41,333
the best interest of the
American people and the

460
00:19:41,333 --> 00:19:42,567
American economy.

461
00:19:42,567 --> 00:19:45,266
The Press:
And, Josh, I also want to get
your reaction to the reports

462
00:19:45,266 --> 00:19:48,333
today about the Inspector
General who finalized --

463
00:19:48,333 --> 00:19:50,767
who discovered that the U.S.

464
00:19:50,767 --> 00:19:52,834
initiative to spend hundreds
of millions of dollars on

465
00:19:52,834 --> 00:19:55,233
construction projects
in Afghanistan,

466
00:19:55,233 --> 00:19:57,767
which is part of the effort
to combat the Taliban won't

467
00:19:57,767 --> 00:20:01,600
actually be finished and yield
results until the majority of

468
00:20:01,600 --> 00:20:02,800
U.S. troops have been withdrawn.

469
00:20:02,800 --> 00:20:05,300
Does the administration
have a reaction?

470
00:20:05,300 --> 00:20:09,265
Mr. Earnest:
I've seen the
reports of the study,

471
00:20:09,266 --> 00:20:12,133
but I don't have an actual
reaction to give to you at

472
00:20:12,133 --> 00:20:12,600
this point.

473
00:20:12,600 --> 00:20:13,500
If you want to check
back a little bit later,

474
00:20:13,500 --> 00:20:15,233
we'll see what we can do
for you on that, okay.

475
00:20:15,233 --> 00:20:18,066
I'm trying to move it
around just a little bit.

476
00:20:18,066 --> 00:20:18,867
Ari.

477
00:20:18,867 --> 00:20:19,433
The Press:
Thanks.

478
00:20:19,433 --> 00:20:21,066
Today, apparently the
committee charged with

479
00:20:21,066 --> 00:20:23,400
drafting the Democratic Party
platform for the convention

480
00:20:23,400 --> 00:20:27,100
unanimously approved including
support for same-sex marriage,

481
00:20:27,100 --> 00:20:29,766
and I wonder if you have
any reaction to that.

482
00:20:29,767 --> 00:20:32,367
Mr. Earnest:
I haven't seen those reports.

483
00:20:32,367 --> 00:20:35,265
The President's position
on this view has been well

484
00:20:35,266 --> 00:20:37,066
chronicled, shall we say.

485
00:20:37,066 --> 00:20:38,934
But in terms of a specific
reaction to the platform,

486
00:20:38,934 --> 00:20:42,133
I'd refer you to my
colleagues at the DNC.

487
00:20:42,133 --> 00:20:42,900
Roger.

488
00:20:42,900 --> 00:20:43,767
The Press:
Thanks.

489
00:20:43,767 --> 00:20:46,500
Some of the congressional
Democrats are highlighting

490
00:20:46,500 --> 00:20:48,533
differences with the
President when they're

491
00:20:48,533 --> 00:20:50,233
on the campaign trail.

492
00:20:50,233 --> 00:20:53,899
Others are skipping
the convention --

493
00:20:53,900 --> 00:20:56,066
others won't even say whether
they favor the President for

494
00:20:56,066 --> 00:20:58,400
the second term.

495
00:20:58,400 --> 00:21:00,500
How do you guys
respond to that?

496
00:21:00,500 --> 00:21:04,266
Mr. Earnest:
Well, this is something that
happens I think every four

497
00:21:04,266 --> 00:21:08,333
years on both sides, frankly,
and I know that what the

498
00:21:08,333 --> 00:21:13,367
President is focused on right
now is certainly his day job

499
00:21:13,367 --> 00:21:15,567
here as the
Commander-in-Chief.

500
00:21:15,567 --> 00:21:16,700
But when it comes
to his reelection,

501
00:21:16,700 --> 00:21:18,967
what the President is
interested in doing is making

502
00:21:18,967 --> 00:21:21,667
the case to the American
people, to all Americans --

503
00:21:21,667 --> 00:21:24,065
Democrats, Republicans
and independents --

504
00:21:24,066 --> 00:21:26,734
about what his vision is for
the future of this country,

505
00:21:26,734 --> 00:21:29,600
about how his view that it's
so important to invest in a

506
00:21:29,600 --> 00:21:30,667
strong middle class.

507
00:21:30,667 --> 00:21:32,734
The key to our economic
recovery is investing in the

508
00:21:32,734 --> 00:21:35,000
middle class so that we can
grow our economy from the

509
00:21:35,000 --> 00:21:37,400
middle out and how that stands
in pretty stark contrast to

510
00:21:37,400 --> 00:21:39,967
the policies that are being
advocated by the other side.

511
00:21:39,967 --> 00:21:43,333
And the President himself has
been pretty candid about his

512
00:21:43,333 --> 00:21:47,266
view that, whomever
is listening to him,

513
00:21:47,266 --> 00:21:50,000
that if they agree with
what Governor Romney and

514
00:21:50,000 --> 00:21:54,834
congressional Republicans are
saying about the benefits of

515
00:21:54,834 --> 00:21:58,500
offering tax cuts to the
wealthy and how that prospect

516
00:21:58,500 --> 00:22:00,400
could lead to
economic strength,

517
00:22:00,400 --> 00:22:02,633
the President has said that if
you agree with that approach,

518
00:22:02,633 --> 00:22:04,233
an approach that we've
tried and has not worked,

519
00:22:04,233 --> 00:22:05,734
but if you agree
with that approach --

520
00:22:05,734 --> 00:22:08,100
whether you're a Democrat or
a Republican or an independent

521
00:22:08,100 --> 00:22:09,300
-- that you should
support the other guy.

522
00:22:09,300 --> 00:22:12,166
But the President has also
said if you agree with him

523
00:22:12,166 --> 00:22:15,833
that investing in the middle
class is the best way to grow

524
00:22:15,834 --> 00:22:18,300
our economy, that that's the
tried and true method of a

525
00:22:18,300 --> 00:22:20,533
strong American
economy, that Democrats,

526
00:22:20,533 --> 00:22:22,934
Republicans and independents
who feel that way should

527
00:22:22,934 --> 00:22:23,934
support the President.

528
00:22:23,934 --> 00:22:25,332
That's the case that
he'll be making,

529
00:22:25,333 --> 00:22:27,433
and that's the
case that, frankly,

530
00:22:27,433 --> 00:22:28,767
transcends partisan lines.

531
00:22:28,767 --> 00:22:31,266
The Press:
Is there any concern that
it's a sign of diminished

532
00:22:31,266 --> 00:22:33,300
support among Democrats,
especially in sort of

533
00:22:33,300 --> 00:22:35,100
Republican-leaning districts?

534
00:22:35,100 --> 00:22:38,166
Mr. Earnest:
No, it's not. Peter.

535
00:22:38,166 --> 00:22:40,200
The Press:
Josh, you mentioned in
response to some earlier

536
00:22:40,200 --> 00:22:43,200
questions the economic
issues in the Middle East,

537
00:22:43,200 --> 00:22:46,000
Israeli-Palestinian
specifically,

538
00:22:46,000 --> 00:22:48,767
and the status of Jerusalem
should be settled as part of

539
00:22:48,767 --> 00:22:50,166
the peace process.

540
00:22:50,166 --> 00:22:53,600
Realistically, what are the
prospects for any progress

541
00:22:53,600 --> 00:22:55,899
anytime soon on that?

542
00:22:55,900 --> 00:22:59,800
And what, if anything, is the
President doing to promote it?

543
00:22:59,800 --> 00:23:01,899
Mr. Earnest:
Well, I don't want to be in a
position of trying to handicap

544
00:23:01,900 --> 00:23:04,633
the outcome of those
kinds of conversations.

545
00:23:04,633 --> 00:23:07,400
This is something that
many American Presidents

546
00:23:07,400 --> 00:23:10,333
have worked on.

547
00:23:10,333 --> 00:23:16,033
There is no doubt about the
interest that the United

548
00:23:16,033 --> 00:23:20,934
States of America has in the
resolution of some of those

549
00:23:20,934 --> 00:23:25,567
issues, that turmoil in that
region is not in the best

550
00:23:25,567 --> 00:23:27,834
interests of the United
States of America.

551
00:23:27,834 --> 00:23:30,600
We've seen the President's
strong support for the nation

552
00:23:30,600 --> 00:23:33,966
of Israel in a wide
range of formats.

553
00:23:33,967 --> 00:23:35,867
The President signed a piece
of legislation in the Oval

554
00:23:35,867 --> 00:23:38,734
Office on Friday further
deepening the security

555
00:23:38,734 --> 00:23:41,233
cooperation between the
United States and Israel.

556
00:23:41,233 --> 00:23:42,734
You've seen the President
stand on the floor of the

557
00:23:42,734 --> 00:23:46,966
United Nations against efforts
to delegitimize Israel or to

558
00:23:46,967 --> 00:23:49,133
minimize their
security concerns.

559
00:23:49,133 --> 00:23:52,433
You've seen the President
stand to block efforts at the

560
00:23:52,433 --> 00:23:56,700
U.N. to go around those
negotiations between the

561
00:23:56,700 --> 00:24:00,333
parties in terms of the
Palestinians efforts to

562
00:24:00,333 --> 00:24:01,266
get statehood --

563
00:24:01,266 --> 00:24:03,600
be recognized for statehood
at the United Nations.

564
00:24:03,600 --> 00:24:07,265
You've seen the President,
when he traveled to Israel

565
00:24:07,266 --> 00:24:11,000
as a candidate, affirm his
solidarity with the Israeli

566
00:24:11,000 --> 00:24:14,233
people, where he talked about
the Iron Dome program that

567
00:24:14,233 --> 00:24:17,934
commenced under his
watch and has been --

568
00:24:17,934 --> 00:24:20,533
we've invested nearly $300
million in that program,

569
00:24:20,533 --> 00:24:22,800
that to this day, right
now as we're talking,

570
00:24:22,800 --> 00:24:25,834
is providing a blanket of
protection for the Israeli

571
00:24:25,834 --> 00:24:30,767
people who had previously been
in danger of being showered

572
00:24:30,767 --> 00:24:33,400
with rockets fired from Gaza.

573
00:24:33,400 --> 00:24:37,300
So the President has a long
record on these issues,

574
00:24:37,300 --> 00:24:41,767
both in terms of his
strong support with Israel,

575
00:24:41,767 --> 00:24:46,000
but also in articulating
his interest about why it's

576
00:24:46,000 --> 00:24:48,567
important to the United States
for some of these issues to be

577
00:24:48,567 --> 00:24:50,700
confronted, to be negotiated
between the parties,

578
00:24:50,700 --> 00:24:52,667
and ultimately resolved.

579
00:24:52,667 --> 00:24:55,766
The Press:
Can you point to any progress
in the peace process since he

580
00:24:55,767 --> 00:24:56,900
took office?

581
00:24:56,900 --> 00:24:58,400
In the peace process.

582
00:24:58,400 --> 00:25:02,367
Mr. Earnest:
There have been a number of
dialogue sessions that the

583
00:25:02,367 --> 00:25:04,633
President has participated
in, both unilaterally,

584
00:25:04,633 --> 00:25:06,066
but also trilaterally.

585
00:25:06,066 --> 00:25:07,900
There were some of those
meetings at the White House

586
00:25:07,900 --> 00:25:11,500
in the past, and those
were conversations that

587
00:25:11,500 --> 00:25:13,867
the President played an
influential role in.

588
00:25:13,867 --> 00:25:17,899
And ultimately, the way this
is going to be resolved is

589
00:25:17,900 --> 00:25:19,166
dialogue through
those parties,

590
00:25:19,166 --> 00:25:21,265
and the President is
interested in doing what he

591
00:25:21,266 --> 00:25:23,767
can to play a leadership role
in facilitating some of that

592
00:25:23,767 --> 00:25:26,800
dialogue and reaching this --

593
00:25:26,800 --> 00:25:29,966
reaching a conclusion
that is, of course,

594
00:25:29,967 --> 00:25:31,867
in the best interests of the
two parties who are part of

595
00:25:31,867 --> 00:25:37,000
that dialogue, but that
enduring resolution is

596
00:25:37,000 --> 00:25:40,200
something that is in the solid
interest of the United States

597
00:25:40,200 --> 00:25:41,300
of America.

598
00:25:41,300 --> 00:25:43,533
The Press:
One quick question on a
totally different subject,

599
00:25:43,533 --> 00:25:46,233
domestically -- is the President
aware of this report that's out

600
00:25:46,233 --> 00:25:49,667
there today about
his family tree?

601
00:25:49,667 --> 00:25:50,966
Mr. Earnest:
I've seen some
of those reports.

602
00:25:50,967 --> 00:25:52,333
I have not talked to
the President about

603
00:25:52,333 --> 00:25:55,834
it today, though.

604
00:25:55,834 --> 00:25:58,333
The Press:
In the past, White House
officials have said that

605
00:25:58,333 --> 00:26:01,900
Mitt Romney's position on
Iran showed no discernible

606
00:26:01,900 --> 00:26:03,667
difference with the
President's position and that

607
00:26:03,667 --> 00:26:07,265
if he wanted to articulate
a difference, he should.

608
00:26:07,266 --> 00:26:09,467
In the wake of his speech
in Israel about Iran,

609
00:26:09,467 --> 00:26:11,266
do you still feel
the same way,

610
00:26:11,266 --> 00:26:14,767
that he has essentially not
carved out any difference with

611
00:26:14,767 --> 00:26:15,700
administration policy?

612
00:26:15,700 --> 00:26:17,734
Or do you see
something different?

613
00:26:17,734 --> 00:26:20,600
Mr. Earnest:
Well, I think in terms of the
specific positions that Mitt

614
00:26:20,600 --> 00:26:22,533
Romney has advocated
on his trip,

615
00:26:22,533 --> 00:26:25,466
I would refer you to my
colleagues at the campaign.

616
00:26:25,467 --> 00:26:28,066
The Press:
But this isn't really
exactly a campaign question.

617
00:26:28,066 --> 00:26:28,967
I'm asking, based on --

618
00:26:28,967 --> 00:26:30,633
Mr. Earnest:
Well, you're sort of asking
me to assess whether or not

619
00:26:30,633 --> 00:26:31,967
he agrees or disagrees
with the President of

620
00:26:31,967 --> 00:26:32,800
the United States.

621
00:26:32,800 --> 00:26:36,899
So I guess if you're a little
confused about what position

622
00:26:36,900 --> 00:26:38,700
Mitt Romney is taking, then
I guess I'd suggest that you

623
00:26:38,700 --> 00:26:41,767
reach out to his campaign.

624
00:26:41,767 --> 00:26:45,100
But I don't know that I'm
in a position to assess how

625
00:26:45,100 --> 00:26:51,233
strongly or weakly he
agreed with the President.

626
00:26:51,233 --> 00:26:52,200
Goyal.

627
00:26:52,200 --> 00:26:53,700
The Press:
Thank you. Two questions.

628
00:26:53,700 --> 00:26:57,200
One, how serious you think
Iran's presence in the Gulf is

629
00:26:57,200 --> 00:27:01,834
as far as the world oil
supply is concerned?

630
00:27:01,834 --> 00:27:04,734
Mr. Earnest:
Well, we certainly are
concerned about instability

631
00:27:04,734 --> 00:27:05,500
in the region.

632
00:27:05,500 --> 00:27:08,266
It's one of the reasons
that we have worked,

633
00:27:08,266 --> 00:27:11,000
as I mentioned earlier,
in collaboration with our

634
00:27:11,000 --> 00:27:13,967
partners around the globe and
even partners there in the

635
00:27:13,967 --> 00:27:18,633
region to try to bring some
greater stability to that

636
00:27:18,633 --> 00:27:23,367
region; that it has in the
past had some impact on oil

637
00:27:23,367 --> 00:27:25,667
prices and it's why we're
eager for the Iranian regime

638
00:27:25,667 --> 00:27:28,533
to live up to their
international obligations.

639
00:27:28,533 --> 00:27:31,332
And that's where we are.

640
00:27:31,333 --> 00:27:34,900
The Press:
And second, as far as the
U.S.-Indian economic and trade

641
00:27:34,900 --> 00:27:38,767
relations are concerned,
recently hundreds of Indian

642
00:27:38,767 --> 00:27:41,600
companies have been investing
in Indian billions of dollars

643
00:27:41,600 --> 00:27:43,166
and creating
thousands of jobs.

644
00:27:43,166 --> 00:27:45,367
Is there some kind of special
agreement between the two

645
00:27:45,367 --> 00:27:49,667
countries now, since the
finance minister of India

646
00:27:49,667 --> 00:27:52,033
is now the president of India?

647
00:27:52,033 --> 00:27:56,567
Mr. Earnest:
In terms of the details of our
trade relationship with India,

648
00:27:56,567 --> 00:27:58,533
I'd refer you to the USTR.

649
00:27:58,533 --> 00:28:01,600
I don't have any details
on the relationship that

650
00:28:01,600 --> 00:28:03,433
you're citing there.

651
00:28:03,433 --> 00:28:04,500
Jen.

652
00:28:04,500 --> 00:28:05,767
The Press:
Thanks, Josh.

653
00:28:05,767 --> 00:28:08,133
Senator Lautenberg and
Congresswoman McCarthy just

654
00:28:08,133 --> 00:28:12,033
introduced a new bill that would
ban online ammunition sales.

655
00:28:12,033 --> 00:28:14,632
Their bill would also require
reporting to law enforcement

656
00:28:14,633 --> 00:28:16,400
of bulk ammunition sales.

657
00:28:16,400 --> 00:28:17,533
I'm wondering if the
President would support

658
00:28:17,533 --> 00:28:19,632
a bill like this.

659
00:28:19,633 --> 00:28:21,734
Mr. Earnest:
I don't know that he's
seen that specific piece

660
00:28:21,734 --> 00:28:24,033
of legislation
that's been offered.

661
00:28:24,033 --> 00:28:26,433
The President's views that
have been relayed quite

662
00:28:26,433 --> 00:28:31,633
frequently over the last few
days is that he believes in

663
00:28:31,633 --> 00:28:33,066
the Second Amendment
of the Constitution,

664
00:28:33,066 --> 00:28:36,166
in the right to bear arms,
but he also believes that we

665
00:28:36,166 --> 00:28:40,300
should take robust steps
within existing law to ensure

666
00:28:40,300 --> 00:28:42,533
that guns don't fall in the
hands of criminals or others

667
00:28:42,533 --> 00:28:44,132
who shouldn't have them.

668
00:28:44,133 --> 00:28:48,200
The Press:
Would that include a ban on
online sales of ammunition?

669
00:28:48,200 --> 00:28:50,233
Mr. Earnest:
Well, like I said, I haven't
seen the specific piece of

670
00:28:50,233 --> 00:28:52,734
legislation that has
been offered up today.

671
00:28:52,734 --> 00:28:55,766
But as that and other pieces
of legislation make their way

672
00:28:55,767 --> 00:28:58,166
through the legislative
process we'll consider --

673
00:28:58,166 --> 00:29:01,800
we'll evaluate them
as they make their way

674
00:29:01,800 --> 00:29:02,899
through the process.

675
00:29:02,900 --> 00:29:05,066
The Press:
So he will evaluate
a bill like this?

676
00:29:05,066 --> 00:29:05,667
Mr. Earnest:
I'm sorry?

677
00:29:05,667 --> 00:29:07,766
The Press:
The President would
evaluate a bill like this?

678
00:29:07,767 --> 00:29:11,600
Mr. Earnest:
Our administration will
be taking a look at this

679
00:29:11,600 --> 00:29:15,332
legislation and others
as they make their way

680
00:29:15,333 --> 00:29:16,433
through Congress.

681
00:29:16,433 --> 00:29:18,433
The Press:
Can you check on that
particular thing,

682
00:29:18,433 --> 00:29:20,266
whether he supports it or not?

683
00:29:20,266 --> 00:29:23,100
Mr. Earnest:
I can take a look.

684
00:29:23,100 --> 00:29:25,567
The Press:
Can you tell us why the White
House decided to weigh in on

685
00:29:25,567 --> 00:29:29,800
this whole Winston Churchill
bust scandal and whether you

686
00:29:29,800 --> 00:29:33,899
guys are going to clarify
what bust is where and --

687
00:29:33,900 --> 00:29:38,633
(laughter)

688
00:29:38,633 --> 00:29:40,834
Mr. Earnest:
It is almost like a bad
Sherlock Holmes script, right?

689
00:29:40,834 --> 00:29:42,433
(laughter)

690
00:29:42,433 --> 00:29:45,900
"The Case of the Missing
Winston Churchill Bust."

691
00:29:45,900 --> 00:29:51,033
The reason that we weighed in
on Friday is because there is

692
00:29:51,033 --> 00:29:55,300
a myth floating in some of the
darker corners of the Internet --

693
00:29:55,300 --> 00:29:56,899
(laughter)

694
00:29:56,900 --> 00:29:59,300
-- that suggests that
upon taking office,

695
00:29:59,300 --> 00:30:04,899
the President went out of his
way to snub the British people

696
00:30:04,900 --> 00:30:11,867
by prematurely returning the
bust of Winston Churchill that

697
00:30:11,867 --> 00:30:14,767
had occupied a prominent place
in the Oval Office under the

698
00:30:14,767 --> 00:30:17,033
previous President.

699
00:30:17,033 --> 00:30:19,367
That's not true.

700
00:30:19,367 --> 00:30:22,834
As the White House Curator
has previously explained,

701
00:30:22,834 --> 00:30:24,433
and I believe as we explained
at the end of the day on

702
00:30:24,433 --> 00:30:29,000
Friday, the bust was
loaned to President Bush

703
00:30:29,000 --> 00:30:31,266
by the British government.

704
00:30:31,266 --> 00:30:33,834
As is customary, at the
conclusion of President Bush's

705
00:30:33,834 --> 00:30:38,000
term and before President
Obama entered the Oval Office,

706
00:30:38,000 --> 00:30:41,000
the bust was returned
to the British embassy.

707
00:30:41,000 --> 00:30:44,000
What hasn't changed
are two things: one,

708
00:30:44,000 --> 00:30:46,100
the President's --

709
00:30:46,100 --> 00:30:48,500
the priority and value that
the President places on our

710
00:30:48,500 --> 00:30:52,133
special relationship with
the United Kingdom, and two,

711
00:30:52,133 --> 00:30:54,934
the location of the
prominently placed Winston

712
00:30:54,934 --> 00:30:57,332
Churchill bust in the
White House residence.

713
00:30:57,333 --> 00:31:00,800
And I think you may have seen
the picture that we put on the

714
00:31:00,800 --> 00:31:04,466
White House website on Friday
of President Obama showing off

715
00:31:04,467 --> 00:31:06,700
the Churchill bust in the
White House residence to Prime

716
00:31:06,700 --> 00:31:08,433
Minister Cameron when
he visited the U.S.

717
00:31:08,433 --> 00:31:09,433
back in March.

718
00:31:09,433 --> 00:31:12,200
(laughter)

719
00:31:12,200 --> 00:31:13,767
Have we settled the case
of the missing Winston

720
00:31:13,767 --> 00:31:15,100
Churchill bust?

721
00:31:15,100 --> 00:31:16,100
I hope so.

722
00:31:16,100 --> 00:31:16,632
Brianna.

723
00:31:17,166 --> 00:31:17,966
The Press:
Thanks, Josh.

724
00:31:17,967 --> 00:31:22,066
Senator McCain has said that
the looming fiscal cliff

725
00:31:22,066 --> 00:31:25,300
situation requires
presidential leadership

726
00:31:25,300 --> 00:31:27,133
and he's accused the
President of being

727
00:31:27,133 --> 00:31:28,667
M.I.A. on it.

728
00:31:28,667 --> 00:31:31,132
What's your reaction to that?

729
00:31:31,133 --> 00:31:35,033
Mr. Earnest:
Well, my reaction is that the
President has expressed his

730
00:31:35,033 --> 00:31:38,966
concerns quite vividly about
the impact that the sequester

731
00:31:38,967 --> 00:31:41,567
would have both on
our national security,

732
00:31:41,567 --> 00:31:43,900
but also on some programs
that are pretty important

733
00:31:43,900 --> 00:31:46,967
to a strong middle class.

734
00:31:46,967 --> 00:31:50,266
The President has also noted
frequently that the sequester

735
00:31:50,266 --> 00:31:53,400
is something that was voted
into law by Republicans and

736
00:31:53,400 --> 00:31:57,800
Democrats, and it was voted
into law as an action-forcing

737
00:31:57,800 --> 00:32:01,033
mechanism to convince Congress
to finally take important

738
00:32:01,033 --> 00:32:04,265
steps to reduce our
deficit over the long term.

739
00:32:04,266 --> 00:32:07,000
And the President is hopeful
that Congress will follow

740
00:32:07,000 --> 00:32:09,467
through on those important
steps and prevent the

741
00:32:09,467 --> 00:32:12,967
sequester from taking effect.

742
00:32:12,967 --> 00:32:16,533
There are a whole range of
reasons why that's true.

743
00:32:16,533 --> 00:32:18,399
This is something on which
there is bipartisan agreement.

744
00:32:18,400 --> 00:32:20,633
As you point out, Senator
McCain is expressing concerns

745
00:32:20,633 --> 00:32:23,467
about the impact the
sequester would have.

746
00:32:23,467 --> 00:32:25,533
The President himself has
expressed similar concerns.

747
00:32:25,533 --> 00:32:28,667
The Defense Secretary has
expressed similar concerns.

748
00:32:28,667 --> 00:32:31,667
So what we need right now is
we need for Congress to take

749
00:32:31,667 --> 00:32:32,667
some action.

750
00:32:32,667 --> 00:32:36,000
And what seems to me and other
members of the administration

751
00:32:36,000 --> 00:32:42,166
to be the principal stumbling
block is the commitment,

752
00:32:42,166 --> 00:32:44,667
the die-hard commitment
on behalf of congressional

753
00:32:44,667 --> 00:32:49,000
Republicans, to even consider
asking millionaires and

754
00:32:49,000 --> 00:32:50,567
billionaires to pay a little
bit more to deal with our

755
00:32:50,567 --> 00:32:51,700
deficit challenges.

756
00:32:51,700 --> 00:32:54,367
This seems like it should be
a common-sense policy proposal

757
00:32:54,367 --> 00:32:55,633
that we could get done.

758
00:32:55,633 --> 00:33:03,300
There is, broadly speaking,
support from the American

759
00:33:03,300 --> 00:33:05,899
people for a balanced approach
similar to the one that the

760
00:33:05,900 --> 00:33:07,266
President has advocated.

761
00:33:07,266 --> 00:33:09,166
You've seen bipartisan
commissions,

762
00:33:09,166 --> 00:33:11,800
including the
Simpson-Bowles commission,

763
00:33:11,800 --> 00:33:14,367
including the
Domenici-Rivlin commission,

764
00:33:14,367 --> 00:33:16,133
including the "Gang of Six" --

765
00:33:16,133 --> 00:33:19,133
all of which are bipartisan
bodies who spent a lot of time

766
00:33:19,133 --> 00:33:21,567
taking a look at this
challenge and have advocated

767
00:33:21,567 --> 00:33:23,500
a balanced approach similar
to the one that the President

768
00:33:23,500 --> 00:33:24,633
has put forward.

769
00:33:24,633 --> 00:33:27,266
The Press:
What about what he could do
-- you're saying that he's --

770
00:33:27,266 --> 00:33:31,166
I mean, is expressing concerns
and noting things frequently

771
00:33:31,166 --> 00:33:33,466
and being hopeful that a
Congress that doesn't normally

772
00:33:33,467 --> 00:33:34,667
act will act --

773
00:33:34,667 --> 00:33:36,265
is that strong
presidential leadership?

774
00:33:36,266 --> 00:33:37,233
Mr. Earnest:
And you left out
one key thing,

775
00:33:37,233 --> 00:33:39,367
which is laying out a very
specific plan for how we can

776
00:33:39,367 --> 00:33:40,667
resolve this challenge.

777
00:33:40,667 --> 00:33:44,934
The Press:
But why not get more
involved than just putting

778
00:33:44,934 --> 00:33:45,600
a plan out there?

779
00:33:45,600 --> 00:33:46,433
Why not doing
some wrangling --

780
00:33:46,433 --> 00:33:47,467
Mr. Earnest:
Than just talk about it and
offer a specific solution that

781
00:33:47,467 --> 00:33:49,100
is broadly supported by the
American people about how to

782
00:33:49,100 --> 00:33:50,766
resolve it?

783
00:33:50,767 --> 00:33:52,066
That's what the
President has done.

784
00:33:52,066 --> 00:33:53,400
The Press:
Why not do thing
more than that?

785
00:33:53,400 --> 00:33:56,166
Is that strong
presidential leadership?

786
00:33:56,166 --> 00:33:57,767
Mr. Earnest:
I think that it is strong
presidential leadership.

787
00:33:57,767 --> 00:34:01,900
Advocating an approach
that is balanced,

788
00:34:01,900 --> 00:34:06,166
that mirrors the approach that
bipartisan commissions have

789
00:34:06,166 --> 00:34:08,299
taken, that everybody
acknowledges would do

790
00:34:08,300 --> 00:34:10,633
something serious about
our deficit challenges,

791
00:34:10,632 --> 00:34:14,065
reducing our deficit by $4
trillion over the course of

792
00:34:14,065 --> 00:34:17,833
10 years, including some very
difficult cuts in government

793
00:34:17,833 --> 00:34:19,667
programs that in a different
fiscal environment the

794
00:34:19,667 --> 00:34:21,699
President might
otherwise support.

795
00:34:21,699 --> 00:34:26,567
We've cut government spending
down to the lowest level as it

796
00:34:26,567 --> 00:34:28,233
was during the Eisenhower
administration when you

797
00:34:28,233 --> 00:34:30,533
consider it as a
percentage of GDP.

798
00:34:30,533 --> 00:34:32,500
So the President has made
the important sacrifices.

799
00:34:32,500 --> 00:34:34,233
The President has laid
out a specific plan.

800
00:34:34,233 --> 00:34:36,233
And the President has made his
case to the public about why

801
00:34:36,233 --> 00:34:37,834
this is the right approach.

802
00:34:37,833 --> 00:34:40,033
The Press:
So could it come to the point
of going over the fiscal

803
00:34:40,033 --> 00:34:42,132
cliff, and obviously that
would hurt the middle class

804
00:34:42,132 --> 00:34:44,232
that the President says
he's the champion of --

805
00:34:47,467 --> 00:34:50,133
will he feel comfortable
pointing to what he's done

806
00:34:50,132 --> 00:34:54,065
and saying, well, hey, I did
that and that was enough,

807
00:34:54,065 --> 00:34:54,699
that was strong leadership?

808
00:34:54,699 --> 00:34:55,799
Mr. Earnest:
When you say "that,"
what do you mean?

809
00:34:55,800 --> 00:34:57,767
The Press:
The things that you
just talked about.

810
00:34:57,767 --> 00:34:59,500
Is that enough in the end?

811
00:34:59,500 --> 00:35:02,066
Mr. Earnest:
I think the President and the
American people acknowledge

812
00:35:02,066 --> 00:35:04,533
that he's played an important
leadership role in trying to

813
00:35:04,533 --> 00:35:05,866
advance this debate.

814
00:35:05,867 --> 00:35:07,433
And I think most
people recognize,

815
00:35:07,433 --> 00:35:11,066
and I think most people who
take a look at this situation

816
00:35:11,066 --> 00:35:12,767
without a partisan
point of view --

817
00:35:12,767 --> 00:35:15,433
and it doesn't seem like there
are many people in Washington,

818
00:35:15,433 --> 00:35:16,900
D.C. who are able
to do that --

819
00:35:16,900 --> 00:35:18,800
but people who take a look
at this from a neutral

820
00:35:18,800 --> 00:35:22,967
perspective acknowledge that
congressional Republicans who

821
00:35:22,967 --> 00:35:25,967
have dug in their heels to
protect the tax benefits of

822
00:35:25,967 --> 00:35:30,500
millionaires and billionaires
are the chief obstacle to

823
00:35:30,500 --> 00:35:31,700
a solution.

824
00:35:31,700 --> 00:35:33,500
I'm not trying to make the
case to you that these kinds

825
00:35:33,500 --> 00:35:37,600
of decisions are easy, but I
do think that it's pretty easy

826
00:35:37,600 --> 00:35:40,000
to figure out right now what
the chief stumbling block is.

827
00:35:40,000 --> 00:35:42,734
And as soon as Republicans
are willing to drop that

828
00:35:42,734 --> 00:35:45,933
opposition and acknowledge
that a balanced approach is

829
00:35:45,934 --> 00:35:47,633
the one that's been
historically supported

830
00:35:47,633 --> 00:35:49,366
by bipartisan commissions
that have spent a lot of

831
00:35:49,367 --> 00:35:50,867
time studying this --

832
00:35:50,867 --> 00:35:53,033
it's an approach that's
supported by a majority of

833
00:35:53,033 --> 00:35:56,232
the American public and even a
majority of some Republicans,

834
00:35:56,233 --> 00:35:59,667
according to at least
a couple of polls --

835
00:35:59,667 --> 00:36:01,834
that that's how we're going to
eventually reach a solution.

836
00:36:01,834 --> 00:36:06,700
And the goal of the sequester
is to raise the stakes.

837
00:36:06,700 --> 00:36:09,399
And this is a goal
that was shared by

838
00:36:09,400 --> 00:36:11,266
Republicans and Democrats.

839
00:36:11,266 --> 00:36:16,133
So there is no doubt that
congressional failure to take

840
00:36:16,133 --> 00:36:19,799
action on this will have very,
very serious consequences.

841
00:36:19,800 --> 00:36:25,367
And recognition of those
consequences is hopefully the

842
00:36:25,367 --> 00:36:30,633
first step to reevaluating
priorities and finding the

843
00:36:30,633 --> 00:36:33,700
kind of balanced approach
that should be bipartisan in

844
00:36:33,700 --> 00:36:36,232
nature, that has been
bipartisan in the past,

845
00:36:36,233 --> 00:36:38,800
and that will ultimately deal
with our deficit challenges,

846
00:36:38,800 --> 00:36:41,000
which is something that both
Republicans and Democrats

847
00:36:41,000 --> 00:36:42,533
agree we need to do.

848
00:36:42,533 --> 00:36:45,500
The Press:
And then just a quick follow
on President Clinton's role in

849
00:36:45,500 --> 00:36:46,533
the convention.

850
00:36:46,533 --> 00:36:48,866
President Obama is not
concerned at all that having

851
00:36:48,867 --> 00:36:52,567
him in that role will
highlight their respective

852
00:36:52,567 --> 00:36:56,700
economic policies or outcomes,
and that that may not serve

853
00:36:56,700 --> 00:36:59,500
President Obama well
in the convention?

854
00:36:59,500 --> 00:37:01,834
Mr. Earnest:
I mean, for detailed questions
about the convention,

855
00:37:01,834 --> 00:37:03,165
I would encourage you to
check with the campaign.

856
00:37:03,166 --> 00:37:05,000
But what I can
tell you is that --

857
00:37:05,000 --> 00:37:06,100
The Press:
I'm talking about records.

858
00:37:06,100 --> 00:37:07,033
Mr. Earnest:
Yes, I understand.

859
00:37:07,033 --> 00:37:10,433
And I think as I mentioned
earlier, a couple of things --

860
00:37:10,433 --> 00:37:12,166
President Clinton has appeared
publicly with President Obama

861
00:37:12,166 --> 00:37:14,300
in a couple of
different settings,

862
00:37:14,300 --> 00:37:18,834
I think most recently in New
York a couple of months ago.

863
00:37:18,834 --> 00:37:21,500
And as I mentioned, I
think President Clinton,

864
00:37:21,500 --> 00:37:23,033
because of his record
on these issues,

865
00:37:23,033 --> 00:37:27,834
because he shares President
Obama's view that the best

866
00:37:27,834 --> 00:37:30,299
policies to put in place are
the kinds of economic policies

867
00:37:30,300 --> 00:37:32,100
that invest in
the middle class,

868
00:37:32,100 --> 00:37:34,000
that will grow our economy
from the middle out,

869
00:37:34,000 --> 00:37:37,133
are the right approach --

870
00:37:37,133 --> 00:37:39,165
that President Clinton's
participation at the

871
00:37:39,166 --> 00:37:46,266
convention will be a very
important way to reinforce

872
00:37:46,266 --> 00:37:47,900
President Obama's views.

873
00:37:47,900 --> 00:37:50,433
And that multiplier
effect, if you will,

874
00:37:52,900 --> 00:37:55,834
will make it clear the
choice that voters have

875
00:37:55,834 --> 00:37:57,600
in this election.

876
00:37:57,600 --> 00:37:58,467
George.

877
00:37:58,467 --> 00:38:00,333
The Press:
Thank you. Two questions.

878
00:38:00,333 --> 00:38:03,433
Do you think it's appropriate
for a candidate to have

879
00:38:03,433 --> 00:38:05,433
fundraisers on foreign soil?

880
00:38:05,433 --> 00:38:07,900
And secondly, is the President
watching the Olympics?

881
00:38:07,900 --> 00:38:11,500
(laughter)

882
00:38:11,500 --> 00:38:13,367
Mr. Earnest:
For your question about the
propriety of fundraising

883
00:38:13,367 --> 00:38:15,633
locations, I'd refer you to my
colleagues at the campaign who

884
00:38:15,633 --> 00:38:17,433
organize fundraising events.

885
00:38:17,433 --> 00:38:20,633
They can talk to you
about their views on that.

886
00:38:20,633 --> 00:38:24,165
In terms of the President's
Olympic viewership,

887
00:38:24,166 --> 00:38:29,633
I haven't spoken to him
since the events began their

888
00:38:29,633 --> 00:38:35,265
around-the-clock broadcasting
on a range of NBC outlets,

889
00:38:35,266 --> 00:38:37,100
but I can tell you that
going into the Olympics,

890
00:38:37,100 --> 00:38:38,533
the President was
very interested.

891
00:38:38,533 --> 00:38:40,200
So now that we're
72 hours into it,

892
00:38:40,200 --> 00:38:42,200
I would be surprised if the
President hadn't spent some

893
00:38:42,200 --> 00:38:44,265
time watching our
Olympians compete on

894
00:38:44,266 --> 00:38:46,467
the international stage.

895
00:38:46,467 --> 00:38:47,166
Alexis.

896
00:38:47,166 --> 00:38:49,633
The Press:
Josh, can we follow
up on Senator McCain.

897
00:38:49,633 --> 00:38:52,200
My understanding is he's been
trying to float alternatives

898
00:38:52,200 --> 00:38:54,899
that might attract
Republican support.

899
00:38:54,900 --> 00:38:57,400
Does the President believe
that Senator McCain has been

900
00:38:57,400 --> 00:39:00,100
showing leadership in his
party up to this part,

901
00:39:00,100 --> 00:39:02,533
trying to work on the
sequestration problems?

902
00:39:02,533 --> 00:39:06,500
And secondly, isn't this level
of anxiety that's building

903
00:39:06,500 --> 00:39:09,433
exactly what the President
had hoped might --

904
00:39:09,433 --> 00:39:11,767
isn't that what he expected
to have happen by now?

905
00:39:11,767 --> 00:39:13,466
Is that a good sign,
in other words,

906
00:39:13,467 --> 00:39:18,266
that there's a lot of interest
percolating on this issue now?

907
00:39:18,266 --> 00:39:20,000
Mr. Earnest:
Well, as I mentioned, the
reason that both Republicans

908
00:39:20,000 --> 00:39:22,700
and Democrats voted for this
last summer was because it

909
00:39:22,700 --> 00:39:25,366
would raise the stakes and
it would be an action-forcing

910
00:39:25,367 --> 00:39:27,800
mechanism to convince
Congress to take the

911
00:39:27,800 --> 00:39:29,166
steps that they need.

912
00:39:29,166 --> 00:39:32,934
These steps aren't easy, and
so raising the stakes has been

913
00:39:32,934 --> 00:39:35,900
important, and it was an
important part of the plan for

914
00:39:35,900 --> 00:39:40,100
eventually reaching some sort
of bipartisan agreement to

915
00:39:40,100 --> 00:39:42,933
take these kinds of steps.

916
00:39:42,934 --> 00:39:47,000
So generally speaking, I
do think that this is what

917
00:39:47,000 --> 00:39:48,834
Democrats and Republicans had
in mind when they voted for

918
00:39:48,834 --> 00:39:50,033
the sequester.

919
00:39:50,033 --> 00:39:52,467
In terms of Senator McCain's
role in all of this,

920
00:39:52,467 --> 00:39:55,667
I'm not aware, frankly,
of all the things that --

921
00:39:55,667 --> 00:39:57,900
all the conversations that
Senator McCain has had or

922
00:39:57,900 --> 00:40:01,567
the proposals that he may
or may not be floating.

923
00:40:01,567 --> 00:40:05,033
But I can tell you that the
President has said many times

924
00:40:05,033 --> 00:40:07,700
that he's willing to work
with anybody in Congress,

925
00:40:07,700 --> 00:40:10,299
Democrat or Republican,
who is willing to pursue

926
00:40:10,300 --> 00:40:12,467
a constructive, balanced
approach to dealing with

927
00:40:12,467 --> 00:40:13,800
our deficit challenges.

928
00:40:13,800 --> 00:40:15,767
And if Senator McCain
is in that category,

929
00:40:15,767 --> 00:40:17,767
then I'm confident that
members of this administration

930
00:40:17,767 --> 00:40:20,933
will be working with
him to reach a solution.

931
00:40:20,934 --> 00:40:22,834
Yes, Victoria.

932
00:40:22,834 --> 00:40:26,500
The Press:
On the cyber security
bill coming up this week,

933
00:40:26,500 --> 00:40:29,266
which Senator McCain and some
other senators watered down to

934
00:40:29,266 --> 00:40:30,734
some extent last week --

935
00:40:30,734 --> 00:40:32,100
well, quite a lot last week --

936
00:40:32,100 --> 00:40:34,500
there's been some criticism in
the Senate that the President

937
00:40:34,500 --> 00:40:37,400
hasn't been involved
enough in getting that

938
00:40:37,400 --> 00:40:39,066
bill moving forward.

939
00:40:39,066 --> 00:40:41,133
Do you accept that criticism?

940
00:40:41,133 --> 00:40:41,933
Mr. Earnest:
I don't.

941
00:40:41,934 --> 00:40:45,300
I can tell you that while
I'm not able to speak on the

942
00:40:45,300 --> 00:40:47,734
specifics of the piece of
legislation that you're

943
00:40:47,734 --> 00:40:53,467
talking about, reaching a
coherent cyber security policy

944
00:40:53,467 --> 00:40:54,567
is something that the
President believes is

945
00:40:54,567 --> 00:40:57,133
very important both to
our economic security,

946
00:40:57,133 --> 00:40:59,567
but also our
national security.

947
00:40:59,567 --> 00:41:01,934
But in terms of the details of
the legislation that's moving

948
00:41:01,934 --> 00:41:03,967
through Congress, I'm going
to have to get some more

949
00:41:03,967 --> 00:41:05,734
information from my
colleagues on the National

950
00:41:05,734 --> 00:41:07,033
Security Council.

951
00:41:07,033 --> 00:41:08,933
I actually would just suggest
that you reach out to them

952
00:41:08,934 --> 00:41:10,667
directly and they can
fill you in on this.

953
00:41:10,667 --> 00:41:13,066
The Press:
Can I ask an
Olympic-related question?

954
00:41:13,066 --> 00:41:13,933
Mr. Earnest:
Sure.

955
00:41:13,934 --> 00:41:17,333
The Press:
Did the President watch
the opening ceremonies?

956
00:41:17,333 --> 00:41:19,633
Mr. Earnest:
To be honest with you, I don't
know whether or not he caught

957
00:41:19,633 --> 00:41:21,433
any of the opening ceremonies.

958
00:41:21,433 --> 00:41:26,000
The Press:
What is your view of the
decision by NBC to cut the

959
00:41:26,000 --> 00:41:29,967
tribute to the dead and
to air an interview by

960
00:41:29,967 --> 00:41:31,967
Ryan Seacrest instead?

961
00:41:31,967 --> 00:41:34,166
(laughter)

962
00:41:34,166 --> 00:41:35,900
Mr. Earnest:
Well, I watched the
Olympic ceremonies,

963
00:41:35,900 --> 00:41:38,266
and I'm not sure that I was
aware that that happened.

964
00:41:38,266 --> 00:41:39,900
But maybe that's because
I wasn't paying close

965
00:41:39,900 --> 00:41:41,300
enough attention.

966
00:41:41,300 --> 00:41:44,166
So I don't have any
specific reaction to that,

967
00:41:44,166 --> 00:41:47,700
and I'm not sure that I'm
prepared to stand up here

968
00:41:47,700 --> 00:41:49,265
and play media critic-in-chief.

969
00:41:49,266 --> 00:41:51,734
Cheryl, I'll give
you the last one.

970
00:41:51,734 --> 00:41:53,133
The Press:
Thanks.

971
00:41:53,133 --> 00:41:55,933
Democratic leaders on the
Hill are already working on

972
00:41:55,934 --> 00:42:00,934
a package with a continuing
resolution to get the spending

973
00:42:00,934 --> 00:42:03,500
bills out of the
political season.

974
00:42:03,500 --> 00:42:05,200
Does the White House
support a three-month

975
00:42:05,200 --> 00:42:08,165
or a six-month extension?

976
00:42:08,166 --> 00:42:09,867
Mr. Earnest:
I've seen those
reports, Cheryl.

977
00:42:09,867 --> 00:42:11,433
I'll have to get back to you
in terms of whether or not

978
00:42:11,433 --> 00:42:13,834
we're weighing in on
any of the proposals.

979
00:42:13,834 --> 00:42:18,667
I can tell you that the
President certainly believes

980
00:42:18,667 --> 00:42:23,433
that we shouldn't be in a
position where we're playing

981
00:42:23,433 --> 00:42:28,033
chicken in terms of shutting
down the government either in

982
00:42:28,033 --> 00:42:30,467
the election season or outside
of the election season.

983
00:42:30,467 --> 00:42:33,333
There should be a more
strategic approach that

984
00:42:33,333 --> 00:42:35,967
we can take to resolving
some of those challenges.

985
00:42:35,967 --> 00:42:37,834
But in terms of the proposals
that have been floated on

986
00:42:37,834 --> 00:42:39,265
Capitol Hill, I'm going to
have to get back to you in

987
00:42:39,266 --> 00:42:42,200
terms of whether or not there
is one that we have weighed in

988
00:42:42,200 --> 00:42:44,100
in support of. Okay.

989
00:42:45,166 --> 00:42:46,200
Thanks, everybody.